1. SERVICES MARKETING
Mr.K.Mohan Kumar

2. Characteristics of Services

3. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
4 Characteristics of Services
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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

4. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

5. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

6. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
1. 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”
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

7. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Video presentation on-“Service characteristics - Intangibility, Perishability, Heterogeneity, Ownership”
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

8. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
2. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time
Many people involved in delivering a service
mass production of services is hard to do
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

9. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
2. Inseparability of Production (or performing the service) and Consumption (using the service) - happens at the same time
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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

10. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

11. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
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.
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

12. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Characteristics of Services
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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

13. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Service Providers
service providers have product lines and product mixes as well examples
Mastercard
insurance
telephone services
cable services
ISPs - internet service providers
airlines, first class, economy class
banks
Not in the text
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

14. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Inseparable - from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service).
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

15. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Intangible - and cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible.
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

16. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Perishable - in that once it has occurred it cannot be repeated in exactly the same way. For example, once a 100 meters Olympic final has been run, there will be not other for 4 more years, and even then it will be staged in a different place with many different finalists.
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

17. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Variability- since the human involvement of service provision means that no two services will be completely identical. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work.
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA