Emerging Trends in Marketing

Services are processes, not tangible products e.g. drinking a Coke is a service, but the bottle itself is not, Metro ride is a service, but the Metro train is not.

Services involve deeds, performances, and efforts, making them distinct from physical products.

Service Sector in India

India's economy is the seventh-largest globally by GDP and the third-largest by purchasing power parity (PPP). Classified as a newly industrialized country, it is part of the G-20 and BRICS. The IT industry is the largest private sector employer, while agriculture, although the largest employer overall, contributes only 17% to GDP. The Indian automobile industry is also among the world's largest.

 

Characteristics of Services / 5 ‘I’s of Services

  1. Intangibility

Services cannot be seen, touched, held, or stored because they have no physical form. Customers can't buy physical ownership of experiences like entertainment, time like consulting, or processes like dry cleaning.

Due to this intangibility, services can't be examined before they are provided e.g. services include ticketing, babysitting, and schooling.

  1. Simultaneity (Inseparability):

Production and consumption happen at the same time. The customer must be present, either going to the service provider like a hair salon or having the provider come to them like a plumber. This close contact means production and consumption can't be separated.

  1. Heterogeneity (Inconsistency):

No two services are identical because they rely on human actions and interactions. There's no chance to fix a faulty service before it reaches the customer, making it hard to standardize quality.

  1. Perishability (Inventory-less):

Services can't be stored for later use as they perish if not consumed. This leads to supply and demand issues e.g. an empty flight means lost revenue. Service providers often focus on managing demand.

  1. Non-Ownership (Involvement):

Customers can't own a service because it isn't transferred from seller to buyer like a product. However customer must be involved in the use of services like a patient has to get treatment for doctor’s services, he cannot become owner of the doctor’s services.

 

Types of Services in Marketing:

  1. On the basis of Service Operations to Volume of Customers:

Professional Service: Low volume e.g. accountant.

Service Shop: Medium volume e.g. bank hotel.

Mass Service: High volume e.g. transport.

  1. On the basis of Level of Tangibility:

Services range from tangible-dominant to intangible-dominant.

  1. On the basis of Customer-Employee Presence:

Self-Service: Only customer present e.g. ATM weighing machine.

Interpersonal Services: Both customer and employee present e.g. school hair salon.

Remote Services: Only employee present e.g. insurance company.

  1. On the basis of Customization/Empowerment:

Low Customization/Low Empowerment: Food retailing superstore.

High Customization/Low Empowerment: Telebanking.

Low Customization/High Empowerment: Radiology service.

High Customization/High Empowerment: Accountant.

  1. On the basis of service delivery and processing focus:

Services can be categorized by what they focus on and how they are delivered.

Processing Focus:

Body: Services aimed at physical aspects.

Mind: Services focused on mental aspects.

Tangible Assets: Services handling physical goods.

Intangible Assets: Services dealing with non-physical items.

Delivery System:

One-to-One Sequential: Individual step-by-step interactions e.g. Counselling.

One-to-One: Individual interactions e.g. Video games in an arcade.

One-to-Many: One provider multiple recipients e.g. Classroom lecture.

 

Criteria to Judge the Quality of Service:

  1. Reliability:

Is the service dependable and accurate? e.g. Indigo Air flights are on time.

  1. Access:

Is the service easy to access and delivered with little waiting? e.g. Haryana Roadways buses are accessible to everyone.

  1. Security:

Is the service safe and free from risks? e.g. Air India ensures security measures.

  1. Credibility:

Is the service provider trustworthy and honest? e.g. Indian Railways refunds money for waitlisted passengers.

  1. Understanding the Customer:

Does the provider understand customer needs? e.g. Hindustan Unilever conducts market surveys.

  1. Responsiveness:

Are employees willing to help and address problems? e.g. Rajasthan Roadways information booths.

  1. Competence:

Do employees have the necessary skills and knowledge? e.g. Chartered Accountants are members of their professional institute.

  1. Courtesy:

Are staff polite and considerate? e.g. Private sector employees are often polite.

  1. Tangibles:

Are physical facilities equipment and materials well-presented? e.g. Waiters in clean uniforms.

  1. Communication:

How well does the organization communicate? e.g. Rajasthan Roadways effectively communicates with passengers at Bikaner House Delhi.

 

Emerging Trends in Marketing

Online Marketing and Social Media Marketing

Internet Usage and Online Marketing in India. The young, dynamic population's use of Information Communication Technology (ICT) has led companies to shift to online marketing. India's online marketing is growing, with local content development and innovation becoming important.

 

Online Marketing - Meaning and Concept

Online marketing promotes products or brands through electronic media. It uses internet-based channels to spread messages about a company's brand, products, or services.

Unlike traditional marketing, online marketing allows real-time campaign analysis. Traditional marketing uses print, billboards, TV, and radio, while online marketing uses email, social media, SEO, and more.

 

Examples of Online Marketing

Canon: Advertises "photography" keywords on Google, Yahoo, and Bing.

Dove: Creates video ads and shares them on social media.

Whole Foods: Collects email addresses to advertise new products and events.

 

Advantages of Online Marketing

  1. Brand Awareness: Increases brand visibility.
  2. Measure Impact: Easily measures the effectiveness of channels.
  3. Acquiring Valuable Customers: Identifies which channels acquire the best customers.
  4. Use of Analytics: Determines cost-effective channels.
  5. Better Medium: Identifies effective channels for repeat purchases.
  6. Customer Analysis: Analyzes customer engagement and potential upsell opportunities.

 

Online Marketing Tools

  1. Email Marketing
  2. Social Media Marketing
  3. Search Engine Optimization (SEO)
  4. Display Advertising
  5. Search Engine Marketing (SEM)
  6. Events, Webinars
  7. A/B Testing & Website Optimization
  8. Content Marketing
  9. Video Marketing
  10. Marketing Analytics
  11. Customer Relationship Management (CRM)
  12. Content Management System (CMS)

 

Disadvantages of Online Marketing

  1. Impersonal: Can feel impersonal due to virtual nature.
  2. Competitive: Highly competitive environment.
  3. Catching Attention: Hard to capture visitor attention due to many competing businesses.

 

Emerging Trends in Marketing

Social Media Marketing

Social media usage in India has grown rapidly, with 96 million internet users till date.

Social media marketing uses platforms to promote products or services and track campaign progress. It helps companies be accessible and visible to interested customers, targeting a range of stakeholders.

 

Popular Platforms for Social Media Marketing:

The most popular social media platforms used for marketing include:

  1. Facebook: With over 3 billion monthly active users, it's a versatile platform for both organic reach and paid advertising.
  2. Instagram: Known for its visual content, it's ideal for businesses that want to showcase products through photos and videos.
  3. YouTube: The leading video-sharing platform, widely used for entertainment, education, and marketing.
  4. TikTok: Famous for short, engaging videos, especially popular with Gen Z.
  5. LinkedIn: A professional networking site, great for B2B marketing and connecting with professionals.
  6. Twitter (X): Useful for real-time communication and sharing updates.
  7. Pinterest: Popular for visual discovery and inspiration, especially for lifestyle and DIY content.
  8. Snapchat: Engages a younger audience with its disappearing messages and creative filters.

 

Advantages of Social Media Marketing:

  1. Brand Awareness:

Online marketing boosts brand awareness by promoting products and services. It also offers 24/7 online customer support, making customers feel valued.

  1. Feedback:

Social media allows brands to receive both positive and negative feedback, helping them understand what works. Consumers commonly post feedback on social media, blogs, and websites.

  1. Competitive Advantage:

Using internet platforms, businesses can gain an edge by creating channels for information. Social media helps identify customer behavior patterns and needs.

  1. Impact:

Word-of-mouth and peer-to-peer communications have a stronger impact because they are seen as more genuine. Customers trust other customers' experiences more and social media facilitates these interactions.

Emerging Trends in Marketing

Promotion Mix