s. marketing
TRANSCRIPT
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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.
Market-Related Tasks:-
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
Market-Related Tasks:-
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.
Market-Related Tasks:-
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
Market-Related Tasks:-
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.