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Marketing services - service characteristics


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This presentation comprises …

This presentation comprises
- a definition of the service term
- the goods-service-continuum
- explanations of the service characteristics

Published in: Business

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  • The generic & complete, consistent & coherent definition of the term service reads:

    A service is ...
    ... a set of one-time consumable & perishable benefits ...
    ... that must be reliably & effectively rendered ...
    ... explicitly to an authorized service consumer ...
    ... on his dedicated service trigger ...
    ... by safely & securely, completely & terminatorily effectuating the service-specific benefits ...
    ... to the physical or logical service object ...
    ... handed over by the triggering service consumer with his service trigger ...
    ... to the servuction environment and/or custody & control of the accountable service provider.

    This definition comprehensively allows for the inevitable & unalterable service characteristics. Futhermore, it takes center stage the service consumer who is
    - the single & sole activator & addressee of any service rendering
    - the critical sucess factor for each singular service rendering & for each service-based value creating.
    s. slide deck of the keynote 'Servicialisation - Service Consumers Center Stage!'
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  • 1. Marketing Services Arild Aspelund Associate Professor
  • 2. Outline
    • What are services?
    • The growth of services
    • What differentiate service marketing from product marketing?
    • Holistic marketing of services
  • 3. Defining services Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
  • 4. - Why services? - A global trend! Jim Spohrer (2005) The largest labor force migration in human history is underway, driven by urbanization, global communications, low cost labor, business growth and technology innovation. 2004 (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products (S) Services: Value from enhancing the capabilities of things (customizing, distributing, etc.) and interactions between things
  • 5. Service mix Pure tangible good Good w/ accompanying services Hybrid Service w/ accompanying goods Pure service
  • 6. The Goods – Service Continuum
  • 7. Distinguishing Characteristics of Services
    • Intangibility
      • A service is not physical and you need to make some evidences
    • Inseparability
      • A service is normally produced, consumed and evaluated simultaneously
    • Variability
      • Services are heavily dependent on the person that provide them
    • Perishability
      • Services can not be stored
  • 8. Service Characteristics - Intangibility
    • Intangibility
      • “ Manage the evidence” and “tangibilize the intangible”
      • Create physical image of service offer and add physical evidence
    • The tangibilization and evidence check list:
      • Place
      • People
      • Equipment
      • Communication material
      • Symbols
      • Price
  • 9. Service Characteristics - Inseparability
    • Inseparability
      • Typically produced, consumed and evaluated simultaneously
    • If the availability of service-producers are constrained
      • Use pricing to reduce demand
      • Increase service efficiency
        • Serving multiple customers simultaneously
        • Increase speed of service providing
    • Focus efforts on training of front staff for better service evaluation
  • 10. Service Characteristics - Variability
    • Variability
      • Service quality depends heavily on the person that provides them
    • How to secure service quality
      • Good hiring and training procedures
      • Identify customer service evaluation criteria
      • Standardize the service – performance process
      • Monitor customer satisfaction
  • 11. Service Characteristics - Perishability
    • Perishability
      • Services cannot be stored
      • Vulnerable to fluctuations in demand
    • Demand side
    • Differential pricing
    • Nonpeak demand
    • Complementary services
    • Reservation systems
    • Supply side
    • Part-time employees
    • Peak-time efficiency
    • Increased consumer participation
    • Shared services
    • Facilities for future expansion
  • 12. Holistic Marketing in Service Firms
    • Holistic marketing
      • Along the dimensions:
        • Internal marketing
        • Integrated marketing
        • Relationship marketing
        • Social responsibility marketing
    • The special importance of internal marketing of services
      • Since service marketing is so dependent of the provider, internal marketing is especially important
      • The service marketing department is at its most valuable when it makes the rest of the organization better able to market the firm’s services
  • 13. Summary and Conclusions
    • Summary
      • To extract value from service sciences are one of the major managerial challenges of the modern western economy
      • Services are different from goods
        • Intangibility
        • Inseparability
        • Variability
        • Perishability
      • These differences gives raise to certain differences in marketing priorities, but basic marketing principles still apply!
    • Continuation
      • Product Strategy