The chapter comprises of Service Marketing, E-Marketing, Green Marketing, Customer Relationship Management, Rural Marketing; Other Emerging Trends- Ethical Issues in Marketing. Service is an act or performance that one party can offer to another that is essentially intangible and does not result in any ownership of anything. Its production may or may not be tied to physical products.(Philip Kotler) It is based on relationship and value. It may be used to market a service or product. What is Service Marketing? The American Marketing Association defines services marketing as “an organizational function and a set of processes for identifying or creating, communicating, and delivering value to customers and for managing customer relationship in a way that benefit the organization and stake-holders”. Service marketing is involved in designing, delivering, and doing post-delivery analysis of services for optimizing reach, measuring customer satisfaction, and standing-out from identical services offered by other market players. Intangibility: A service is not a physical product that you can touch or see. A service can be experienced by the buyer or the receiver. Also, you can not judge the quality of the service before consumption. Heterogeneous: There can be no perfect standardization of services. Even if the service provider remains the same, the quality of the service may differ from time to time. Inseparability: One unique characteristic of services is that the service and the service provider cannot be separated. Unlike with goods/products the manufacturing and the consumption of services cannot be separated by storage. No Stock Maintenance: The production and consumption of services are not inseparable because storage of services is not possible. Being an intangible transaction there can never be an inventory of services. The potential customers form an impression about the service on the basis of service environment. The service environment represents the physical back drop that surrounds the service. For example, providing hygienic food is the core service in a hotel or restaurant. Customers expect the restaurants to be maintained clean, offer flexible dining hours prompt service, soft music, décor, exotic menu etc. Advantages of Service Marketing: 1, Repeat business When you build a plan of service to reach your customers, you can expect a reward of repeat business from them. The goal of effectively marketing your brand is to capture the attention of your target market. 2. referrals The next best thing to having your clients come back is to have them tell others about their experience and recommend your products or services to them. You must consider that if your customers have a bad experience, it is likely they will tell 10 people about that negative experiences also. 3. publicity Other benefits from your good service are through publicity. As the buzz flows about your outstanding service, from following through on what you’ve promised.

1. Advanced Marketing Management
Unit-V: Trends in Marketing
Service Marketing, E-Marketing, Green Marketing, Customer Relationship
Management, Rural Marketing; Other Emerging Trends- Ethical Issues in
Marketing.
Prepared By
Prepared By
Mr. Dayananda Huded M.Com JRF, 3 times NET,KSET
Teaching Assistant,
Rani Channamma University, PG Centre, Jamkhandi
E-Mail: dayanandch65@gmail.com
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2. Service Marketing
• What is Service?
• Service is an act or performance that one party can offer to another that is
essentially intangible and does not result in any ownership of anything. Its production
may or may not be tied to physical products.(Philip Kotler)
• It is based on relationship and value.
• It may be used to market a service or product.
• What is Service Marketing?
• What is Service Marketing?
• The American Marketing Association defines services marketing as “an organizational
function and a set of processes for identifying or creating, communicating, and
delivering value to customers and for managing customer relationship in a way that
benefit the organization and stake-holders”.
• Service marketing is involved in designing, delivering, and doing post-delivery analysis
of services for optimizing reach, measuring customer satisfaction, and standing-out
from identical services offered by other market players.
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3. Characteristics of Service
Characteristics
Intangibility
Perishability
Inseparability
No Ownership
People
Involvement
Characteristics Inseparability
Heterogeneity
Pricing of
Services
No Stock
Maintenance
No Ownership
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4. • Intangibility: A service is not a physical product that you can touch or see. A service
can be experienced by the buyer or the receiver. Also, you can not judge the quality of
the service before consumption.
• Heterogeneous: There can be no perfect standardization of services. Even if the
service provider remains the same, the quality of the service may differ from time to
time.
• Inseparability: One unique characteristic of services is that the service and the
• Inseparability: One unique characteristic of services is that the service and the
service provider cannot be separated. Unlike with goods/products the manufacturing
and the consumption of services cannot be separated by storage.
• No Stock Maintenance: The production and consumption of services are not
inseparable because storage of services is not possible. Being an intangible
transaction there can never be an inventory of services.
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5. Nature of Service Marketing
• Marketing of Intangible Products
• Non-transfer of ownership
• Expanded marketing mix
– People, Process and Physical Evidence
• Inseparability of Consumption and production.
• Inseparability of Consumption and production.
• Heterogeneous products.
• Managerial function
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6. Service Environment
• The potential customers form an impression about the service
on the basis of service environment. The service environment
represents the physical back drop that surrounds the service.
• For example, providing hygienic food is the core service in a
hotel or restaurant. Customers expect the restaurants to be
maintained clean, offer flexible dining hours prompt service,
maintained clean, offer flexible dining hours prompt service,
soft music, décor, exotic menu etc.
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8. • The four traditional Ps of the marketing mix - product, place, price, and promotion are
adequate for marketing a product. However, they fail to cover the following aspects,
which differentiate products from services and are, therefore, important for services
marketing.
• The product element involves only tangible aspects and is therefore not appropriate
for services, which are basically intangible in nature.
• Example: The strategy used to design and launch a new motorcycle model cannot be
• Example: The strategy used to design and launch a new motorcycle model cannot be
adopted for launching a new service as a variant.
• A part of the promotion of services usually takes place at the time of consumption
itself. This is not so in the case of a product. In fact, the people involved in service
production handle the promotion too in most cases.
• Example: The way in which a waiter at a restaurant provides service to the customers
is a form of promotion of the service.
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9. Advantages of Service Marketing
• 1, REPEAT BUSINESS
• When you build a plan of service to reach your customers, you can expect a reward of
repeat business from them. The goal of effectively marketing your brand is to capture the
attention of your target market.
• 2. REFERRALS
• The next best thing to having your clients come back is to have them tell others about
their experience and recommend your products or services to them. You must consider
that if your customers have a bad experience, it is likely they will tell 10 people about that
that if your customers have a bad experience, it is likely they will tell 10 people about that
negative experiences also.
• 3. PUBLICITY
• Other benefits from your good service are through publicity. As the buzz flows about your
outstanding service, from following through on what you’ve promised to communicating
effectively, you will learn that your good deeds in marketing will have positive payoffs as
customers’ word of mouth gets back to the “powers that be” in media and social
marketing platforms.
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10. • 4. GAIN RECOGNITION
• Marketing plays a critical role in most businesses' success. Marketing provides value in
many ways, but the biggest way is through recognition.
• 5. BUILD TRUST
• If you have good marketing techniques in place, you will start building recognition, but you
want the type of recognition that will help build trust in your company.
• 6. GAIN NEW CUSTOMERS
• 6. GAIN NEW CUSTOMERS
• With the proper marketing techniques come not only recognition and trust, but more
customers and clients. As you market your services or products, you will gain brand
recognition, which will ultimately lead to more people wanting your products and services.
• 7. BUILD RELATIONSHIPS
• Once you get the ball rolling on recognition and trust and you start getting new clients, it
is important to continue marketing. But now, you'll also want to target your existing
customers.
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11. Importance of Service Marketing
• 1. Development of Secondary and Primary Sector
• The smooth running of primary and secondary sectors depends on different services. Thus,
the service industry, as a whole plays an important role in the efficient working of these
sectors.
• 2. Rise in employment
• Aviation, brokerages, tourism, hospitality, software, entertainment, retail, BPO’s are some of
the sectors that get employments from the service industry. The entire country gets
benefited as a result.
benefited as a result.
• 3. Upturn in National Income
• If the service sector is expanding and growing, this will help in National Income. There would
be the same amount of development and growth in the country as any other sector.
• 4. Assistance to basic services
• Basic services of the country like post offices, insurance, courts, transport, banks,
telecommunications, educational institute, hospitality get assistance from the service sector.
These services are vital for a common man in their daily lives
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12. • 5. Boost a nation’s image
• Services like ITES, BPO will enhance a country’s image in front of the world. This
portrays a bright future for the nation in front of the world.
• 6. Upturn in exports
• Quality service sectors will bring in more demand from countries outside the
international borders. These, in turn, boost the exports and helps to rake in foreign
currency that adds to the economic stability of a country.
currency that adds to the economic stability of a country.
• 7. Opportunities for more women
• There is a rise in demand for working women in the service sector. This has opened
up new avenues for women to work and be equal to men at work.
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13. E-Marketing
• E marketing or Electronic marketing refers to the application of marketing principles
and techniques via Electronic media and more specifically the Internet.
• The terms E marketing , Internet Marketing, Online marketing are interchanged and
frequently can be considered synonymous.
• It is the process of marketing a brand using the marketing.
• It includes both direct response marketing and indirect marketing elements and uses
a range of technologies to help connect business to their consumers.
a range of technologies to help connect business to their consumers.
• ELECTRONIC MARKETING is the marketing of products using electronic technology to
determine the consumer market.
• E-marketing compasses all the activities a business conduct via World wide web
(WWW) with the aim of attracting new business, retaining current business and
developing its brand identity
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14. • Nature of E-Marketing
• Arrival of the internet
• Wide advertisement board
• Internet marketing online business
• Features of E-Marketing
• Internet marketing allows global marketing facility
It is less expensive
• It is less expensive
• It makes marketing easier
• sell your products and services and encash your bills from anywhere.
• It increases the choice of products, services and sellers.
• Vast availability of information
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15. E-Marketing Tools
• Online marketing tools include social media and online advertising.
– Use of social media
– Marketing plan
• Social media is the latest marketing buzz, touted by both online and offline marketing
experts way to reach customers.
• A properly designed website is one of the most important marketing tools that an e
marketing needs.
marketing needs.
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16. Importance of E-Marketing
• The Internet has brought many unique benefits to marketing, one of which being
lower costs for the distribution of information and media to a global audience.
• The interactive nature of Internet Marketing, both in terms of providing instant
response and eliciting response, is a unique quality of the medium.
• E marketing is inexpensive.
• Companies can reach a wide customers for a small fraction of traditional advertising
budgets
budgets
• Convenient to research and purchase of goods and services
• Pay per impression, Pay per click, Pay per action
• 24/7 marketing
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17. Limitations of E-Marketing
• Out right scams
• The consumer is unable to physically feel or try on the product
• Marketer will not be able to use the personal touch factorhuman factor
• Technology
• Low connection speed
• Complication
• Complication
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18. Other Emerging Trends
• 1. Artificial Intelligence: Articial intelligence is computerized demonstrated
intelligence. It is the most advanced technology that we have today.
• For instance, Starbucks Serves Personalized Recommendations Using Predictive
Analytics. In the coming years, we can see much better and improved practices in
marketing using artificial intelligence.
• 2. Augmented Reality Driven Marketing: One of the most drastic emerging trends is
augmented reality. The basic form in which it can be used is advertisements using
augmented reality. The basic form in which it can be used is advertisements using
augmented reality. it gives the customer a real-life experience of the product.
• It may include sensory advertisement, a customer using and giving a product a try
before buying, etc.
• Through augmented reality, the businesses could make a customer have a full beer
experience, which may not only help the customer to buy the product or the business
to sell its product.
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19. • 3. Digital Business Models; In the present business model, technology plays a prominent role. With the
evolving technology, the models of businesses are also evolved. Some new digital models come into the
picture.
• Examples- E-commerce, subscription model, subscription-based e- commerce
• 4. Dynamics of Marketing Strategies
• A. Cultural Strategy: In cultural strategies companies try to connect their product with the culture of
the consumer. In the cultural approach, we also include the ethics of that culture with whom people are
connected.
• For example, Tata salt markets its product as “tata namak Desh ka namak” this line connected people
with their ethics because Indian salt represents “loyalty”. Hence from this tagline, they can easily
with their ethics because Indian salt represents “loyalty”. Hence from this tagline, they can easily
connect with customers by showing their loyalty in this way.
• B. Luxury strategies: In the case of luxury goods the target market is very niche and the product is
made only as per the need of that person. Basically, in luxury strategies, the target customer is willing
to pay a higher amount for premium and status symbol goods. Hence their strategies are different
from other ordinary goods. They don’t spend on the common marketing. They are focused on building
the brand value of their product.
• For Example- Lamborghini doesn’t advertise their product on the ordinary platform because they know
their product is not for everyone.
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20. • 5. Digital Marketing: Innovation and creativity are the keys to success in the competitive world
and here we are using advanced technologies to upgrade our businesses. A few years back
marketing online was not very famous but with time we started using digital channels to market
our business. The use of digital channels for marketing a product or a service is known as digital
marketing.
• Email marketing, video marketing, social media, websites, SEM etc.
• 6. Globalization: Globalization is an emerging trend in marketing. It refers to free flow of ideas,
goods and services all over the world. Effect of globalization is increasing in marketing. Increasing
globalization is crating both opportunities and challenges for marketers. It is also creating
international competition.
international competition.
• 7. Changing technology: Changing technology is also an emerging trend in marketing.
Development in information and communication technology, electronics, new materials and nano-
technology development advances are opening many new opportunities for marketing.
• 8. Direct marketing: Direct marketing is also increasing. Direct mail, catalogue, telephone,
television etc. are used in direct marketing. Now-a-days Internet and websites are also using and
e-commerce is getting popular. Business-to-business purchasing is growing fast on the Internet.
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21. • 9. Outsourcing: An emerging trend in marketing is outsourcing. It is the process by which marketers
purchase inputs such as capital, human resources, technology, machines, raw
materials, technical know-how, skills, services from other organizations throughout the world. Outside
suppliers are playing greater role in supply of goods and services.
• 10. Relationship marketing: Relationship marketing is also the emerging trend in marketing. It is
concerned with building long-term mutually satisfying relationship with customers. Marketers focus on
managing their customers as well as their products and series. They also focus on quality,
value, customer satisfaction, customer loyalty and partnership with customers.
• 11. Quality marketing: Quality marketing is concerned with customer satisfaction. In order to
deliver customer satisfaction, marketers have to offer ‘quality’ in their goods and services. Now-a-days
total quality management (TQM) is getting popular.
total quality management (TQM) is getting popular.
• 12. Growth of global brands: Global companies, with very large size and scale of activities, have now
been growing. These companies are able to establish their brands in global markets. Global brands in
electronics, foods, clothing, autos, intellectual property etc. are becoming popular all over the world.
Due to the practices of licensing and franchising strategies global brands are increasing.
• 13. Global life style: Advances in global communication, television networks, transportation,
technology, cross cultural exchange, flow of tourists across the globe etc. are promoting global life
styles. Global life style is providing added opportunities for marketers.
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22. Ethical Issues in Marketing
• Meaning; Ethics in marketing is the function and process of marketing keeping to the standard norms of it
and achieving the ends through means.
• Marketing ethics is an area that deals with the moral principles behind marketing. Ethics in marketing
applies to different spheres such as in product, pricing, Placing (Distribution), promotion & advertising
etc.
• Ethics in Marketing:
• We discuss Marketing issues by using 4P’S OF MARKETING:
• Product:
– Consumer safety • Product liability and reliability • Designing for special needs
– Consumer safety • Product liability and reliability • Designing for special needs
• Packaging:
– Label information, Packaging graphics, Packaging safety, Environmental implication of packaging
• Price:
– Supra competitive pricing • Price fixing • Price skimming
• Place (Distribution): Distribution of product or service is transporting them from manufacture to
stockiest, wholesalers, retailer and then to consumers.
• Promotion:
• Digital marketing Code of Ethics –OECD: Gather and store information that is pertinent to your
business Collect data directly from your customers, not from other companies or organizations. Tell
your customers how you plan to use the data.
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23. Common Ethical Issues (Unethical) in Marketing
• Pressuring vendors to buy more than they need and pushing items that will result in higher
commissions are temptations
• Ethical issues in direct marketing are the subjects which are privacy, confidentiality.
• Ethical problems which are faced while using of internet for marketing are reliability of
operations, illegal activities, privacy, accuracy, product guarantees, aiming at children,
spams, deceptive advertisements.
• Misrepresenting one’s own company in sales dealing
• Discriminating buyers on basis of age, sex, country of origin, caste, etc
• Violating patents and copy rights
• Violating patents and copy rights
• Using confidential information for any benefit
• Question mark on Product safety
• Duplication of original brands
• Unauthorized manufacturing of hazardous products
• Artificial scarcity
• Deceptive advertisement
• Deceptive Advertising: Gives false information or misleads consumers about the benefits of
the brand.
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24. • Exerting influence to cause vendors to reduce display space for competitors' products is unethical.
• Promising shipment when knowing delivery is not possible by the promised date is also unethical.
• Paying vendors to carry a firm's product rather than one of its competitors are also unethical.
• Most drug stores would give too many drugs without prescription from a qualified doctor are also
unethical.
• Products are moved in unsafe vehicles ,are also unethical.
• Common Deceptive Practices on Advertising
• False and misleading presentation of facts
Deliberate omitting of required information
• Deliberate omitting of required information
• Implying a benefit that hardly exist
• Exaggerated claims
• Using unnecessary technical jargons
• Creating Cultural degeneration
• Persuasive role models for inappropriate products
• Open criticism of competitors
• Promoting Unhealthy Products
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