SGM COLLEGE OF COMMERCE & ECONOMICS

STD: T.Y.B.M.S. SEMESTER V SUBJECT: Service Sector Management TOPIC:

Service Marketing Environment

SUBMITTED TO:

Prof. D. Salve

PRESENTED By ::-

Name
 AFTAB

Roll no.
04 15

AHMED  JULFIKAR ALI

Service Marketing Environment

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Business is the total of all the constituents of environments in which business firm have to operate. The constituents of the components of the business environment are interrelated and any change to constituent can lead to change in another consequent and this change may affect another consequent. Business firm has to keep a close watch on different constituents of the business environment and adjust their plans, policies, and strategies accordingly.

Types of Business Environment

(A) Internal Environment

(B) External Environment

1.MICRO ENVIRONMENT

2.MACRO ENVIRONMENT

(A) Internal Environment

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Internal environment exercises a significant influence on the attitudes, behaviour and performance of people. Factor influencing Internal Environment :-

(B) External Environment

1. I I

2. A

1. I
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It is consist of all the factors in the company`s immediate environment that affect the performance of the company. These include the suppliers, marketing intermediaries, competitors, customers and the public. The micro-environmental factors are more intimately linked with the company than the macro factor.

1. I
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Factor affecting Micro-environment :Micro:-

2. Macro Environment

The government influence the economical environment through various economic policy that i.e.

Factors contribute to the favourable political environment in the country ::Stable and reliable government that works for the people. Effective role of chamber of commerce, trade union and other org. Political awareness among people. Peaceful and productive external relationship. Progressive economic policies. Alert and active opposition parties Proper law and order situation Strong party in power Responsible role of press and publicity media. media.

1) 2) 3) 4) 5) 6) 7) 8) 9)

Important Laws in India which affect Business directly or indirectly:indirectly:Industrial (Development and Regulation) Act, 1951 The Monopolies and Restrictive Trade Practices Act, 1969 Foreign Exchange Management Act, 2000 ()FEMA) Environment Protection, 1986 Consumer Protection Act,1986 The Indian Companies Act, 1956 SEBI

1) 2) 3) 4) 5) 6) 7)

y 1) 2) 3)

Problems in the introduction of modern technology The introduction of new and updated technology is costly and need huge investment. New technology introduced may become old and outdated after few years and need replacement for the second time which again become costly. Training need to be given to the employees while introducing new technology.

Factor Stimulating the ransformation of he Service arketing nvironment

1. Government Policies
1) 2) 3) 4)

Changes in regulations Privatisation and economic liberalization New rules to Protect customers, Employees and the Environment. New agreement on trade in services

2.Social Changes
1. 2. 3. 4.

Rising Customer`s Expectations and Shot of Time. More affluence Rising ownership of computers and mobile phones. Increased immigration

3.Business Trends
1. 2. 3. 4. 5. 6. 7.

Manufacturers Add Value to Service and Sell Service. Marketing Emphasis by Nonprofits Relaxation of Professional Association standards Emphasis on Productivity and Cost-Saving. CostQuality Movement Growth of Franchising Innovative hiring practices

4. Advances in Information Technology

1. 2. 3. 4. 5. 6.

Convergence of computers and telecommunications. Digitization of Text, Graphics, Audio and Video. Powerful Software Greater Bandwidth Wireless Networking Growth of Internets

5.Internationalisation and Globalisation

1.

The Internationalisation of services companies are far more

beneficial tourist or business executives travelling abroad. More and more services are being delivered through national or even global chains. A number of financial service firms, advertising agencies, hotel chains, fast food restaurant or accounting firms now operate on several continents. Many well known companies U.S. owned e.g. McDonald, City Corporation & Andersen consulting.

2.

3.

Environmental Trends Consumer Affluence Working Women

Emerging Service Market Dine-out habits, travel, club, repairs servicing, healthcare, domestic services, banking & investment, retailing insurance. Domestic services, travel, nurseries, fast food restaurants, financial services, marriage counseling, retailing personal care. Hospitals, nursing homes, travel resorts, leisure services, investment, banking.

Greater Life expectancy

Complexity of Life Travel, Legal aid, tax counseling, professional services, airlines, courier services, banking.

Environmental Trends New Young/Youth

Emerging Service Market Entertainment, fast food, travel, picnic resorts, tutorial aids, counseling, retailing. Hotels, advertising, legal services, recruitment services, management counseling, healthcare, airlines, ravel booking, marketing research. Repair and servicing services, training, education, sharing services. Expert advice, specialists.

Corporate Crowd

Product Innovation Growth Product Complexities

www.wikipedia.org

Bibliography

Service Sector Management (By Romeo S. Mascarenhas)