2. difference in goods and service marketing and service classification
Services Vs GoodsServices GoodsIntangible TangibleHeterogeneous HomogenousProduced in Buyer Seller interaction Produced in factoryProduction, distribution & consumption takes All three are separate & independentplace simultaneouslyConsumers participate in production Consumers don’t generally participateCannot be stored Can be storedTransfer of ownership cannot take place Transfer of ownership does take place
Classification of Services It is required to design & apply marketing techniques tocompletely satisfy the customer & increase profits & identifynew emerging services.Classifications can be done on following basis:• Classification by Industry• Classification by Target Effect• Skill level of service provider (Professional/ Nonprofessional)• Labor intensiveness (People-based/Equipment-based)• Degree of customer contact (High / Low)• Goal of the service provider (Profit /Nonprofit)
Classification By Industrya. Entertainment industryb. Educationc. Telecommunicationsd. Finance & Insurancee. Transportationf. Public utilitiesg. Government servicesh. Healthi. Hospitability Industryj. Business servicesk. Telecommunicationsl. Trading
Classification By Target Effect Based on Degree Of Customer Involvement: ( Lovelock)1. People Processing: Services aimed at physical care e.g. Healthcare, clinics, restaurant, hospitals, hair stylists, fitness centers2. Mental Stimulus Processing: Services aimed at mind of customer e.g. Education, information, entertainment, consulting, psychotherapy3. Possession Processing: Services aimed at physical possession & tangible assets e.g. repair & maintenance, laundry, repair services, landscaping, house cleaning services4. Information Processing : Services for intangible assets e.g. Banking, legal consultation, brokerage, financial services.
Skill level of service provider•Teacher•Doctor•Engineer•Accountant