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1. What Is Services Marketing
• Services marketing is a form of marketing businesses that provide a service to their
customers use to increase brand awareness and sales. Unlike product marketing, services
marketing focuses on advertising intangible transactions that provide value to customers.
• The American Marketing Association defines services marketing as an organizational
function and a set of processes for identifying or creating, communicating, and delivering
value to customers and for managing customer relationship in a way that benefit the
organization and stake-holders.
• Services are (usually) intangible economic activities offered by one party to another.
Often time-based, services performed bring about desired results to recipients, objects, or
other assets for which purchasers have responsibility. In exchange for money, time, and
effort, service customers expect value from access to goods, labor, professional skills,
facilities , networks, and systems; but they do not normally take ownership of any of the
physical elements involved

2. Services
• Any intangible product, which is essentially a transaction and is
transferred from the buyer to the seller in exchange for some
consideration (or no consideration).
• Service is defined as to repair, maintain or provide something to
someone. An example of service is to fix a broken washing machine.
An example of service is to provide appetizers to a group of people at
a restaurant.

3. Nature of service
1. Intangibility:
• A physical product is visible and concrete. Services are intangible. The service cannot be touched
or viewed, so it is difficult for clients to tell in advance what they will be getting. For example,
banks promote the sale of credit cards by emphasizing the conveniences and advantages derived
from possessing a credit card.
2. Inseparability:
• Personal services cannot be separated from the individual. Services are created and consumed
simultaneously. The service is being produced at the same time that the client is receiving it; for
example, during an online search or a legal consultation. Dentist, musicians, dancers, etc. create
and offer services at the same time.
3. Heterogeneity (or variability):
• Services involve people, and people are all different. There is a strong possibility that the same
enquiry would be answered slightly differently by different
people (or even by the same person at different times). It is important to minimize the differences
in performance (through training, standard setting and quality assurance). The quality of services
offered by firms can never be standardized.

4. 4. Perishability:
• Services have a high degree of perishability. Unused capacity cannot be stored for future use. If
services are not used today, it is lost forever. For example, spare seats in an aeroplane cannot be
transferred to the next flight. Similarly, empty rooms in five-star hotels and credits not utilized
are examples of services leading to economic losses. As services are activities performed for
simultaneous consumption, they perish unless consumed.
5. Changing demand:
• The demand for services has wide fluctuations and may be seasonal. Demand for tourism is
seasonal, other services such as demand for public transport, cricket field and golf courses have
fluctuations in demand.
6. Pricing of services:
• Quality of services cannot be standardized. The pricing of services are usually determined on
the basis of demand and competition. For example, room rents in tourist spots fluctuate as per
demand and season and many of the service providers give off-season discounts.
7. Direct channel:
• Usually, services are directly provided to the customer. The customer goes directly to the
service provider to get services such as bank, hotel, doctor, and so on. A wider market is
reached through franchising such as McDonald’s and Monginis.

5. Limitations of services
1. A service cannot be demonstrated.
2. Sale, production and consumption of services takes place simultaneously.
3. A service cannot be stored. It cannot be produced in anticipation of demand.
4. Services cannot be protected through patents.
5. Services cannot be separated from the service provider.
6. Services are not standardized and are inconsistent.
7. Service providers appointing franchisees may face problems of quality of
services.
8. The customer perception of service quality is more directly linked to the
morale, motivation and skill of the frontline staff of any service organization.

6. 1. Goods Meaning
• The meaning of goods can be expressed in terms of economics, as any item that provides utility and
fulfills the needs of the consumer.
• Goods can be classified as durable and non-durable based on their durability. Durable goods last for
a long time while non-durable goods perish sooner than durable goods.
• Goods involve transfer of ownership from the seller once it is purchased by the consumer (buyer).
There is a certain time period that is required for the production of goods.
• Goods due to their tangible nature have a proper structure, size and shape. They can be produced as
per the market demand.
2. Services Meaning
• Services are the intangible and non physical part of the economy that cannot be touched. They are
perishable in nature as they need to be provided at a moment when requested by the consumer.
• Service lacks a physical identity and cannot be owned, it can only be utilised. For e.g, when having
dinner at a restaurant you can avail the concierge services but you do not own the restaurant.
• In other words, there is no transfer of ownership in services and unlike goods, services cannot be
stored and utilised later. Also, services cannot be distinguished from the service provider.

7. Basis of Comparison Goods Services
Nature Tangible Intangible
Transfer of Ownership Possible Not Possible
Separable Goods can be separated from the
seller
Services cannot be separated from
the service provider
Storage Goods can be stored Services cannot be stored
Perishable Not all goods are perishable Services are perishable
Production and Consumption Goods have a significant time gap
between production and
consumption
Services are produced and
consumed together

8. • Key Differences Between Goods and Services
• The basic differences between goods and services are mentioned below:
• Goods are the material items that the customers are ready to purchase for a price. Services are the
amenities, benefits or facilities provided by the other persons.
• Goods are tangible items i.e. they can be seen or touched whereas services are intangible items.
• When the buyer purchases the goods by paying the consideration, the ownership of goods moves
from the seller to the buyer. Conversely, the ownership of services is non-transferable.
• The evaluation of services is difficult because every service provider has a different approach of
carrying out services, so it is hard to judge whose services are better than the other as compared to
goods.
• Goods can be returned to or exchanged with the seller, but it is not possible to return or exchange
services, once they are provided.
• Goods can be distinguished from the seller. On the other hand, services and service provider are
inseparable.
• A particular product will remain same regarding physical characteristics and specifications, but
services can never remain same.
• Goods can be stored for future use, but services are time bound, i.e. if not availed in the given time,
then it cannot be stored.
• First of all the goods are produced, then they are traded and finally consumed, whereas services are
produced and consumed at the same time.

9. PRODUCT MARKETING
SERVICE MARKETING
Meaning Product marketing refers to the process in which the
marketing activities are aligned to promote and sell a
specific product for a particular segment.
Service marketing implies the marketing of economic
activities, offered by the business to its clients for
adequate consideration.
Marketing mix 4 P's 7 P's
Sells Value Relationship
Who comes to whom? Products come to customers. Customers come to service.
Transfer It can be owned and resold to another party. It is neither owned nor transferred to another party.
Returnability Products can be returned. Services cannot be returned after they are rendered.
Tangibility They are tangible, so the customer can see and touch it,
before coming to the buying decision.
They are intangible, so it is difficult to promote services.
Separability Product and the company producing it, are separable. Service cannot be separated from its provider.
Customization Products cannot be customized as per requirements. Services vary from person to person and they can be
customized.
Imagery They are imagery and hence, receive quick response from
customers.
They are non-imagery and do not receive quick response
from customers.
Quality comparison Quality of a product can be easily measured. Quality of service is not always easily measurable.

10. service marketing mix
• What is Service Marketing Mix?
• The service marketing mix is a combination of the different elements of
services marketing that companies use to communicate their organizational
and brand message to customers. The mix consists of the seven P’s i.e.
Product, Pricing, Place, Promotion, People, Process and Physical Evidence.
The service marketing mix, also known as the extended marketing mix, treats
the service that the business offers just as it would treat a product. While the
first four P’s are involved in product marketing too, the remaining three P’s
focus mainly on service delivery and enhancing customer satisfaction

11. Elements of Service Marketing Mix
• Product – Unlike a product, a service is intangible and cannot be measured in
terms of look, feel and other qualities present in a commodity. However, it can be
customized to suit the user requirements and give a personal touch. However, the
service product is heterogeneous and perishable in nature just like a normal
product and needs to be designed with the utmost care to increase customer
satisfaction.
• Pricing – The pricing strategy for services is difficult to achieve unlike in
products, wherein the final price depends on the raw materials, cost of production
and distribution etc. However, in service pricing, you cannot measure the cost of
the services you offer that easily. For example, in the education industry, how
would you set the price of the quality of education imparted? Or if you are in the
food and hospitality industry, how would you charge the customers for the care
shown by the host or hostess, the ambience in the restaurant or the fine taste of
your delicacies? Therefore, pricing plays a crucial role in the services marketing
mix for your business.

12. • Place – The place where you choose to conduct your service business can make or
break your organizational growth. You need to understand how visible your setup
would be to potential customers and how frequently it would be visited by
consumers. For exaample, would you set up a fast-food centre near a college or
office hub, where students and professionals can quickly grab a bite or next to a
big restaurant in a classy neighbourhood?
• Promotion – The service industry usually has stiff competition across different
verticals and your business would need a lot of promotions to pass on the right
message to potential customers. While advertising, online and direct marketing are
the best ways to promote your service you need to have a good mix of
communication channels to address a larger audience.
• People – Your business is not just built on your goals, company vision and
principles but also depends heavily on your employees. It is the people who work
for you who are responsible in creating happy and returning customers. People in
your organization are the epicentre of the quality of your services and need to have
the best of talents to gain customer loyalty and trust.

13. • Process – How efficiently your services are delivered to the customer is an
important aspect of your service blueprint and you need to emphasize on setting
up a process for doing so. You need to ask yourself “Do I want to have a process
in place that is quick, reliable and easy to monitor or one that is sluggish but
necessarily passes through several layers of hierarchy?” In today’s competitive
world, companies are always in the race to deliver services quickly, efficiently and
with the highest quality.
• Physical Evidence – While offering your services, you can either do it without
adding a personal touch or by differentiating your offerings by adding an element
of delight to the customer. For example, would you prefer to visit a bookstore that
only has a stack of books with a cashier nearby or one that also has a place to sit,
where you can browse through the book you are interested in and enjoy the light
music in the backdrop while you make a choice? The ambience of a bookstore or
restaurant, the music, the friendly face of your travel host etc. are all part of the
physical evidence of a service and they are an important element of the service
marketing mix.

14. Trends In Services Marketing
1. Mobilization
The mobilization of audiences and content is probably the most significant trend that B2B marketers
must rapidly adjust to. Clients can now consume and share content from any mobile device, meaning
marketers must bake mobile into their strategy early on, not leave it as an after-thought. All your
digital assets now need to be mobilized so that you can engage with your audience whose habits have
changed overnight. Smartphones, tablets are now their preferred devices for consuming and sharing
content on the go.
2. Ultra-personalisation
The customization and personalization of content to deliver relevance for the individual client or
prospect will significantly impact your ability to connect and retain your audiences. Forward-thinking
professional marketers are deploying strategies and next generation marketing technology to deliver
am ultra-personalised content experience that adds more value to the client relationship. This
approach may solve the ongoing battle between fee earners and relationship owners wanting to
control what is best for their clients and marketing teams wanting to control the brand and review
what is sent. The result is highly relevant content delivered on a perceived one-to-one basis, directly
from the individual owning or managing the relationship and not the just the firm.

15. 3. Marketing Automation
The reduction of content duplication across digital channels in order to free up
marketing time for other initiatives. This is a content-centric approach to marketing
that has been a popular strategy in consumer marketing, yet high-value services
marketing has been slow to adopt due to the long sales cycle and internal
complexities, among other factors. Advanced digital tools can now cater for the
automated delivery of relevant content to contacts based on individual preferences
for content, frequency and channel. The tools are surprisingly easy to implement and
have a hugely positive impact on your ROI and team moral.
4. Empowered Technology
The latest innovations in decentralized marketing technology provide client-facing
professionals and teams with access to intuitive digital tools and mobile apps,
empowering them to execute and monitor their own client relationship marketing
activities. These tools are now accessible via multiple devices, desktop, smartphone,
and tablets, where content can be consumed, curated, shared and socialised without
the involvement of a central marketing team. However, central marketing teams
retain control of these tools as administrators, the result being less focus and time
spent on execution and more energy focused on strategy.

16. 5. Marketing-Centric CRM
Firms have invested untold amounts of money and time on CRM implementations
with questionable results. The professional services CRM playing field has been
levelled recently, with traditionally dominant installed platforms losing their
momentum and struggling to innovate in this mobilised and cloud-based economy.
There is already a shift towards marketing orientated CRM's platforms that have
better usability and mobile baked in, with advanced marketing workflows and
integrations to help navigate to long relationship sales cycle.

17. Classification of services
• It is possible to carry out a classification of services based on two
general dimensions such as what is being processed, whether is it a
person or an object, and how is it being processed? In other
words, what is the nature of the process (tangible
or intangible actions).
1) Classification of service based on tangible action
Wherever people or products are involved directly, the service classification can be
done based on tangibility.
a) Services for people – Like Health care, restaurants and saloons, where the
service is delivered by people to people.
b) Services for goods – Like transportation, repair and maintenance and others.
Where services are given by people for objects or goods.

18. • 2) Classification of services based on intangibility
• There are objects in this world which cannot be tangibly quantified. For example –
the number of algorithms it takes to execute your banking order correctly, or the
value of your life which is forecasted by insurance agents. These services are
classified on the basis of intangibility.
• a) Services directed at people’s mind – Services sold through influencing the
creativity of humans are classified on the basis of intangibility.
• b) Services directed at intangible assets – Banking, legal services, and insurance
services are some of the services most difficult to price and quantify.

19. More general classification of services based on the type of function that is provided
through them can be as follows:
• Business services.
• Communication services.
• Construction and related engineering services.
• Distribution services.
• Educational services.
• Environmental services.
• Financial services.
• Health-related and social services.
• Tourism and travel-related services.
• Recreational, cultural, and sporting services.
• Transport services.
• Other services not included elsewhere.

20. positioning and differentiation of services
Positioning is the place you hold in the mind's eye of your target audience. Differentiation is how
your firm is different or stands out from your competitors on a non-price basis.
“Positioning is concerned with the identification, development and communication of a
differentiated advantage which makes the organization’s products and services perceived as
superior and distinctive to those of its competitors in the mind of its target customers.”
Positioning offers the opportunity to differentiate any service. Each service firm and its goods and
services has a position or image in the consumer’s mind and this influences purchase decisions.
Positions can be implicit and unplanned and evolve over a period of time or can be planned as part
of the marketing strategy and then communicated to the target market. The purpose of planned
positioning is to create a differentiation in the customer’s mind which distinguished the company’s
services from other competitive services. It is important to establish a position of value for the
product or service in the minds of the target market, i.e. it must be distinguishable by an attribute,
or attributes, which are important to the customer. These attributes should be factors which are
critical in the customer’s purchase decision.

21. There is therefore no such thing as a commodity or ‘standard’ service. Every service
offered has the potential to be perceived as different by a customer. Buyers have
different needs and are therefore attracted to different offers. It is therefore
important to select distinguishing characteristics which satisfy the following criteria:
• Importance — the difference is highly valued to a sufficiently large market
• Distinctiveness — the difference is distinctly superior to other offering which are
available.
• Communicability — it is possible to communicate the difference in a simple and
strong way.
• Superiority — the difference is not easily copied by competitors.
• Affordability — the target customers will be able and willing to pay for the
difference. Any additional cost of the distinguishing characteristic(s) will be
perceived as sufficiently valuable to compensate for any additional cost.
• Profitability- the company will achieve additional profits as a result of introducing
the difference
• https://www.mbaknol.com/marketing-management/positioning-and-differentiation-of-services/ (for more
info.)

22. Positioning OF service marketing

23. Consumer behavior in service
• “Consumer behavior is the actions and the decision processes of people who
purchase goods and services for personal consumption” – according to Engel,
Blackwell, and Mansard, Consumer buying behavior refers to the study of
customers and how they behave while deciding to buy a product that satisfies their
needs.
• All of us buy different services for various reasons. One person may prefer to go
to a restaurant for good food while the other may opt for an exclusive restaurant,
for status. One person may prefer to read ‘The Times of India’ early in the
morning, while the other may prefer to read the same newspaper after coming
back from the office. There are women who don’t go to beauty parlors at all,
whereas there are others who go regularly. Similarly, there are many such
examples telling us that people show different behavior in buying and using
different products and services.

24. In the purchase of any particular service six distinct roles are played. These are:
• i) Initiator: The person who has a specific need and proposes to buy a particular service.
• ii) Influencer: The person or the group of people who the decision maker refers to or who
advise. These could be reference groups, both primary and secondary. It could be even
secondary reference group like word of mouth or media, which can influence the decision
maker.
• iii) Gatekeepers: The person or organization or promotional material which acts as a filter on
the range of services which enter the decision choice set.
• iv) Decider: The person who makes the buying decision, irrespective of whether he executes the
purchase himself or not. He may instruct others to execute. It has been observed at times, more
typically in house hold or family or individual related services, one member of the family may
dominate in the purchase decision.
• v) Buyer: The person who makes the actual purchase or makes bookings for a service like
travel, hotel room, hospital, diagnostic lab, etc.
• vi) User: The person who actually uses or consumes the product. It can be other than the buyer.
In a number of services, it has been observed that users are also the influencers.

25. Factors influencing buyer behavior
There are a number of factors or variables which affect the buying behavior. For example; people go on
holiday during the vacation time so vacations become a variable. A person may visit an exclusive restaurant
during ‘happy hours’, which he does not visit normally. In this case the marketing efforts of the organization
(sales person and the scheme) become the factor influencing to buy. Similarly, there are other factors which
affect the buying decision. These factors can be classified into four major categories, namely:
1. Situational Factors: The situational factors influencing the buying behavior are, the influence of
time pressure in product and brand choice, the atmosphere of the retail outlet, occasion of purchase etc. For
example, if you are traveling, then demand for lodging and boarding will obviously be there.
2. Socio Cultural Factors: Buyers or consumers do not take buying decision or the decision not to buy, in
a vacuum. Rather, they are strongly influenced by Socio Cultural factors.
a) Cultural Factors: Children acquire from their environment a set of beliefs values, and customs which
constitute culture. These beliefs, values and customs go deeper and deeper as a person grows. Therefore, it is
sometimes said that culture is learnt as a part of social experience. The various sub-categories within a culture
can be identified based on religion, age, gender, occupation, social class, geographical location etc. This
classification is significantly relevant from the consumer behavior point of view

26. b) Reference Groups: There are certain groups to which people look to guide their behaviour. These reference groups
may guide the choice of a product but may not be the brand. Peer groups and the peer pressure have generally been
observed to play an important role in the purchase of credit cards, cell phones, etc. The knowledge of reference group
behaviour helps in not only offering substitutes but also in pricing and positioning them. It is important to note that there are
‘negative’ reference groups also and some persons don’t want to associate themselves with these groups. The negative
reference groups guide the behaviour in terms of “what not to do”.
c) Family: The family is another major influence on the consumer behaviour. The family consumption behaviour to a
large extent depends on the family life cycle. The stages in family life cycle include bachelorhood, newly married,
parenthood with growing or grown up children, post-parenthood and dissolution. Knowledge of these stages helps greatly
in knowing the buying process. Often family members play a significant role in the purchase of a particular service, for
example it’s the teenage children who influence the parents to decide on a destination and middle aged buy more of
insurance services than the younger ones.
3. Psychological Factors
a) Perceptions: It is the process by which buyers select, organize and interpret information into a meaningful
impression in their mind. Perception is also selective in which only a small part is perceived out of the total what is
perceptible. Buyer’s perception of a particular product greatly influences the buying behaviour. For example, if the
buyer’s perception of a product is not positive it requires much harder efforts from the marketing or sales person to convince
the buyer on the qualities of the product and thus suggesting him to purchase it.

27. b) Attitude: An attitude is a learned predisposition to respond in a consistently favourable or unfavorable manner
with respect to a market offer (i.e. a brand, a particular shop or retail outlet, an advertisement, etc.). Attitude is a
dispositional term indicating that attitudes manifest themselves in behaviour only under certain conditions. Knowing a
buyer’s attitude towards a product without knowing the personal goals is not likely to give a clear prediction of his
behavior.
c) Motivation: Motivation is the driving force within individuals that compel them to action. This driving force is
subconscious and the outcome of certain unfulfilled need. Needs are basically of two types. First, the ‘innate needs’
those needs an individual is born with and are mainly physiological. They include all the factors required to sustain
physical life e.g., food, water, shelter, clothing, etc. Secondly, the ‘acquired needs’ those which a person acquires
as he/she grows and these needs are mainly psychological, like love, fear, esteem, acceptance etc. For any given need,
there could be a variety of goals.
4. Personal Factors
a) Personality: Personality can be described as the psychological characteristics that determine how an individual
will react to his or her environment. There are a number of dimensions (personality traits) against which an appreciation
of an individual’s personality can be developed. Each personality trait denotes two absolute points and a person’s
personality characteristics can be identified somewhere between those two absolute points, indicating the proximity to
either of the two.
b) Life Style: Lifestyle as distinct from social class or personality is nothing but a person’s pattern of living and is
generally expressed in his/her activities, interests and opinions. Life styles suggest differences in the way people opt
to spend on different products differently. Life style variables (psychographics variables) help a firm to identify the
‘Inner consumer’ or the feelings of the consumer about their products which needs to be stressed in advertising
campaigns.

28. c) Demographic Factors: Buyer’s demographic factors like age, gender, education,
occupation, etc. also have influence on the purchase behaviour. These factors are
very much significant in the study of behaviour of buyers. For example, fast food
outlets are more patronized by the teenagers than the elderly persons- example of
age as a factor; air travel is more used by the executives than the factory workers-
examples of occupation as a factor.

29. Customers Need and Expectations
• Customer Expectations are the needs, wants, and preconceived ideas of a customer about a product or
service. Customer expectation will be influenced by a customer’s perception of the product or service
and can be created by previous experience, advertising, word of mouth, awareness of competitors, and
brand image. The level of customer service is also a factor, and a customer might expect to encounter
efficiency, helpfulness, reliability, confidence in the staff, and a personal interest in his or her
patronage. Knowing what the customer expects is probably the most critical step in delivering service
quality. If an organization is able to understand and meet customer expectations, then customer
satisfaction may be easily attained.

30. Types of Customers Expectations
Customer’s service expectations largely depend upon the reference points of an
individual customer that is why from a single point of service different customers
hold different expectations. Depending upon varied reference points, service
expectations can be divided into different levels or types that are:
a) Ideal service level: Ideal level of a service may be explained as a “dream
service”. This is the kind of a service a customer would expect in ideal situation and
will generate a delightful service experience.
b) Desired service level: Desired service is the “wished for” level of service
quality that a customer believes can and should be delivered. This is the level of
service a customer would expect in normal circumstances.
c) Adequate service level: It is the minimum level of service that a customer
will accept without being dissatisfied. It may not be the best but bare minimum a
customer would accept.
d) Predicted service level: It is the level of service quality a customer believes
a firm will actually deliver.

31. Meaning of Perception
The term “perception” can be defined as the ability to derive meaning. Derived from the word “perceive”, it refers to
the ability of giving meaning to whatever is sensed by our sense organs. It is the process through which an individual
interprets ones’ sensory impressions to give meaning to them. Schiffman defines it as “the process by which an individual
selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.”
Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. A person
receives information through the senses: sight, taste, hearing, smell and touch. How and what consumers perceive strongly
affect their behaviour toward products, services, prices, package designs, salespeople, stores, advertisements and
manufacturers.
Nature of perception:
1. Perception is a complex process. After a stimulus is detected by the sense organs, the perception process comes into
play and involves the interplay of three processes, viz., selection, organization and interpretation. It is a dynamic process.
2. It is also an intellectual process; it involves a lot of cognitive effort. Once sensation takes place, the perception
process involves the selection, organization and interpretation of data.
3. Perception is broad in nature; it includes a physiological component (through sensation), as well as sociological and
psychological components.
4. Perception is a subjective process as two people may perceive the same stimuli differently. While two persons may
be exposed to the same stimuli, the manner in which they select them, organize and interpret them is different. This is
because the two are impacted by their background, learning and experiences, motivation, personality, cultures, values and
lifestyles, social class effects etc which may be different from each other.

32. Consumer decision making
• The consumer decision-making process involves five basic steps. This
is the process by which consumers evaluate making a purchasing
decision. The 5 steps are problem recognition, information search,
alternatives evaluation, purchase decision and post-purchase
evaluation.

34. Distributing services
• The distribution sector provides the necessary link between
producers and consumers, within and across borders. The efficiency
of the sector is crucial to ensuring that consumers have extensive
access to a wide variety of goods at competitive prices.
• Distribution is the process of delivering or selling products and
services from the producer/manufacturer to customers. As
businesses become reach more locations it becomes very crucial to
expanding distribution to make sure that products reach the
customer's safely and timely

35. Why are distribution services important?
Distribution is a vital element of any business operation. Without its efficient service, any industry
business cannot ensure a good relationship between customers and manufacturers in providing the best
possible service. If there are loopholes in the system then deliveries do not happen properly which
leads to annoying customers, suppliers, and vendors who lose trust in the company. For a successful
distribution service companies need to have constant feedback process so that all the associates are
satisfied and if any corrections have to be made for improvements. For certain online delivery
services, customers will not have a look at the product until they buy by trusting the images and
descriptions provided. Therefore, distribution services need to be genuine and efficient by connecting
them and building reliable relationships.
A good distribution system involves taking care of factors like:
• An efficient transport network for taking the goods into all the locations.
• A reliable tracking for ensuring that correct goods reach the intended person on time.
• A proper packaging that makes sure that goods are intact while reaching the destination.
• An accessible storage space where the products can be stored for easy distribution.
• A reverse logistics service in ensuring optimal customer satisfaction.

36. Distribution of services
• A distribution channel consists of a sequence of firms distributing a service from a producer to a
consumer. There are two methods of distribution of services, namely,
1. Direct sale method of distribution of services
Many services are distributed directly from provider to customer. Direct sale is chosen due to
inseparability of service and provider. Services of doctors, dry cleaners, beauticians, personal care
services, consultancy services, entertainment etc. are examples of direct selling. The direct sale of
service takes place in two ways: the consumer goes to the service firm e.g., restaurants, hospitals,
etc. Alternatively, the service provider goes to the customer in the case of domestic services,
interior design, building repairs, etc
2. Through mediator

37. What is service delivery?
• Service delivery is a business framework that supplies services from a provider to
a client. It also includes the constant interaction between the two parties during the
duration of the time in which the provider supplies the service and the customer
purchases it. Essentially, a service delivery company provides something to a
customer they can't create on their own. That service could be anything from a
task to technology or information. It can fall into two broad categories of general
reference for any service or more industry-specific models for technical service.
• Service delivery processes typically aim to provide the client with increased value
by setting standards, policies, principles and constraints to guide all aspects of
their business and customer interactions. Sometimes service delivery may involve
a third-party or outsourced supplier besides the provider and the client.

38. What are the 4 components of service delivery?
There are four logically sequenced steps or areas that companies use to provide the best customer
experience through their service delivery. Focusing on these elements can give a broader
understanding of the scope of service delivery:
1. Service culture
Service culture relates to the leadership principles, vision, mission, work habits and values of a
service provider company. Management controls these items, which set a basis for operations
throughout the entire organization. Maintenance and development of these elements can develop the
social processes of an organization and help serve the long-term success of the company.
2. Employee engagement
Employee engagement focuses on those who work within an organization to provide service delivery.
Human resources and other leadership supervisors can use their influence to shape employee
attitudes, activities and purposes that align with the service culture of the organization. This serves as
the link between the service delivery design process and the excellence model that the customer
experiences.
3. Service quality
Service quality includes all strategies, performance management systems and processes involved in
service delivery. These items help define the management model that helps the client reach their end
goal within the service delivery process. This element is the foundation of the service provider and
client partnership.

39. 4. Customer service
Customer service focuses on providing the client with both the resources and
knowledge they desire about their service delivery product. It includes items like
account management, customer intelligence and continuous improvement. This phase
uses a continuous review and collaboration process to understand how customers
perceive the organization's service delivery and what you can do to make it better. This
can work most effectively when the customer is part of the creation and delivery
process.
Why is service delivery important?
Service delivery is important because it helps provide people with amenities they want
or need by linking them to an organization with the resources to provide those services.
Companies can tailor service delivery to meet the specific needs of their customers
through function or price. Engaging in thoughtful, customer-focused service delivery
may also help distinguish an organization from its competitors by providing higher
quality service.

40. key intermediaries for service delivery
1. Agents
• selling --- contractual authority to selling
• purchasing--- purchase for a buyer
• facilitating --- help with marketing process
2. Brokers --- bring buyers and sellers together
3.Electronic Channels --- do not require humaninteraction
4. Franchises --
service outlets licensed by aprincipal to deliver a unique service concept ithad
created or popularized.

41. Strategies for effective service delivery
1. Error on the Side of Communication
When it comes to customers, there’s no such thing as over-communication — your clients
feel more comfortable when they know what’s going on. That being said, the quantity of
communication is not as imperative as its timeliness, its context, and its ability to clearly
identify the value it provides to the client. In a world of constant connectivity, your ability
to cut through the flood of subpar information with quality and timely answers can go a
long way.
2. Define Everything
Service definition is vital to service management. You need to make sure that you and
your customer are on the same page regarding what to expect (or not expect) from your
service offerings. This includes what your services do and don’t encompass, eligibility,
potential limitations, costs, how to get assistance when needed, and more.
This level of the definition shouldn’t stop with the customer — the best service
organizations also clearly delineate any internal efforts needed to provide and support
their service.

42. 3. Automate When Possible
As services like IT and HR become increasingly digitized, it’s important to capitalize on
your ability to automate formerly headache-inducing processes. For example, once you’ve
carefully defined onboarding and offboarding, these types of consistent, easily-broken-
down processes can be automated into a system for welcoming new customers (or, in the
case of offboarding, an exit procedure after the completion of service).
In general, service delivery automation is high return and low risk, and more and more
service organizations are finding ways to cut costs and provide a simpler customer
experience by reducing human involvement.
4. Track Employee Availability
Like any business, your company has a finite amount of resources and you want to use them
wisely. To understand your current resource needs (and to anticipate future resource needs),
service organizations need to be able to track employee schedules and capacities. With
this visibility into your resource utilization, you can schedule in accordance with current
projects and sales forecasts, and ensure that no resource is overutilized or underutilized.
5. Do Market Research
Market research is the process of finding out about your consumer and is a critical step to
creating a customer-centric company. You need to discover and implement what is trending
to make your business processes more efficient. Research will provide you with the answers
that you need to make informed decisions and move forward.

43. Marketing research for services
What is services marketing research?
• Market research is the process of determining the viability of a new
service or product through research conducted directly with potential
customers. Market research allows a company to discover the target market
and get opinions and other feedback from consumers about their interest in
the product or service.
• This type of research can be conducted in-house, by the company itself, or
by a third-party company that specializes in market research. It can be done
through surveys, product testing, and focus groups. Test subjects are usually
compensated with product samples or paid a small stipend for their time.
Market research is a critical component in the research and
development (R&D) of a new product or service.

44. KEY TAKEAWAYS
• Companies use market research to test the viability of a new product or service by
communicating directly with a potential customer.
• With market research, companies can figure out their target market and get
opinions and feedback from consumers in real-time.
• This type of research can be conducted in-house, by the company itself, or by an
outside company that specializes in market research.
• The research includes surveys, product testing, and focus groups.
• Market research is a combination of primary information—information gathered
directly—or secondary information, which is information an outside entity has
already gathered.

45. How Market Research Gathers Information
Market research consists of a combination of primary information, or what has been
gathered by the company or by a person hired by the company, and secondary
information, or what has been gathered by an outside source.
• Primary Information
Primary information is the data that the company has collected directly or that has
been collected by a person or business hired to conduct the research. This type of
information generally falls into two categories: exploratory and specific research.
Exploratory research is a less structured option and functions via more open-ended
questions, and it results in questions or issues being presented that the company may
need to address. Specific research finds answers to previously identified issues that
are often brought to attention through exploratory research.
• Secondary Information
Secondary information is data that an outside entity has already gathered. This can
include population information from government census data, trade
association research reports, or presented research from another business operating
within the same market sector.

46. Types of Market Research
• Face-to-Face Interviews
• Focus Groups:A focus group is a small number of representative consumers, who are
chosen to try a product or watch an advertisement. Afterwards, the group is asked for
feedback regarding their perceptions of the product, the company's brand, or competing
products.
• Phone Research:Data collection then shifted to the telephone, making face-to-face contact
unnecessary. A telephone operator could collect information or organize focus groups—
and do so quickly and in a more organized and orderly fashion. This method improved the
market research model greatly.
• Survey Research
• Online Market Research: With people spending more time online, many market research
activities have shifted online as well. While the platform may have changed, data
collection is still mainly done in a survey-style form. But instead of companies actively
seeking participants by finding them on the street or by cold calling them on the phone,
people can choose to sign up and take surveys and offer opinions when they have time.
This makes the process far less intrusive and less rushed since people can do so on their
own time and of their own volition.

47. Marketing Planning
• A marketing plan is the advertising strategy that a business will implement to
sell its product or service. The marketing plan will help determine who the target
market is, how best to reach them, at what price point the product or service
should be sold, and how the company will measure its efforts.
• Marketing Planning provides the framework of the advertising and marketing
efforts made for the business. It describes the role and responsibilities of a
marketing manager to accomplish the objectives of the company. It gives
prominence to the distribution of marketing resources pleasantly and economically
and provides a creative direction for marketing operations.

48. Types of Marketing Planning
1. Long -Term Marketing Planning
• The planning made to achieve the long-term goals of an organization is known as
long-term marketing planning. It involves deep research of the market conditions
and thus handled by the top-level management of the organization. It is based on
the precise strategies set up by the entrepreneurs, considering all the future
possibilities and risk factors.
2. Short –Term Marketing Planning
• Such planning is done for a short period of time, i.e., for less than one year, for
meeting the recurring problems of the business and does not require high-level
efficiency. Thus, it is made by the middle-level management of the organization.

49. Steps of Marketing Planning

50. Benefits of Marketing Planning
• It has the following benefits:
• It encourages successful marketing actions.
• Marketing planning helps to harmonize activities that can expedite the achievement of
targets over time.
• It obliges management to evaluate the future in an organized way.
• Resources can be more equitable, respecting identified market events.
• Planning gives a framework for an ongoing check to operations. It will allow the company
to provide more attention to market expansion instead of market maintenance.
• It helps to examine performance, take advantage of strength, minimize weakness and risks
and lastly, open up new opportunities.
• Marketing planning can be recommended to minimize the threats of failure.
• It decreases the conflicting results of unfavourable circumstances above the control of the
management.
• Marketing planning benefits an extensive view of the company and acts as a process of
communication and co-ordination amidst the marketing department and other departments.
• Greater alertness to make a change can be stimulated. Marketing strategy is equal to the
marketing sense by which the business unit wishes to attain its marketing objectives.

51. What is internal marketing?
• Internal marketing operates on the idea that the opinions of a company's
customers are based on their experiences with the business, not just with the
products. By treating employees as "internal customers," internal marketing helps
employees align with the company's vision and operations.
• Internal marketing involves promoting your organization’s mission, objectives,
purpose, culture, products and services, and brand to your own employees.
Occasionally referred to as “employee marketing,” the purpose of internal
marketing is to “sell” your business to your employees so they are more engaged,
brand-aware, and knowledgeable about your organization.

52. Internal Marketing Examples
There are countless opportunities to put internal marketing into action at your organization. You may
have implemented a strategy or shared internal marketing materials without even realizing it.
Common avenues and channels for internal marketing include:
• Social media profiles, company website, and other online activities;
• Job listings and promotion opportunities;
• Company benefits, perks, and work-life balance initiatives;
• Training, learning, and development sessions;
• Internal communications, including emails, instant messages, and phone calls;
• Workshops, brainstorming sessions, and meetings;
• Employee performance reviews, feedback opportunities, and spotlights;
• Company, project, and product branding and marketing;
• Company news, updates, milestones, and achievements.

53. Benefits of Internal Marketing
• Internal marketing can benefit both your employees and your organization as a whole. Some of its major
advantages include:
• Employee Engagement: Internal marketing can keep employees informed about and supportive of your
company. If their jobs have a purpose and they feel like they’re a valued part of your organization,
they’re more likely to be enthusiastic about and devoted to their work.
• Company Culture: Since it allows you to communicate your mission and values, internal marketing
can help develop and strengthen your company’s culture. Having engaged employees can further
solidify culture, making your organization a more positive and enjoyable place to work.
• Brand Awareness: Not only does internal marketing help with developing your organization’s brand,
but it also boosts brand awareness among employees. This helps employees become brand advocates
who publicize your company (both for customers and potential employees) outside of the workplace. As
long as your messaging is consistent, this can also help with your external marketing efforts.
• Staff Empowerment: With increased brand awareness, your employees are better equipped to do their
work. This is especially true for staff members who work with clients, allowing them to improve the
experience customers have with your business
• Recruitment and Hiring: Internal marketing can also support your hiring efforts, making it easier
to market job openings and recruit talented employees. With more engaged employees and strong
company culture, your organization will gain a positive reputation, making it a desirable workplace for
more applicants.
• Retention: What’s more, this also can help you retain employees, both new and old. It’s believed that
increased employee engagement reduces turnover, allowing you to keep the best workers on your team
for the benefit of your business.

54. Relationship Marketing
• Relationship marketing is a facet of customer relationship management (CRM) that focuses on
customer loyalty and long-term customer engagement rather than shorter-term goals like
customer acquisition and individual sales.
• Relationship Marketing is a modern approach to marketing which focuses on enhancing the
customer experience and developing customer loyalty rather than increasing the sales volume and
profit of the organization. Keeping the customers engaged and providing them with the highest
possible value from their purchase is essential. Here comes the role of relationship marketing.
When the competition is high, and the customers are aware, the organizations cannot just rely on
selling their products or services to them.
The customers always look for the organizations which provide an added value or advantage to
them along with the product or service.
For Example; Nike, being the most recognized athletic wear brands, started it’s ‘Just Do It’
campaign to capture the attention of the non-athletes.
The advertisement featured a heavy boy wearing Nike apparel and running. Thus, it recognized the
overweight people and tried to motivate them through the message that everything is possible if we
try to do it.

55. Importance of Relationship Marketing
• Increase in Sales Volume: Enhanced customer experience means an easy upselling and
cross-selling of goods or services to satisfied customers. This ultimately increases sales
volume.
• Low Advertisement Cost: A successful relationship marketing reduces the efforts on
customer acquisition since it helps in retaining customers for long-term. Thus, decreasing the
advertisement cost.
• High-Profit Better Price: A satisfied customer tends to bargain less for the prices and is
ready to pay a fair price for the goods or services. This increases the profit margin of the
seller.
• Creates Brand Image: A happy customer will promote the product or service among their
peers, relatives and the known ones. This word of mouth creates a strong brand image of the
organization.
• Customer Retention: Customer acquisition is not everything; meeting the customer needs,
creating value for the customers and making them buy again and again is essential. All this is
possible through customer relationship marketing.
• Gain a Competitive Edge: A loyal customer feels comfortable buying goods or services
from one single store rather than shopping around at various places. This is an advantage for
the organization over its competitors.

56. Strategies of Relationship Marketing