18. marketing of services - notes 041010

8/12/2019 18. Marketing of Services - Notes 041010

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MARKETING MANAGEMENT

MARKETING OF SERVICES

What is services marketing?

A service is the action of doing something for someone or something. It is largely

intangible (i.e. not material). A product is tangible (i.e. material) since you can touch itand own it. A service tends to be an experience that is consumed at the point where it is

purchased, and cannot be owned since it quickly perishes. A person could go to a caf

one day and have excellent service, and then return the next day and have a poorexperience. !o often marketers talk about the nature of a service as"

Insepara!e" from the point where it is consumed, and from the provider of the service.

#or example, you cannot take a live theatre performance home to consume it (a $%$ ofthe same performance would be a product, not a service).

Inseparability of production and consumption of the service is being produced at the

same time that the client is receiving it (e.g. during an online search, or a legalconsultation).

Intangi!e" and cannot have a real, physical presence as does a product. #or example,motor insurance may have a certificate, but the financial service itself cannot be touched

i.e. it is intangible.

&ith intangibility the service cannot be touched or viewed, so it is difficult for clients to

tell in advance what they will be getting.

"erisha!e" Is that once it has occurred it cannot be repeated in exactly the same way.

#or example, once a ' metres lympic final has been run, there will be not other for *more years, and even then it will be staged in a different place with many different

finalists.

&ith perishability unused capacity cannot be stored for future use. #or example, spare

seats on one aero plane cannot be transferred to the next flight, and query+free times at

the reference desk cannot be saved up until there is a busy period.

Variai!it# $%eter&geneit#'" he human involvement of service provision means that notwo services will be completely identical. #or example, returning to the same garage time

and time again for a service on your car might see different levels of customer

satisfaction, or speediness of work.

!ervices involve people, and people are all different. here is a strong possibility that thesame enquiry would be answered slightly differently by different people (or even by the

same person at different times). It is important to minimi-e the differences in

performance (through training, standard+setting and quality assurance).

()* MARKETING OF SERVICES

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Right &2 &3nership + is not taken to the service, since you merely experience it. #orexample, an engineer may service your air+conditioning, but you do not own the service,

the engineer or his equipment. 9ou cannot sell it on once it has been consumed, and do

not take ownership of it.

:eople often try to overcome some of these difficulties by ensuring that the physicalmanifestations of the service (the people running it, the library building, printed search

results, web pages, etc.) indicate the quality of the service. he people running the serviceare more likely to inspire confidence in the service if they are responsive, reliable,courteous, and competent. If the information centre looks shabby and disorgani-ed, or if

the website is difficult to navigate with broken links, then users may assume that the

services provided by the centre are slapdash.

bviously, if a ramshackle library is providing a consistently good service then its userswill become convinced of its quality + but it may take longer to convince them. he

problem of perishability is sometimes overcome by pricing strategies or other incentives

to use the service at ;unpopular; times (e.g. cheap rate phone calls, or guarantees of fasterservice at certain times of day).

&estern economies have seen deterioration in their traditional manufacturing industries,

and a growth in their service economies. herefore the marketing mix has seen an

extension and adaptation into the extended marketing mixfor services, also known as the5:;s +physical evidence,process andpeople.

What is marketing mi4?

Marketing mi4is probably the most famous marketing term. Its elements are the basic,

tactical components of a marketing plan. Also known as the F&5r "s, the marketing mixelements are price6p!ace,pr&75ct6and pr&m&ti&n*

he concept is simple. hink about another common mix + a cake mix. All cakes contain

eggs, milk, flour, and sugar.
http://marketingteacher.com/lesson-store/lesson-marketing-mix.htmlhttp://marketingteacher.com/lesson-store/lesson-physical-evidence.htmlhttp://marketingteacher.com/lesson-store/lesson-process.htmlhttp://marketingteacher.com/lesson-store/lesson-people.htmlhttp://marketingteacher.com/lesson-store/lesson-pricing.htmlhttp://marketingteacher.com/lesson-store/lesson-pricing.htmlhttp://marketingteacher.com/lesson-store/lesson-place.htmlhttp://www.marketingteacher.com/Lessons/lesson_place.htmhttp://marketingteacher.com/lesson-store/lesson-plc.htmlhttp://marketingteacher.com/lesson-store/lesson-promotion.htmlhttp://marketingteacher.com/lesson-store/lesson-marketing-mix.htmlhttp://marketingteacher.com/lesson-store/lesson-physical-evidence.htmlhttp://marketingteacher.com/lesson-store/lesson-process.htmlhttp://marketingteacher.com/lesson-store/lesson-people.htmlhttp://marketingteacher.com/lesson-store/lesson-pricing.htmlhttp://marketingteacher.com/lesson-store/lesson-place.htmlhttp://www.marketingteacher.com/Lessons/lesson_place.htmhttp://marketingteacher.com/lesson-store/lesson-plc.htmlhttp://marketingteacher.com/lesson-store/lesson-promotion.html


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It is the same with marketing mix. he offer you make to you customer can be altered by

varying the mix elements. !o for a high profile brand, increase the focus on promotion

and desensiti-e the weight given to price. Another way to think about the marketing mix

is to use the image of an artist;s palette. he marketer mixes the prime colours (mixelements) in different quantities to deliver a particular final colour. ?very hand painted

picture is original in some way, as is every marketing mix.

!ome commentators will increase the marketing mix to the Five "8s, to includepeople.

thers will increase the mix to Seven "8s, to include physical evidence (such asuniforms, facilities, or livery) andprocess(i.e. the whole customer experience e.g. a visit

the $isney &orld). he term was coined by @eil


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"!ace

Another element of @eil

18. marketing of services - notes 041010

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