Unit : 5
Service Marketing
Meaning
Service is any act or performance that one party can offer to another that is
essentially intangible and does not result in ownership anything. It may or
may not be tied to a physical product.
Customer service is the service provided in support of a
Companies core product.
Definition
“Any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of
anything”. (Kotler)
Characteristics of Services
Intangibility
Service intangibility means that services cannot be seen,
tasted or touched before they are bought.
For e.g. – Airline passengers have nothing but a ticket on the
promises that they & their luggage will arrive safely at the intended
destination.
Inseparability
Service inseparability means that service cannot be
separated from the providers whether the providers are people or
machines.
For e.g.- Dancers, Dentists, Doctors.
Variability
Services variability means that the quality of services depends
on who provides them as well as when, where, and how they are
provided. For e.g.- Hotels.
Perishability
Service perishability means that service cannot be stored for
later sales or use.
For e.g.-Doctors charge patients for missed appointments
Differences between Goods and Services
Tangibility:
Goods: Goods are found tangible since we can view, touch, feel the
goods bought by us.
Service: Services are found intangible because it is not possible to
view, touch the services.
We can just realize the services used by us.
Transferability:
Goods: The goods can be transferred from one place to another. We
can carry goods bought by us. Goods can be transferred from the point of
sale to the point of use.
Service: On the other hand, it is not possible to transfer the services
from the point of sale to the point of use.
Existence:
Goods: The goods bought remain existent.
Services: While services bought are nonexistent
Re-selling:
Goods: The goods bought by us can be resold. After a limited use.
Services: The same thing is not possible with the services. We don't
bear the right of reselling.
Standardized.
Services: The services can hardly be standardized.
Goods: Contrary to it the goods can be standardized. It is very
difficult to measure the quality of services but it is easier to measure the
quality of goods.
Product:
• Product refers to the service a company wishes to sell.
• This could be flights in the case of an airline or rooms in the case of
a hotel.
Pricing:
• Price refers to the price a customer pays for the service.
• Pricing for services can be little more complex than for products.
For example, an airline charging for flights, Restaurant not
only has to charge for the cost of the food served but also has to
calculate a price for the ambience provided.
Place:
• For services, place refers to the ease of access that customers have
to a service.
• This can involve a physical decision such as where to locate a
hotel.
Promotion:
• Promotion refers to the different ways you communicate, describe,
and advertise your product.
• Because they are intangible, services can be more difficult than
products to promote.
People:
• People means those people who are directly or indirectly involved
in the delivery of the service.
• It means employees of the company. But it can also mean
subcontractors with direct interaction with customers.
• Service businesses should ensure that staff are well trained and
motivated.
Process:
• Process refers to the procedures, mechanisms, and flow of
activities that occur when the customer and the business interact
with each other.
Physical Evidence:
• The delivery of service often involves tangible elements. Physical
evidence is defined as both:
»The environment or place where the service is delivered.
»Any tangible elements that facilitate the service or provide information
about the service.
Based on this, physical evidence includes such things as:
»The company’s website
»Annual accounts
»Business cards
»Logos and brochures
»Equipment
»Buildings
