G.R.

DAMODARAN ACADEMY OF
MANAGEMENT
Approved by the All India Council for Technical Education,

affiliated to the Bharathiar University and recognized by the UGC

Neelambur, Avinashi Road, COIMBATORE – 641 062

MBA IB

IV SEMESTER

RETAILING & SERVICES IN

INTERNATIONAL MARKET
Prepared by

Dr. Madhu Malar R

GRDAM
UNIT V
Marketing of Services:- Emerging Service Products - Perspectives of Tourism, Travel
and Hospitality services – Healthcare – Domestic and International Airline – Online
and Electronic based services –. Financial Services – Current trends in Global Service
Industry
Definition of Service Marketing:
Service marketing is marketing based on relationship and value. It may be used to
market a service or a product. With the increasing prominence of services in the global
economy, service marketing has become a subject that needs to be studied separately.
Marketing services is different from marketing goods because of the unique
characteristics of services namely, intangibility, heterogeneity, perish ability and
inseparability.

In most countries, services add more economic value than agriculture, raw materials and
manufacturing combined. In developed economies, employment is dominated by
service jobs and most new job growth comes from services.

Emerging Service Products

An emerging industry is a group of companies in a line of business formed around a
new product or idea that is in the early stages of development. An emerging industry
typically consists of just a few companies and is often centered on new technology.
Emerging industries frequently come into existence when one technology begins to
eclipse and replace an older technology.

Stocks of companies in emerging industries are often volatile and can experience wide
price swings. It can be hard to value such companies, especially if they have little
revenue or have yet to make a profit. While early investors hope to get in on the ground
floor of what might be the next Google or Apple, the risks of investing in an emerging
industry can be quite high.

Examples of Emerging Industries

The world in the mid-1990s knew the Internet as an emerging industry. Hundreds of
companies formed to try to capitalize on the new technology. The dotcom bubble refers
to the rapid proliferation of Internet-based companies that fueled a bull market in
technology stocks. Speculation grew and venture capitalists poured money into many
startups that, in some cases, had no actual product or service to sell.

By the end of 2001 and into 2002, the dotcom bubble burst, and many publicly traded
companies folded. However, those companies that offered valuable consumer services
and products—such as Amazon and eBay—survived and flourished, becoming
standard-bearers for the emerging Internet industry.

Emerging industries in the current era—perhaps viewed as the next evolution of the
Internet—are artificial intelligence (AI), virtual reality, and self-driving vehicles. Again,
only a select few companies with the financial resources and intellectual property are
thus far dominating the nascent fields. The biotechnology industry, however, is
experiencing such breakthroughs in immunotherapy and gene therapy that it can be
considered an emerging industry, or at the very least a sector with growth potential at an
inflection point.

Perspectives of Tourism
Tourism and travel-related services includes services provided by hotels and
restaurants travel agencies and tour operator services, tourist guide services and other
related services. One of the most crucial aspects of international tourism is the cross-
border movement of consumers.
I – Tourist
The people who goes on tour are looking for emotional and physical experiences
through various activities. The nature of the experience a tourist wants can be found out
by the category of destination of the tour program.

II – Tourism Business Catering Goods and Services

These are the set of business people who establish themselves for making a profit by
providing the various facilities to the tourists and keeps the system running according to
the demand in the industry.
III – Government of Tourism Host Community
Usually, the government look forward tourism industry as a way of obtaining financial
stability for economic development of the region. The amount of income generated
from the region where tourism is promoted and numerous possibilities of reducing
unemployment are the main advantage government will be getting from the tourism
initiatives. Apart from these advantages money coming into the economy in the form of
foreign exchange and tax collected from tourist expenditures are added advantages.
IV – Tourism Host Community
The people in and around the tourism destination sees employment opportunities and
the overall cultural enhancement in tourism. The interaction between the local residents
and the people involved in the tourism business with the visitors that is contributing to
the overall development of the area.
So the success of a tourism spot involves these four factors and the interaction between
tourists, government, people involved in the tourism business and the people .

Perspectives of Travel and Hospitality services

The hospitality industry is a broad category of fields within the service industry that
includes lodging, food and drink service, event planning, theme parks, and
transportation. It includes hotels, restaurants and bars. around the tourism destination.

It is a sector which is recognised for a wider service industry, with a focus on

leisure, rather than more basic needs. The course in hospitality and tourism equips you
with the management, marketing and operational skills within
the travel or hospitality arenas.

Different Perspectives
1. The tourist:
The tourist/visitor looks for diverse psychic and physical experiences and satisfactions
from the tourism activity. And the nature of these experiences will mostly find out the
destinations chosen and the activities experienced and enjoyed or participated in.

2. The businesses catering tourist goods and services:

Business people behold tourism as an opening to make profit by furnishing goods and
services demanded by the tourist market.
3. The government of the host community or area:
The government looks on tourism as a capital and megabucks factor in the economy. Its
outlook/attitude bears upon the income and employment generation capabilities of this
business for its citizens apart from the foreign exchange earnings from international
tourism and the public/government revenue in the form of tax receipts from tourist
expenditures, directly and/or indirectly.

4. The host community:

Local residents most often consider tourism as a cultural and employment factor. It is
primarily the effect of interaction between large numbers of international visitors as
guests and the local residents as hosts which may be promising or unpromising, or both
that is of significance and interest to this group.

Thus, tourism may be defined as the sum of the phenomena and relationships arising
from the interaction of tourists, business suppliers, host governments and host
communities in the process of attracting and hosting these tourists and other visitors.

Hospitality

The hospitality industry is a broad category of fields within the service industry that
includes lodging, food and drink service, event planning, theme parks, and
transportation. It includes hotels, restaurants and bars.
Health services
Health services consist of medical professionals, organizations, and ancillary health
care workers who provide medical care to those in need. Health services serve patients,
families, communities, and populations. ... These services are centered around
making health care accessible, high quality, and patient-centered.

Domestic and International Airline

• Airlines are classified by their routes and by their schedules. The two major
classifications are domestic airlines and international airlines.
• The International Civil Aviation Organization (ICAO) also distinguishes
between scheduled and nonscheduled operators.
 • Many individual countries have established various classes of air carriers.
These categories often include local service airlines,
• Trunk airlines that service large hubs, international airlines, /4100 all-cargo
lines, and charter services.

• Airlines -An Overview on Air Travel and Air Lines

• Air travel is indeed the fastest way to cover long distances. In recent times it has
become a lot cheaper and offers travelers a wide choice. In the airline industry
there are two types of travelers: the business traveler and the leisure traveler.
Business travelers are usually flexible on the price of the tickets, but not on the
dates. Leisure travelers on the other hand are not flexible on the price, but are on
the dates. Most airlines try to strike a balance between these two types of
travellers and offer different types of schemes targeting one or the other
• Before boarding the flight

• Whether you are travelling on business or for leisure, there are certain points
which you need to bear in mind before travelling by air. The check-in normally
opens three hours prior to the flight departure. It is recommended that you arrive
two hours before the departure for domestic and three hours for international,
which will allow you enough time to complete the check-in formalities. Before
leaving home, check that you have all the relevant travel documents which
includes tickets, photo-id proof and passport for international travel, and other
relevant documentation that may be required. After you have arrived at the
terminal, you can check for the flight information and the flight schedule which is
displayed on the screens. Keep the ticket and passport ready when you are
waiting to check-in.
• The convenient option of web check-in is also available today which will allow
you to check in 72 hours before departure from office or home.

• The different classes in airlines

• Most international flights usually offer three classes: First Class, Business Class
and Economy Class. First Class is the most expensive and offers maximum
comfort. Business class also has almost the same amenities, with small variations
of seat dimensions, food options and personalized service. Both the classes offer
 lounge access, delicious meals and drinks, extra space to work. First class may
have flat beds and private pods. The Economy Class offers basic facilities and
often food too needs to be purchased. Some airlines also offer the Premium
Economy class which is a good choice for travelers who need to work or catch up
on some sleep. A premium economy seat costs more than the regular economy.
• Some top domestic and international airlinesthat operate out of India today are:

• Top International Airlines:

• For most travelers the key parameter to choosing an airlines is the value for
money which they get in return.
• Cathay Pacific has redefined luxury in air travel. It has long been recognized for
setting high standards with excellent service and comfortable seats. It ensures that
the journey is pleasant. The efficient and courteous staff add a personal touch to
your in-flight experience. The ground crew is always ready to assist you and
leave no room for complaints.
• Singapore Airlines has retained its position as the number 1 international airline.
Recently it launched the premium economy class where travelers can watch in-
flight entertainment on high definition monitors and savor delicious meals. The
lighting in the flight has been tastefully done to create a soft ambience which puts
the travelers mind at ease.
• Qatar Airways finds mention in the list of luxury carriers. The large and spacious
first class cabins boast of elegance. You can avail world class service from your
private space. The award winning cabin crew will attend to all your requests and
ensure that your journey is smooth. Do not be surprised if celebrity chef signature
dishes and Christian Dior amenity kits are offered to you in the flight.
• Emirates stands for opulence. Travelers can easily convert their seats into a flat
bed. The airline offers complimentary drinks along with personalized meals. In-
flight food which is prepared with locally sourced organic ingredients always
pleases the guests. In terms of in-flight entertainment travellers are spoilt for
choice.
Online and Electronic based services

E-services (electronic services) are services which use of information and

communication technologies (ICTs). Internet is the main channel of e-service delivery
while other classic channels (e.g. telephone, call center, public kiosk, mobile phone,
television) are also considered.