Page 40 - DMGT510_SERVICES_MARKETING

Unit 2: Service Marketing Environment

2.4 Summary Notes

The services marketing environment can be broadly divided into external or macro

environment or internal or micro environment.
The external environment includes the SLEPT factors: Social, legal, economic, political

and technological.
The social factors that affect a service market are: consumption patterns, age composition,

beliefs and values, gender structure and family structures.
The legal factors are a percolation of the political and governmental factors. So, often, they

do merge in environmental analysis. But increasingly, political factors are getting moulded
by the legal norms – especially with internationalisms – like WTO and Environmental
norms.
Politics is the science of government. The governmental influence has been omnipresent

and service firms have been greatly affected by the policies and other decisions made at
the Central, State or local level.

The internal marketing environment includes external customers, internal customers,

competitors, suppliers and regulators.
Internal customers are an intrinsic part of a service firm’s environment consisting of

employees, channel partners, providers, Direct Sales Agents, etc. They are controllable,
and directly affect the service firm in its business endeavour.

Scenario Building Approach is a good way to analyse the environment. This process is

futuristic, and the decision-maker has to analyze his decisions in relation to his future.
2.5 Keywords

Depression: recession that have high impact on the economy

Internal Customers: People within the organization who either require support and service or
provide information, products, and services to service providers.
Marketing Environment: The various external forces that can directly or indirectly affect the
many activities of an organization.
Peak: High point of expansion.
Porter’s Five Forces Model: This model identifies and analyzes five competitive forces that
shape every industry, and helps determine an industry’s weaknesses and strengths.
Slowdowns: recession that is low in intensity.
Trough: minimum point of contraction.

2.6 Review Questions

1. Suppose you are the marketing manager of a modern and technically equipped beauty
salon. What measures will you take before opening a store or chain of stores in a new city?
2. Why is it important for a fast food chain like McDonalds to study the social factors before
entering a new geography?
3. “Politics is the science of government”. Discuss. Also discuss the impact of politics on
service market.

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