Service Marketing

Session 1-2 (Introduction)

Anish Purkayastha
 What are services?
Def: Deeds or actions performed for
customers or coproduced with them
Indian context: 59% of Indias GDP in 2011-12
Different faces of services
Service as a product
Customer service
Derived service

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Debate pure product vs. pure service
Teaching
Airlines
Automobiles
Soft drinks
Salt

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 Motivation: Challenges to make profit
from product innovation

Source: Profiting from technological innovation: Implications for integration, collaboration, licensing 4
and public policy. Teece, D., Research Policy, 1986
Types of Innovation Over Product Life
Cycle

Source: Tushman and Nadler (1986), Organizing for Innovation, CMR

 Shifting focus towards service
Why?

Possible reasons
Commoditization (and automation) of products
Customer demands solution
Higher profit margin (intangibility)
Source of differentiator

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 Differences: Product vs. Service
Intangibility
Inventory; Communication; Pricing
Heterogeneity
Customer satisfaction; Quality; Plan vs. Delivery
Simultaneous production and consumption
Customer participation; Customer interaction;
Limited economy of scale
Perishability
Demand forecasting

Identify challenges for Service Marketers 7

Looking through the consumers lenses
Evaluation qualities
Search qualities
Experience qualities
Credence qualities

Can you identify

Clothing
Vacation
Child daycare
Identify challenges for Consumers 8
 Marketing Mix (4Ps & 7Ps)
Traditional
Product
Place
Promotion
Price
Expansion
People
Physical evidence
Process
Focus has shifted to 9
BREAK

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 Case Discussion
Global Expansion at Sanford C. Bernstein

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 Course outline
Big Picture Building Blocks Management

Introduction Servicescape
Quality (4) Design (7)
(1-2) (8)

Managing Demand/Capacity
Customer Standards (5) (9-10)
Behavior and
Expectation
in Services Profit Chain
Service
(3) (6) Pricing (12)
Recovery (11)

Connecting the dots

Culture CRM Presentation Outsourcing Customer Review
(15) (16-17) (18-20) (21) (22-23) (24)
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Evaluation
Create 11 (6*10 + 7*1=67) groups (please send the
names)
Quizzes
Surprise quiz
Total 2 quizzes
No make-up quiz
Project work
To be submitted within 7 days of last class; <= 10
pages/slides
Assignment
Will be informed through email
Final Exam

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Thank You

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