• An intangible product; any product offering that is essentiallyintangible• “A service is a provision of facilities or timelybenefits at a particular cost”• In a narrower sense, service refers to quality ofcustomer service: the measured appropriateness of assistanceand support provided to a customer. This particular usage occursfrequently in retailing
Services may be classified in various ways:1. End User Type –--------- ConsumerBusiness to BusinessIndustrial2. Degree of Tangibility –-- Highly TangibleServices Linked to Tangible GoodsHighly Intangible3. People Based –------------ High ContactLow Contact4. Equipment Based5. Expertise –----------------- ProfessionalNon-Professional
• In marketing, a product is anything that can be offered to amarket that might satisfy a want or need.• However it is much more than just a physical object. It is thecomplete bundle of benefits or satisfactions that buyers perceivethey will obtain if they purchase the product.• It is the sum of all physical, psychological, symbolic, andservice attributes.
Types of productsThere are several types of products:•Consumer products: used by end users•Industrial products: used in the production of other goods•Convenience goods: purchased frequently and with minimaleffort•Shopping goods: some comparison with other goods•Specialty goods: extensive comparisons with other goods and alengthy information search
Differences Between Service And A Product• What exactly are the characteristics of a service? How areservices different from a product?• There are differences between service and a product frommarketing point of view. The difference is quite real becauseof the characteristics of services:
Characteristics of a Service1. Lack of ownershipYou cannot own and store a service like you can a product. Services are usedor hired for a period of time. For example when buying a ticket to the PIAthe service lasts maybe 4 hours each way , but consumers want and expectexcellent service for that time.2. IntangibilityYou cannot hold or touch a service unlike a product. In saying that althoughservices are intangible the experience consumers obtain from the servicehas an impact on how they will perceive it.
Characteristics of a Service3. InseparabilityServices cannot be separated from the service providers. A product whenproduced can be taken away from the producer. However a service isproduced at or near the point of purchase.4. PerishibilityServices last a specific time and cannot be stored like a product for later use.If travelling by train, coach or air the service will only last the duration ofthe journey5. HeterogeneityIt is very difficult to make each service experience identical. If travelling byplane the service quality may differ from the first time you travelled bythat airline to the second, because the airhostess is more or lessexperienced.
Differences Between Service And A ProductThere are two other factors that separate services from hard goods:• First, the satisfaction criterion is different. With a hard good, theconsumer can access the product (a car, washing machine, etc.) andsee/test it. A consumer will never know how good the service is untilAFTER he gets it! This can be unsettling for the consumer.• Second, with a service, the consumer is, essentially, "in the factory,"watching production all along the way. It is VERY important for a serviceprovider or consultant to carefully manage the "production process" as theclient is able to observe it and make judgments about quality and value.
Differences Between Service And A ProductMass Market and Target Market• Product companies sell to the masses through large scale advertisingefforts.. While catchy jingles during primetime TV might work for aproduct company, they are simply inappropriate for service firms.• The right marketing program, that “touches” prospects regularly, withhighly targeted messages, will increase awareness and recognition ofserivce.
According to Webster surrogate means “in place of others”As services are intangible so in order to make it tangible serviceorganizations emphasize on 3 additional P’s of marketing mix:PeopleAn essential ingredient to any service provision is the use of appropriate staffand people. Consumers make judgements and deliver perceptions of theservice based on the employees they interact with.“Jo Dikhta See Wo Bikta See”
ProcessThis means procedures, mechanism and flow of activities by which a serviceis acquired. Process decisions radically affect how a service is delivered tocustomersPhysical EvidenceWhere is the service being delivered? Physical evidence is an essentialingredient of the service mix, consumers will make perceptions based ontheir sight of the service provision which will have an impact on theorganisations perceptual plan of the service.
Just as products do, service organizations also compete with each otherand in order to gain competitive edge, they use surrogate cues, to stand outfrom others, attract customers and ensure quality. They provide such environment and surrounding that customers preferthem as compared to their competitors, this is based on freuds marketingimplication that external cues are more important than internal cues.“Jo Dikhta See Wo Bikta See”
Actual service offering can be broken down into levels relating to customerneed, benefits and features. The three levels typically identified are:1. Core Service – This satisfies a core need i.e. hunger, accommodation,thirst etc2. Expected Service – This reflects standards required or expected bycustomers to satisfy their needs.3. Augmented Service – This is the way in which service providers fine tunethe marketing mix to differentiate their service and make it stand outfrom competition.In this study we’ll be considering and giving examples of Core and Augmentedservices by showing and comparing pictures of different service organizationsi.e. Restaurants, Hotel, Health, Education, Banking, Courier Service andLeisure industries.
When emirates shows this add it reflects the feeling emiratesguarantees when a customer fly’s in its planes. The feeling ofexcitement, happiness and security is part of the experience EmiratesAirline offers.
Surrogate Cues Used by ServiceOrganizationsRestaurants & HotelIndustry
Core ServiceUsmania/Karachi Broast/Café Clifton & A Chai ki Dukaan
Augmented ServiceKarachi Marriott & Truffles at Zamzama
Surrogate Cues Used by ServiceOrganizationsHealth Industry
As seen in the previous slides Surrogate Cues can be applied toorganizations such as restaurants, beauty salons, hotels,leisure/theme parks, banks etc and these organizations andservice providers use their outlook, interior, environment anddécor to differentiate them selves from competitors and toprovide an augmented service so as to exceed customerexpectations and fulfill their basic need while providing themwith something extra.
Just like Surrogate Cues are applied to organizations they can also beapplied to individuals. For example; A person giving a presentation woulddress differently as compared to a person going for a strole in the park.For every body who think looks don’t matter NEWS FLASH - THEY DO!Whither you’re going for an interview or trying to impress a girl the firstand foremost thing that matters is the way you present your self and thisis where the concept of surrogate cues comes in.
We are all Brands and in order to be recognized we have to sell our ideasand attributes to people every day, whither its our college professor, ourboss or client, we have to sell them what we say and make them buy it,believe it or not it’s the only way to SURVIVE.In order to do this we have to look presentable and sometimes evenattractive, that’s how attractive girls usually get better service at banksand service centers as compared to guys.To prove this we have compared individuals focusing on their dressing oras you may call it HULYA…
Local Man at Abdullah Shah Ghazi Mazar & Chai Wala Phatan