Its almost an Irony that service which is intangible has become so interconnected with product that it has gained tangibility.The
days are gone when we could clearly differentiate between the Products and the Services. World economies are changing with the current market demands with
high focus on the Service sector which leading to the economies being
characterized Service economies. This shift has led to no clear differentiation
between the goods and services. Rather services are an integral part of the
product.
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.” But in general service marketing is considered as augmented
part of marketing. Service
marketing is marketing based on relationship and value. It may be used to
market a service or a product.
The
defining characteristics of a service are:
Intangibility: Services
are intangible and do not have a physical existence. Hence services cannot be
touched, held, tasted or smelt. This is most defining feature of a service and
that which primarily differentiates it from a product. 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.
Heterogeneity/Variability: Given
the very nature of services, each service offering is unique and cannot be
exactly repeated even by the same service provider. While products can be mass
produced and be homogenous the same is not true of services. eg: All burgers of
a particular flavour at McDonalds are almost identical. However, the same is
not true of the service rendered by the same counter staff consecutively to two
customers.
Perishability: Services
cannot be stored, saved, returned or resold once they have been used. Once
rendered to a customer the service is completely consumed and cannot be
delivered to another customer. eg: A customer dissatisfied with the services of
a barber cannot return the service of the haircut that was rendered to him. At
the most he may decide not to visit that particular barber in the future.
Inseparability/Simultaneity
of production and consumption: This refers to
the fact that services are generated and consumed within the same time frame.
Eg: a haircut is delivered to and consumed by a customer simultaneously unlike,
say, a takeaway burger which the customer may consume even after a few hours of
purchase. Moreover, it is very difficult to separate a service from the service
provider. Eg: the barber is necessarily a part of the service of a haircut that
he is delivering to his customer.
Types
of services:
1. Core
service: A service that is the primary purpose of the
transaction. Eg: a haircut or the services of lawyer or teacher.
2. Supplementary
Services: Services that are rendered as a corollary to the sale of a tangible
product. Eg: Home delivery options offered by restaurants above a minimum bill
value.
Service
Triangle: The
marketing and selling of services requires a special set of tactics and
priorities compared with selling physical products. The service marketing
triangle breaks the marketing tasks of your business down into three types. As
a service business, we must market both to your employees so they understand
the focus of your business and to your customers so they do more business with
you. Components of the triangle are:
1.
Internal Marketing: Internal marketing
is the side of the triangle between your organization and your employees who
provide your services to customers. Marketing issues include adequate training
on the services to be delivered and customer satisfaction service techniques.
Internal marketing requires you to be involved with your employees and let them
know the goals and even problems facing the business. Internal marketing also
can include a performance rewards system for employees who deliver the highest
level of customer service.
2.
External Marketing: External marketing goes
from your business organization out to customers and prospective customers.
This is the traditional form of business marketing, showing customers how the services
provided by your business benefit them. External marketing includes
advertising, your website and your company's social media efforts. The purpose
of external marketing is to fill the business pipeline with future business.
3.
Interactive Marketing: The side of the
triangle between your employees and customers is called interactive marketing.
This form of marketing revolves around how your employees deliver the services
your company provides. The goal is to have highly satisfied customers who
become long-term, repeat customers. The effectiveness of the interactive
marketing relates back to the internal marketing efforts of your business.
Interactive marketing is also how your employees keep the promises made by your
external marketing efforts.
In Present Days when
consumers are so choosy, service Marketing makes the difference between
successful or Unsuccessful Business. It has also become more important that we
close the gaps between Perceived and expected service and the actual service
provided.
