_S-1_Service_Classification

8/7/2019 _S-1_Service_Classification

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Prof. Suvendu Kr. Pratihari 11

Introduction to Services

Marketing

Session-01&2

Prof. Suvendu Pratihari

[email protected]@gmail.com


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Tangibility Spectrum


0

2

4

6

8

10

12


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A service is an act of performanceoffered by one party toanother. Although the process may be tied to a physicalproduct, but the performance is transitory, oftenintangible in nature and does not normally result inownership of any of the factors of products.

- By Lovelock and Wirtz



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Classification of Services

Nature of Organization

Nature of Services

Customer Relationship

Nature of Demand

Service Package

Delivery Method

How services are classified and the benefits of classifying theservices is demonstrated as given byColorado-based American

Events and Promotions. This Classification has been

highlighted to develop marketing strategies for services. This

Classification has been made with six levels as given below.


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Level-1: Nature of Organization

Category Option Professional Santa Claus

School

Pizza Hut

Purpose(Satisfy

needs of)

Individual

Business

Both

Purpose of satisfy needs of

both Business and individual

Purpose to satisfy

the needs of

Individual OnlyStructure Profit

Non Profit

Profit organization Profit organization

Type Public

Private

Private Organization Public Organization


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Level-2: Nature of Service

Category Option Professional Santa

Claus School

Pizza Hut

Degree of

Tradability

Embodied Service

Pure Service

Degree of

Tradability is Pure

Service

Degree of

Tradability is

Embodied serviceService directed

Towards

Individuals

Things

Service is directed

towards Individual

Service is directed

towards Individual

Degree of

Merchantability

High

Medium

Low

Degree of

Merchantability is

Low

Degree of

Merchantability is

Medium


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Level-3: Customer Relationship

Category Option Professional Santa

Claus School

Pizza Hut

Type of

Relationship

Formal

Informal

Both

Type of Relationship

is Informal

Type of relationship is

Informal

Degree of

Participation(DP)

Customer must be

present

Customer must start and

finish the service

Customer has to start the

serviceCustomer has to finish

the service

Degree of

participation is theCustomer must be

present

DP For Delivery and

Carry-our service iscustomer must start

and finish the service

DP for Dine-In

Service if Customermust be present


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Level-4: Nature of Demand

Category Option Professional

Santa Claus

School

Pizza Hut

Level of

Demand

Demand Exceeds Capacity

Demand Does not exceedscapacity

Level of

Demand exceedsCapacity

Level of demand

exceeds capacity

Degree of

Fluctuation

Wide

Narrow

Variable

No Fluctuation

Degree of

Fluctuation is

Wide

Degree of

Fluctuation is

Variable


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Level-5: Service package

Category Option Professional

Santa ClausSchool

Pizza Hut

Number of

Services andGoods

One Service

One Service-One Good

One Service-Multiple Goods

Multiple Services

Multiple Services-One GoodMultiple Services-Multiple

Goods

Multiple

ServiceExists

Number of services

and goods is multipleservices and multiple

goods

Units of

Service

Defined by situation

Defined by time

Both

Units of

service isdefined by both

time andsituation

Units of service is

defined by situation


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Level-5: Service packageConed.

Category Option Professional SantaClaus School

Pizza Hut

Degree of

Equipmentsbase

High

Medium

Low

Degree of

Equipment base isLow

Degree of

equipment base islow

Degree of

Customization

High

Medium

Low

Degree of

Customization is

medium

Degree of

Customization of

Low

Degree of

Durability

High

Medium

Low

Relative to CustomerCannot be Defined

Degree of durability

is High

Degree of

durability is low


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Level-6: Delivery MethodCategory Option Professional Santa Claus

School

Pizza Hut

Availability of

Service

One Site

Multiple Site

Availability of service is

One site

Availability of

Service id multiple

site

Nature of

Delivery

Continuous

Discrete

Both

Nature ofDelivery is

Discrete

Nature of

Delivery is

Discrete

Type of

ConsumptionIndependent

Collective

Both

Type of Consumption is

collective

Type of

consumption is

both collective and

independent

Allocation of

Capacity

Reservation

Order-of-arrival

PreferentialReservation and order-of-arrival

Reservation and Preferential

Order-ofArrival and

Preferential

All

Allocation of capacity is by

reservation only

Allocation of

capacity is by

Order-of-Arrivaland reservation


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Review Questions

Cite Examples of the Difference between marketing products and marketingServices

What are the basic Characteristics of Services vs. Goods? What are the

implication of these characteristics for a Retail Format?

WhyTime is So Important in Services? List the Reasons for the Growth of the Service Sector.

Identify the Seven Elements of the Services Marketing Mix and Explain How

each is Different than that of the marketing of Goods.

Briefly Outline the marketing Mix for Pizza Hut, Apollo Hospital,

Naukri.com, Pantaloon, etc.



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Assignment:

Classify the Following Service Providers according to the Service ClassificationScheme

Blue Dirt Express Limited

Pantaloon

Kingfisher Airlines

Hotel Mayfair Lagoon

Kidzee School

E-Bay.com

ICICI Bank

Reliance Fresh

Apollo Hospital

The Nielsen Company QuickHeal Anti Virus

Ferns and Petals

PVR

Xerox Corporation

Mindtree Consulting Private

Limited

DLFHome Developers

Reliance Communication Limited

Tata SkyDTHIndia

Mudra India

Indian Tourism DevelopmentCorporation

NIIT

Star Cruise

Naukri.com

Wipro BPO



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Thank You

Prof. Suvendu Kr. PratihariFeelFree to Write your Queries Doubts

At

[email protected]

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_S-1_Service_Classification