Definition of Services—“Activities, benefits and satisfactions, which are offered for sale or are provided in connection

with the sale of goods” (American Marketing Association, Committee of Definitions 1960)
Meaning and definition of Service Marketing—Services marketing is marketing based on relationship and value. It may
be used to market a service or a product Marketing a service - base business is different from marketing a product -
base business. Services marketing is a sub-field of marketing, which can be split into the two main areas of goods
marketing (which includes the marketing of fast-moving consumer goods (FMCG) and durables) and services
marketing. Services marketing typically refer to both business to consumer (B2C) and business-to-business (B2B)
services, and include marketing of services such as telecommunications services, financial services, all types of
hospitality services, car rental services, air travel, health care services and professional services.
The Service Economy—A service-based economy is an economy that is driven by its service sector. The service sector -
also known as the tertiary sector - is made up of a wide range of service providers within a number of industries.
Service-based economies are well advanced compared to the global standard. A standard that is measured, among
other factors, in gross domestic product and the type of activities that sustain the economy. Where developing
countries rely on agriculture and other extraction activities, developed service-based countries revolve around service
activities like banking, hospitality, and healthcare. In light of this, it is key for developing economies to allocate
resources to their service sectors to progress and keep up with first-world countries. This captures the importance of
the service sector as a fundamental component of economic advancement.
The Special Characteristics of Services:
[Link]—McDougall and Snetsinger (1990) defined intangibility as “the lack of physical evidence” and “the degree to
which a product or a service cannot provide a clear concrete image”. Services cannot be seen, tasted, felt, heard, or smelled
before buying.
[Link]—The definition of inseparability in the dictionary is “the quality or state of being incapable of being separated
or divided.” One of the characteristics of service marketing is inseparability. When purchasing a product, most customers can
separate the product from the staff member who provides it. However, when purchasing a service, customers commonly
purchase a service at the time they want to consume them. This can make it challenging to separate the service they receive
from the business or staff member who provides the service.
[Link]—Variability means a lack of consistency and measures how much data or experiences vary. When purchasing a
physical item, the product is consistent regardless of the store or online vendor selling it. When purchasing services, there is
greater variability―there will always be changes in the experience of the same service provided by different vendors.
[Link]—Perishable goods refer to products and services that have an expiration date. Services, like foods, are
perishable, meaning that services can not be stored for later use. Foods may go bad if they are not consumed in a certain
period, the same applies to some services. Movie tickets, theater reservations, doctor’s appointments, and hotel bookings
can not be stored or kept for later use. When left unused, the service vanishes, and a new ticket or another reservation will
need to be made.
Challenges and issues in Services Marketing—Here are some of the key challenges and issues in services marketing:
1)Customer Involvement: Customers often play an active role in co-creating the service experience. Their preferences,
expectations, and interactions with service providers can significantly impact their satisfaction. Managing and shaping these
customer interactions is crucial.
2)Heterogeneity: Services encompass various industries, each with its unique characteristics, customer expectations, and
marketing strategies. Service marketers must adapt their approaches based on the specific nature of the service they are
promoting.
3)Managing Service Recovery: Service failures and customer complaints are inevitable. How businesses handle these
situations can have a profound impact on customer satisfaction and loyalty. Developing effective service recovery strategies
is essential.
3)Promotion and Communication: Communicating the benefits and value of services can be challenging due to their
intangibility. Effective promotional strategies often require creative approaches that emphasize customer testimonials, case
studies, and storytelling.
4)Globalization: Many service businesses operate on a global scale, requiring an understanding of international markets,
cultural differences, and regulatory challenges.
5)Legal and Ethical Considerations: Service marketers must navigate legal and ethical issues, including privacy concerns,
data security, fair pricing practices, and compliance with industry regulations.
6)Competitive Pressure: Intense competition in the service industry often leads to price wars and margin pressure.
Differentiating a service and maintaining a competitive edge can be challenging.
Scope of Services Marketing:
(i) Financial Services:—The financial services such as – banking and insurance services are an important part of an economy.
This is the area which really needs to be strengthened. Financial services like banking and insurance services can be
considered as a backbone of a business.
In India, the financial system has improved in terms of number of financial instruments, the number of active participants in
the market and the introduction of online financial services like internet banking. Both banks and insurance companies have
introduced customized online services with the help of technology to ensure greater customer convenience. Financial
services are presented to customers in varied forms – business loans, consumer loans, payment merchant services,
insurance services, bank lockers, saving accounts, salary account, fix deposit schemes, etc.
(ii) Health Services:—India is the major player in the world in healthcare industry. Low costs combined with excellent facilities
have stimulated the development of health care service. Hospitals serve the masses by launching mass awareness
programmers to prevent ailment, which will pave way for a healthy life of the people. The marketing principles for Medicare
services focus on distributing the services to users in a decent way.
(iii) Tourism Services:—Tourism in Indian is growing rapidly and is playing an important role in Indian economy. The travel
and tourism industry is at boom with so many attractive offering available for the travel lovers. It includes so many world tour
packages also at affordable prices. In developing countries like India tourism has become one of the major sectors of the
economy, contributing to a large proportion of the National Income and generating huge employment opportunities. It has
become the fastest growing service industry in the country with great potentials for its further expansion and diversification.
(iv) Education Services:—The education sector in India is poised to witness major growth in the years to come as India will
have world’s largest tertiary-age population and second largest graduate talent pipeline globally by the end of 2020. As of
now the education market is worth US$ 100 billion. Currently, higher education contributes 59.7 per cent of the market size,
school education 38.1 per cent, pre-school segment 1.6 per cent, and technology and multi-media the remaining 0.6 per cent.
(v) Hospitality Services:—The Indian tourism and hospitality industry has materialized as one of the key drivers of growth
among the services sectors in India. It contributes to 6.23 per cent to the National GDP and 8.78 per cent of the total
employment in the country. Constant transformation, functional growth and improving standards have gained the hospitality
industry of India approval all over the world.
(vi) Domestic Services:—In India the domestic service sector is a rapidly growing sector with lots of potential of growth. The
domestic services include the housekeeping services, security services, maids for domestic help, day care services etc.
ROLE OF SERVICE SECTIOR FOR THE GROWTH OF INDIAN ECONOMY:—Service sector gives significant contribution in the
GDP of the country. It not only provides the large number of employments but also trade in services improves economic
performance significantly in the country. Below points explain the main role of the service sectors in the development of
Indian economy.
1)Service Sector Enhances the GDP of the Country:—Service sector plays a crucial role to enhance the GDP of the country. In
1990, the GDP of the country was 5.7%. After the economic liberalization in 1991, the country witnessed a GDP growth of
8.6% during the period 2004-05 to 2009-10.
2)Creates Employment Opportunities:—Service sector creates employment opportunities for the people of the country. India
has witnessed a structural change in terms of employment during the period 1983 to2004-05. Before 1983, Agriculture and
construction sectors were major job creators in the country. But after 1991, several sub-sectors like trade, hotels, restaurants,
and transport, etc. created a lot of employment opportunities. Now within the service sector, employment opportunity is
highest in finance, insurance, and business services, followed by trade, hotels and restaurants, and transport, etc.
3)Contribution to India's Service Trade:—Service sector plays a crucial role to raise the volume of exports in the country.
According to the Balance of Payment data, India’s service trade has witnessed the growth of 22.2% and 25.3% during 2004-
05 and 2008-09 respectively.
4)Contribution Toward Human Development:—Service sector encourages some valuable services like health services,
educational facilities, IT, and IT-enabled services (ITEs), skill development, health tourism, sports, cultural services, etc. which
is a valuable contribution toward human development and improvement of quality of life of the people which directly helps in
the growth of Indian economy.
●SERVICE MARKETING OPPORTUNITIES—Service marketing offers numerous opportunities for businesses to create
value for their customers and differentiate themselves from competitors. Here are some service marketing
opportunities to consider:
1)Mobile Optimization: Optimize your services and marketing for mobile devices. Many customers use smartphones
for research, booking, and payment. Ensure that your website and apps are mobile-friendly.
2)Content Marketing: Share valuable content related to your services. This could include blog posts, videos, webinars,
or podcasts. Content marketing not only provides useful information to your audience but also helps establish your
authority in your industry.
3)Social Proof: Encourage reviews and testimonials from satisfied customers. Positive reviews can build trust and
credibility, which can influence potential customers' decisions.
4)Community Engagement: Engage with the local community or your target audience through events, sponsorships, or
partnerships. Being involved in the community can improve brand perception and create goodwill.
5)Innovative Service Offerings: Continuously innovate and evolve your services to meet changing customer needs and
stay ahead of the competition. Consider adding new features, options, or complementary services.
6)Subscription Models: Offer subscription-based services if applicable to your industry. Subscriptions can provide a
steady stream of revenue and ensure customer loyalty over time.
7)Referral Programs: Encourage your existing customers to refer friends and family by offering incentives or discounts.
Word-of-mouth marketing can be highly effective.
8)Cross-selling and Upselling: Identify opportunities to offer additional services or upgrades to existing customers.
This can increase revenue and deepen customer relationships.
9)Data Analytics: Use data analytics to gain insights into customer behavior and preferences. This information can help
you refine your marketing strategies and improve your services.
10)Employee Training: Invest in training your employees to provide excellent customer service. Happy and
knowledgeable employees can enhance the customer experience.
●ASSESSING SERVICE MARKET POTENTIAL –Assessing the market potential for a service is a critical step in
developing a successful business strategy. Here are steps and considerations to help you assess the market potential.
1]Market Research:1)Define Your Target Audience: Identify and clearly define your ideal customer segments. Consider
demographics, psychographics, and behavioural characteristics.
2)Market Size: Determine the total addressable market (TAM) for your service. This includes understanding the number
of potential customers or businesses that could use your service.
3)Market Trends: Research current and future trends in the industry. Are there any emerging needs or opportunities
that your service can address?
4)Competitor Analysis: Analyze your competitors to understand their offerings, pricing strategies, and market share.
Identify gaps in the market that you can fill.
2]Customer Needs and Pain Points:—Conduct surveys, interviews, or focus groups to gather insights into customer
needs and pain points. Understand the problems your service can [Link] the jobs-to-be-done framework to
identify the specific jobs or tasks your service can help customers accomplish.
3]Value Proposition:-Clearly define your service's unique value proposition. What sets your service apart from
competitors? How does it fulfill customer needs better or differently?
Assess how your value proposition aligns with the identified market needs.
4]Regulatory and Legal Considerations:—Research any industry-specific regulations or legal requirements that may
impact your ability to offer the service. Ensure compliance with all relevant laws.
5]Market Segmentation:—Divide your target market into distinct segments based on shared characteristics and needs.
Tailor your marketing and service delivery to each segment.
6]Pricing Strategy:—Determine your pricing strategy. Consider factors like production costs, competitors' pricing, and
the perceived value of your [Link] different pricing models (e.g., subscription, tiered pricing, freemium) to see
which aligns best with your target market.
7]Market Entry Strategy:-Decide how you will enter the market. Will you start locally and expand gradually, or go for
broader regional or national launch. Consider partnerships or collaborations that can facilitate market entry.
●MARKETING MIX—The marketing mix refers to the tactics (or marketing activities) that we have to satisfy customer
needs and position our offering clearly in the mind of the customer. It involves the 7Ps; Product, Price, Place and
Promotion (McCarthy, 1960) and an additional three elements that help us meet the challenges of marketing services,
People, Process and Physical Evidence (Booms & Bitner, 1982).
The Marketing Mix 4 Ps:1)Product - The Product should fit the task consumers want it for, it should work and it should
be what the consumers are expecting to get.
2)Place – The product should be available from where your target consumer finds it easiest to shop. This may be High
Street, Mail Order or the more current option via e-commerce or an online shop.
3)Price – The Product should always be seen as representing good value for money. This does not necessarily mean it
should be the cheapest available; one of the main tenets of the marketing concept is that customers are usually happy
to pay a little more for something that works really well for them.
4)Promotion – Advertising, PR, Sales Promotion, Personal Selling and, in more recent times, Social Media are all key
communication tools for an organisation. These tools should be used to put across the organisation’s message to the
correct audiences in the manner they would most like to hear, whether it be informative or appealing to their emotions.
5)People – All companies are reliant on the people who run them from front line Sales staff to the Managing Director.
Having the right people is essential because they are as much a part of your business offering as the products/services
you are offering.
6)Processes –The delivery of your service is usually done with the customer present so how the service is delivered is
once again part of what the consumer is paying for.
7)Physical Evidence – Almost all services include some physical elements even if the bulk of what the consumer is
paying for is intangible. For example a hair salon would provide their client with a completed hairdo and an insurance
company would give their customers some form of printed material. Even if the material is not physically printed (in the
case of PDFs) they are still receiving a “physical product” by this definition.
●SEGMENTATION:—Segmentation involves dividing the overall market into smaller, homogeneous groups or segments
based on certain characteristics, needs, or behaviors. The goal is to understand that not all customers are the same,
and different groups may require different marketing approaches. Here are the primary types of market segmentation:
1)Demographic Segmentation: Dividing the market based on demographics like age, gender, income, education, marital
status, etc.
2)Psychographic Segmentation: Segmenting based on lifestyle, values, interests, and personality traits.
3)Behavioural Segmentation: Grouping customers based on their purchasing behavior, such as frequency, loyalty, or
benefits sought.
4)Geographic Segmentation: Dividing the market by geographical regions, like countries, states, cities, or even
neighbourhoods.
B2B Segmentation- In the context of business-to-business marketing, segmentation can be based on industry,
company size, purchasing processes, or other business-related factors.
Effective segmentation allows a business to understand its customers better and tailor its marketing efforts to address
the unique needs and preferences of each segment.
●TARGETING:After segmenting the market, the next step is to select one or more segments as the target audience.
Targeting involves evaluating the attractiveness of each segment and determining which ones align best with the
company's resources, capabilities, and objectives. There are different targeting strategies:
1)Undifferentiated Targeting: Targeting the entire market with a single marketing strategy. This is typically used for
products or services with broad appeal.
2)Differentiated Targeting: Targeting multiple segments with unique marketing strategies tailored to each. This
approach acknowledges that different segments have different needs and preferences.
3)Concentrated (Niche) Targeting: Focusing resources on one specific segment, often because the company excels in
meeting the needs of that segment.
4)Customized (Micromarketing) Targeting: Tailoring products and marketing efforts to suit the individual needs of
customers. This is more common in personalized online [Link] helps companies allocate their
marketing resources effectively and avoid spreading themselves too thin by trying to appeal to everyone.
●POSITIONING:—Positioning involves creating a distinct and desirable image of a product or service in the minds of the
target customers relative to competitors. It answers the question, "How do we want our customers to perceive us?"
Effective positioning helps a company stand out in a crowded market and communicates the unique value it offers. Key
elements of positioning include:
1)Value Proposition: Clearly articulating the unique benefits and advantages of the product or service.
2)Brand Identity: Building a brand image that resonates with the target audience and conveys the desired positioning.
3)Competitive Analysis: Understanding how competitors are positioning themselves and finding a strategic position
that differentiates from them.
4)Communication Strategy: Developing marketing messages and channels that reinforce the chosen position.
—A well-executed positioning strategy helps customers understand why they should choose a particular product or
service over others in the market.
In summary, the STP model of marketing is a strategic framework that helps businesses understand their customers,
select the most promising customer segments, and effectively communicate the unique value they offer. By
implementing this model, companies can enhance their marketing efforts, improve customer satisfaction, and
ultimately achieve better business results.
●SERVICE BLUEPRINT—Service Blueprint is defined as a collaborative process that includes many people, props, tools,
and technologies. A service blueprint is a diagram or “blueprint” of the entire service process. This map helps you
visualize every step and element in the process, including the customers and third-party vendors.
●Why is a Service Blueprint Used?—You have to offer a cohesive customer experience to survive in the highly
competitive service sector. If you want to provide the optimal experience to the customers, you need to have a clear
picture of your customer’s journey. A service blueprint helps display this information in an orderly manner and
integrates internal touchpoints to ensure your solutions are manageable.
●When is a Service Blueprint Used?—The best thing about a service diagram is its versatility. It can yield excellent
results for every online or offline business. It is great if you want to introduce some changes or improvements to an
existing process while also allowing you to create one from scratch. Here are some of the most common applications
of a service blueprint.
1. When Designing a New Service—When launching a new product or designing future additions, you must thoroughly
document the user flow throughout the proposed journey. Building this is essentially building a new service, both
internal and external, and you must create a service blueprint to improve the experience of the employees and the
customers.
2. While Improving an Existing Service—When auditing a customer journey, it’s critical that you have a solid
understanding of the opportunities and pain points from the customer’s perspective. This is not the only important
perspective, however, and you must also consider the internal limitations of a given journey. A service diagram will work
as a structured framework for the ongoing performance assessment of a product or service and can provide feedback
about the pain points customers are experiencing. You can use this diagram to review customer feedback regularly and
identify actions that capitalize on the opportunities for enhancing customer experience.
3. In the Get-Ready Stage—What is the get-ready stage? In this stage, workshops are organized for the clients and
users, and research is conducted to discover the current needs and frustrations of the customers. This stage is
extremely crucial for understanding the requirements of the clients and users. Further, these requirements are divided
into epic clusters to make the service map.
4. During the Discovery Tracks—When a blueprint is ready, there will be no scope for any obstruction in a service
process. The blueprint documents the entire customer journey, both internally and externally, so it will have answers to
any possible questions. Besides, through the blueprint, the user stories will emerge as a mode of communication so
that all the team members can focus on finding the right solution to address user needs.
5. During the Development Tracks—A service blueprint helps everyone involved in a process to get a clear picture. Thus,
it boosts the efficiency of a team. In simple words, the blueprint helps the team to know what product/service should
be developed and what should be the most effective way to develop that product/service.
●SERVICE DESIGN-Service design is the practice of planning and organizing a business's resources to enhance the
experience of employees and their customers. It creates streamlined service processes to help employees work more
efficiently and serve their customers more effectively. Just as a product designer might design a toy or a garment of
clothing, people involved in service design plan out the direct and indirect interactions people have with companies and
their representatives when they book flights or dine out.
IMPORTANCE OF SERVICE DESIGN-
1)Provides a framework: Just as product designers create a blueprint for their products, service designers create a
service blueprint. These blueprints work the same way, serving as a framework for business processes that provides
direction for achieving end goals.
2)Improves customer experience: Service design addresses the common practice of focusing on customer-facing
outputs at the expense of internal processes. Shifting the focus ensures internal processes and the resources used to
complete their work more cohesively.
3)Boosts morale: The relationships formed through service design are important to organizations. Service design
encourages employees to work in alignment to improve service processes.
4)Adds business value: As service design enhances customer experiences, consumers are more likely to become
repeat customers. This increases the chances that customers refer others to the business.
5 COMPONENTS OF SERVICE DESIGN
1. General service design principles—General service design principles apply to all aspects of planning and organizing
service resources. Follow these main principles governing service design:
●Consider each service's purpose, customer demand and the company's capacity to deliver it.
●Aim to satisfy customer needs of business needs.
●Ensure services work within whole efficient systems rather than in isolation.
●Ensure services deliver value and efficiency for users and customers.
●Consult users and relevant stakeholders.
●Make prototypes before developing services.
●Consider special events and how they may impact services to minimize disruption.
2. Service design principles for processes—The design and development of processes are an integral part of service
design. Follow these principles governing process design:
●Ensure that activities always add value to customers.
●Focus on the process rather than constructs like products and how they function.
●Focus on satisfying customer needs. If customers have several conditions, you may need to develop multiple
processes to meet them all.
●Make sure processes and development are part of the company's larger operations rather than fragmented.
●Simplify processes by reducing steps, points of contact, restrictions, breaks or delays, the number of reliant processes
and other elements.
3. Service design principles for employees
●Employees are one of the most critical resources businesses have and one of the essential drivers of service design.
Follow these service design principles to achieve optimal results from employees:
●Work in groups of people who are knowledgeable about services and their associated processes and have skills
relevant to these areas.
●Share your point of view to make and influence decisions and encourage others to do the same.
●Work in a location where you can operate efficiently and productively.
4. Service design principles for information—The free flow of information helps businesses deliver services to their
customers. Employees can work more productively when they have relevant information about their business' products,
services, and customers. A free flow of information also makes companies seem more trustworthy and transparent.
Follow these service principles concerning information to achieve this free flow:
●Share data freely within the business and with members of the public.
●Ensure data can transfer for easy sharing and reuse by people within the organization and other stakeholders. This
may involve adopting digital record-keeping methods, for example.
5. Service design principles for technology
●Technology is vital in almost every business industry, including service design. Follow these service principles to use
technology to its fullest potential:
●Use technology to enable services rather than drive them.
●Ensure technology is appropriate for the service, and only use it when it achieves the optimal outcome.
●Make sure technology is flexible enough to be changed in the future when or if necessary.
SERVICE LIFE CYCLE:—The service life cycle, often referred to in the context of product life cycle management, is a
concept that describes the stages a product or service goes through from its initial development and introduction to its
eventual retirement or phase-out. The life cycle of a service is similar to the life cycle of a product, but it focuses on the
various phases of a service's existence rather than a physical product. The service life cycle typically consists of the
following stages:
[Link]: At this stage the service is new as it is just launched its usage rate will be low. The production cost is
high but the sales being smaller the revenue is low. Until the growth stage the service provider mostly operates from
one location.
[Link]: There is a rapid increase in the sales at this stage. The sales increase at an increasing rate as the consumers
see the benefits. In using the service. Promotion is focused in order to attract new users and retain repeat customers.
The firm may even improve service quality and add some new features to attract the customers.
[Link]: The product/services enter the stage of maturity as the rate of growth slows down. Here the sales are still
increasing but increasing at a decreasing rate. The sales touch their peak and then it saturates. At that level for a longer
period of time. There is intense competition at this stage and the firm in order to keep its market share may modify and
improve the service quality.
[Link]: The usage rate of services diminishes with the technological advancement and changing consumer tastes.
The service provider uses different strategies at this stage. Some firms withdraw form the current service and switch
over to new ventures with better opportunities. Some retain the services in order to cater to the needs of a few loyal
customers but still diversify to other services.
●GAP MODEL OF SERVICE QUALITY—The gap model of service quality is a framework professionals use to analyze
customer satisfaction and identify areas for improvement. Most companies, regardless of whether they are sales- or
service-focused, involve some component of customer service. Some industries that use this tool include retail, food,
hospitality and health care.
GAP 1: Gap between Management Perception and Customer Expectation—This gap arises when the management or
service provider does not correctly analyze what the customer wants or needs. It also arises due to insufficient
communication between contact employees and managers. There is a lack of market segmentation. This Gap occurs
due to insufficient market research. For Instance- A café owner may think that the consumer wants a better ambience
in the café, but the consumer is more concerned about the coffee and food they serve.
GAP 2: Gap between Service Quality Specification and Management Perception—This gap arises when the
management or service provider might correctly comprehend what the customer requires, but may not set a
performance standard. It can be due to poor service design, Inappropriate Physical evidence, Unsystematic new service
Development process.
GAP 3: Gap between Service Quality Specification and Service Delivery—This gap may arise in situations existing to
the service personnel. It may occur due to improper training, incapability or unwillingness to meet the set service
standards. It can be due to inappropriate evaluation and compensation systems. Ineffective Recruitment is the main
cause of this gap.
GAP 4: Gap between External Communication and Service Delivery—Consumer Expectations are highly influenced by
the statements made by the company representatives and advertisements. This gap arises when these assumed
expectations are not fulfilled at the time of Delivery of Service.
GAP 5: Gap between Experienced Service and Expected Service—This gap arises when the consumer misunderstands
the service quality. For Instance, A Restaurant Manager may keep visiting their consumer to ensure quality check and
consumer satisfaction, but the consumer may interpret this as an indication that something is fishy or there is
something wrong in the service provided by the restaurant staff.
●SERVQUAL?—SERVQUAL can be defined as a measure of service quality. The SERVQUAL model is referenced in many
services marketing studies, usually when discussing customer satisfaction and service quality. It is the measure of
comparison between the service expected by a customer and the service delivered by the company.
5 DIMENSIONS OF SERVQUAL:
[Link]—Tangibles are the things the customer can see and touch. Hence the quality of the products and services
that can be felt, seen, heard and perceived should be excellent.
2. Reliability—This can be defined as the ability to perform the promised service dependably and accurately. It means
performing the service right the first time. It also means honouring promises, as well as, performing the service at the
designated time and keeping records correctly.
3. Responsiveness—Responsiveness can be defined as the willingness to help customers and provide prompt service.
4. Assurance—Assurance is the knowledge and courtesy of individuals and their ability to convey trust and confidence.
5. Empathy—Empathy is all about the care and individualised attention the company provides its customers which
enhances the service experience.
SERVICE QUALITY FUNCTION DEVELOPMENT (SQFD)—Service Quality Function Development (SQFD) is a method that
helps organizations translate customer requirements and expectations into specific tasks and functions within the
organization. It's a structured approach to ensure that the organization's processes and functions align with the needs
and expectations of its customers. SQFD is often used in the context of Total Quality Management (TQM) and
continuous improvement efforts. Here's how SQFD typically works:
1)Identify Customer Needs: The first step in SQFD is to gather data on customer needs and expectations. This can be
done through customer surveys, feedback, focus groups, market research, and other methods. The goal is to
understand what customers value and expect from the organization's products or services.
2)Analyze Customer Needs: Once you've collected customer data, you need to analyze and categorize these needs. It's
essential to prioritize and understand which customer needs are most critical to address. Some needs may have a
more significant impact on customer satisfaction and business success than others.
3)Translate Needs into Functions: With a clear understanding of customer needs, you can start translating these needs
into specific functions and tasks within the organization. These functions should be actionable and specific, defining
what the organization needs to do to meet customer expectations. This step helps bridge the gap between customer
desires and internal processes.
4)Develop Metrics and Targets: For each function or task, establish performance metrics and targets. This allows you
to measure how well the organization is meeting customer requirements. These metrics could include response times,
error rates, customer satisfaction scores, and other relevant KPIs.
5)Assign Responsibility: Clearly assign responsibility for each function or task to specific individuals or teams within
the organization. This ensures accountability for delivering on customer expectations.
6)Continuous Improvement: Implement a system for monitoring and improving the processes and functions defined in
the SQFD. Regularly measure performance against the established metrics, identify areas where customer expectations
are not being met, and take corrective actions. Continuous improvement is a fundamental aspect of SQFD.
●DESIGNING SERVICE DELIVERY SYSTEM—Designing a service delivery system is a crucial aspect of service
management, focusing on structuring and organizing the processes and resources necessary to deliver a service
efficiently and effectively. Here are key steps and considerations for designing a service delivery system:
1)Understand Customer Needs:-Conduct market research and gather customer feedback to understand their
expectations and preferences. Identify the key elements that contribute to customer satisfaction.
2)Define Service Processes:-Map out the entire service delivery process from initiation to completion. This includes
customer touchpoints, interactions, and the flow of activities involved in delivering the service.
3)Set Service Standards:-Establish clear and measurable service standards to ensure consistency in service delivery.
Define benchmarks for quality, timeliness, and customer satisfaction.
4)Allocate Resources Strategically:-Allocate human, financial, and technological resources based on the demands of
the service. Ensure that resources are distributed efficiently to support the various stages of service delivery.
5)Utilize Technology:-Incorporate technology to streamline processes and enhance the overall customer experience.
This may include using customer relationship management (CRM) systems, online platforms, and automation tools
POSITIONING OF SERVICES—Positioning of service refers to the impression a customer forms when they come in
contact with your business. Put simply, positioning of service poses the question: “Who do people think you are as a
business?” The days of simply providing a service or product and then ‘calling it a day’ are over.
Positioning in service marketing is a strategic process that involves creating a distinct and favourable image of a
service in the minds of the target customers. It's about differentiating a service from competitors and establishing a
unique place for it in the marketplace. Effective positioning helps customers understand the value and benefits of a
service, making it more appealing and memorable. Here are the key components of positioning services in service
marketing:
1)Understanding Target Audience:-Identify and define the specific characteristics of the target market. This includes
demographics, psychographics, and behavioural traits of the customers who are likely to use the service.
2)Analyzing Competitors:-Conduct a thorough analysis of competitors in the market. Understand their strengths,
weaknesses, and the positioning strategies they employ. This analysis helps in finding opportunities for differentiation.
3)Determining Unique Value Proposition (UVP):-Clearly articulate what makes the service unique and valuable to
customers. The unique value proposition should address the specific needs and desires of the target audience.
4)Aligning with Brand Identity:-Positioning should align with the overall brand identity of the service. This includes the
brand's values, mission, and personality. Consistency across all touchpoints reinforces the desired image.
5)Choosing a Positioning Strategy:
•Differentiation: Emphasizing unique features or attributes that set the service apart from competitors.
•Cost Leadership: Positioning the service as the most cost-effective option in the market.
•Niche: Focusing on a specific segment or niche market and tailoring the service to meet its unique needs.
6)Creating a Positioning Statement:-Develop a concise and memorable positioning statement that encapsulates the
unique value proposition. The statement should be customer-centric and clearly communicate what the service stands.

.●INTEGRATED SERVICE MARKETING COMMUNICATION—Integrated Service Marketing Communication (ISMC) is a

strategic approach that involves coordinating and aligning various communication channels to convey a consistent and
compelling message about a service. This integration ensures that all communication efforts work together cohesively
to create a unified brand image and enhance the overall effectiveness of the marketing campaign.
Components of Integrated Service Marketing Communication:
1]Consistent Messaging:—Ensure that the messages communicated through different channels are aligned and convey
a uniform brand identity. Consistency builds trust and recognition among customers.
2]Multichannel Approach:—Utilize a mix of communication channels to reach a diverse audience. This may include
traditional advertising, digital marketing, public relations, social media, direct marketing, and other promotional
methods.
3]Customer-Centric Communication:—Tailor communication to address the needs and preferences of the target
audience. Understanding the customer's journey and preferences helps in delivering relevant and engaging messages.
4]Brand Integration:—Ensure that the service brand is consistently represented across all communication materials and
platforms. This includes visual elements, tone of voice, and messaging.
5]Promotional Consistency:—Maintain consistency in promotional activities, such as sales promotions, discounts, and
special offers, across various channels. This consistency reinforces the overall brand strategy.
BENEFITS OF INTEGRATED SERVICE MARKETING COMMUMICATION
1]Improved Brand Image:-Consistent and cohesive communication builds a strong and positive brand image.
2]Increased Customer Engagement:‐Coordinated efforts across channels create a more engaging and interactive
customer experience.
3]Enhanced Customer Trust:‐Consistency and transparency in communication contribute to building trust among
customers.
4]Optimized Marketing Budget:‐Integration allows for more efficient use of resources by avoiding redundancy and
maximizing the impact of each channel.
5]Effective Customer Journey:-A well-integrated communication strategy guides customers seamlessly through their
journey, from awareness to conversion and retention.
SERVICE CHANNEL:-In the context of services, a service channel refers to the various methods or channels through
which customers can access and receive a service. The choice of service channels is a critical aspect of service
delivery as it influences customer convenience, accessibility, and overall [Link] of service channels:
●1]PHYSICAL CHANNEL—Brick-and-Mortar Locations: Traditional physical locations where customers can receive
services. This could include stores, offices, service centers, or any physical facility.
●2]Digital Channels:
(i)Online Platforms: Leveraging the internet to deliver services through websites or dedicated online platforms. This is
especially relevant for e-commerce, online banking, and other web-based services.
(ii)Mobile Apps: Developing mobile applications that allow customers to access and utilize services through their
smartphones or tablets.
●3]Self-Service Channels:
(i)Automated Systems: Implementing self-service kiosks, machines, or systems where customers can perform certain
service tasks independently. Examples include airport check-in kiosks or self-checkout systems in retail.
(ii)Online Portals: Providing customers with online portals where they can perform tasks or access information without
direct assistance.
●4]Remote Channels:
(i)Telephone Services: Offering services through call centers where customers can interact with service representatives
over the phone.
(ii)Mail and Email: Providing services through written communication, including traditional mail or electronic mail.
●5]Third-Party Channels:
(i)Partnerships and Resellers: Collaborating with third-party entities, such as distributors or resellers, to extend the
reach of services.
(ii)Intermediaries: Using intermediaries or agents to facilitate the delivery of services. This is common in industries like
insurance or real estate.
●6]Multi-Channel Integration:
(i)Omnichannel Approach: Integrating various channels to create a seamless and consistent experience for customers.
For example, allowing customers to start an interaction on one channel (e.g., online) and seamlessly continue it on
another (e.g., in-person or over the phone).
●7]Social Media Channels:
(i)Social Media Platforms: Utilizing social media channels for customer interactions, support, and engagement. This
includes platforms like Facebook, Twitter, and Instagram.
●8]Video Channels:
(i)Video Conferencing: Using video communication tools for delivering services that require face-to-face interaction.
This is common in fields such as telemedicine or online education.
PRICING OF SERVICES—Pricing of services is a crucial element in the marketing mix, and it requires careful
consideration to ensure that it reflects the value of the service while remaining competitive in the market. Various
pricing methods and strategies can be employed.
1]Cost-Based Pricing:—Cost-Plus Pricing:—Calculate the cost of delivering the service and add a markup to determine
the final price. This ensures that the service covers its production costs and contributes to profit.
2]Value-Based Pricing:—Customer Value Assessment:—Set prices based on the perceived value of the service to the
customer. This approach considers the benefits, quality, and uniqueness of the service in the eyes of the customer.
3]Competitive Pricing:—Market-Oriented Pricing:—Set prices in alignment with the prevailing market rates. This method
involves researching and benchmarking against competitors to determine a competitive price point.
4]Dynamic Pricing:—Variable Pricing:— Adjust prices based on fluctuations in demand, seasonality, or other market
conditions. This approach is common in industries like hospitality and transportation.
5]Penetration Pricing:—Low-Price Strategy:—Initially set a lower price to gain market share rapidly. This can be effective
for new services entering competitive market.
6]Discount Pricing:—Discount Strategies:— Offer discounts for specific customer segments, promotional periods, or
bulk purchases. This can attract price-sensitive customers.
●SERVICE MARKETING TRIANGLE:—The Service Marketing Triangle is a strategic marketing model for service
companies that depicts the relationship between companies, employees and customers. The model states three types
of marketing which the service organization must undertake effectively in order to succeed.
For marketing to be successful, a marketer should ensure that there is positive interaction between these three players.
Furthermore, for this success to be accomplished, three types of marketing must be conducted. These are;
1]External Marketing — Making Promises: Involves communication by a company towards their consumer. This form of
communication allows the company to offer their services, and set the expectation of service quality that the client can
expect. In service marketing this pays particular attention to physical evidence, such as the appearance of the place of
business or appearance of staff.
2]Interactive Marketing — Keeping Promises: Interactive marketing is revolved around the communication that occurs
between the client and the service delivery personnel. This is one of the most important parts of successfully utilising
the services marketing triangle, as it is the only time that the client will have face-to-face experience with the company,
via the providers.
3]Internal Marketing — Enabling Promises: A more modern addition to the services marketing triangle, internal
marketing centres on training employees to the highest standards so they can deliver exceptional service. Without
internal marketing, there is a high chance that the client will receive sub-standard service.

SERVICE STRATEGY:-Service strategy refers to the plan of an organization to deliver value to its customers through the
design, delivery, and continuous improvement of its service offerings.
BENEFITS OF SERVICE DESIGN:
1]Improved customer satisfaction: By understanding customer needs and delivering services that meet those needs, a
company can improve customer satisfaction and loyalty.
2]Competitive advantage: A strong service strategy can give a company a competitive advantage by differentiating it
from its competitors and helping it stand out in the market.
3]Increased revenue: By delivering high-quality services, a company can generate new revenue streams and increase its
overall profitability.
4]Better resource utilization: A well-designed service strategy can help a company make better use of its resources,
such as its employees and equipment, and minimize waste.
5]Improved operational efficiency: A service strategy can help a company streamline its operations, reducing costs and
improving efficiency.
6]Increased market share: A strong service strategy can help a company increase its market share by attracting new
customers and retaining existing ones.
HEALTH INDUSTRY:-
1]Patient-Centric Approach:
•Prioritize patient experience and satisfaction.
•Foster a culture of empathy and personalized care.
•Implement patient feedback mechanisms to continually improve services.
2]Digital Health Services:
•Embrace telemedicine and virtual health services.
•Develop user-friendly mobile apps for appointment scheduling, health monitoring, and teleconsultations.
•Use digital marketing to promote these services and educate patients.
3]Wellness Programs:
•Offer wellness programs and preventive health services.
•Develop partnerships with fitness centers, nutritionists, and wellness experts.
•Market these programs to the community as part of a holistic health approach.
4]Community Engagement:
•Participate in health fairs, community events, and sponsorships.
•Offer educational workshops and seminars on health topics.
•Utilize social media for health awareness campaigns and community interaction.
5]Referral Programs:
•Implement referral programs for existing patients and healthcare professionals.
•Encourage word-of-mouth marketing by providing excellent service.
•Offer incentives for patients who refer others to the healthcare facility.

HOSPITALITY INDUSTTIES:-
1]Personalized Guest Experiences:
•Use data to personalize guest experiences.
•Implement loyalty programs that reward repeat visits.
•Train staff to anticipate and meet individual guest preferences.
2]Online Presence and Booking:
•Optimize the website for easy online booking.
•Leverage online travel agencies (OTAs) and review sites.
•Implement a robust online marketing strategy with high-quality visuals and guest testimonials.
3]Culinary Experiences:
•Highlight unique culinary offerings and chef specialties.
•Incorporate local flavours and specialties into menus.
•Engage in food and beverage promotions to attract both guests and locals.
4]Environmental Sustainability:
•Emphasize sustainable practices in operations.
•Showcase eco-friendly initiatives, such as waste reduction and energy conservation.
•Appeal to environmentally conscious travellers through marketing.
5]Event Hosting and Partnerships:
•Host events, conferences, and weddings to attract diverse clientele.
•Partner with local businesses and attractions for joint promotions.
•Market the venue as an ideal location for both leisure and business events.

TOURISM INDUSTRY:-
1]Destination Marketing:
•Develop compelling destination marketing campaigns.
•Collaborate with local tourism boards and businesses.
•Utilize social media and online platforms to showcase the destination.
2]Adventure and Specialty Tourism:
•Promote adventure and niche tourism experiences.
•Collaborate with local adventure operators and specialty tour guides.
•Use digital marketing to target specific interest groups.
3]Cultural Experiences:
•Showcase cultural events, festivals, and heritage sites.
•Provide cultural immersion opportunities for tourists.
•Collaborate with local communities to offer authentic experiences.
4]Travel Packages and Bundles:
•Create attractive travel packages and bundled offerings.
•Offer convenience through all-inclusive packages.
•Utilize partnerships with airlines, hotels, and local attractions
5]Digital Storytelling:
•Use visual storytelling through videos and blogs to promote the destination.
•Encourage user-generated content through social media.
•Leverage influencers to share their travel experiences.