Welcome to Service Marketing Management

 Describe the central role of services in an economy.  Discuss the evolution of an economy from an agrarian society to a service society.  Describe the features of preindustrial, industrial, and postindustrial societies.  Describe the features of the new service economy

 A service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.  Kotler, Armstrong, Saunders and Wong (1999)

 … services … anything that cannot be dropped on your foot.  The Economist  Services are economic activities that create value and provide benefits for customers at specific times and places as a result of bringing about a desired change in – or on behalf of – the recipient of the service.  Christopher Lovelock

 Services are production of essentially intangible benefits and experience, either alone or as part of a tangible product, through some form of exchange, with the intention of satisfying the needs, wants and desires of the consumers.

Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. James Fitzsimmons

Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives. James Fitzsimmons

Country United States Canada Israel Japan France Italy Brazil China India

 contributes to around 55 percent of India's GDP during This sector plays a leading role in the economy of India, and contributes to around 68.6 percent of the overall average growth in GDP between and

 Information Technology (the most leading service sectors in Indian economy)  IT-enabled services (ITeS)  Telecommunications  Financial Services  Community Services  Hotels and Restaurants

Pre- Use of Standard dominant human Unit of of living Society Game activity labor social life measure Structure Technology Pre- Against Agriculture Raw Extended Sub- Routine Simple hand Industrial Nature Mining muscle household sistence Traditional tools power Authoritative Industrial Against Goods Machine Individual Quantity Bureaucratic Machines fabricated production tending of goods Hierarchical nature Post- Among Services Artistic Community Quality of Inter- Information industrial Persons Creative life in terms dependent Intellectual of health, Global education, recreation

 Theme the Experience (Forum shops)  Harmonize Impressions with Positive Cues (O’Hare airport parking garage)  Eliminate Negative Cues (Cinemark talking trash containers)  Mix in Memorabilia (Hard Rock T-shirts)

 Innovation Push theory (e.g. Post-it) Pull theory (e.g. Cash Management) Services derived from products (Video Rental) Information driven services Difficulty of testing service prototypes  Social Trends Aging of the population Two-income families Growth in number of single people Home as sanctuary

 Illustrate how the type of work he or she does influences a person’s lifestyle. For example, contrast a farmer, a factory worker, and a school teacher.  Is it possible for an economy to be based entirely on services?  What is the value of self-service in an economy?

 The class breaks into small groups. Each group identifies service firms that should be listed in the top Fortune 100 and places them in rank order of estimated annual revenue.