Syllabus

Subject: Principle of Marketing

Course Code: MKT101

Credits: 48

Unit I: Marketing overview and customer value

Definition: Understand the marketplace and customer needs
Customer value-driven marketing strategies
Capturing customer value
Marketing strategy and the marketing mix
The changing marketing landscape

Unit II: Understanding the Marketplace (9 Hours)

Analyzing the micro and macro marketing environment
Responding to the marketing environment
Assessing marketing information needs
Analyzing and using marketing information
Buyer behavior & buyer decision process
Business markets & business buyer behavior
1. Engaging business buyers with digital and social media marketing

Unit III: Marketing Mixes: Product and Price (10 Hours)

Segmentation and targeting
Differentiation and positioning
New product development process
Product life cycle strategies
Levels of products and services; Concept of services marketing
Pricing concepts & major pricing strategies
New product pricing & Product mix pricing
Price adjustment strategies & Price changes
Brand equity and brand value

Unit IV: Marketing Channels and Promotion (8 Hours)

Importance of marketing channels: Channel design decisions
Logistics and supply chain management; Sustainable supply chains
Retailing trends and developments
Integrated marketing communications
Setting the promotion budget and mix
Major advertising decisions

Unit V: Selling and Sales Promotion (7 Hours)

Managing the sales force
Designing the sales force strategy and structure
Recruiting and selecting salespeople
Training and evaluating salespeople
Selling online: Using mobile and social media tools
Steps in selling process
Sales promotion
Public relations & Experiential Learning Exercise (II)

Unit VI: Contemporary Marketing and Sustainable Marketing (5 Hours)

Marketing, the internet and the digital age
Social media and mobile marketing
Sustainable marketing concept
Social criticisms of marketing
Sustainable marketing principles

Quick Revision Boxes

Unit I: Marketing overview and customer value

1.1 Understanding the Marketplace and Customer Needs

1. What is a Marketplace?

A marketplace is any place where buyers and sellers come together to exchange products or services.
It’s not just physical stores; it can be online websites, apps, or even local markets.
Example: Amazon, Daraz, or a local grocery store.

2. Understanding Customer Needs, Wants, and Demands

Needs: Basic things people must have to survive or live comfortably, like food, clothes, and shelter.
Wants: Things people wish for that make life more enjoyable, like branded shoes, smartphones, or video games.
Demands: When people want something and can pay for it, it becomes a demand.
Example: A person needs a phone (need), wants the latest iPhone (want), and buys it because they have money (demand).

3. Why Understanding Customer Needs is Important for Business

Businesses must know what customers truly want to design products or services that sell.
If companies fail to understand needs, they might make products that nobody buys, wasting money and time.
Understanding needs helps businesses create value, satisfy customers, and build loyalty.

4. How Businesses Study Customers

They use surveys, feedback, social media, and market research to learn what people like or dislike.
They look at trends: what’s popular now, what people are talking about, and what problems they face.

5. In Short

Marketplace: Place where buyers and sellers meet.
Customer needs: What people must have.
Wants: What people wish for.
Demands: Wants backed by buying power.
Businesses that understand these can design better products, attract more customers, and grow successfully.

1.2 Customer Value-Driven Marketing Strategy

1. What is Customer Value?

Customer value means how much benefit or satisfaction a customer gets from a product compared to what they pay for it.
If the product is very useful or enjoyable and not too expensive, the value is high.
Example: A coffee shop that gives tasty coffee + free Wi-Fi + comfy chairs → customers feel they got more value for their money.

2. What is a Marketing Strategy?

A marketing strategy is a plan businesses make to attract, satisfy, and keep customers.
It helps businesses reach the right people with the right products.
Example: A new phone company may focus on students by offering affordable prices, trendy designs, and online shopping.

3. Customer Value-Driven Strategy

Businesses focus on what customers value most and design products, prices, and promotions accordingly.
The idea: If customers feel happy and satisfied, they will keep buying and tell others.
Example: Netflix keeps adding shows people love → high customer satisfaction → more subscriptions → more profit.

4. Steps in Customer Value-Driven Marketing

Understand customer needs and wants: Know what they really want.
Create value: Design products or services that meet those needs better than competitors.
Deliver value: Make sure the product is available, affordable, and easy to access.
Communicate value: Advertise or show customers why it’s worth buying.

5. In Short

Customer value-driven marketing is all about making customers happy by giving more value than they expect.

Happy customers → repeat purchase → loyalty → business grows.

1.3 Capturing Customer Value

Turning Satisfaction into Loyalty and Profit

After a business creates and delivers value, the next step is to capture that value. This means turning satisfied customers into profit and loyalty.

Keep buying the product or service.
Recommend it to friends or family.
Become loyal to the brand.

This is how businesses earn money from the value they provide. Capturing customer value is not just about a one-time sale; it’s about building a long-term relationship with customers.

Example of Capturing Customer Value

Amazon offers easy shopping, fast delivery, and good customer service. Because of this, people keep buying from Amazon instead of other stores. This repeated purchase creates loyal customers and steady profit.

In Short

Businesses give value to customers.
Customers return that value through money, loyalty, and positive recommendations.
This cycle helps the business grow and succeed over time.

1.4 Marketing Strategy and the Marketing Mix

What is a Marketing Strategy?

A marketing strategy is a plan that a business makes to attract customers, satisfy their needs, and earn profit. It helps the company focus on the right people and deliver the right products in the right way.

The Marketing Mix (4Ps)

Product: This is what the business sells. It can be a physical item, a service, or even an idea. The product should meet the needs and wants of the customers.
Example: A smartphone with a good camera, fast processor, and stylish design.
Price: This is how much the customer pays for the product. The price should reflect the value of the product and what customers are willing to pay.
Example: A brand may charge a little higher for a premium product because it offers more features.
Place: This is where the product is sold or how it reaches the customers. It could be a physical store, an online platform, or both.
Example: Selling clothes in malls, websites, or social media stores.
Promotion: This is how businesses tell customers about the product. It includes ads, social media campaigns, discounts, and other communication strategies.
Example: Instagram ads for a new sneaker launch.

In Short

A marketing strategy is the plan, and the marketing mix (4Ps) is the toolkit that helps businesses make the plan successful. Using the right combination of product, price, place, and promotion makes customers happy and helps the business grow.

1.5 The Changing Marketing Landscape

Why Marketing is Changing

Marketing is constantly changing because of new technology, customer habits, and competition. Businesses cannot stay the same; they need to adapt to trends or they risk losing customers.

Important Changes in Marketing Today

Technology and the Internet: More people shop online, use apps, and search for products on Google. Businesses need to be online to reach them.
Social Media Influence: Platforms like Instagram, TikTok, and Facebook allow businesses to connect with customers directly and promote products in a fun way.
Customer Expectations: People now want fast service, personalization, and convenience. They expect brands to understand their preferences.
Globalization: Customers can buy products from other countries easily, so businesses face more competition than ever.
Sustainability and Ethics: People care about the environment and ethical business practices. Brands that care about these things gain more trust.

In Short

The marketing world is changing fast. Companies that adapt to technology, understand customers, and stay flexible are more likely to succeed.

Unit II: Understanding the Marketplace.

📌 Understanding the Marketplace

To understand a market, a business must study its marketing environment.
This environment is divided into Micro and Macro factors.

🔥 1. Micro Marketing Environment

These are the internal and close external forces that directly affect a company’s ability to serve customers.
They work inside or very near the business.

🟢 Includes 6 key elements:

Element	Meaning	Example
1. The Company (Internal factors)	Departments like finance, HR, production, R&D	If production is weak → product quality goes down
2. Suppliers	Provide raw materials and products	If supplier increases price → product price rises
3. Marketing Intermediaries	Help in distribution & promotion	Wholesalers, retailers, advertising agencies
4. Customers	The most important element	Students buying books, tourists booking hotels
5. Competitors	Other companies selling similar products	Pepsi vs Coca-Cola, Ncell vs NTC
6. Publics	Groups that influence business image	Media, local community, government

⭐ In simple words:

Micro environment = people and groups that are near the business and affect its day-to-day operations.

🔥 2. Macro Marketing Environment

These are large external forces that the company cannot control, but must adapt to.
They work outside the organization but influence the market in the long run.

🟢 Includes 6 major elements:

Element	Meaning	Example
1. Demographic Forces	Population, age, gender, education, income	More youth → demand for smartphones increases
2. Economic Forces	Income level, inflation, economic growth	Recession → people buy fewer luxury goods
3. Natural/Environmental Forces	Climate, resources, sustainability	Organic and eco-friendly products rise
4. Technological Forces	Innovation, internet, AI, automation	Online shopping, digital payments, ChatGPT
5. Political-Legal Forces	Government laws, regulations, taxes	Ban on plastic bags affects packaging industries
6. Socio-Cultural Forces	Values, lifestyle, habits, religion	Rise in fitness culture → more gym product sales

⭐ In simple words:

Macro environment = big external forces that a business cannot control but must respond to.

🔍 Quick Comparison

Micro Environment	Macro Environment
Internal & close external forces	External large-scale forces
Company can partially control	Company cannot control
Affects daily operations	Affects business in long run
Examples: competitors, customers	Examples: economy, technology, culture

🎯 How to Analyze Marketing Environment

Identify micro factors like customers, competitors, suppliers
Study their impact on sales, production, pricing
Identify macro factors like economy, technology, legal changes
Check how these trends create opportunities or threats
Make strategies to adapt and compete in market

📌 2.2 Responding to the Marketing Environment

After understanding micro and macro environments, a company must decide how to respond to them.
A business cannot control all factors, but it can react and adapt smartly to survive and grow.

🔥 Two Major Approaches:

1️⃣ Passive (Reactive) Approach

The company does not try to change the environment
It only reacts after changes happen
More traditional approach
Example: If a new competitor enters the market, the firm lowers prices after losing customers. It waits first — then responds.

2️⃣ Proactive Approach

The company takes action to influence or shape the environment
It tries to lead the market, not just react to it
Example: Apple launches new technology before others → sets trend, leads the market.

⭐ How Businesses Respond to the Environment

Response	Meaning	Example
Monitoring	Observing changes in market	Checking competitor ads and customer reviews
Adjusting strategies	Changing pricing, products, promotion	Offering discounts during inflation
Innovation	Creating new products/services	EV cars to reduce pollution
Lobbying/Government relations	Influencing laws and policies	Telecom companies lobbying for lower tax
Risk management	Preparing for uncertainties	Keeping backup suppliers

⭐ In simple words:

Responding to the environment means observing changes, adjusting strategies, and taking actions to stay competitive.

📌 2.3 Assessing Marketing Information Needs

For good marketing decisions, companies need correct and timely information.
This process is about identifying what information is required, where to get it, and how to use it.

🔥 Why It Is Important?

Helps understand customers and competitors
Reduces risk and uncertainty
Supports better decision-making

⭐ Steps in Assessing Marketing Information Needs

Step	Explanation
1. Identify decision areas	What decisions the company needs to make? (Pricing, product design, promotion)
2. Determine information needed	What data is required for these decisions? Customer buying habits, competitor prices
3. Evaluate existing information	Check if the required data is already available in the company
4. Identify information gap	What information is missing and must be collected?
5. Choose data sources	Primary data (surveys, interviews) or secondary data (reports, websites)
6. Collect, analyze, interpret data	Convert information into useful insights 🔍
7. Present and use information for strategy	Decision makers using information to plan marketing strategy

📌 Sources of Marketing Information

Type	Description	Examples
Internal Sources	Data inside the company	Sales records, customer complaints
External Sources	Data outside the company	Market reports, competitor websites
Marketing Research	Systematic collection of data	Surveys, focus groups
Marketing Intelligence	Everyday information from market	Store visits, social media trends

⭐ In simple words:

Assessing marketing information needs means finding what information is needed, where to get it, collecting it, and using it to make better marketing decisions.

📌 2.4 Analyzing and Using Marketing Information

Once an organization collects marketing information, it must analyze, interpret, and use it to make better decisions. Data itself is not valuable unless it is converted into meaningful insights.

🔥 What is Marketing Information Analysis?

It means examining data to find patterns, trends, customer behavior, and market opportunities.

⭐ Steps in Analyzing Marketing Information

Step	Meaning	Example
1. Data Collection	Gather data from surveys, reports, sales records	Customer feedback forms
2. Data Sorting & Organizing	Arrange data properly to analyze	Categorizing feedback as positive/negative
3. Data Analysis	Use tools/statistics to find trends	More buyers prefer online shopping
4. Interpretation of Results	Understand what results mean	Sales drop due to high price
5. Decision Making	Use results to plan strategies	Reduce price or add discount offers
6. Implementation	Put new decision into action	Start promotional campaigns
7. Monitoring	Track if decisions are working	Check sales after discount

⭐ How Companies Use Marketing Information

Use	Explanation	Example
Product decisions	Develop or modify products	Create new features in smartphone
Pricing decisions	Set competitive price	Lower price during competition
Promotion decisions	Plan advertising message	Target ads to youth on TikTok
Place/Distribution decisions	Select channels to deliver product	Add online delivery service
Forecasting	Predict future sales trends	Seasonal demand for winter clothing

⭐ In simple words:

Analyzing and using marketing information means studying data, finding insights, and making smart decisions to satisfy customers and increase sales.

📌 2.5 Buyer Behavior & Buyer Decision Process

Understanding customer behavior helps companies know why consumers buy, what they buy, and how they make purchasing decisions.

🔥 Buyer Behavior

It refers to the actions and decisions of customers while selecting, buying, using, and disposing a product.

⭐ Factors Affecting Buyer Behavior

Factor	Meaning	Example
Cultural factors	Values, traditions, lifestyle	Culture of tea drinking increases tea demand
Social factors	Family, friends, reference groups	Teen buys clothes because friends wear same
Personal factors	Age, income, occupation, personality	High-income people buy luxury phones
Psychological factors	Motivation, perception, learning, beliefs	Motivated for weight loss → buys gym product

⭐ In simple words:

Buyer behavior = why and how consumers behave while buying products.

🔥 Buyer Decision Process (5 Stages)

Stage	What happens?	Example
1. Need/Problem Recognition	Customer feels a need	Phone battery weak → needs new one
2. Information Search	Looks for options and information	Searching mobile features online
3. Evaluation of Alternatives	Compares different products	Comparing Samsung, iPhone, Xiaomi
4. Purchase Decision	Selects and buys the product	Chooses Samsung based on price/features
5. Post-Purchase Behavior	Feels satisfied or dissatisfied	If happy → repeat purchase & recommend others

Simple Summary:

Buyer decision process = Need → Search → Compare → Buy → Experience.

📌 2.6 Business Markets & Business Buyer Behavior

Business markets are different from consumer markets.
Here, companies buy goods and services not for personal use, but to produce other goods or services, resell, or support operations.

🔥 What is a Business Market?

A business market consists of organizations (businesses, industries, government bodies) that buy products to:

Use in their own production
Resell for profit
Use for daily operations

Examples:

Type of buyer	What they buy?	Why?
Manufacturer	Raw materials, machinery	To produce finished goods
Retailer/Wholesaler	Finished products	To resell and earn profit
Government	Technology, vehicles, construction services	Public welfare, infrastructure

⭐ Characteristics of Business Markets

Feature	Simple Meaning	Example
Larger purchases	They buy in bulk	Buying 200 laptops for an office
Fewer but bigger buyers	Limited number of customers	Car company buys steel from only few suppliers
Long-term relationships	Repeat purchases for partnership	Regular supply contract for raw materials
Professional buying	Decisions made logically	Technical specifications, cost comparison
Derived demand	Business demand comes from consumer demand	More demand for houses → rise in cement demand
Multiple decision makers	Buying involves many levels	Manager + finance head + technical team

🔥 Business Buyer Behavior

It refers to the decision-making process of organizations when buying products or services.

Factors influencing Business Buying Behavior

Factor	Meaning
Environmental	Economy, competition, technology, government rules
Organizational	Company size, policies, structure
Interpersonal	Teamwork, influence, negotiation power
Individual	Experience, age, personality, education

⭐ In simple words:

Business buyer behavior = how businesses think, evaluate, negotiate, and purchase products.

📌 2.6.1 Engaging Business Buyers with Digital & Social Media Marketing

In today’s world, business buyers (B2B market) are highly active online.
Digital platforms help companies reach business customers more effectively.

⭐ Why Digital & Social Media for B2B Markets?

Faster communication
Lower cost compared to traditional marketing
Highly targeted audience
Builds trust and long-term relationships
Easy to measure campaign results

🔥 Tools to Engage Business Buyers Digitally

Tool	How it is used?	Example
Company Websites	Shows products, prices, technical details	HP website for business laptops
Email Marketing	Sending offers, proposals, newsletters	Monthly updates to suppliers & partners
LinkedIn Marketing	Professional networking	Finding clients through LinkedIn ads
Online Webinars & Demos	To educate and convince buyers	Software companies hosting live demos
Content Marketing	Blogs, case studies, whitepapers	Publishing research to attract clients
SEO & Google Ads	Increase online visibility	Ranking top when a business searches "CCTV supplier"
Social Media Platforms	Brand awareness & lead generation	Running ads on Facebook, X(Twitter)

⭐ Benefits of Digital & Social Media Marketing in B2B

Benefit	Description
Wider reach	Connect with global buyers easily
Personalization	Messages tailored for specific clients
Better lead generation	More inquiries and conversions
Strong relationship building	Long-term trust via continuous communication
Real-time feedback	Quick response through chats & comments

Simple Summary:

Business markets involve companies buying products for production or resale.
Business buyer behavior is how these organizations make buying decisions.
Digital & social media marketing helps businesses attract and communicate with buyers through websites, email, LinkedIn, ads, and online content.

Unit III: Marketing Mix – Product and Price

📌 3.1 Segmentation and Targeting (Detailed Explanation)

1. Market Segmentation

Market segmentation is the process of dividing the total market into smaller groups of customers who share similar needs, preferences, or buying behavior. Every customer in the market is not the same—people differ in age, income, lifestyle, location, and habits. So, a single marketing strategy cannot satisfy everyone. Segmentation helps marketers understand these differences clearly and design products and promotions that match the needs of each group.

The main goal of segmentation is to serve customers better, reduce waste in marketing, and increase sales. A well-segmented market allows companies to focus on the right customers instead of trying to reach everyone.

Bases / Types of Market Segmentation

Segmentation Type	Description	Example
Geographic Segmentation	Dividing the market based on location such as country, region, climate, rural/urban areas	Warm clothes for cold regions
Demographic Segmentation	Dividing based on measurable factors like age, gender, income, education, family size	Baby food for children
Psychographic Segmentation	Dividing based on lifestyle, personality, values, interests	Yoga products for fitness lifestyle
Behavioral Segmentation	Based on customer behavior like loyalty, usage rate, benefits expected, buying occasions	Festival offers during Dashain/Diwali

Segmentation allows marketers to clearly identify who their customers are and what they want.

2. Market Targeting

After segmentation, the company must select which segment to focus on. Every segment is not equally profitable or suitable. Targeting means choosing the best group of customers who are most likely to buy the product and generate profits.

Companies analyze the size, growth, and buying power of each segment and then select the most attractive one. Once selected, marketing efforts like pricing, promotion, product features, etc. are planned specifically for that segment.

Targeting Strategies

Strategy	Meaning	Example
Undifferentiated (Mass) Marketing	One product for the whole market; no specialization	Salt, sugar
Differentiated Marketing	Different products for different segments	Different smartphones for youth and seniors
Concentrated / Niche Marketing	Focus on one small segment	Luxury sports cars
Micromarketing	Custom marketing for individuals/local groups	Personalized shoes with customer’s name

Targeting helps a business focus on the right audience, reduce competition, and improve brand loyalty.

📌 3.2 Differentiation and Positioning (Detailed Explanation)

1. Differentiation

Differentiation means creating a product that is unique and different from competitors. When many brands offer the same type of product, the customer will choose the one that stands out. Differentiation helps the company build identity, attract customers, and avoid price wars.

A product can be differentiated in many ways: better quality, attractive design, advanced features, faster service, strong brand image, or lower price. For example, Apple differentiates its iPhone through innovation and premium build quality, while Xiaomi differentiates through low price and high value.

Ways to Differentiate a Product

Basis of Differentiation	Example
Quality	Mercedes cars known for high quality
Design and Features	Curved screens, dual cameras, smartwatches
Brand Image	Nike represents performance and sports culture
Customer Service	Amazon fast delivery + easy return policy
Price	Budget smartphones cheaper than premium brands

Successful differentiation increases customer preference and loyalty.

2. Positioning

Positioning means creating a distinct image of the product in the customer’s mind. It is not just about the product itself, but how people see and remember the product. A strong position means when people think of a product category, your brand is the first name that comes to mind.

For example:

When someone thinks of luxury phones → Apple appears first.
For energizing soft drinks → Red Bull in mind.
For enjoyment and happiness → Coca-Cola positions itself that way.

Positioning is achieved through branding, packaging, pricing, advertising, and consistent messaging. Slogans like “Just Do It” (Nike) or “Think Different” (Apple) strongly support positioning.

Steps of Positioning

Identify the target market
Study competitors and compare offerings
Decide what makes your product unique (USP = Unique Selling Proposition)
Communicate and promote that uniqueness through ads, packaging, logos, features, price, etc.
Maintain the position consistently over time.

Positioning helps a business create a competitive advantage and establish long-term customer loyalty.

Short Exam Revision Summary

Concept	Short Meaning
Segmentation	Divide market into groups
Targeting	Choose the best group to serve
Differentiation	Make product unique & superior
Positioning	Create image in customers’ minds

📌 3.4 Product Life Cycle Strategies

The Product Life Cycle (PLC) refers to the stages a product goes through from the time it is introduced in the market until it is withdrawn. It is a useful tool for marketers to understand changes in sales, profits, competition, and market demand over time. The four key stages of PLC are Introduction, Growth, Maturity, and Decline. Since the market situation is different in each stage, companies must adopt suitable marketing strategies to sustain sales, maintain market share, and achieve long-term profitability.

🚀 1. Introduction Stage

This is the beginning phase when the product is newly launched. Sales grow slowly, promotion cost is high, and profits are generally low or negative.

Strategies used in this stage:

Product Strategy: Basic product with minimum features.
Pricing Strategy: Skimming to earn early maximum profit or penetration to enter the market quickly.
Promotion Strategy: Heavy advertising, awareness campaigns, free samples.
Distribution Strategy: Limited outlets, selective distribution.

The main goal is to create awareness and encourage trial purchase.

📈 2. Growth Stage

Sales and profits rise rapidly as customers become aware of the product. Competition increases because new companies enter the market.

Strategies used in this stage:

Product: Improve product quality, introduce new models, packaging modifications.
Price: Competitive pricing to attract a larger market.
Promotion: Focus on brand image, persuasive advertising.
Place: Expand distribution channels, enter new markets.

The objective is to maximize market share and build brand preference.

🏆 3. Maturity Stage

At this stage, sales reach their peak, and market growth slows down. Competition is very high, price wars begin, and profit margin becomes tight.

Strategies used in this stage:

Product: Product differentiation, adding new features, new versions or variants.
Price: Discounts, bundle pricing, loyalty offers.
Promotion: Reminder advertising to maintain customer loyalty rather than creating awareness.
Place: More distribution channels and wider availability.

The goal is to defend market share, maintain sales and extend product life. Many companies try product modification or market expansion to delay decline.

📉 4. Decline Stage

Sales and profits begin to fall because new technologies, substitutes or changing taste reduce demand. Many customers shift to newer products.

Strategies used in this stage:

Product: Drop weak models, reduce product line or redesign product to survive.
Price: Reduce price to clear remaining stock.
Promotion: Low promotional expense, only retain loyal customers.
Place: Reduce distribution, keep only profitable outlets.

The main aim here is to minimize losses or decide exit plan.

📌 3.5 Levels of Products and Services

A product is not just a physical good; it has different value layers for the customer.
There are three levels of product, each adding more benefit to the buyer.

🔑 1. Core Product

The main need or basic benefit the customer wants.
It represents why the product is purchased.

Example:
Buying a smartphone → core benefit = communication + connectivity

📦 2. Actual Product

The physical or visible product.
Includes brand name, quality, design, packaging, features.

Example:
iPhone model, camera features, display, brand logo.

✨ 3. Augmented Product

Extra value or additional services offered with the actual product.
Helps differentiate from competitors.

Example:
Warranty, free delivery, after-sales support, return policy.

✔ Quick Table for Revision

Level	What it means?	Example (Laptop)
Core Product	Basic benefit	Work, study, internet
Actual Product	Physical attributes	RAM, brand, design
Augmented Product	Extra services	Warranty, bag, support

📌 Concept of Services Marketing

Services marketing refers to planning, pricing, promoting and delivering services instead of physical goods.
Services are intangible products like banking, education, hospitals, hotels, tourism, transport, etc.

⭐ Characteristics of Services (5 I’s Model – Easy to remember)

Feature	Meaning	Example
Intangibility	Cannot be seen or touched	A haircut experience
Inseparability	Produced & consumed at same time	Patient + doctor at same moment
Inconsistency/Variability	Quality not always same	One taxi driver polite, another rude
Inventory/Perishability	Cannot be stored	Empty hotel rooms = loss
Involvement	Customer must participate	Gym, beauty salon

🌟 Why Services Marketing is Important?

Services are a large part of modern economy
Builds customer trust and long-term relationships
Helps differentiate service quality in a competitive market
Customer satisfaction becomes key to success

⭐ In Simple Words:

Levels of product → Core (need) → Actual (physical product) → Augmented (extra benefits)

Services marketing → Marketing of intangible products where quality, customer experience, and satisfaction matter most.