SERVICES• Any act of performance that one partly 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.
SERVICE MIX• Pure tangible goods• Good accompanying services• Hybrid• Service accompanying goods• Pure service
Characteristics of servicesIntangibility Cant see/touch/feel Inseparability Production/distribution / consumption simultaneous Heterogeneity Perishability variation in quality/ time Cant be stored consumed/extent of service
Therefore, challenges… .. Tangibilize the intangible .. Increase productivity of providers who are inseparable from products .. Standardize the quality .. Optimize demand movement & supply capacity
SERVICE CHARACTERISTICS-INTANGIBILITY• “Manage the evidence” and “tangibilize the intangible”• Create physical image of service offer and add physical evidence.
IntangibilityMarketing Implications Strategies - No patent -Tangible clues- place / - No ready display people / equipment / - Communications symbols problem - Personal sources - Pricing difficulty - Word of mouth - Image / branding
TANGIBILIZATION AND EVIDENCECHECKLIST• Place• People• Equipment• Communication material• Symbol• Price
TANGIBILIZING THE INTANGIBLE• Visualization• Association• Physical Representation• Documentation• People Involvement• Promotion• Branding
PROBLEMS OF INTANGIBILITY• Abstractness- E.g.- abstract concepts such as financial security, expert advice or safe transportation.• Generality- E.g.- airline seats, flight attendants, cabin service.• Nonsearchability- E.g.- physical attributes, such as the appearance of a health club and equipment installed, can be checked in advance but the not the experience of working with a trainer
TANGIBILIZING THE INTANGIBLESVISUALIZATIONHotels depicting benefits of dinning at restaurantthrough advertisement.
TANGIBILIZING THE INTANGIBLEASSOCIATION Abhishek Bachan with Idea Shah Rukh Khan with Airtel
TANGIBILIZING THE INTANGIBLEPHYSICAL REPRESENTATIONCitibank credit card in goldor Platinum symbolizes a status.Airline dress symbolizesvisibility,reliability andcleaniness.
TANGIBILIZING THE INTANGIBLEDOCUMENTATIONCiting facts and figures in support of performance. 100% placement No. 1 rank in India Major Awards Won By Jet Air % Of People Preferring Jet Air
TANGIBILIZING THE INTANGIBLEPEOPLE INVOLVEMENTPeople are often critical element in service delivery
TANGIBILIZING THE INTANGIBLE PROMOTION Personal care through promotion campaigns/communication material offers life long assurance scheme. HDFC- “Sir utha ke jiyo” BrochuresAviva- “Kal par control”
TANGIBILIZING THE INTANGIBLEBRANDINGBranding helps in differentiation of the servicefrom competitors.