VK Mehta

Why everyone is talking about SERVICES?

What makes marketing of Services so different from marketing we know? What can be done to market services more efficiently and effectively?

Marketing of Services

Health care

Information & data processing

Telecommunication

Tourism

Construction

Transportation (freight & passenger)

Banking & Stock-broking Education Insurance

Hospitality, Restaurants, bars, catering

News & entertainment
3

Retailing

Professional consultancy

PODC 4 Ms Resources
4 Ps Marketing Mix Product Blend Two Objectives

Marketing is the process of planning and executing With optimal utilization of Men, Machines, Materials & Money for the conception, pricing, promotion and distribution of idea, goods and services

to create exchanges that satisfy Customer and organizational goals.

services
Marketing of Services

 An

act or performance offered by one party to another. Performances,

but may involve use of physical products.

Intangible

Marketing of Services

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired change in

customers themselves,
physical possessions or intangible assets
Marketing of Services 6

 Includes

businesses, government institutions, agencies, nonprofits growing

Consistently Most

of the Jobs opportunities in this sector

Marketing of Services

 Service

organizations size variation

from huge global corporations
to local small businesses

Adds

more economic value than agriculture, raw materials and manufacturing combined
Marketing of Services 8

Service elements within an organization that:

facilitate creation of or

Some internal Services:

Trend in Internal Services

Accounting & payroll

Housekeeping & Landscaping

Administration add value to its final output

Transportation & Catering

Increasing outsourcing

Recruitment & training

Legal Services

Marketing of Services

Its Contribution to India Economy

Source : Economic Survey of India, 2010-11

High Share in GDP from Services

Growing Employment in Services

FDI in Services

Services Export

High Share in GDP from Services

Rapid increase in share of services in GDP:

from 30.5% (1950-51) to 55.2% (2009-10) to 63.4% (2009-10) (With construction also included)

Services GDP growth continuously above overall GDP growth

pulling up the overall GDP since 1997

High Share in GDP from Services 70

60 50 40 30 20
% of GDP

10
0

1950 1960 1970 1980 1990 2000 2010 Year

Marketing of Services 13

High Share in GDP from Services

Marketing of Services

14

High Share in GDP from Services

Source: CSO

Growing Employme nt in Services

Agriculture Sector:
Dominant,

Services Sector:
Second to Agriculture,

but reducing share

but rising share

Growing Employme nt in Services

Agriculture

Services

Industry

Time, per Capita Income

17

Growing Employme nt in Services

FDI in Services

Problem to measure Services share in FDI inflows

FDI share of major Services (in Dec 10)

51%
Business Services financial & non-financial

difficult to clearly differentiate activities between services and goods

Computer hardware & software,

Telecom

Housing & Real Estate

Constructio n Activities

21%

8%

8%

7%

7%

Services Export

India also moving towards a services-led export growth

Total trade including services as part of GDP:

2000-01 29.2 % 2008-09 53.9 % 2009-10 46.1 %

(Global Recession)

Export growth (2004-05 to) 2008-09:

Goods 22.2% Services 25.3%

2009-10 Slowdown Les decline in services export growth

Marketing of Services

20

Marketing of Services

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Reasons for Growth in Service Sector

Changing Life-style

Changing World

Changing Economies

Changing Technology

Increase in Affluence

Increased Complexity of life Increased Life Expectancy Ecology & Resource Concerns

Globalisation

Range of new products

Increase in Leisure Time

Privatisation/ Deregulation

Product Complexity

Women in Working Places

Marketing of Services

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