Name

RAJIB BANERJEE

Roll No.

521025184

Course

MBA 4th Semester

Subject

Service Marketing And Customer Relationship

Assignment

MK0015 Set 1

1. Explain briefly the differences between services and tangible products

Products are tangible. You can buy pork as a tangible product. You buy it, you ship it and sell it. In the same way as you buy stamps, cigarettes and cars. Financial service companies however, make it possible to exchange pork bellies Futures, on the Chicago Mercantile Exchange (CME). A future is (not the most simple example of) a service with which you can hedge your risk. In this last case, most of the people trading on the CME will never see or smell the pork bellies. The ownership between products and services is different. A stock could be called a financial product that you own. You can place a stock order which might result in a transaction later on. You bank services a depot fee for saving you a lot of work. You cannot own a service. Where the product is much more standardized, the service is tailor-made. Companies differentiate in offering products and services, but the variations between similar products of different producers are less prominent than the variations between services. You can count products in the same way as you can count your money (or have your Service you this information). A service is not countable, but is "leveled;" better than the best service is not possible. There is a limit in what a service can offer. A product is produced by a manufacturing process. A service is offered by the utility element of companies; you subscribe to a service in the same way that you subscribe to your gas and electricity supplier. There are obvious differences between goods and services that are analyzed based on characteristics of each. A good is a tangible object used either once or repeatedly. A service is intangible. The tangibility differentiator indicates the ability to touch, smell, taste and see which is absent in services. This can be a deterrent to the service receiver to gauge the quality and dependant on the service company reputation. In the case of goods the ownership of the product is transferable from sellers to buyers, whereas in services there is no ownership involved. On the quality front, with goods it is homogeneous, once produced the quality is uniform across all line of products. They can be separated from the seller/ provider and not dependant on the source for its delivery to the purchaser. With regard to service it is inseparable from the service provider and heterogeneous, where each time the service is offered it may vary in quality, output, and delivery. It cannot be controlled and is dependant on the human effort in achieving that quality hence is variable from producer, customer and daily basis. Another key distinction is perishability of services and the non perishability of goods. Goods will have a long storage life and are mostly non perishable. Whereas services are delivered at that moment and do not have a long life or cannot be stored for repeat use. They do not bear the advantage of shelf life as in the case of goods like empty seats in airlines. With the production and consumption taking place simultaneously in services, it differs from goods on simultaneity and the provisions for quality control in the process. Both goods and services need not be driven by economic motives. Several times goods and services are linked closely and cannot be detached. For example on purchase of a car, the good is the car but the processing, the provision of accessories, after sales activities are all services. It is essential to note that the difference between pure goods and pure services are in contrast but most goods and services exist in between with a mix of both. For instance, in a restaurant, food refers to goods while the service is the waiters offering, the ambience, the setting of tables amongst others. Summary: 1. Goods are tangible, and transferable while the services are intangible and non transferable. 2. Goods are separable, and non perishable while services are inseparable. 3. Goods are homogeneous while services are heterogeneous

2. List the unique characteristics of services.

Services are said to have four key characteristics which impact on marketing programmes. These are: Intangibility Inseparability Heterogeneity variability Perish ability (simultaneous production/consumption) It is helpful to consider each of these characteristics briefly: Intangibility Services are said to be intangible - they cannot be seen or tasted, for example. This can cause lack of confidence on the part of the consumer As was apparent earlier, in considering pricing and services marketing, it is often difficult for the consumer to measure service value and quality. To overcome this, consumers tend to look for evidence of quality and other attributes, for example in the decor and surroundings of the beauty salon, or from the qualifications and professional standing of the consultant. Inseparability Services are produced and consumed at the same time, unlike goods which may be manufactured, then stored for later distribution. This means that the service provider become san integral part of the service itself. The waitress in the restaurant, or the cashier in the bank, is an inseparable part of the service offering. The client also participates to some extent in the service, and can affect the outcome of the service. People can be part of the service itself, and this can be an advantage for services marketers. Heterogeneity Invariability Because a service is produced and consumed simultaneously, and because individual people make up part of the service offering, it can be argued that a service is always unique; it only exists once, and is never exactly repeated. This can give rise to concern about service quality and uniformity issues. Personnel training and careful monitoring of customer satisfaction and feedback can help to maintain high standards. Perishability Services are perishable; they cannot be stored. Therefore an empty seat on a plane, for example, is a lost opportunity forever. Restaurants are now charging for reservations which are not kept, charges may be made for missed appointments at the dental clinic. Perishability does not pose too much of a problem when demand for a service is steady, but in times of unusually high or low demand service organizations can have severe difficulties. The above characteristics are generally referred to in many texts as being what makes services marketing so different. However, this assumption should be queried on a number of grounds. Like all sweeping generalizations, generalizations concerning services marketing do not always represent the full picture. Consider the question of tangibility. In the main, services can be broken down into three main classifications: Rented goods services Consumer-owned goods services Non-goods services Some of these categories involve goods which are physical, and which contribute in someway to the service offering. This gives rise to questions about the degree to which services can be classed as intangible. Another way of classifying services is to consider the distinction between equipment-based services and people-based services.

3. Describe the challenges during the transition of economics in the services growth sector.
Everything that grows also changes its structure. Just as a growing tree constantly changes the shape, size, and configuration of its branches, a growing economy changes the proportions and interrelations among its basic sectors agriculture, industry, and services and between other sectorsrural and urban, public and private, domestic- and export-oriented . . Industrialization and Post industrialization One way to look at the structure of an economy is to compare the shares of its three main sectors agriculture, industry, and servicesin the countrys total output and employment. Initially, agriculture is a developing economys most important sector. But as income per capita rises, agriculture loses its primacy, giving way first to a rise in the industrial sector, then to a rise in the service sector. These two consecutive shifts are called industrialization and post industrialization (or deindustrialization). All growing economies are likely to go through these stages, which can be explained by structural changes in consumer demand and in the relative labor productivity of the three main economic sectors Industrialization As peoples incomes increase, their demand for foodthe main product of Agriculturereaches its natural limit, and they begin to demand relatively more industrial goods. At the same time, because of new farm techniques and machinery, labor productivity increases faster in agriculture than in industry, making agricultural products relatively less expensive and further diminishing their share in gross domestic product (GDP).The same trend in relative labor productivity also diminishes the need for agricultural workers, while employment opportunities in industry grow. As a result industrial output takes over a larger share.of GDP than agriculture and employment in industry becomes predominant. Post industrialization As incomes continue to rise, peoples needs become less material and they begin to demand more servicesin health, education, entertainment, and many other areas. Meanwhile, labor productivity in services does not grow as fast as it does in agriculture and industry because most service jobs cannot be filled by machines. This makes services more expensive relative to agricultural and industrial goods, further increasing the share of services in GDP. The lower mechanization of services also explains why employment in the service sector continues to grow while employment in agriculture and industry declines because of technological progress that increases labor productivity and eliminates jobs Service Sector Growth and Development Sustainability The service sector produces intangible goods, some well knowngovernment, health, educationand some quite newmodern communications, information, and business services. Producing services tends to require relatively less natural capital and more human capital than producing agricultural or industrial goods. As a result demand has grown for more educated workers, prompting countries to invest more in educationan overall benefit to their people. Another benefit of the growing service sector is that by using fewer natural resources than agriculture or industry, it puts less pressure on the local, regional, and global environment. Challenges for Transition Economies In formerly planned economies the service sector was previously underdeveloped because governments controlled supply and failed to respond to growing demand for services. In addition, many modern services that play an important role in market economiessuch as financial, business, and real estate serviceswere not needed under socialism. During these countries transition to market economies, their service sectors have grown rapidly to meet previously unfulfilled demand and the needs of the emerging private sector. Growth of services in transition economies is particularly important because it allows these economies to employ a share of the educated labor force that might otherwise be unemployed due to the economic crisis. So, in addition to continued public support for health and education, growth of services can help formerly socialist countries preserve the stock of human capital that will be crucial to their postindustrial development.

4. Briefly explain the 7Ps of marketing mix. The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. Marketing professionals and specialist use many tactics to attract and retain their customers. These activities comprise of different concepts, the most important one being the marketing mix. There are two concepts for marketing mix: 4P and 7P. It is essential to balance the 4Ps or the 7Ps of the marketing mix. The concept of 4Ps has been long used for the product industry while the latter has emerged as a successful proposition for the services industry.

The 7Ps of the marketing mix can be discussed as: Product - It must provide value to a customer but does not have to be tangible at the same time. Basically, it involves introducing new products or improvising the existing products. Price - Pricing must be competitive and must entail profit. The pricing strategy can comprise discounts, offers and the like. Place - It refers to the place where the customers can buy the product and how the product reaches out to that place. This is done through different channels, like Internet, wholesalers and retailers. Promotion - It includes the various ways of communicating to the customers of what the company has to offer. It is about communicating about the benefits of using a particular product or service rather than just talking about its features. People - People refer to the customers, employees, management and everybody else involved in it. It is essential for everyone to realize that the reputation of the brand that you are involved with is in the people's hands. Process - It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, if the customers are informed in hand about the services and many such things. Physical (evidence) - It refers to the experience of using a product or service. When a service goes out to the customer, it is essential that you help him see what he is buying or not. For example- brochures, pamphlets etc serve this purpose.

5. List the advantages of Rater model of service quality

Rater model This model explains the main criteria, which the clients make use of to measure the service quality. Rater model was produced by Zeithami in 1990 and performs a complementary examination of the perception gap. Rater model recognize five important areas, which form the quality of a service offering from a customer point of view. Here, the model describes the manner in which provider reduces the perception gap and also concentrates on the dimensions of client expectations. As per the research, it suggests the importance of each factor which is shown in the Table 3.1 that explains the RATER dimensions developed by Zeithami in 1990. Table 3.1: RATER dimensions sorted by relative importance (Zeithami 1990) Dimension Description Capability to perform the ensured service in a dependable and accurate manner Readiness to help the customers and offer quick service Information and courtesy from staff and their capability to convey faith and self-assurance The attention and service the services organisation provides to its clients Appearance of physical facilities, equipment, personal and communica-tion materials Relative importance

Dependability

32%

Responsiveness

22%

Assurance

19%

Empathy

16%

Tangibles

11%

6. Describe the various positioning strategies for services In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market. Strategic Service Vision Ideally, a service delivery system should support the operating strategy, which should support the service concept, which supports the target market

Reasons for Increased Importance of Positioning 1. Perceptual processes of customer They screen out most information 2. Greater competition More organizations competing for share of mind 3 . Growing volume of commercial messages Advertising and promotion clutter Steps Required for Effective Positioning (the five Ds) : Documenting Deciding Differentiating Designing Delivering

Positioning Approaches: Six Major Alternatives Specific product features Benefits, problem solution, or needs Specific usage occasions User category Against another product Product class dissociation