Page 28 - DMGT510_SERVICES_MARKETING

Unit 2: Service Marketing Environment

Notes

Did u know? 85% of the Indian market consists of people below 44 years while in Japan,
their geriatrics market is increasing, and is one of the highest in the world.

The service marketers were gearing up to target this increasingly youthful segment. This segment
was the famous “me-only” generation as well as those who were looking back wistfully on their
lost youth.

Youth: Citibank credit cards innovated in 1999 by targeting management students. They were
offered its low-end Silver Cards free while they were still studying. The idea was to inculcate in
them the habit of card usage and the company hoped optimistically that once they were working
managers, they would remain brand loyal and the card investment would start paying off.
Citibank was successful in making an early customer acquisition. It is still one of the largest
players in all segments, although the competition is fast catching up.
Then again, from the point of view of the service employer, certain sectors have targeted this
segment with satisfactory results. Retailing and the exploding call centres have more employment
from this age group - partly due to their very specific job profile, odd working hours, and hard
and long labour.
Mid thirties: Tour package companies were innovating with service product designs which
included Near-East, Far-East, Australia, the US and European tours. UVI Holidays and Wanderlust
- two niche players in the tour package market - were offering adventure sport holidays, like
white- water rafting, heli-skiing and a trip in the Konkan, etc. Restaurants, hotels as well as
resorts were targeting these groups.

Many insurance companies are coming up with schemes specially targeting these middle aged
people. They have come out with early retirement schemes where people can invest and get
regular benefits. Banks are also looking for such people who wish to set up their own businesses
or build their houses.

Gender Structure

Women constitute 50% of the population while in some states like Kerala and Mizoram, the
ratio is in favour of women. The gender structure and balance has especially affected certain
services like teaching in schools, nursing, etc. There has been enlargement in the roles perceived
and sanctioned by society. Women, since the early eighties, have come out in droves into the
workforce - especially in services. This is due to their increasing exposure to education, perceived
higher value of themselves due to exposure to mass-media influences and of course the explosion
of the service industry which seemed to be the perfect ground for women. It paved the way for
the emergence of the working wife, once regarded by the middle class as a sign that her husband
could not support his family. Products have been tailored for the working woman and designed
with her in mind.

Example: Banks and insurance companies are coming up with plans specially targeted
towards women. With an increase in number of working women, they are also increasingly
becoming interested in mutual funds and share trading.

Task Find out the current male-female ratio of all the Indian states. Also analyse
the impact of such data on service marketing.

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