C7.services.strategy (ii)

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C7.services.strategy (ii)

  1. 1. g o o d s and s e r v i c e s Page 257-258
  2. 2. Consumer Goods Consumer Services Industrial Goods Industrial Services Industrial = Business
  3. 3. g o o d s and s e r v i c e s Goods - things you can touch - “tangible” Services - things you can’t touch - but you can see their effect “intangible” “… services are not physical, they are intangible…”
  4. 4. A Service is a type of a product. “… a deed performed by one party for another…” Discussions about the marketing of goods apply to services as well. Services have special characteristics that make them different than products. Service
  5. 5. A product without physical characteristics; a bundle of performance and symbolic attributes designed to produce consumer want satisfaction. Service Not in the text
  6. 6. <ul><li>Tangible </li></ul><ul><ul><li>touch </li></ul></ul><ul><ul><li>see </li></ul></ul><ul><ul><li>taste </li></ul></ul><ul><ul><li>smell </li></ul></ul><ul><li>Intangible </li></ul><ul><ul><li>can’t see </li></ul></ul><ul><ul><li>can’t touch </li></ul></ul><ul><ul><li>can’t smell </li></ul></ul><ul><ul><li>can’t taste </li></ul></ul>Tangible / Intangible Attributes GOODS SERVICES Not in the text
  7. 7. Goods and Services: Scale of Elemental Dominance Not in the text
  8. 8. 1. Intangibility - “u can’t touch this” 2. Production (or performing the service) and Consumption (using the service) - happens at the same time 3. Heterogeneity - services are not always delivered the same way 4. Perishability - cannot be put in inventory or stored for later use ie. You can’t buy 2 haircuts 4 Characteristics of Services Not in the text
  9. 9. <ul><li>1. Intangibility - “u can’t touch this” </li></ul><ul><li>Services cannot be stored </li></ul><ul><li>Services cannot be protected through patents </li></ul><ul><li>- therefore a really great travel package and service can be copied </li></ul><ul><li>a really great physical object can be patented, and NOT allowed to be copied </li></ul>Characteristics of Services Not in the text
  10. 10. <ul><li>1. Intangibility - “u can’t touch this” </li></ul><ul><li>Hard to explain and display Services if you can’t see them </li></ul><ul><li>Prices are difficult to set - depends on customers expectations </li></ul>Characteristics of Services Not in the text
  11. 11. <ul><li>1. Intangibility - “u can’t touch this” </li></ul><ul><li>Marketing Strategies </li></ul><ul><li>stress tangible cues, eg. Smiling face </li></ul><ul><li>use personal information, sources, references </li></ul><ul><li>use word-of-mouth </li></ul><ul><li>contact customers after they buy to stimulate continued enthusiasm and hope they “talk it up” </li></ul>Characteristics of Services Not in the text
  12. 12. 2. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time Characteristics of Services <ul><li>Many people involved in delivering a service </li></ul><ul><li>mass production of services is hard to do </li></ul>Not in the text
  13. 13. 2. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time Characteristics of Services <ul><li>Marketing Strategies </li></ul><ul><li>Emphasize how much you train your people - so their ability to give you good service will be high </li></ul><ul><li>Have many locations so customers can get to you </li></ul><ul><li>ie. Insurance sales come to your home </li></ul>Not in the text
  14. 14. 3. Heterogeneity - services are not always delivered the same way It is very difficult to standardize services eg. A machine can make ice cream cones a standard size 100% of the time A person filling an ice cream cone with a scoop cannot do it the same amount each time, unless you use a machine to dispense the ice cream Characteristics of Services Not in the text
  15. 15. 3. Heterogeneity - services are not always delivered the same way It is very difficult to standardize services eg. A Taxi driver cannot drive you to the office in exactly the same time each day because the traffic patterns change eg. A travel agent can sell you a vacation package - but cannot guarantee you will like the trip exactly the same way another tourist did. Characteristics of Services Not in the text
  16. 16. 4. Perishability - cannot be put in inventory or stored for later use ie. You can’t buy 2 haircuts Demand fluctuates and changes, sometimes depending on the season, or weather eg. Taxi in the rain, vacation in summer Characteristics of Services Not in the text
  17. 17. Service Providers <ul><li>service providers have product lines and product mixes as well examples </li></ul><ul><li>Mastercard </li></ul><ul><li>insurance </li></ul><ul><li>telephone services </li></ul><ul><li>cable services </li></ul><ul><li>ISPs - internet service providers </li></ul><ul><li>airlines, first class, economy class </li></ul><ul><li>banks </li></ul>Not in the text

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