Compiled by Prof. Tim Richardson slide 1 Intro to Marketing Slide 1 Industrial = Business

Compiled by Prof. Tim Richardson slide 2 Intro to Marketing Slide 2 Goods Goods - things you can touch - “tangible” Services Services - things you can’t touch - but you can see their effect “intangible” “… services are not physical, they are intangible…”

Compiled by Prof. Tim Richardson slide 3 Intro to Marketing Slide 3 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

Compiled by Prof. Tim Richardson slide 4 Intro to Marketing Slide 4 A product without physical characteristics; a bundle of performance and symbolic attributes designed to produce consumer want satisfaction. Service

Compiled by Prof. Tim Richardson slide 5 Intro to Marketing Slide 5 Tangible –touch –see –taste –smell Intangible –can’t see –can’t touch –can’t smell –can’t taste Tangible / Intangible Attributes

Compiled by Prof. Tim Richardson slide 6 Intro to Marketing Slide 6 Goods and Services: Scale of Elemental Dominance

Compiled by Prof. Tim Richardson slide 7 Intro to Marketing Slide 7 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

Compiled by Prof. Tim Richardson slide 8 Intro to Marketing Slide 8 1. Intangibility - “u can’t touch this” Services cannot be stored Services cannot be protected through patents - therefore a really great travel package and service can be copied a really great physical object can be patented, and NOT allowed to be copied Characteristics of Services

Compiled by Prof. Tim Richardson slide 9 Intro to Marketing Slide 9 1. Intangibility - “u can’t touch this” Hard to explain and display Services if you can’t see them Prices are difficult to set - depends on customers expectations Characteristics of Services

Compiled by Prof. Tim Richardson slide 10 Intro to Marketing Slide Intangibility - “u can’t touch this” Marketing Strategies stress tangible cues, eg. Smiling face use personal information, sources, references use word-of-mouth contact customers after they buy to stimulate continued enthusiasm and hope they “talk it up” Characteristics of Services

Compiled by Prof. Tim Richardson slide 11 Intro to Marketing Slide Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time Characteristics of Services Many people involved in delivering a service mass production of services is hard to do

Compiled by Prof. Tim Richardson slide 12 Intro to Marketing Slide Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time Characteristics of Services Marketing Strategies Emphasize how much you train your people - so their ability to give you good service will be high Have many locations so customers can get to you ie. Insurance sales come to your home

Compiled by Prof. Tim Richardson slide 13 Intro to Marketing Slide 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

Compiled by Prof. Tim Richardson slide 14 Intro to Marketing Slide 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

Compiled by Prof. Tim Richardson slide 15 Intro to Marketing Slide 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

Compiled by Prof. Tim Richardson slide 16 Intro to Marketing Slide 16 Service Providers service providers have product lines and product mixes as well examples MastercardMastercard insuranceinsurance telephone servicestelephone services cable servicescable services ISPs - internet service providersISPs - internet service providers airlines, first class, economy classairlines, first class, economy class banksbanks Not in the text