1. Topic: The Critical Impact of Information
Technology in Marketing Mix of Services
Authors : Santosh kumar
BIT Mesra, Jaipur Campus
santk@live.com

2. The Critical Impact of Information
Technology in Marketing Mix of Services
Abstract— This A Services marketing has been successful because it differentiated itself in the marketplace
with a conceptual model shift. Services are different from goods. All else follows from this conceptual leap
and with growing refinement. We have had a happy 20 year run, but we may need some new energy,
technology and new directions to improve the service marketing. Information Technology (IT) revolution
takes places universally. Organizations implementing information technology are able to supply better
services and thus able to improve their businesses diverse. In earlier days IT has enormously been used in
manufacturing, hospital, education sector regarding product designing and development, product
modification etc. these days the importance of Information Technology has been strongly felt and applied in
the all services sectors. The recent development of information and communication technologies, a growing
number of business-to-business (B2B) and business-to-consumer (B2C) firms are shifting from expensive
conventional business practices to low-cost automated services technologies. However, the only cost saving is
not the only inspiration for shifting to information technologies, particularly in the business context. Other
reimbursement includes efficiency, return on investment, accessibility and effective management. This
research based paper will analyze the impact of information technology in Service Marketing. The main aim
of this paper is to provide substantiation that information technology has an impact on service Marketing.
Keywords— Service marketing, customer value, information technology , Marketing Mix.
I. Introduction
Services marketing can be used to market a product or service and is based on relationship and value. A service
unlike a product is intangible and this means that the service cannot be returned by the customer in case of
dissatisfaction. Service Marketing mix adds 3 more ps such as, People, physical environment and process. It is a
rapidly growing specialty, however, with demand for service marketers outstripping the supply. Why are companies
adding this function and even adding headcount to it at this particular time? The short answer is because services are
becoming more important and harder to sell simultaneously. In the computer industry today, over 35 percent of
revenues flow from services, and more than 60 percent of the profits. Telecommunications, Software, medical and
other segments are also moving along this same trend line. Information technology (IT) is universally regarded as an
essential tool in enhancing the competitiveness of the economy of a country. There is consensus that IT has
significant of effects on the productivity of firms. These effects will only be realized if, and when, IT are widely
spread and used Competition is torrid and a desperate need for revenue has driven down the margin on the product
side. This leaves service margins as a liberator for corporations and an objective for customers. Recent years have
seen an increased acceptance of technology in business-to-business exchanges. The role of information technology

3. is seen as an essential shift in the nature of service delivery and has drawn significant attention fromacademia media
and government (e.g. e-health provision and e-payment tax).
II. REFERENCE TO PAST WORK
Abbie Griffin, John R. Hauser (2003), noted that marketing integration is being reassessed in the light of the
movement toward flatter organization structures and cross functional teams, they review recent explore on the
methods employed for integrating R&D and marketing, and they propose several assumptions regarding those
methods. They present their appraisal and hypotheses within the structure of a causal map they have developed for
studying functional integration. BY A.Parasuraman and D. Grewal in 2000 “The impact of technology on the
quality-value-loyalty chain: A study agenda” the first recommend a simple replica shortening the key drivers of
customer faithfulness. Then, on the basis of this replica and drawing on key insights fromthe preceding articles in
this issue, they draw a set of issues for further research related to the quality-value-loyalty chain. Next, the authors
developed a theoretical structure that integrates the quality-value-loyalty chain with the “pyramid model,” which
emphasizes the growing importance of technology consumer, technology-employee, and technology company
linkages in serving customers. Martin Grieger (2002), “Electronic marketplace: A literature review and call for
supply chain management research” emphasized that these days Internet-based electronic marketplaces are
becoming more and more popular. Most observers have observed that Electronic Market would come to dominate
e-business landscape. Valarie A Zeinthanl, A Parasuraman and Arvind Malhotra “Service quality delivery
through the websites: A critical review of extant knowledge” has identified that service quality delivery through
Web sites is an essential approach to success, possibly more significant than small price and Web attendance. To
deliver better service excellence, managers of companies with net presences must first understand how customers
perceive and appraise online customer service. The information on this topic is commencement to emerge from
both educational and sensible sources, but this information has not yet been examined a whole. Steven MShugan
“The impact of Advancing Technology in Marketing and Academic Research” highlighted that Academic research
in marketing often and rightfully tends to either build on well-established past research topics or follow well-
established practices in the industry. One approach would be to study emerging technologies with rapidly
dilapidated costs. Each of these rising technologies spawns myriad applications that have the potential to
dramatically impact existing markets. Reginald Masocha, Norman Chitilya and Stanislous Zindiye (2011)
“The impact of technology on competitive marketing by Banks – A Case Study Approach” activities to examine
and converse the extent of technological consumption in various aggressive marketing practices of a financial
institution in today’s unforgivable 21st century competitive commerce environments. In this environment, the
impact of technology on competitive marketing by typical Bank in King-Williams Town, Eastern Cape Province of
South Africa. This Quantitative investigates techniques were utilized to obtain customer and employees'
perceptions, opinions and experiences in electronic banking services. Peter Svenson & D. Nordfors (2006) “
Media communication as a Marketing Strategy for Technology Start-Up Firms” emphasized that Young firms are
aware of the need to control potential stakeholders around them such as customers, capitalists, suppliers that their
business is pioneering and is of profitable importance. Researchers have called this to bridge the reliability gap.

4. Getting one actor devoted to the project will help establishing credibility to reach out to other actors (Birley and
Norburn 1985). A methodical Literature Review found that the level of technology use is considerably related to
the concert of the marketing purpose. Support was missing only for the categories of “use of outside database” and
“networking between mainframe computer and Personal computers” the IT & its knowledge use is significant in
its contribution to the presentation of the marketing meaning. This study supports the disagreement that benefits of
IT investment can be recognized. Furthermore, there is confirmation of a time lag in the payoffs from information
technology, as the reimbursement of connectivity has not yet been realized. Y. Wanga in the article titled “E
Collaboration” Recent advances in inter-enterprise software and communication technology, along with the
globalization, network , mass customization, & digitization in the context of the supply chain, have led to the
growth of ‘e-collaboration’ concept . E-collaboration has been seen as a novel way doing commerce and a strategic
weapon which could fundamentally change the traditional business associations. However emerging in the late-
1990, it is still relatively embryonic. The purpose of this paper is to provide a basic appreciation of the present
literature. It examines the alternatives of definitions & practices, the development of e -collaboration and the
sustaining systems and tools. By looking at dissimilar well-documented case studies, it investigates how e-
collaboration change the way of doing trade and its collision on business relationships.
III. The 7-Ps of Service Marketing
Information technology has impacted service marketing and other marketing strategies globally, The traditional
marketing mix originated from the idea that goods are developed for consumer markets and consists of the 4Ps -
Price, Promotion, Place and Product [11] .The People were added to the 4Ps by Judd (1997), and Bitner and Booms
completed the 7Ps by including, Physical evidence, Participants and Process to the all ready existing elements. The
product element deals with the supplies or services are being offered, the prices is the worth of the goods on suggest,
the place is where the goods or services are being sold .Promotions are the process throughout which marketers use
to create the awareness for their potential customers.

5. Fig 1: Marketting Mix of Services
The other elements betrays of people, which represents customers in this case, the process is the way that hoe the
service is being delivered to the ultimate customer. Physical evidence is the environment to attract and comfort the
customer . (Egg- temp of shop, fragrance)
IV. The Influence of Information Technology on Service Marketing
The digital approach of Information technology in marketing has a remarkable effect. Information Technology
creates a great impact on people’s perceptions. IT keeps increasing the productivity access speed. The digital
technology is quickly changing the idea of people in their lives. Due to advancement in digital technology marketers
connect in much less dialogue in contact with customers. The ads enjoy a fashionable position due to digital
technology. People imagine that the digital technology to be employed collectively as prospects services, retail
outlet promotion by media stuffing etc.
1) Three expectations of people are intensifying by digital technology.
2) Speed - Digital technologies operate instantaneously with high speed .
3) Video - It has more video and visualization contents for services and product .
4) Portability - People can carry knowledge and connections to services and product.
The crucial impact of information technology on brand marketing is not so much the new white spaces marketers
have to promote. It is the innovative chance consumers build up in their relations with marketers in every aspect of
life. Information Technology changes the way of thinking as well.
V. THE IMPACTS OF INFORMATION TECHNOLOGY ON SALES AND MARKETING OF SERVICES
There are following impacts of information technology on Sales and Marketing of services .
Collaborative Customer Relationship Management – The primary goal of Collaborative CRM is to maximize
productivity, revenue and customer fulfillment. The different technologies that support the business include gaining
the concentration of customers, storage space and analysis of customer information, and internal process
information. Outsourcing Sales and Marketing Functions which help to create a new generation of business like e-
commerce , e-commerce utilities , utilities marketing agencies, service providers and e-channel partners to obtain
technical expertise and cost efficiencies.
Customer-centric Organizations – Customer centric as a choice is drastically different than the ways many
companies conventionally operate. Number of companies are product centric. Success is reliant on maximizing th e
number of customers' buying and using the product while raising efficiency to maximize product revenue and

6. product profits. There is a little discrepancy in the uses ofthe product and the business services . On the other hand ,
a customer centric approach maximizes the customers' revenue and profit for the services .Variance is the normand
each customer engagement is unique Operational zing E-Care . Organizations must adopt enterprise-wide customer
service to enhance seamless service to ensure intimacy through multiple channel interfaces throughout customer
Lifecycle.
Hybrid Distribution Systems – adopt the more than one distribution channel to avoid chaos ad maximize
effectiveness. Responsibilities, associations and compensation members must be clear. It is built through a multi -
channel system that lead to low cost , high technologies to improve cost efficiency, market exposure ad overall sales
performance.
Value-added Direct Sales – It facilitates face-to-face selling relations with high- value and high margin products
and services. Customer’s require of time is a relatively recent experience. It wasn't much of an issue a few years ago,
but it has developed into universal and growing in intensity day by day. The customer is overworked and pushed for
time. As a result, there is just not enough time in the day to get everything done. Some things have to go. A long,
unhurried conversation with a vendor is often one of those things that is going.
Demand Chain Remediation –Restructuring Demand-Chain relationships maximizes value formation and
customer access. Organizations are experiencing swift supply chain expansion with decentralized supplier base.
Although extended supplier based on supply chain has helped organizations in ahead major cost advantage and
market share but it has resulted in the more unstable supply chain. Supply chains are susceptible to various types of
disruptions caused by uncertain economic cycles, consumer difficulty, and expected and man-made disasters.
Customer Interaction Centers – Manage the service familiarity on a single-platform. Customers expect nothing
less than service superiority when they get in touch with the service provider. In fact, they deserve the most efficient
and well-informed experience service provider can give them. With the Customer Interaction Center from
Interactive Intelligence, we deliver an exceptional experience to every customer we serve. Organizations must
consolidate and integrate call-center, web, e-mail, fax and market technology assets to better manage selling
resources, technology infrastructure and customer interactions
Product Channel Readiness –Organization must plan channel ready products appropriate for specific sales
channels, partners and customer segment improving personalization, ease of doing business and operation costs.
"Product channel willingness" that is, a goods willingness for sale during a combination of online and offline
channels will become a more and more important driver of revenue and profit enlargement. Product development
will turn into less about building a better mousetrap and more about structure one that is easy to buy.
Dynamic Pricing & Trading – organizations must supervise productively the impact of buying and selling
technologies and trading communities on the margins and pricing. By using the power of dynamic pricing, buyers
can monitor dynamic offers in real-time, with all tick in the market. Producers only set their selling price, and use

7. market instability to their advantage to reach their targets. The system monitors market activities for both parties,
matches the producer’s selling price and the buyers bid instantaneously, and sends confirmations to both parties.
Changing Role of Branding-Organizations must insistently build brand fairness in e-channels, in virtual
communities and across numerous selling partners, channels and points of communication . Early branding of a little
or rising company is key to business success.It is the fastest way for your company to state what it is and what it can
offer. Inexact branding of a new business can make it difficult for people to grab why the business exists in the first
place.
Interactive Direct Marketing- Organizations must install new tools, approach and strategy for anticipating or
influencing the way customers buy. Changes in demographics, advance in technology, the reputation of the Internet,
the advent of E-commerce, and increase in bandwidth are causing businesses to re-think their business practices.
Career opportunity is enormous. The quick growth of direct marketing has lead to a shortage of capable talent. The
human being possessing a basic knowledge of "direct" techniques stands a chance to take pleasure in a great career.
To quote a motto from the Direct Marketing Association: "The future is an exciting place to be!"[13]
VI. MAJOR CHALLENGES AND QUESTIONS FOR SERVICE MARKETERS
Since of the necessary characteristics of services, marketers of services features some very real and quite distinctive
challenges
■ How can service feature is defined and enhanced when the product is insubstantial and no standardized ?
■ How can new services be planned and tested efficiently when the service is effectively an unsubstantial process?
■ How can the company be certain it is communicating a reliable and relevant image when so many fundamentals
of the marketing mix correspond with customers and some of the elements are the service providers themselves?
■ How does the firm provide somewhere to stay punctuating demand when capacity is fixed and the service itself is
perishable?
■ How can the firm best motivate and choose service employees who, because the service is delivered in real time,
become a significant part of the product itself?
■ How should prices be set when it is complicated to determine actual costs of production and price may be
inextricably entangled with perception of quality?
■ How should the firm be organized so that good strategic and deliberate decisions are made when a decision in any
of the functional areas of marketing, operations and human resources may have significant impact on the two areas?
■ How can the balance between standardization and personalization be persistent to maximize both the efficiency of
the organization and the fulfillment of its customers need ?
■ How can the organization care for new service ideas from competitors when a service process cannot be readily
unproved?
■ How does the firmcorrespond excellence and worth to consumers when the offering is insubstantial and cannot be
readily tried or display?

8. ■ How can the organization make sure the delivery of reliable quality service when both the organization’s
employees and the customers themselves can influence the service product?
VII. THE IMPACT OF INFORMATION TECHNOLOGY ON SERVICE MARKETING WITH
REFERENCE TO THE 7PS OF MARKETING
The diagram shows how information technology has changed the traditional service marketing principles by
incorporating a superior means to serve both the customers and services industries.
Product: Information Technology has improved the production of E-products such as E-bay, Google and Facebook.
This e-products allow us to keep in touch with friends, go for shopping, make only purchase as well as banking and
promote our services without having to handle the predictable bustle normally connected with such products and
services.
Fig 2: Technology decision Model
PRICE: Information Technology has also changed product pricing, because companies can no longer use price
discrimination as a means of targeting their customers. This is because,customer can compare prices of the products
of services they want to buy by just a click button from websites that offer price comparison services.
PROMOTION Anotherimpact Technology has had on Service marketing is the way it has changed the promotion
strategies from newspaperadverts into satellite Tv and Cable adverts, pop-in and pop-out,drop down menu banner
ads,search engine optimization and other forms of online advertisements.

9. Place: Location of goods and services is one of the most influenced fundamental elements of service marketing.
Information Technology has transformed the way market systems operate by placing online marketing which offers
more consistency and convenience to customers. Individuals fromaround the world can order any product or service
of their choice by just clicking the button and have their order delivered to their doorstep.
VIII. CONCLUSION:
Information technology has brought many positive impacts on service marketing like improved sales, conveniences,
customer trustworthiness, it is still not very well received and adopted by potential customers. Thus, the assertion of
online only by some web based service firms like Amazon.com has been described as myopic and premature. IT has
been superseded by the value of perception for customers in Service Marketing. Customers are undeniably willing to
pay a higher price in the bricks and mortar stores compared to online because they can distinguish the value of doing
so. In terms of process, organizations use technology to design the steps they want to customer to incorporate in
ordering services, but in reality customers might not use their steps or circumnavigate to much physical process. For
instance, the majority of customers prefer to pay for the goods they purchased online through wire transfer or PayPal
compared to Credit Cards because of the perceived side effect of online theft that could mount huge some of the
expenses for the victimized consumers.
Information Technology can only compliment allocation activity. For instance, that we can track our service online,
and see that it is approaching the conclusion stage does not necessarily means we will see the completed stage of the
product or service concerned. History has exposed that to rely on technology without option means of distribution
might be narrow-minded, and has resulted in the closure of some pure-play businesses. However technology can put
in value if it is seen as an important part of the whole allocation process, but in most cases, there is a need for both
conservative and virtual distributions to merge together.
The continued exploitation of technology as part of service marketer’s toolbox is guaranteed, if original use is made
in new technology to comfort consumers abridged risk, and create value for the transaction as well as maintaining
the association. Service marketers need to appraise their service contributions frequently to stay in touch with the
activities in the marketing systems as a way to create a kind of virtual evidence for their services. This haven has
been done, will go far in reducing if not eliminating all the negative impacts posed by technology on service
marketing. The impact of our research could be positive or negative to meet the requirements, we will not bring in
any hasty argument or assessment of the impacts posed on service marketing by information technologies
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