CONTENTS L Foreword Preface ‘Tue Founpation oF Services MARKETING Learning Objectives: | Hitroduction — Services: The Concept — Goods and Services: A ‘Comparative Analysis — Salient features of Marketing Services — 1s Marketing: the Concept ~ Why Marketing of Services? — ficance of Services Marketing — The Behavioural Profile of ‘Users — Marketing Information System — Emerging Key Services — Building Services Aspirations — Summary — References — Model Questions Learning Objectives: Introduction — Concept of Marketing Mix — The Product Mix — ‘The Promotion Mix — The Price Mix — ‘The Place Mix — Capacity Planning — Capacity Scheduling — Internal Marketing —Summary References — Model Questions Learning Objectives: Introduction — Service Quality — Measurement of Service Quality — Total Quality Management — Dimensions of Total: Quality Management — Management of People — Management of ‘Technologies — Controlling Quality — Effects of Total Quality Management — Quality Circle — Summary — References — Model Questions Learning Objectives: : Introduction — Bank Marketing-the Concept — Justifications for Marketing the Banking Services — The Users of Banking Services — The Behavioural Profle of Users — Marketing Information System for Banks — Significance of MIS ‘to the Banking Organisations — Market Segmentation — Marketing Mix for the Banking Services — The Product Mix —The Promotion Mix —The Price Mix — Tho Placo Mix — The People — The Physical Attractions — Bank Marketing in the Indian Perspective — ‘Summary — References — Model Questions (MANAGEMENT OF SERVICES MARKETING 46-79 ‘ToraL Quaurry MANAGEMENT 80 - 101 ‘Bank MARKETING . 102 - 159~ 5. INSURANCE MARKETING _ 160 - 204 Learning Objectives: Introduction — Insurance Marketing-the Concept — Users of Insurance Services — Behavioural Profile of Users — Market Segmentation — Marketing Information System — Insurance Product — Product Planning and Development — The Formulation, of Marketing Mix for Insuracne Organisations — The Promotion Mix — The Price Mix — The Place Mix — The People — Insurance ‘Marketing in the Indian Environment — Summary — References — Model Questions. § Transromt Mangerina 205 - 276 ‘Learning Objectives: Introduction — Transport of Marketing-the concept — Users of ‘Transport Services — Behavioural Profile of Users — Marketing Segmentation for Transportation — Marketing Management of Rail Transportation — Market Segmentation for Railways — ‘Significance of Segmentation — Formulation of Marketing Mix for the Indian Railways — Marketing Management of Road ‘Transportation — Product Planning and Development — Formulation of Marketing Mix for Road Transportation — Marketing ‘Management of Civil Aviation — Product planning and Development — Formulation of Marketing Mix for the Air Transportation — ‘Transport Marketing in the Indian Perspective — Summary — References — Model Questions. 7. Tourism MARKETING »~ 277 - 827 Learning Objectives Introduction — Tourism-the Concept — Tourism Marketing-the Concept — Users of Tourism Services — Behavioural Profile of Users — Product Planning and Development — Market Segmentation for Tourism — Marketing Information System for ‘Tourism — Marketing Mix for Tourism — The Product Mix — The Promotion Mix — The Price Mix — The Place Mix — The People ‘— Tourism Marketing in Indian Perspective — Summary — References — Model Questions. 8. Hore. Manxerine 1’ 328 - 378 Learning Objectives: Introduction — Hotel — the Concept — Hotel and its Typology — Hotel Marketing — the Concept — Users of Hotel Services — Market Segmentation for Hotels — Behavioural Profile of Users — Marketing Information System for Hotels — Product Planning and Development — Marketing Mix for Hotels — The Formulation of Product Mix for Hotels — The Promotion Mix — The Price Mix —879 - 424 Introduction — Consultancy Marketing-the Concept — Rationale behind Consultancy Marketing — Users of Consultancy Services — Behavioural Profile of Users — Market Segmentation for Consultancy Organisations — Marketing Information System for Consultancy Organisations — Formulation of Marketing Mix for ‘Consultancy Organisations — The Product Mix — The Promotion Mix — The Price Mix — The Place Mix — The People — Consultancy Marketing in Indian Perspective — Summary — References —Maodel Questions. 10, PERsonat Cane MARKETING 425 - 450 Learning Objectives: Introduction — Personal Care Marketing — The Concept — Users of the Personal Care Services — Behavioural Profile of Users — Market Segmentation for the Personal Care Organisations — Marketing Information System for the Personal Care Organisations Marormelation of Marketing Mix for the Personal Care ‘Organisations — The Product Mix — The Promotion Mix — The Pawo Mix — The Place Mix — The People Mix — Personal Care ‘Marketing in the Indian Perspective — Summary — References — ‘Model Questions. La Eoucation MARKETING 451 - 493 Learning Objectives: Introduction — Innovative Education: Why and How? — Literacy: the Concept — Functional Literacy: The Concept — The Emerging Tends =” Marketing Literacy: the Concept — Marketing Mix for ‘Nault Education — Strategic Marketing for Adult Education — Mae feting Mix for Elementary Education — Strategic Marketing orSlementary Education — Marketing Mix for Secondary Euucation — Strategie Marketing for Secondary Education — Marketing Mix for Intermediate Education — Marketing Mix for Higher Education — Strategic Marketing for Higher Education — Summary — References — Model Questions. 12, Hosprrat Markerinc © 494 - 525 Learning Objectives: Introduction — Hosptial: A Conceptual Framework — Types of ‘Emerging Trends in Medicare — Marketing Medicare: 'A Conceptual Framework — Justifications for Marketing Medicare a Thrust Areas for Medicare Services — Marketing Mix for Hospitals — Product Mix — Promotion Mix — Price Mix — Place Mix _ Strategic Marketing for Hospitals — Summary — References — Model Questions. le ee eee v18. PourricaL MARKETING 526 — 594 Learning Objectives: Introduction — Political Ideologists of India — Political Environment in India — Political Socialisation — Political: Marketing — The Perception and Misperception — Significance of Political Marketing — Dimensions of Political Marketing — Segmentation — Political Information System — Management of Behaviour in Politics — Formulation of Marketing Mix— Service Mix — Projection of Image — Promotion Mix for Political Organisation — Political Communication — Advertising — Political Advertising and TV- ‘Media Strategy for Political Organisation Publicity — Personal Selling — Word-of-mouth Promotion — Telemarketing — Channelisation of Services in Political Organisation — Managing the Party People — Location Point for Political Party Office — Strategic Marketing in Politics Summary — References — Model Questions. 14. Day-Care MARKETING 595 — 632 Learning Objectives: Introduction — Day-care Services — The Perception Day-care Centre — The Perception — Day-care Marketing — The Perception — Rationale Behind Day-care Marketing — Users of Day-care Services — Behavioural Profile of Users of Day-care Services — ‘Segmentation in Day-care Marketing — Marketing Information ‘System for Day-care Centre — Formulation of Marketing Mix for Day-care Organisation — Service Mix for Day-care Organisation — Promoting the Day-care Organisation Advertisement — Publicity = Sales Promotion — Word-ofmouth Promotion — Personal Selling — Telemarketing + Fee Strategy for Day-care Organisation —Chanelisation of Day-care Services — Location Point for the Day- ‘care Centre — Physical Attraction — People Serving the Day-care Centre — Strategic Marketing for Day-care a - Summary — References — Model Questions. 15, MARKETING Mix or Seuecr Services 633 — 713 Learning Objectives Courier Services: Introduction — Courier Marketing: A Conceptual Framework — Rationale Behind Courier Marketing-— The Formulation of Marketing Mix for Courier Organisations — The Product Mix — ‘The Promotion Mix — The Price Mix — The Place Mix — The People Mix — Courier Marketing in Indian Perspective. Entertainment Services: Introduction — Entertainment Marketing — A Conceptual Framework — Rationale Behind Entertainment Marketing —The Formulation of Marketing Mix — The Product Mix — The Promotion Mix — The Price Mix — The Place Mix — The People ‘Mix — Entertainment Marketing in Indian Perspective.Electricity Services: “~ Introduction — Electricity Marketing — A Conceptual Framework "Rationale behind Electricity Marketing — The Formulation of Marketing Mix for Electricity” Organisations — The Product Mix = The Promotion Mix — The Price Mix — The Place Mix — The People Mix — Electricity Marketing in Indian Perspective. ‘Telecommunications Services: -~ Introduction — Telecommunications Services Marketing — A Conceptual Framework — Rationale behind Telecommunications Marketing — The Formulation of Marketing Mix for the ‘Telecommunication Organisations — The Product Mix — The Promotion Mix — The Price Mix — The Place Mix — The People Mix — ‘Telecommunications Marketing in Indian Perspective. Automobile Services: Introduction — Automobile Services Marketing — A Conceptual Framework — Rationale behind Practising Marketing — Formulation of Marketing Mix forthe Automobile Servicing — The Product Mix — The Promotion Mix — The Price Mix — The Place Mix— The People Mix-— Automobile Services Marketing in Indian Perspective — Summary — References — Model Questions. ‘BreuioGRaPey 715 — 720 Invex 721 — 729THE FOUNDATION OF SERVICES MARKETING Learning Objectives ‘Thin chaptar of book goes through the foundation of services marksting. The motive is to sonsitise the readers to some of the fundamentals which would help them in perceiving the problems in a right fashion. The readers go through Introduetion : Services: The Concept Goods and Services: A Comparative Analysis Salient features of Marketing Services Services Marketing: The Concept Why Marketing of Services? Significance of Services Marketing ‘The Behavioural Proflgof Users Marketing Information System Emerging Key Services Building Services Aspirations Summary References Model Questions . . . . . . . . . . . . . +A SERVICES MARKETING INTRODUCTION Gone are the days when the perception of services remained confined to ‘work with only service motto, without charging any fee or without accepting any obligation. The time cycle coiling more dynamism in its nature necessitates a change as willingly or unwillingly, we don't venture to go against the wind. The mechanised system of development has now paved ways for socio-economictrans- formation which has made possible an increase in the level of disposable income. ‘When we earn more, we like to spend more. We evince interest in utilising our leisure time and availing the modern amenities and facilities. We can't deny the fact that the imbalance in the demographic structure has complicated the task of policy makers, specially in terms of creating and expanding the job opportuni- ties. There is no doubt in it that the goods manufacturing organisations have been contributing a lot to the process but the service generating organisations find it difficult to cope with the mounting problem aggravated by the developed ‘countries of the world. In the Indian perspective, the services sector has not been contributing substantially to the process of socio-economic transformation. In the 21st century, the business environmental conditions are likely to be ‘more volatile. The multi-dimensional developments in the information technolo- ice, activated and energised by the developed countries, have made ways for sophistication in almost all the areas. It is against this background that leading service generating orgartisations of the world have been found believing in mak- ing things happen. The invention and innovations have been paving avenues for a qualitative transformation in almost all the areas. This has been successful in increasing the’level of expectations of customers. The globalisation and liberalisation has opened new vistas for the development of service generating organisations. The intensity of competition is found moving upward. The organisations active in enriching their strength have been found establishing an edge and compelling the weak organisations to make a final good-bye. This makes ‘it eosential that oven in the Indian condition, the service generating organisations make sincere efforts to make themselves stronger and stronger, if they have to survive and thrive. They have to explore profitable avenues and practise inno- vating marketing since quality or world class services with innovative market- ing would help them in proving their excellence nationally and internationally competitive. Itis against this background that we talk about the marketing of services. In the present world, it is not possible that we keep ourselves isolated. To be more specific when we have advanced information technologies and quality pro- fessionals, we don't find any sense in continuing with the traditional technolo- gies and negative attitudes. Weneed positive attitude, creative approach and innovative strategies which would make our efforts productive. This requires a fair blending of performance- orientation and employee-orientation. Our services as product are to be of world class and our employees are tobe professionally sound. This requires an indepth‘THR FOUNDATION OF SERVICES MARKETING knowiedge of quality and its changing perception. This is due mainly to the fact that sky is the limit for quality. Both the sectors, public as well as the private need to understand the new corporate culture in which employees need to have personal commitment. The business environment is more competitive and this makes a strong advocacy in favour of quality generation. We can’t negate that by ard large in almost all the public sector service generating organisations, the fast deteriorating quality has been a matter of serious concern. The policy of liberalisation has made ways for leading multinationals to enter the market and to excel competition which is found throwing a big challenge to the existence of public sector undertakings. If they are found surviving, itis just due to the attitudinal support of the masses. Sooner or later, we expect a shift in their attitudes and this would compel the public sector service generating organisations to leave the ground free for the private sector. To be more specific in the Indian condition, we don't find it a posi- tive development sinee the prospects/customers in a majority of the conditions ‘would face the implications ofa high price structure. The foreign companies would start exploiting the masses and the national economy would be thrown back in the reverse gear. Thus, itis high time that the public sector organisations start ‘and activate the innovation process and prove themselves to be strong enough to face the challenges and threats in the market. Of late, the technologies have been found dominating the services sector and the organisations depending on traditional technologies or manual services have been facing a rough time. This makes it essential that we promote the use of technologies but at the same time also keep in our minds the implications of ‘the use of sophisticated technologies on the generation of employment opportu- nities. Since we are facing the problem of unemployment, the policy makerscan't nogate this dimension of development. In.a true sense, we need a policy that makes the ways for quality generation but at the same time is also not to create the problem of retrenchment. A fair synchronisation of technology and human resources is considered significant to make the process of development pro- active. Insomeof the service generating organisations we face the problem of strong trade unionism dominating decision making with a negative attitude. We can't negate that such a development has been making an invasion on the efficiency of employees vis-a-vis gearing back the profitability index of an organisation. The trade unions need to change their attitudes. If they continue to remain as fight- ers, the ultimate sufferers would be the workers/employees. If they make the organisations financially sick, the problems of retrenchment would reach at an alarming stage. This makes it pertinent that trade unions work es an efficiency generator. They keep in their records, the efficiency index of employees and based on that continue to champion their claims and subeerve their interests. In view of the above, it is right to mention that application of modern marketing principles would help almost all the organisations in enriching their‘ SERVICES MARKETING efficacy. If the potentials are enriched, we become strong. And if we are strong, the resistance power is increased. This simplifies the task of facing the rough weather. The world-wide economic depression is not to be slowed down. The customers in almost all the cases and areas are likely to be more sensitive to price. Thus the cost effectiveness would play a decisive role in developing and thriving an organisation. The organisations offering quality services at a reasonable price structure would prove tobe a leeder. The innovative marketing strategies would help them fantastically. It is in this context that we make an advocacy in favour of the application of marketing principles in almost all the areas. ‘Thus we need professional excellence to get the best result. The profession- alism makes the ways for innovation. This makes it essential that our employees working in different sectors and areas are only not efficient but in addition they are also committed, dedicated and value-based. Almost all the organisations need ‘to have an ongoing training programme for the development of sound profession- Performance-orientation is thus the first task which would help an organisation in offering the world class services to be customers. At the same time, we also need employee-orientation which would redress the interests of employees by offering to them suitable incentives. In this context, itis important to mention that efficiency would be the focal point around which our strategies would cluster. By promoting inventions and innovations we would develop anew perception of quality which would require involvement of efficient personnel. If we continue to offer to the efficient personnel, the incentives based on their effi- ciency, the inefficient personnel would have no option but to improve their effi- ciency. This would start a circle in which total quality management would be required to be practised in a right fashion, ‘This book studies the marketing problems in a number of organisations where the problem of inefficiency is found at an alarming stage. The Public ‘Sector Banks have been found facing a rough weather. The State Transport Cor- porations have been declared financially insolvent, the Life Insurance Corpora- tion lacks work culture, the Government-managed hospitals are in a depleted condition, the educational institutions, specially managed by the government have been found offering substandard services to the masses, the tourism indus- try has miserably failed in contributing to the process of generating foreign ex- change, the hotel industry is facing a rough weather, the supply of electricity to the different sectors is found presenting a gloomy picture. This makes it clear that by and large almost all the service generating organisations have become insensitive and unproductive. Onthe other hand, we are promoting liberalisation which has been found inducing the leading multinationals to enter the business and get a success. The result is obvious that they succeed in establishing an edge over the domestic companies and sooner or later the control of national economy would go to the hands of multinationals. This makesit essential that the services generating organisations in general innovate their policies and the policy mak- ers make possible an attitudinal change.‘THE FOUNDATION OF SERVICES MARKETING _ SERVICES: THE CONCEPT : = 4K common parlance, the term can't be only personal services like auto repairing, hair-cutting, services of dentists, legal consultants and so on. The marketing experts view the problem in a bit different way. They feel that the contents of services are much more wider. There is no doubt in it that.a number dfexperts have attempted to define the services but nosingle definition has been accepted universally. Its quite natural that as and when we attempt to clarify the perception, a number of comments crop up. “According to US Government's Standard Industrial Classification, “Estab- lishments primarily providing a wide variety of services for individuals, business and goverament establishments and other organisations, hotels and other lodg- ing places, establishments providing personal services, repair and amusement services, educational institutions, membership organisations and other miscel- laneous services are included” On the basis ofthe classification made by the Standard Industrial Classifi- cation, it is clear that different types of services are an important base for the services establishments offering services to both categories of customers, the individuals as well as the organisations. ‘Another expert says, “Services refer to social efforts which include even government to fight five giant evils, o.. want, disease, ignorance, squalor and illness in the society."* ‘This opinion focuses on the organisations offering social services where hospitals or Medicare or health centres, communication organisations, educs- tional institutions are found important. Thus the social efforts and the organisations taking part in the process are supposed to be studied in the very context. ‘Another opinion throws light on human efforts. An expert says, “services can also be defined as a human effort which provides succour to the needy. It may be food to a hungry person, water to a thirsty person, medical services to an ailing person and education to a student, loan to a farmer, trans- port toa consumer, communication aid totwo persons who want toshareathought, pleasure or pain.”? : ‘The definition given above clarifies that services are human efforts. The focus ison the point that services are not meant services for the sake of services or say, services without charging any fee. ‘One expert says, “Services can also be defined an action (6) of organisation (s) that maintains and improves the well-being and functioning of poople."* It can't be refuted that the definition presented by Yakeshel Hasen Field ‘and other through small covers everything which the services need. The well being functioning of people are important and we can't ignore it while clarifying the perception of services.° SERVICES MARKETING ‘The American Marketing Association defines servicesin the following way, “Services are activities, benefits or satisfaction which are offered for sale are provided in connection with the sale of goods. “This definition makes it clear that services are activities, benefits or satisfaction and we find their uses for selling products which may be tangible or even intangible. Goons AND SERVICES: A COMPARATIVE ANALYSIS Services and goods are not tantamount, There are a number of salient fet tures that establish a clear cut difference between the twa. Something which ean be physically touched, verified, attracted or exchanged with or even without making profits are known as goods. On this basis, goods are food, clothes, books, other domestic and industrial items that can be carried home, can be stored at a place and are tangible. On the other hand, the services are hotel business, per- sonal care, legal or medical services, banking services, insurance services, trans- portation services and many other services which can't be stored at a place and one has to hire someone else to perform the services. The effects are pleasure, Joy, entertainment, a relief from ailment or so. The following points clarify the difference between the two. 1. Tangibility: By tangibility, we mean anything which can be viewed. On the basis of tangibility, goods are found tangible since we can view the goods bought by us. Contrary to it, the services are found intangible because it is not possible to view the services. We can just realise the services used by us. 2. Transferability: On the basis of transferability, the goods can be trans- ferred from one place to another. We can carry goods bought by us. We find trans- fer of goods from the point of sale to the point of use. Just reverse tot, itis not possible to transfer the services from the point of sale to the point of use. 8, Existence: The goods bought by us remain existent. The durables con- tinue for a long time and even if the non-durables have limited existence. We don't find the same thing with the services since we find services non-existent in nature. 4. Heterogeneity: On the basic of heterogeneity, the services can hardly be standardised. Contrary toit, the goods can be standardised. Itis very difficult tomeasure the quality of services but itis easier to measure the quality of goods. 5. Re-selling: The goods bought by us can be resold. After a limited use, the owners are in a position and they do also possess a legal right to resale the same. ‘We don't find the same thing with the services. If we buy a seat in the aircraft, if we book a roam in.a hotel, ifwe buysaseat in a cinema hall; we have no option but to use or surrender. We don't bear the right of reéelling the same. ‘The aforesaid differences between the goods and services are obvious. It is Tight to mention that being a marketer we treat both of them as a product. Of course, the services product have distinct features or properties which generate ‘numerous problems, specially in the marketing process but we call them product because the combination of different types of inputs result into the generation of