A

PROJECT REPORT
ON

SERVICES MARKETING SYSTEM IN INDIA

Submitted to

GOVT. P.G COLLEGE UNA (H.P)

ACEDMIC YEAR 2017-2019

In Partial fulfillment of the requirement for the

Award of degree of Masters of Business Administration (MBA)

SUBMITTED TO SUBMITTED BY

M/S AARUSHI ANKUR SHARMA

CLASS MBA 4TH SEM

ROLL NO. (UNI.) 17MBA0221

 DECLARATION

I am ANKUR SHARMA student of MBA 4th semester declare that I have done the project on
“services marketing system in India has been personally done by me under the guidance of
PROF. Aarushi in partial fulfillment of MBA program during academic year 2017-19. All the
data represent in this project is true and correct to the best of my knowledge &belief.

I also declare that this project report is my own preparation and not copied from anywhere else.
 ACKNOWLEDGEMENT

And I am heartily thanking my project report in-charge, PROFF. Aarushi faculty GOVT P.G.
COLLEGE UNA. whose encouragement, guidance and support from the initial to the final level
enabled me to develop an understanding of the subject. I am grateful for Madam’s contribution
towards the execution of my project.
 Certificate

This is to certify that the project report entitled “services marketing system in India” submitted
by M/s Aarushi Sharma. and this report has helped project guide M.R Vipul which is help toward
on me to completed my project report. The data sources have been dully acknowledging .it may
be considered for evaluation in partial fulfilment of requirement for the award of degree of
Master of Business Administration

M/s. Aarushi sharma. M.R Vipul (project guider)

MBA department sign ………….

Sign ……….
 PREFACE

As a part of the partial fulfillment of the MBA programmer at GOVT P.G. COLLEGE UNA
(HP).

The project is specially designed to understand the subject matter of SERVICES MARKETING
SYSTEM IN INDIA.

This project is very useful for those study in services marketing system in India.
 TABLE OF CONTENT
Student Declaration

Acknowledgment

Preface

Table of contents

List of Figures

CHAPTER NO. CONTENT

1 INTRODUCTION OF TOPIC

2 Review of literature

3 PROJECT
3.1  RESEARCH METHODOLOGY
3.2 Services marketing triangles.

4
4.  CONCLUSION

 BIBLIOGRAPHY
 CHAPTER
1
INTRODUCTION OF SERVICES MARKETING

SERVICES MARKETING

services marketing typically refers to both business to consumer B 2 C

and business to business B 2 B services, and includes marketing of services such as
telecommunications services, financial services, all type of hoshpitality,tourism leisure and
entertainment services, car rental services, health care services and professional services and
trade services.srvices marketer often use an expanded marketing mix which consists of the
seven ps:product,prices,place,promotion,people,physical evidence and process. A
contemporary approach, known as services-dominant logic, argues that the demarcation
between product and services that persisted throughout the 20th century was artificial and has
obscured that everyone sells services. the s-d logic approaches changing the way that marketer
understand value-creation and is changing concept of the consumer's role in services delivery
process.

DEFINATION OF SERVICES:

The American Marketing Association defines services marketing

as an organizational functional and set of processes for identifying or creating, communicating,
and delivering value to customers and for managing customer relationship in a way that benefit
the organization and stake-holders. services are {usually} intangible economic Activity offered
by one party to another. often time-based, services performed bring about desired result to
recipient, objects, or other assets for which purchasers have responsibility. In exchange for
money, time, and effort, services customers expect value form access to goods, labor,
professional skill, facilities, networks, and system; but they do not normally take ownership of
any of the physical elements involved.

CHARACTERSTICS OF SERVICES:

the four most characteristic of services are:

1. intangible.: services lack physical form; they do not interact with any our sense in a
conventional way, they cannot be touched or held. implications of intangibility: Ownership
cannot be transferred, value derives from consumption or experience, quality is difficult to
evaluate prior to consumption or purchase.

2. inseparability.: production and consumption cannot be separated (compared with goods

where production and consumption are entirely discrete process)

implication of inseparability: fewer opportunity to transact business at arm's length, fewer

opportunity to substitute capital for labor: subject to human error.

3. perishability.: services performance is ephemeral, unlike physical goods, services cannot be

stored or inventoried.
 implication of demand: Demand is subject to wide function, no inventory to serve as a buffer
between supply and demand, unused capacity cannot be reserved, high opportunity cost of idle
capacity.

4. Variability.: services involve process delivery by services personnel and subject to human
variation, customer often seek high customaries solution, services are inherently variable in
quality and substance.

implications of variability: services give rise to problem and challenges that are rarely parallel in
product marketing. services are complex, multidimensional and multi-layered. Not only are
there multiple benefit, but there is also a multiplicity of interaction between customer and
organization as well as between customer and other customer.

Services marketing:
from the state of disputed legitimacy
to a separate sub-discipline
marketing
􀂄 The life of services marketing has undergone three
stages:
􀂄 The Crawling Out stage (Pre-1980)
􀂄 The Scurrying About stage (1980-1985)
􀂄 The Walking Erect stage (1986-today)

The Crawling Out Stage

(I)
􀂄 A period of high risk:
􀂄 If services marketing proved to have a case, the
sub-discipline would grow
􀂄 If it was shown that services marketing was a mere
extension of goods marketing, the discipline would
have no solid base and would disappear
􀂄 The objective:
􀂄 to prove the right of services marketing to exist
The Scurrying About Stage
(II)
􀂄 The outcome:
􀂄 A significant growth of the empirically based
knowledge on the special nature of services
􀂄 Service quality
􀂄 Service encounters (the customer-seller dyadic
interaction at the point of sale)
􀂄 Service design
􀂄 New service development8
The Walking Erect Stage
(I)
􀂄 The characteristics:
􀂄 Very little, if any, further discussion is made on
whether or not services require a different marketing
management approach: the debate is won
􀂄 The objective:
􀂄 to conduct empirical research in new areas of
inquiry in services marketing10
The Special Characteristics of
Services
􀂄 Intangibility
􀂄 Inseparability of production and consumption
􀂄 Heterogeneity
􀂄 Perishability11
Services (I) The Intangibility of
􀂄 It refers to the total lack or perception of a service’s characteristics
before and (often) after it is performed
􀂄 The term was first used in 1963 (Regan)
􀂄 It is the most radical characteristic of services, where from the
others emanate
􀂄 Marketing implications
􀂄 Great marketing skills in tangibilising intangible offerings, i.e., in
surrounding them with “hard” peripheral attributes
􀂄 Technical superiority and long term vision in new service
development, in order to protect a service from its non-patentability
􀂄 Special pricing know-how, i.e., what is the cost of a service?
􀂄 Creative communications skills, i.e., what message to
communicate? 11
The Intangibility of Services (I)
􀂄 It refers to the total lack or perception of a service’s characteristics
before and (often) after it is performed
􀂄 The term was first used in 1963 (Regan)
􀂄 It is the most radical characteristic of services, where from the
others emanate
􀂄 Marketing implications
􀂄 Great marketing skills in tangibilising intangible offerings, i.e., in
surrounding them with “hard” peripheral attributes
􀂄 Technical superiority and long term vision in new service
development, in order to protect a service from its non-patentability
􀂄 Special pricing know-how, i.e., what is the cost of a service?
􀂄 Creative communications skills, i.e., what message to
communicate?13

Tangible dominant
products
Salt
Soft drinks
Detergents
Automobiles
Cosmetics
Fast-food outlets
Fast-food
outlets
Intangible
dominant products
Advertising
agencies Airlines
Investment
management
Consulting
Teaching

CHAPTER
2
REVIEW OF LITERATURE
The management process which identifies anticipates and supplies customer requirements
efficiently and profitably.

The marketing mix for services:

The marketing mix for services is not only the same as by the Goods marketers. They have the
4Ps: Product Place Promotion Price. Early analysis by Borden (1965) of marketing mix elements
was based on a study of manufacturing industry at a time when the importance of services to the
economy was considered to be relatively unimportant. More recently, the 4Ps of the marketing
mix have been found to be too limited in their application to services. Particular problems that
limit their usefulness to services are as follows. (Palmer, 2004 P.10)

4Ps:

Product:

Products are something which is produced by physical act or labor. In marketing, a product is
anything that can be offered to a market that might satisfy a want or need. However, it is much
more than just a physical object. It is the complete bundle of benefits or satisfactions that buyers
perceive they will obtain if they purchase the product. It is the sum of all physical, psychological,
symbolic, and service attributes. (en.wikipedia.org/wiki/Product)

Pricing:

Pricing is one of the four aspects of marketing. The other three parts of the marketing mix are
product management, promotion, and distribution. It is also a key variable in microeconomic
price allocation theory. Pricing is the manual or automatic process of applying prices to purchase
and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales
campaign, specific vendor quote, price prevailing on entry, shipment or invoice date,
combination of multiple orders or lines, and many others. Automated systems require more setup
and maintenance but may prevent pricing errors. (en.wikipedia.org/wiki/Pricing)

Promotion:

The specification of these four variables creates a promotional mix or promotional plan. A
promotional mix specifies how much attention to pay to each of the four subcategories, and how
much money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image
+2 or 3 Ps:

In the context of services marketing, Booms and Biter (1981) have therefore suggested an
extended "7-Ps" approach that contains the following additional "Ps":

People:

All people directly or indirectly involved in the consumption of a service, e.g. employees or
other consumers. An essential ingredient to any service provision is the use of appropriate staff
and people. Recruiting the right staff and training them appropriately in the delivery of their
service is essential if the organization wants to obtain a form of competitive advantage.
Consumers make judgements and deliver perceptions of the service based on the employees they
interact with. Staff should have the appropriate interpersonal skills, aptitude, and service
knowledge to provide the service that consumers are paying for. Many British organizations aim
to apply for the Investors in People accreditation, which tells consumers that staff are taken care
off by the company and they are trained to certain standards
(www.learnmarketing.net/servicemarketingmix.htm)

Process:

Procedure, mechanisms and flow of activities by which services are consumed. The additional
"P" of "processes": "How" a product is produced becomes increasingly crucial to a large number
of consumers – just think about cosmetics (animal testing) or cars (recycling).

The biggest advantage of this discussion however is probably that those who discuss it deepen
their own knowledge – not only about the marketing mix in particular but also about marketing
in general.

Physical Evidence:

The environment in which the service is delivered. It also includes tangible goods that help to
communicate and perform the service. The first two additional Ps are explicit (People, Process)
and the third one (Physical Evidence) is an implicit factor. Where is the service being delivered?
Physical Evidence is the element of the service mix which allows the consumer again to make
judgements on the organization. If you walk into a restaurant your expectations are of a clean,
friendly environment. On an aircraft if you travel first class you expect enough room to be able
to lay down!

illustration not visible in this excerpt

More goods as Services…?

illustration not visible in this excerpt

"Managing the evidence" refers to the act of informing customers that the service encounter has
been performed successfully. It is best done in subtle ways like providing examples or
descriptions of good and poor service that can be used as a basis of comparison. The underlying
rationale is that a customer might not appreciate the full worth of the service if they do not have
a good benchmark for comparisons. (Levitt)

The dichotomy between physical goods and intangible services should not be given too much
credence. These are not discrete categories. Most business theorists see a continuum with pure
service on one terminal point and pure commodity good on the other terminal point. Most
products fall between these two extremes. For example, a restaurant provides a physical good
(the food), but also provides services in the form of ambience, the setting and clearing of the
table, etc. And although some utilities actually deliver physical goods — like water utilities
which actually deliver water — utilities are usually treated as services.
(http://en.wikipedia.org/wiki/Goods_and_services)

The service-goods continuum

Distinguishing features of services

Zenithal, Parasuraman, and Berry sum up four common factors that characterize all services:
intangibility, inseparability of production and consumption, perishability, and heterogeneity.
Services are said to be intangible because they are performances rather than objects, and they
cannot be touched or seen in the same manner as goods; rather, they are experienced, and
consumers´ judgments about hem tend to be more subjective than objective.

Inseparability:

Services cannot be separated from the service providers. A product when produced can be taken
away from the producer. However, a service is produced at or near the point of purchase. Take
visiting a restaurant, you order your meal, the waiting and delivery of the meal, the service
provided by the waiter/ress is all apart.
 CHAPTER
3
RESEARCH METHODOLGY
 NEED OF THE STUDY:

The need of study is various of two type. internal or external.

 Internal.
.to inform employees about changes in the organization.
.to communicate plans and programmers.
.to publicize incentive scheme
.to inform educate new services

 External.
To inform current &new services offering and benefits.
To educate customers.
To persuade to buy
To remind customer
To publicize policy decision.
Objectives of services marketing.
To identify dissatisfied customers.
To discover costumer requirement or expectation
To monitor and track services performance
To assess over all company performance compared to compaction
To assess gap between costumer expectation and perceptions
To gauge effectiveness of change in services
To appraise services performance individual and team for reward
To determine expectation for a new service
To monitor changes expectation in an industry
To forecast future expectation

Scope of services marketing.

Services as an organization:

It is entire business or not-for profit structure within the services sector. For example, a
restaurant, an insurance company a charity.

Services as core product:

The commercial output of a services organization such as a bank account an insurance

policy or a holiday

Services as product augmentation:

Any peripheral activity design to enhance the delivery of a core product. for example,
provision of a courtesy car, complimentary coffee at the hair dresser
 Services as product support:

Any product or customer oriented activity that takes places after the point of delivery of
example monitoring activity aa repair services updating facilities.

Services marketing mix.:

Once a market has been segmented, target market selected and positioning strategies have been
determined, then the firm needs to develop the marketing mix for their offering

Marketing mix

Marketing mix is the set of marketing tools the firm uses to pursue its marketing
objectives in the target market.

Customer the core of marketing mix.

Marketing mix is created to satisfy costumer and organizational objectives. Hence today
marketing strategy are more costumer driven creating values form customer perspectives

Differences between 7ps and 7cs.

7ps 7cs
Product Costumer needs and wants
Prices Cost of costumer
Place Convince
Promotion Communication
Provision of Costner services Conformance context
Participants Commitment people
Process Continuous improvement process.

Role of costumer in services marketing.

. costumer as sources of production.
. costumer as determinant of services quality.
. feedback.
Costumer as potentialcompitetor.
. identify costumer:
. understand costumer wants and needs
. identify whom to target and how to reach them

Satisfy customer:
. make the right product or services available to the right people at the right time.
. make Retain customer; from the exchanges

. give customer a reason to keep coming back.

. find new opportunity to win their business.

Element of marketing mix:

These are the variable or parameter that a marketing manager can control subject to
internal and external constraints of the marketing environment. These variables can be
adjusted to respond to changing needs of marketing environment. there is different
version of the marketing mix but the most common are 4ps and 7ps.
The product of 4p (product, price, promotion, placing) and 7ps (product, price,
promotion, placing, people, process, and physical evidence) in the context of services.
 Physical
product
evidence

Marketing
price
people
mix

production
place
process

Services market and services marketing

segmentation.

Services marketing.
A place or area where the prospective and potential customer live
for particular services at a given time is known as services
marketing
Segmentation of market for services.:
Market segmentation for the services can be carried out in following pattern.
. category of need.
. segmentation of need.
. Factors that segment prospect.
. purchase decision influences.
. seller charters tic that can influence purchase decision.
Purchase decision maker.

Category of needs:
The category of need based segmentation of market understand the following factor
segmentation.
.1 for business.
A) Strategic
B) Operation
C) Functional.

2 for the individual consumer

A) Social esteem or pleasure.

B) Functional.

Segmentation of needs:
The second factor for segmentation is based on the need of the prospect here a firm
establish but the need is and who is most likely to experience that need.
Some need category for segmentation include,
a) Reduction in expense
b) Improved cash flow
c) Improved productivity
d) Improved manufacturing quality
e) Improved service delivery.
f) Improved employee working condition
g) Improvement in market share.
Factor that segment prospectus.
A firm can proceed to a more detail analysis of the market. There are literally
thousands of ways to segments a market but following are some of the more
typical segmentation categories.

For business

Industry by standard industrial classification code.

This is especially benefic for vertical market offering.
Size: Revenue employee and location etc.

Job position/responsibility.
Example of offering might be a planning software
for manger or cleaning, agent for maintained manager.

Climate:
Example of offering might be dehumidifiers in areas near the
ocean or snow plows in northern areas.

Time related factors:

Some services in this category are vacation related in
summer and tax planners in the spring.

Language:
An example of a language specific services is a Spanish to channel.

PURCHASE DECISION INFLUENCER:

Once a firm has isolated a specific segment of the market on.

 Preference for channel of distribution.

 Number of decision making.
 Financial strength of the prospect.
 Quantity.
 Ability to use the offering.
 Commitment required.
 Brand awareness.
3.2 Services Marketing Triangles
 SERVICE MARKETING TRIANGLE:

Service marketing triangle is

designed to understand the concept of Internal Interactive and External
Marketing Which are the three core areas of services marketing and services
marketing communication. The services marketing being different in various
aspect, key areas like marketing and communication needs to be understand
by the academicians, professionals and practitioners.

Communication and the service marketing triangle

Company

Internal marketing vertical communication

Horizontal communication external marketing

Mass communication

Advertising

Sale per motion

Direct marketing

Employee Customers

Interactive marketing
Personal selling customer service center service, scape

Chapter

Conclusion
Conclusion.:

By carrying out the study of reasoning global e application ltd services delivery strategies an
analyzing the services performance, it can be concluded that the services organization is Indian
digital marketing services provider and is global brand with many leading business in the global
competitive arena .by carrying out interaction and interview with few biro employees at
hydrabaad.be identify some key issue in the services delivery that create a services delivery gap,
What by doing the gap analysis be are able to apply the services marketing concept and strategies
and it can really help in minimizing the services quality gap without any additional cost to the
organizational.

Bibliography

www.wikipidea.com

services marketing by balramdogra.