Tangibility Of service Marketing

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.