The opportunity for pre-­delivery inspection and rejection which is open to the goods manufacturer is not normally possible with services. “The quality of service and customer satisfaction will be highly dependent on what happens in ‘real time’, including actions of employees and the interaction between employees and customers. Carman and Uhl say, “Producers of services generally have small-sized operations than do producers of goods, largely because the producers must travel to get the services or vice versa. Similarly, restaurants have to turn away their customers during lunch and dinner time and cinema theatres fail to accommodate demand during prime shows. ADVERTISEMENTS: Some of the most important features of marketing are as follows: 1. Definition: Service marketing refers to the application of a different set of tactics or strategies to anticipate the consumer’s need for an intangible product. This is referred to as tangibilising the intangibles. A key distinguishing feature of service marketing is that the service provision and provider are inseparable from the service consumption and consumer. This marketing is based on value and relationship. It is also ownership that makes it significant to market the services in a bit different way. It has to monitor consumer producer interaction and focus on continuous improvement in the service delivery system. Physical goods are produced with a high degree of standardization. Moreover, the service cannot be stocked by the distribution partners, as in case of goods. A firm sells atmosphere, conveniences, consistent quality, status, anxiety, moral, etc. The buyer may decide to delay the consumption but may not consume more in advance than the requirements. Service inconsistency manifests in different forms. Service intangibility is the fundamental reason that their marketing assumes different dimensions from physical products. The intangible nature of services makes consumers concerned about their providers. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering. In case of an income tax consultant, he may provide a different service experience to a high net worth individual and a salaried class clerk because of varying needs and depends on his moods and pressures at the time of the day when the interaction is taking place. Particularly during the peak season, we find an abnormal increase in the demand. Some features of services include. Nature of Demand. As for example, a consumer can use personal care services or Medicare services or can use a hotel room or swimming pool, however the ownership rests with the providers. A person who goes to theatre cannot with the chair, as he has not paid for it. On the other hand, when hotels open branches and doctors pay visit to patient’s house, the production system moves to markets. Introduction to Service Guarantee 2. As for instance, an airline sells the seat from one destination to another. By holding a central card you can discover a new way of life. A service by nature is an abstract phenomenon. Services don’t move through the channel of distribution. Bitner, Fisk and Brown (1993) suggest that the major output from the services marketing literature up to 1980 was the delineation of four services characteristics- intangibility, inseparability, heterogeneity and perishability. Intangibility is an important consideration that complicates the functional responsibility of a marketing manager, specially while influencing and motivating the prospects/customers. Whether you are out on business, shopping or just dining out, you don’t have to pay cash or give a cheque. In case of service, the buyer has temporary access to or use of it. A distinction should be drawn between the inability to own the service act, and the rights which a buyer may acquire to have a service carried out at some time in the future. A service by nature is an abstract phenomenon. While motivating, they find it difficult to perform and display and the positive or negative opinions regarding the services come up only after the completion of the using process. Marketing, Services, Features, Features of Services. Hence, we can determine the level of satisfaction. The American Marketing Association defines services as - “Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods.” The defining characteristics of a service are: Intangibility:Services are intangible and do not have a physical existence. This is sought to be adjusted to by methods such as – differential pricing like off season discounts by airlines, hotels, lower telephone charges during lean hours, advance reservation system etc. During the prime travel time during morning and evening between cities such as Mumbai and New Delhi, the demand for travel generally exceeds capacity. Therefore a great deal of effort has to go into standardisation of delivery. The first and foremost feature of this marketing is that companies have to market intangibles because services cannot be seen or touched unlike physical products, hence for example in case of insurance products while insurance policy … Similarly, an insurance cover bought for life or a car or the service provided by a marriage counsellor or consultant cannot be seen, touched, or smelled. #2 A paid Service marketing… iii. The quality of the food served by a restaurant often varies. Assess your knowledge of various features of services marketing with this quiz/worksheet combination. Some companies offer both products and services … Services have some important characteristics that have implications for marketing. The ownership to services does not exist. FEATURES. Not all the service product has similar intangibility. Services that are provided by individuals rather than equipment will vary, depending upon which individual performs the service, and these will even vary with the same service provider from one job to the next. Generally, the services are created and supplied simultaneously. Share Your Word File Similarly, it is not usually possible to gain significant economies of scale through centralisation. What is owned is the benefit of service, not the service itself, e.g. In regulated services we have cost plus pricing. nothing. They are distinguished on the basis of four unique characteristics – intangibility, inseparability of production and consumption, heterogeneity, and perishability. Of course, we don’t find the same thing with the services product. The very nature of intangibility is that, their production and consumption instantly takes-place. At the same time service products are heterogenous, perishable and cannot be owned.The service product thus has to be designed with care. The main paradigm of services marketing is that services are different from tangible goods. the features. To produce a service may or may not require the use of tangible goods. Many services are created, delivered and consumed simultaneously through interaction between customers and service producers, whereas goods generally, are produced first and consumed later on. The unaccommodated customers are lost revenue opportunities. Exchange takes place between sellers and buyers. Service marketing helps in acquiring more customers and motivating them to try these economic services. Create Your Account To Take This Quiz. There are two options—either the customers move to service systems or the service system moves to customers. If you are running a high-end restaurant, offer food and beverage pairings and information about the preparation of your offerings. Instead, direct distribution methods are more common and where intermediaries are used, who generally act as a co- producer with the service provider. Everything you need to know about features of services. But everything is performed, done, felt. Learn about the features of services. Services marketing emerged as a separate field of study in the early 1980s, following the recognition that the unique characteristics of services required different strategies compared with the marketing of physical goods.. Services marketing typically refers to both business to consumer (B2C) and business-to-business (B2B) services… This means that in many cases, people are involved concurrently in the production and marketing efforts of the service organisations. Pricing and promotion are used extensively to encourage customers to utilise services at a time when it is convenient to the service operator in order to have better capacity utilisation. The market for offering personal services is bound to be limited. “They cannot be tasted, felt, heard, or smelled before they are bought”. Since inseparability characteristic generally means the direct interaction between the service provider and client, it is direct selling. Services are perishable in the sense they cannot be stored, resold, or returned. Advertising is an art, and it requires skills. They cannot be separated. And thus, meet their … This is one of the best features of service marketing. The inseparability of the production and consumption aspects of the service transaction refers to the fact that service is a performance, in real time, in which the customer cooperates with the service provider. It is the first of its kind to be launched by a nationalised bank in India. Services marketing is a form of marketing that focuses on selling services. The inability to align service supply as per demand situations causes service to suffer from revenue loss when demand exceeds capacity and incur excess cost when demand is less than available capacity. Firms which are automated have less people and hence they have lower inconsistency in services. For example, some ovens include features such as self-cleaning, smooth stovetops, warming bins, or convection capabilities. The public transport facilities are used considerably during the beginning and end of office hours. The use of public transport fluctuates greatly during the day. When service firms think of marketing strategies, they usually consider outbound and direct techniques i.e. Proper understanding of customers helps in serving them properly and developing better relations with them. It has no physical dimension and attributes. Intangibility is a service characteristic that merely says service is not patentable because it only exists as an idea and/or concept, an abstract if you may (Fitzsimmons & Fitzsimmons, 2007). Services are intangible, that is, they cannot be seen. The service marketing mix is a combination of the different elements of services marketing that companies use to communicate their organizational and brand message to customers. Conversely, I say that Intangibility is not only a distinct characteristic of service operations, but … These characteristics were first discussed in the early services marketing literature and are generally summarised as intangibility, inseparability, heterogeneity and perishability. But it is not possible to standardise service industry output. Hence management responds by reducing service complexity, stressing more on tangible clues, focusing on service quality and facilitating word of mouth recommendation. A garage which has installed auto car wash facilities with mounting of the vehicle on the ramp can provide consistent services. Figure 1 - Positioning of Literature on Service Characteristics Following a review of the extant literature, we have synthesised our judgments of the approaches Because the customer is usually involved in the production process for a service at the same time as they consume it, it can be difficult to carry out monitoring and control to ensure consistent standards. Perishability, fluctuations in demand and inseparability in services involve significant implications in pricing. During night we need less telephone services. The 7P’s are divided in two parts the 1 st 4 are product, place, promotion and pricing where as the 2 nd extended part of service marketing includes people, process and physical evidence. For instance, a hotel’s quality is judged by tangible elements such as building, lawn, lobby, decor, paintings, staff dress, and lighting. Whether, it’s a product marketing or a service marketing, the task is equally onerous. Services are unique and four major characteristics separate them from goods, namely intangibility, variability, inseparability, and perishability. With the exception of prepays and annual memberships, once a service is purchased, it is also consumed. In case of Beauty Parlour, the services provided along with the hair- dressing should be enjoyed simultaneously. As for example, the mobility of passenger is found increased, specially during the marriage season or during an important festival. Share Your PDF File The services literature highlights differences in the nature of services versus products which are believed to create special challenges for services marketers and for consumers buying services. They are:- 1. “The Problems and Strategies in Services Marketing” adapted from Parasuraman, Berry and Zeithmal, “Problems and Strategies in Services Marketing”, and “Journal of Marketing” are described for ready reference. The goods of tangible nature can be displayed, the prospects or buyers can have a view and they can even test and make a trial before making the buying decisions. All this revenue is used for infrastructural development and removing poverty from country. It also costs time and money from buyers to travel to producers of services and these economies of time and travel provide incentive to locate more services centres closer to prospective customers which results in smaller service centre.” This can be clarified by a suitable example. No physical, material exists but an intangible character is simply provided. The actual costs of a ‘unit of service’ are hard to determine and the price quality relationship is complex. Characteristics of Service Marketing Promotes Intangible Products. Welcome to EconomicsDiscussion.net! He says, “Services are those separately identifiable, essentially intangible activities which provide want satisfaction and that are not necessarily tied to use sales of a product or another services. Turn-Key Personal Marketing Made By Real Estate Agents, For Your Real Estate Business. The quality of service requires another tool for measurement. However, inseparability may be desired by those customers who want customised service, rather than standard approaches that are not appropriate for individual situation as in case of interiors for bungalows in exclusive schemes for high net worth individuals. Here, there are some tangible elements but most are intangible elements. For example, the number of patients attended to by an eye specialist can be increased by having assistants to do the standard routine examinations and the specialist doing only the vital, critical, part of it. It cann6t be carried forward. Unutilised or underutilised services are found to be a waste. insurance agent, travel agent, but at the final point of service delivery the service provider’s presence is a must. When patients, students, and travellers move to hospitals, schools, and aircrafts respectively, the market moves to production system. The services literature highlights differences in the nature of services versus products which are believed to create special challenges for service marketers and for consumers buying services. Hence, marketing of services is difficult, still customer are habituated to accepts its heterogeneity. As intangibility, variability impacts upon customers not just in terms of service firms coping... 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