Unit 1 Assignment

1. Describe at least three basic characteristics of services that are

often considered to distinguish them from goods and provide
examples. List the factors, which are responsible for the growth of
services industry


Services comprise a set of economic activities like transportation, trade, tourism,
communications, banking and insurance, real estate, public administration, defence and
so on. According to an Adrian Payne four factors are responsible for growth in the
service sector. They are: demographic, social, economic and political.
Demographic changes: The life expectancy has raised which in turn, is producing an
expanding retired population. This sector has created a new demand for travel and
leisure, as well as for healthcare, nursing and life insurance. The need for infrastructural
support services has increased due to the development of new towns and regions.
Social changes: The number of womens in work force has increased, and this has led
to traditional domestic functions being performed outside the home. The rise in number
of double income household has created a greater demand for consumer services,
including retailing, real estate and personal financial services. With the growing income,
the standard of life has improved. Smaller families with double income spend ore on
entertainment, travel and hospitality services.
The aspiration levels have increased due to communication and travel. As a result, both
children and adults are making new demands on learning establishments, so that they
can develop the skills needed in order to compete. In the complex and fast changing
environment. This has opened avenues for knowledge and information based services.
Economic changes: The demand for communication, travel and information services
has increased due to globalisation. This has been filled by the rapid changes brought
about by new information technology. Increased specialization within the economy has
led to reliance on specialist service providers For e.g. advertising and marketing
research have now become specialist functions providing support to all the sectors of
the economy.
Political and legal chap : The size of the government has grown creating a huge
infrastructure of service departments. With the growth in international trade, the demand
on legal and other professional services have increased, cutting across national
boundaries.
Manufacturing firms handing over repair and maintenance, data processing, where
rousing and logistics services to specialised sources, which they earlier used to perform
in- house. The liberalization has also created a new avenue for growth. The slow growth
of agriculture and industry and the presence of widespread unemployment have driven
people to seek work in the informal services. This is particularly true in the urban areas,
where petty pavement retail trade, transport, another is repair and service
establishments have proliferated.
Since the overall growth of the economy is now dependent on the service sector, the
pace of productivity growth in services becomes critically important. Therefore, the
government is taking an initiative in the sector.


2. Define and describe each of the three new Ps of the services
marketing mix. Describe the components of service marketing
triangle
3 new Ps are:
Packaging
The fifth element in the marketing mix is the packaging. Develop the habit of
standing back and looking at every visual element in the packaging of your
product or service through the eyes of a critical prospect. Remember, people
form their first impression about you within the first 30 seconds of seeing you or
some element of your company. Small improvements in the packaging or
external appearance of your product or service can often lead to completely
different reactions from your customers.
With regard to the packaging of your company, your product or service, you
should think in terms of everything that the customer sees from the first moment
of contact with your company all the way through the purchasing process.

Positioning
The next P is positioning. You should develop the habit of thinking continually about
how you are positioned in the hearts and minds of your customers. How do people think
and talk about you when you're not present? How do people think and talk about your
company? What positioning do you have in your market, in terms of the specific words
people use when they describe you and your offerings to others?
People
The final P of the marketing mix is people. Develop the habit of thinking in terms of the
people inside and outside of your business who are responsible for every element of
your sales and marketing strategy and activities.
The marketing and selling of services requires a special set of tactics and priorities
compared with selling physical products. The service marketing triangle breaks the
marketing tasks of your business down into three types. As a service business, you
must market both to your employees so they understand the focus of your business and
to your customers so they do more business with you.
Points of the Triangle
Each side of the service marketing triangle represents a type of marketing, and the
types interact between the entities on the points where the sides meet. At the top of the
triangle sits your business organization. At each corner at the bottom of the triangle are
your customers and your employees who interact with and provide the services to your
customers.
Internal Marketing
Internal marketing is the side of the triangle between your organization and your
employees who provide your services to customers. Marketing issues include adequate
training on the services to be delivered and customer satisfaction service techniques.
Internal marketing requires you to be involved with your employees and let them know
the goals and even problems facing the business. Internal marketing also can include a
performance rewards system for employees who deliver the highest level of customer
service.
External Marketing
External marketing goes from your business organization out to customers and
prospective customers. This is the traditional form of business marketing, showing
customers how the services provided by your business benefit them. External marketing
includes advertising, your website and your company's social media efforts. The
purpose of external marketing is to fill the business pipeline with future business.
Interactive Marketing
The side of the triangle between your employees and customers is called interactive
marketing. This form of marketing revolves around how your employees deliver the
services your company provides. The goal is to have highly satisfied customers who
become long-term, repeat customers. The effectiveness of the interactive marketing
relates back to the internal marketing efforts of your business. Interactive marketing is
also how your employees keep the promises made by your external marketing efforts.