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Services+f2012

Emma Daly
Emma Daly

The document discusses some key differences between goods and services. It notes that services make up around 76% of the economy and 79% of employment. Some differences highlighted include that services are intangible, involve customer participation in their production, are perishable, and are inseparable from their producer. The document provides examples and discusses challenges and potential marketing solutions for each difference.

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Services Services increasingly important in economy Good/service continuum Pound of salt Haircut Several key differences
Services Services as a percentage of GDP 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 76% Services as a percentage of employment 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 79% 3
Services Services increasingly important in economy Good/service continuum Pound of salt Haircut Several key differences
Services Intangibility Problem Hard to display, sample, or communicate Hard for customers to evaluate quality until after the fact Can be easily copied by competitors, cannot be protected with patents, trade secrets, etc.
Services Intangibility Marketing solutions Stress tangible cues Product (tangibility) Continuum Add tangibility where possible Seek service excellence Use personal sources, stimulate word-of-mouth Use post-purchase communication
Services Customer involvement Problem Customer involved in production No chance to rectify problems prior to customer contact Customer visits factory Service performance uses customer time
Services Customer involvement Marketing solutions Focus on appearance of facility and employees Stress employee training/courtesy Use multiple locations Pay attention to time considerations Queuing theory
Services Perishability Problem Capacity is limited Demand can be unpredictable Services cannot be inventoried or backordered Mismatch of supply/demand cannot be recaptured
Services Perishability Marketing solutions Strive to accurately predict demand Manage/shift demand Matinees Manage/shift supply Extended hours
Services Variability/Inseparability from Producer Problem Different service providers Hard to mass produce Hard to ensure consistent quality Hard to communicate quality to consumer
Services Variability/Inseparability from Producer Marketing solutions Strong training programs, performance rewards Use tools to aid standardization Focus on personal attention Consider licensing, other credentials

More Related Content

Services+f2012

  • 1. Services Services increasingly important in economy Good/service continuum Pound of salt Haircut Several key differences
  • 2. Services Services as a percentage of GDP 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 76% Services as a percentage of employment 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 79% 3
  • 3. Services Services increasingly important in economy Good/service continuum Pound of salt Haircut Several key differences
  • 4. Services Intangibility Problem Hard to display, sample, or communicate Hard for customers to evaluate quality until after the fact Can be easily copied by competitors, cannot be protected with patents, trade secrets, etc.
  • 5. Services Intangibility Marketing solutions Stress tangible cues Product (tangibility) Continuum Add tangibility where possible Seek service excellence Use personal sources, stimulate word-of-mouth Use post-purchase communication
  • 6. Services Customer involvement Problem Customer involved in production No chance to rectify problems prior to customer contact Customer visits factory Service performance uses customer time
  • 7. Services Customer involvement Marketing solutions Focus on appearance of facility and employees Stress employee training/courtesy Use multiple locations Pay attention to time considerations Queuing theory
  • 8. Services Perishability Problem Capacity is limited Demand can be unpredictable Services cannot be inventoried or backordered Mismatch of supply/demand cannot be recaptured
  • 9. Services Perishability Marketing solutions Strive to accurately predict demand Manage/shift demand Matinees Manage/shift supply Extended hours
  • 10. Services Variability/Inseparability from Producer Problem Different service providers Hard to mass produce Hard to ensure consistent quality Hard to communicate quality to consumer
  • 11. Services Variability/Inseparability from Producer Marketing solutions Strong training programs, performance rewards Use tools to aid standardization Focus on personal attention Consider licensing, other credentials