Classification of Services (Sector Bases)

SERVICES MARKETING
CLASSIFICATION

Major industries classified under services sector are:

Transport & Public Utilities Communication Electric, Gas & Sanitary services Wholesale & Retail Trade Finance, Insurance and Real Estate Personal Service Business Services

Classification of Services (Sector Bases)

Repair & Maintenance Contract Services Motion Pictures Amusement & Recreation Services Health Services Legal Services Educational Services Other Professional and Private Household Services

Classification of Services (Sector Bases)

Social Organizations Offering Services Government Services: Civilian-cum-Military Government Enterprises State and Local Government Services Tourism Services

Factors Used in Classification Schemes

Type of service Type of seller Type of purchaser Demand characteristics Rented versus owned services Degree of intangibility

Factors Used in Classification Schemes

Amount of customer contact Service delivery requirements Degree of customization Degree of labor intensity

Classification (Research Based)

In 1980 Kotler. P gave the classification

Modified Classification
Again in 1983, Lovelock has modified the classification

People based Vs Equipment based. Extent to which clients presence is necessary. Meets personal needs Vs Business needs. Public Vs Private. Profit Vs Non-profit.

1. 2. 3.

Nature of Service Act: Tangible or Intangible Action and who is the

Recipient (People or Thing)

Relationship with Customer (Membership and Non-Formal) and Nature of Service Delivery (Continuous or Discreet) Extent of Demand Fluctuation over time (Wide/Narrow) and Extent to which Peak Demand Met (Peak Demand Higher than
Supply)

4.

Method of Service Delivery (Single/Multiple Side) and Nature of Interaction (Customer goes to Service Organization/Service
Organization goes to Customer/Transaction at Arms Length) Customization (High/Low) and Judgment (High/Low)

5.

Nature of Services Act Matrix

Availability of Service Matrix

Process Matrix

The Service Business

MARKETING MANAGEMENT

SERVICES TO CUSTOMERS
OPERATIONS MANAGEMENT HUMAN RESOURCE MANAGEMENT

Service Business
A service business is a system comprising three overlapping subsystems
Service Operations (front stage and backstage) Where inputs are processed and service elements created. Includes facilities, equipment, and personnel Service Delivery (front stage) Where final assembly of service elements takes place and service is delivered to customers Includes customer interactions with operations and other customers Service Marketing (front stage) Includes service delivery (as above) and all other contacts between service firm and customers

The Services Triangle

THE SERVICE STRATEGY 3 3 2 1

THE CUSTOMER
4 THE SYSTEMS 5 6 THE EMPLOYEES

Services Marketing Triangle

Company
(Top Management)

Technologys Growing Role in Marketing to and Serving Customers: Pyramid Model Company
Internal Marketing External Marketing
(Deliver Promises)

External Marketing

Internal Marketing
(Enable Promises)

Employees

Interactive Marketing
(Keep Promises)

Customers

Employees
Interactive Marketing

Customers