evolution of service marketing

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EMERGENCE OF SERVICE

MARKETING

By

Ajayan Kavil



Industrial Revolution Era

The era known as the Industrial Revolution was a period

in which fundamental changes occurred in agriculture,

textile and metal manufacture, transportation, economic

policies and the social structure in England. This process began in England in the 18th century and

from there spread to other parts of the world. Although

used earlier by French writers, the term Industrial

Revolution was first popularized by the English economichistorian Arnold Toynbee (1852²83) to describe

England·s economic development from 1760 to 1840.



Evolution of Marketing

Exchange Concept

Production Concept

Product Concept Selling Concept

Marketing Concept

Service Concept

CRM Concept



Production concept

The production concept prevailed from the time ofthe industrial revolution until the early 1950's. Theproduction concept was the idea that a firm should

focus on those products that it could produce mostefficiently and that the creation of a supply of low-cost products would in and of itself create thedemand for the products. The key questions that a

firm would ask before producing a product were: Can we produce the product?

Can we produce enough of it?



Product concept

After a while, the Product Concept emerged, aimed

to increase income by adding additional features to

the product, making it more attractive for an ever-

more competitive market.In the early 50s in North America, brands began to

soar, bringing along higher levels of

competitiveness.



Selling Concept

By the early 1960's however, mass production hadbecome commonplace, competition had increased, andthere was little unfulfilled demand. Around this time,firms began to practice the sales concept (or selling

concept ), under which companies not only wouldproduce the products, but also would try to convincecustomers to buy them through advertising andpersonal selling. Before producing a product, the key

questions were:

Can we sell the product?

Can we charge enough for it?



Marketing Concept

After World War II, the variety of productsincreased and hard selling no longer could berelied upon to generate sales. With increased

discretionary income, customers could afford to beselective and buy only those products that preciselymet their changing needs, and these needs were notimmediately obvious. The key questions became:

What do customers want? Can we develop it while they still want it?

How can we keep our customers satisfied?



Service Concept

In the 70s, competitiveness standards continue

growing stronger, what translates into even lower

margins and higher difficulty to differentiate from

competitors, given the excessive proliferation ofbrands and products in their goods and services

dimensions.



CRM Concept

Starting from this new reality and along with the

development of services, the Relationship Marketing

Concept emerges to profit from customer

relationships. To this effect, this approach operatesthrough Customer Relationship Management (CRM).



EVOLUTION OF SERVICE MARKETING

The 'Crawling Out

Stage' which tookplace prior to 1980

The 'Scurrying About

Stage' between1980 and 1986

The 'Walking Erect' between 1986 and

2000



Crawling Out (pre-1980)

This stage began with the first services marketing

scholars struggling to publish their work and

culminated with a fierce debate over whether

´services marketing is differentµ. The debatequestioned the very legitimacy of services

marketing as a field within the discipline; its

outcome could have been the early demise of the

research, and therefore the literature, had the

debate been lost.



Walking Erect (1986-present)

In the Walking Erect stage, scholars achieved a

respected stance as services marketing became an

established field within the marketing discipline. The

publications on many of the primary topics maturedconsiderably.

evolution of service marketing

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