Differences in goods and services marketing

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This P.P.T helps to understand differences between goods & service marketing .

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Differences in goods and services marketing

  1. 1. Differences In Goods And Services Marketing There is general argument that inherent differences between goods and services exist and that they result in unique ,or at least different management challenges for services businesses and for manufacturers that sell service as a core offering.
  2. 2. Intangibility The most basic and universally cited difference between goods and services in intangibility. Intangibility presents several marketing challenges . Service can not be inventoried and therefore fluctuations in demand are often to difficult to manage. Service can not be readily displayed or easily communicated to customers , so quality may be difficult to assess . The actual costs of a unit of service are hard to determine and the price –quality relationship is complex.
  3. 3. Heterogeneity As services are heterogeneous across time, organization and people ensuring consistent service quality is challenging. Quality actually depends on many factors that can not be fully controlled by the service supplier such as the ability of the consumer to articulate his or her needs , level of demand for the service . Because of the complicating factors , the service manager can not always know for sure that the service is being delivered in a manner consistent with what was originally planned and promoted.
  4. 4. Simultaneous Production and Consumption Because service often are produced and consumed at the same time , mass production is difficult. The quality of service and customer satisfaction will be highly dependent on what happens in real time including action of employees and interactions between employees and customers. Usually operations need to be relatively decentralized so that the service can be delivered directly to the consumer in convenient locations.
  5. 5. Perishability Perishability refers to the fact that services can not be saved ,stored , resold or returned. A primary issue that marketers face in relation to service perishability is the inability to inventory. Demand forecasting and creative planning for sscapacity utilization are therefore important and challenging decision areas. The fact that services can not typically be returned or resold also implies a need for strong recovery when thing do go wrong.

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