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MARKETING FINANCIAL SERVICES�

Classification of services

Elements of service marketing

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Introduction & Definition:

  • A service is an intangible product involving a deed, performance, or an effort that cannot be physically possessed. Dominant component is intangible. It includes rental of goods, alteration and repairs of goods owned by customers and personal services.
  • Service is an act or performance offered by one party to another that essentially intangible and does not normally result in ownership of anything. Its product may or may not be tied the physical product – Philip kotler.

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Classification of services:

Services in consumer markets:

  • Food services:-

Food services are offered by hotels, restaurants and catering services. Food is supplied in restaurants as well as delivered t customers residence. Catering agents supply food for occasions like wedding engagements, birthday, conferences etc.

  • Boarding and lodging services:-

These services are provided by hotels and lodges to the people who travel to distant places. Growing tourism has contributed or remarkable growth in boarding and lodging services.

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Classification of services:

  • Personal care services:-

These are the services provided to meet the personal care needs of customers like health appearance, physical fitness etc. personal care service include service offered by beauty parlors, barber shops, gymnasiums, dry cleaners, hospitals etc. 

  • Entertainment services:-

These services include cinema, drama, dance, music, amusement park, cable, TV etc. There is an increasing tendency among the people to send more money on entertainment services. 

  • Transport services:-

These include the services provided by railways, road transporting facilities, air transport such as flights and helicopters and water transporting services such as ships and boats.

 

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  • Automobile services:-

These are services provided to the owners of automobile vehicles for their repair and maintenance. They are provided by units called service stations.

  • Communication services:-

These are services provided to help people to exchange information. These services include telephone, telegraph, e-mail, telex, fax etc. mobile phone and internet has revolutionalized the field of information communication.

  • Education services:-

Education services provide coaching to students in various disciplines and to prepare them for various examinations. These services are provided by schools, colleges and universities. 

  • Insurance services:-

Insurance services are provided to protect people against the risk of loss of life and properties. Insurance companies sell various insurance policies in the field of life insurance and general insurance. They provide a sense of security to the policy holders.

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Services in Industrial Markets

  • Financial services:-

Finance is essential for carrying out business operations. Companies require both short term and long term finance. This finance is provided by commercial banks, merchant banks and other financial institutions. Investment companies guide firms in investing in share and bonds. 

  • Insurance services:-

All business units are exposed to variety of moving men and materials to the factory and men finished goods from factory. These services are provided by against risk such as fire, marine losses, theft accidents etc. 

  • Transport services:-

Business units require transport services for moving men and materials to the factory and men finished goods from factory. These services are provided by various transport companies by means of trains, trucks, buses, ships, aeroplanes etc.

 

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  • Ware housing services:-

Warehousing services are required for keeping materials and finished goods until they are needed for use. Warehouse in public sector and private sector offer these services to the business units.

  • Advertising services:-

Advertising is the most commonly and widely used mode of promotion. Advertising agencies help the business men to plan and implement advertising campaigns. They also help to study the effectiveness of advertising. 

  • Consultancy Services:-

Consultancy services refer to advice given to management on various matters such as production, marketing, finance etc. Most of the business units especially small and medium size depends on management consultancy firms to solve their problems.

 

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  • Office Service:-

Several types of services are required for the efficient functioning of business offices. These include Xeroxing, scanning, cleaning etc. 

  • Engineering services:-

Engineering services include assistances given to business units in planning new projects, designing plants, construction of buildings, erection plant and machinery etc. these services are provided by specialized engineers.

  • HR services:-

HR services considered as the most important asset of a business concern. Proper selection and training of man power is essential for organizational development. Selection and training is often entrusted to specialized recruitment agencies.

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Elements of service marketing

  • Inroduction : Services are radically different from products and need to be marketed very differently. Service marketing is different from product marketing. Service firms are marketing something that is intangible, something that the client cannot experience until the firm has delivered it. Some of the elements of service marketing mirror those of product marketing; however, there is a greater emphasis in the service sector on people, relationships and problem solving.

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Elements of service marketing

  • Place:-

Place is largely defined by firm’s target market. To effectively sell and deliver a service, firm need to be where the prospects and customers are Attorney offices are typically found near a court house, and medical practices are often clustered around a hospital. For the service business firms are marketing, the proper place means less travel time between revenue opportunities and also the appearance that firms are somehow connected with the larger entity.

  • People Vs Branding:-

Having the right people makes all the difference to a service business. The way that staff and leadership interact with prospects and clients contributes to business success. Create a marketing plan that promotes service business staff, not just the brand.

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  • Knowledge:-

Service firms are hired for their knowledge staff and owner knowledge is a notable marketing tool. Offer firms expertise and opinions on social media, blogs posts and other marketing tools. This sends and clear message of expertise and prospects.

  • Value over Price:

Value is the often more important than price as a marketing message. When building a marketing plan for a service business, place the focus on value successful service firms have a keen understanding of average customer –value perceptions and clearly communicate how they meet or exceed those expectations for the client’s benefit.

  • Relationships:-

Relationships anchor clients. Relationships enable well – managed service firms to gain a competitive advantage by creating protection against services issues and competition and to uncover new growth opportunities. Marketing efforts should clearly show a high level of commitment to customer relationship throughout the service firm. If customers are pleased with how firms resolve their problems, they are much less likely to consider a competitor.

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  • Problem- solving:-

Problem – solving trumps price. Successful service businesses excel at showing customers they can solve problems versus simply offering a one – size-fits all service. This is a great way to stand above the competition. This includes post-sale customer service.

  • Specialization:-

Specialization creates comfort for customers. Customers like to work with specialized service provides for example, if a patient is sick and her primary physician can’t diagnose the problem, she forwarded to a specialist giving her comfort that her ailment can be cured. Specialization is a tool to build firms client base, enabling to solve a specific problem in target industry or niche.

  • Product:-

Products are often defined by an industry’s customers. Products get created in response to customer needs. Service firms show they are listening by creating a product message that demonstrates how clients benefit.