S. Marketing

7/30/2019 S. Marketing

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Characteristics of services Intangibility

Inseparability

PerishabilityVariability


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Difference between physical

goods and servicesPhysical goods Services

tangible intangible

homogeneous heterogeneous

Production and distribution areseparated from consumption

Production, distribution andconsumption are simultaneous

processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-sellerinteraction

Customers do not participate in the

production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership


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Services could meet Personal needs haircuts, tution, massage parlours

Business needs courier services, office cleaning

services, delivering fresh flowers


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Marketing Implications of Eight differences between

Services Marketing and Goods

Difference:-Most service products cant be inventoried

Implications:-Customers may be turned away or have to wait.

Marketing Related tasks:-

1)Smooth demand through dynamic pricing andreservations.

2)Work with operations to adjust capacity.


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Difference:-Intangible elements usually dominateValue creation.

Implications:-

Its harder to evaluate services and distinguishfrom competitors as the customers cant taste,

smell or touch. Marketing Related tasks:-

1)Make services tangible through emphasis onphysical clues.

2)Employ vivid images in advertising, branding.


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Services are often difficult to visualize and understand.

Implications:-

Customers perceive greater risks and uncertainty.

Market-Related Tasks:-1)Educate customers to make good choices,

explain what to look for.


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Customers may be involved in co-production.

Implications:-

Customers interact with providers equipment ,facilities , and system.

Market-Related Tasks:-

1)Develop user friendly equipments and systems.

2)Train customers to perform effectively.


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People may be the part of the service experience.

Implications:-

Appearance , attitude and behavior of servicepersonnel and other customers can shape the

experience and affect satisfaction.


1)Recruit,Train and Reward the employee.

2)Target the right customers at the right time.


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Operational inputs and outputs tend to vary morewidely.

Implications:-

Its harder to maintain consistency , reliability and

service quality


1)Set quality standards based on customerexpectations , redesign product elements forsimplicity.


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Time factor often assumes great importance.

Implications:-

Customers see time as a scarce resource anddislike wasting time waiting.


1)Find ways to compete on speed of delivery.

2)Minimize burden of waiting.


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Distribution may take place through nonphysicalchannels.

Implications:-

Information based services can be delivered

through electronic channels such as the Internetor voice telecommunication


1)Seek to create user-friendly , secure web -sitesand free access by telephone.


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Goods-Services Continuum Goods and Services are intermingled in different

proportions. The goods and services continuumenables marketers to see the relative goods/servicescomposition of total products.


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Tangible goods:-FMCG. Services with Tangible goods:-FMCD.

Goods and services in equal proportion:-

Hospitality industry.

Services accompanied by minor goods:-Airlines

Pure services:-Consultancy services.

Documents

S. Marketing