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FIGURE 3.1: MARKETING CHALLENGES

AND SOLUTIONS PERTAINING TO

INTANGIBILITY

Marketing Problems Possible SolutionsServices cannot beinventoried

Use of tangible clues tohelp tangibilize

Lack of patent protectionand can be easily copied

Use of personal sourcesof information

Difficulty in displaying orexplain to customers

Creation of a strongorganizational image

Difficulty in pricingstrategies

Utilize an activity-basedcosting approach

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MARKETING PROBLEMS CAUSED BY

INTANGIBILITY

1. Lack of service inventories

2. Not protected by patents

3. Not easily displayed or

communicated

4. Pricing is difficult

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POSSIBLE SOLUTIONS FOR

INTANGIBILITY

Use tangible clues/physical evidence Quality furniture in a lawyers office Appearance of the personnel

Utilize personal sources of information Family, friends, and other opinion leaders

Create a strong organizational image

Utilize an activity-based costingapproach

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FIGURE 3.2: MARKETING CHALLENGES AND

SOLUTIONS PERTAINING TO

INSEPARABILITY

Marketing Problems Possible SolutionsPhysical connection of theservice provide to theservice

Selecting and trainingpublic contact personnel

Involvement of thecustomer in the productionprocess

Effectively managingconsumers

Involvement of othercustomers in the productionprocess

Use of multisite location

Special challenges in massproduction of services

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MARKETING PROBLEMS CAUSED BY

INSEPARABILITY

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Service provider is involved in theproduction process

Customer is involved in the productionprocess

Other customers are involved in theproduction process (shared experience)

The mass production of servicespresents special challenges

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CUSTOMER IS INVOLVED IN THE

PRODUCTION PROCESS

Involvement may vary Impact on the type of

service desired

cycle of service demand length of the delivery

process

Service factory must bebuilt with the customerspresence in mind

OPINION QUESTION:If given the choice of

dining at one of two

new restaurants,would you select arestaurant that hadno cars in the parkinglot, or would youchoose a restaurantdown the street witha full parking lot?

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POSSIBLE SOLUTIONS FOR

INSEPARABILITY

Selecting and training public contactpersonnel

Develop strategies to

manage consumers

Develop multi-sitelocations

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FIGURE 3.3: HETEROGENEITY-

MARKETING CHALLENGES AND

POSSIBLE SOLUTIONS

Marketing Problems Possible SolutionsDifficult to standardizeservice and qualitycontrol

Customization

Standardization

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MARKETING PROBLEMS CAUSED BY

HETEROGENEITY

Standardization and quality control aredifficult to achieve

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POSSIBLE SOLUTIONS FOR

HETEROGENEITY

Customization Strategy Constructed to fit customers exact

needs Standardization Strategy

Faster Less expensive More consistent

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FIGURE 3.4: PERISHABILITY-

MARKETING CHALLENGES AND

POSSIBLE SOLUTIONS

Marketing Problems Possible SolutionsDemand

Possible SolutionsSupply

Demand exceedssupply

Creative pricing Part time employees

Demand exceedsoptimal levels of supply

Reservationsystem

Share capacity withother providers

Lower demand thanoptimal supply level

Shift tocomplementaryservices

Prepare for expansionin advance

Nonpeak demand Utilize third parties

Customer participation

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MARKETING PROBLEMS CAUSED BY

PERISHABILITY

Matching supply and demand Demand exceeds maximum available supply

Demand exceeds optimum supply level

Demand is below optimal levels of supply

Demand and supply are at optimal levels

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POSSIBLE SOLUTIONS FOR

PERISHABILITY

Creative pricing Reservation systems Complementary

services Developing

nonpeak demand utilizing nonpeak

periods to preparefor peak periods

appeal to differentmarket segmentswith differentdemand patterns

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Demand Strategies

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POSSIBLE SOLUTION FOR

PERISHABILITY

Utilize part-time employees

Share capacity

Prepare in advance for expansion

Utilize third-parties Increase customer participation

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Supply Strategies

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THE STRUCTURE OF THIS TEXT

An Overview of Services Marketing

The Tactical Services Marketing Mix

Implementing Successful Service Strategies

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