Organizational Structure Running A Successful Business
Marketing services1 [compatibility mode]
1. The MAANZ MXpress Program
Understanding the Service Product
Dr Brian Monger
Copyright July 2013.
This Power Point program and the associated documents remain the intellectual property and the
copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These
notes may be used only for personal study and not in any education or training program. Persons and/or
corporations wishing to use these notes for any other purpose should contact MAANZ for written permission.
5. 5
A Reminder ‐ What is Marketing About?
• The marketing concept may appear in different guises ‐ some
simple, some complex; but it is essentially about the following
few things which contribute towards an organisation's
success:
• (a) To obtain its own objectives, an organisation has to create
a value proposition that will win and a customer. The
customer should be central to everything the organisation
does.
(b) To win and to keep a customer the organisation has to
create, produce and deliver goods and services that their
target market wants and values. Such products should be
created, produced and delivered under conditions that are
relatively attractive to customers compared with those
offered by competitors.
9. 9
Defining Services
• Perhaps ‐ A Marketed Service ‐A market transaction by an
individual or organisation where the primary object of the
transaction is focused on the non tangible aspects of the
product (Monger B Services Marketing Notes MAANZ 1997)
• Evert Gummeson (1987) defines services as anything that
cannot be dropped on your foot.
12. 12
Pure Service
Intangible Dominant
Pure Product
Tangible Dominant
Haircut
Salt
A Mixture of Both
Teaching
Airline
Advertising
Restaurant
Cars
Detergent
Cosmetics
Product Service Continuum
25. Intangibility ‐ 'Services lack
substance/tangibility
• Christian Gronroos even suggests that goods are not really
tangibles, in the perceptions of customers. Products such as
tomatoes or a car are always primarily perceived in subjective
and intangible ways and in terms of the services they will
provide (its not just a car or a tomato). If a restaurant provides
a service is it so different to a can of precooked food? Hence,
the intangibility characteristic does not distinguish services
from physical goods as clearly as is usually stated in the
literature. Some products are harder to understand than
others.
27. 27
Heterogeneity ‐ 'Services lack consistency'
• Services are often described as being heterogeneous ‐ that is being variable or not
having consistency or being capable of standardisation of output. This would be
explained as a service provided to one customer not being exactly the same as the
same service to the next customer. The lack of homogeneity (sameness) of
services can create problems in service management in how to maintain an evenly
perceived quality of the services produced and rendered to customers. It is often
difficult to achieve standardisation of output in services.
• This concept of course only applies to people produced services and forgets the
fact that many services are now provided by a range of technologies ‐ for example
ATM's, vending machines as well as the internet and via computer software The
key aspect of such services being delivered, that they are heterogeneous. A
machine could not do anything but deliver the same service.
• Highly standardised human delivered services are also possible. At McDonald's
and a range of service providers, customers receive almost exactly the same
treatment.
39. 39
Guarantees and
Warranties
Cars; Appliances
Maintenance
Cars
Equipment
Buildings
Repairs
Warranty repairs
Non warranty repairs
Less Skilled
Cleaning
Guards
Skilled
Teaching
Consulting
Childcare
Professional
Doctor
Lawyer
Engineer
Vending Machines
More Skilled
Airlines
Computer operations
Lower Skilled
Drycleaning
Taxis
Lawnmowing
Product Related
Equipment Based
Personal Skill
Related
Electronic
Communication Based
Internet
Computer based
and Other
Electronic
ATMs Kiosks
Views of Services