8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 1/25
The Indian ServiceSector
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 2/25
India is one of the fastest growingeconomy in the world growing at the
prosperous rate of 6.1%.
Its current participation in export
(service) accounts for 2.45% in the
world trade activities.
Contribution of service sector in
country¶s GDP is 54.6%.
Indian Economy
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 3/25
3
The Service Sector - includes
Businesses, government agencies, nonprofit
organizations.
Organized and unorganized sector.
Companies of any size--from huge globalcorporations to local small businesses
Limited companies to individual run
organizations/set up.
High technology content to very low technologyinter- phase organizations.
Jobs range from high-paid professionals and
technicians to minimum daily wage earners.
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 4/25
4
Factors Stimulating growth of Service
Economy
Government Policies (e.g., regulations, trade agreements) Social Changes (e.g., affluent, time poor, seek experiences)
Business Trends
± Manufacturers offer service
± Growth of retail chains and franchising
± Pressures to improve productivity and quality
± More strategic alliances
± Marketing emphasis by even nonprofit organizations
± Innovative hiring practices
Advances in technology especially IT (e.g., speed, digitization,wireless, Internet)
Internationalization (travel, transnational companies)
Impact of other sectors.
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 5/25
India 2007-08 GDP contribution.
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 6/25
Agriculture # Manufacturing = Services*
1950-51 59.19 13.29 27.52
1960-61 54.74 16.61 28.65
1970-71 48.12 19.91 31.97
1980-81 41.82 21.59 36.59
1990-91 34.92 24.49 40.59
1991-92 34.08 23.93 41.99
1992-93 34.17 23.74 42.09
1993-94 33.54 23.69 42.77
1994-95 32.94 24.35 42.71
1995-96 30.58 25.47 43.95
1996-97 30.86 25.45 43.69
1997-98 29.03 25.20 45.77
1998-99 29.03 24.51 46.46
1999-2000 27.49 24.63 47.88
2007-2008 18.50 26.60 54.90
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 7/25
7
Changing Structure of Employment
with Economic Development
Time, per Capita Income
Industry
Services
Agriculture
Source: IMF
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 8/25
Contribution of Service Sector in GDP For
Various Countries
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 9/25
9
Services - GDP contribution ± 54.60 %
Sub sectors GDP contribution
1. Trade and hotels, tourism services 14.3 %
2.Transpot, storage and communication. 16.0%
3. Banking, insurance and other financial services 9.0%
4. Public administration & defense 7.3%
5. IT , ITES and other services 8%
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 10/25
Industries in Service Sector
o Tourism and Travels
o Hospitality( Hotels, Motels , Resorts).
o Catering And Restaurant Industry.
o Consultancy Services.
o
Insurance .o Health care and Hospital management.
o Housing and Construction Industry.
o Burial permission and dispose off agencies.
o Communication.
o Entertainment.
o Banking Services.
o Transportation and Logistics.
o Theme parks.
o Leisure activities industry.
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 11/25
Continued«««
o Legal Agencies.
o Maintenance Services.
o Information Technology Services.
o Research and Development.o Investment Advisers.
o Accounting and Tax Services.
o Electricity, Gas and Sanitary Services.
o
Real Estates.o Personnel Services.
o Social Organizations.
o Other Service Providers.
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 12/25
High growth service industries
Financial services ±banks, insurance .
Telecommunications
Health services
Tourism
Travel & transport
Information technology
Retailing
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 13/25
13
What is a Service?
An act or performance offered by one party
to another. (Performances are intangible, but
may involve use of physical products.)
An economic activity that does not result in
ownership
A process that creates benefits by facilitating
a desired change in customers themselves,
physical possessions or intangible assets
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 14/25
14
Interdependence of Marketing,
Operations and Human Resources
Customers
Operations
Management
Marketing
Management
HumanResources Management
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 15/25
15
The ³8Ps´ of Service Management
Product elements
Place, cyberspace, and time
Process
Productivity and quality
Technology and Equipments
People
Promotion and education
Physical evidence/ Ambience
Price and other user costs
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 16/25
PRODUCT
PROCESS
TECHNOLOGY&
EQUIPEMENTSAMBIENCE
PEOPLE
PRICE
DIST
PROMO
CUSTOMER
SERVICE
STANDARDS
RELIABILITY
RESPONSIVEN
ESS.
ASSURANCE
EMPATHY
TANGIBILITY
CUSTOMER
SATISFACTION/
DISSATISFACTION CRM
Service
guarantee
Complaintmanagement.
CUSTOMER
EVALUATION
SERVICES MARKETING FRAMEWORK
Queuing
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 17/25
17
(1) Product Elements All Aspect s of Service Performance
that Create Val ue
Core product features
Bundle of supplementary service elements
Performance levels relative to competition
Benefits delivered to customers
Guarantees
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 18/25
18
(2) Place, Cyberspace, and Time
Del ivery Deci sions re: P l ace, Time,Method s, Channels
Geographic locations served
Physical channels
Electronic channels
Customer control and convenience
Service schedules
Channel partners/intermediaries
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 19/25
19
(3
) ProcessMethod and Sequence in Service Creation and
Del ivery
Design of activity flows Number and sequence of actions for
customers
Providers of value chain components
Nature of customer involvement
Role of contact personnel
Role of technology, degree of automation
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 20/25
20
(4) Productivity and Quality
Synergy in Val ue Creation for Customer s and the Firm
Achieve productive transformation of inputs to
outputs
± efficiency (cost control, avoidance of waste)
± effectiveness (value added, including quality and
timeliness)
Attain customer-defined quality standards
± reliability
± responsiveness
± competence/trust
± human dimensions
± tangibles
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 21/25
21
(5) People
The Human Side of the Enter pri se
The right employees performing tasks well
± job design
± recruiting/selection
± training
± motivation
± evaluation/rewards
± empowerment
± teamwork
The right customers for the firm¶s mission
± fit well with product/processes/corporate goals ± appreciate benefits and value offered
± possess (or can be educated to have) necessary skills
± firm is able to manage customer behavior for productivity, satisfaction of other customers, employeeprotection
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 22/25
22
(6) Promotion and Education
Informing/Educating, Per suading, and Reminding Customer s
Marketing communication tools
± media elements (print, broadcast, outdoor,retail, Internet, etc.)
± personal selling, customer service ± sales promotion
± publicity/PR
Imagery and recognition
± branding
± corporate design
Content
± information, advice
± persuasive messages
± customer education/training
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 23/25
23
(7) Physical Evidence
Providing tangibl e evidence of service performances
Create and maintaining physical appearances
± buildings/landscaping
± interior design/furnishings
± vehicles/equipment
± staff grooming/clothing
± other tangibles
Select tangible metaphors for use in marketing
communications
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 24/25
24
(8) Price and Other User Costs
Managing Customer Out l ay s Rel ative to Cor porate Revenues
Quoted price level and trade margins
Discount terms
± time sensitive
± volume sensitive
± user sensitive
Price-setting mechanism
± determined by seller
± negotiation/barter
± auction/reverse auction Credit terms
Strategies to minimize other user costs
± out-of-pocket financial expenses (e.g., travel, phone)
± time investments and mental/physical effort
± negative sensory experiences
8/3/2019 Indian Service Sector Explained
http://slidepdf.com/reader/full/indian-service-sector-explained 25/25
25
9. Technology and Equipments
Awareness to new and appropriate technology
and equipments.
Understand ways in which new technology can
alter ways in which service firms do business -
l ook from consumer and provider ang l e (benefit s)
Opportunity for creating data bases about
customer needs and behavior.
Compatibility with org. structure. Employee capability.
Competitor standards.