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2. difference in goods and service marketing and service classification
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2. difference in goods and service marketing and service classification Presentation Transcript

  • 1. 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
  • 2. Characteristics of Services
  • 3. 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)
  • 4. Classification By Industrya. Entertainment industryb. Educationc. Telecommunicationsd. Finance & Insurancee. Transportationf. Public utilitiesg. Government servicesh. Healthi. Hospitability Industryj. Business servicesk. Telecommunicationsl. Trading
  • 5. 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.
  • 6. Skill level of service provider•Teacher•Doctor•Engineer•Accountant
  • 7. Labor intensivenessMechanicElectricianLaborPlumberArtisan
  • 8. Degree of customer contactHigh Degree (Every day) – TV channels, mobileetc.Moderate Degree (Regular) – Teacher, Barber,washer man etc.Low Degree ( Occasional ) – Priest, Doctors etc.