2. SERVICES
• Any act of performance that one partly can
offer another that is essentially intangible
and does not result in the ownership of
anything;
• Its production may or may not be tied to a
physical product.
3. SERVICE MIX
• Pure tangible goods
• Good accompanying services
• Hybrid
• Service accompanying goods
• Pure service
4. Characteristics of services
Intangibility
Cant see/touch/feel Inseparability
Production/distribution /
consumption simultaneous
Heterogeneity Perishability
variation in quality/ time Cant be stored
consumed/extent of service
5. Therefore, challenges…
.. Tangibilize the intangible
.. Increase productivity of providers who
are inseparable from products
.. Standardize the quality
.. Optimize demand movement & supply
capacity
8. Intangibility
Marketing Implications Strategies
- No patent -Tangible clues- place /
- No ready display people / equipment /
- Communications symbols
problem - Personal sources
- Pricing difficulty - Word of mouth
- Image / branding
10. TANGIBILIZING THE INTANGIBLE
• Visualization
• Association
• Physical Representation
• Documentation
• People Involvement
• Promotion
• Branding
11. PROBLEMS OF INTANGIBILITY
• Abstractness-
E.g.- abstract concepts such as financial
security, expert advice or safe transportation.
• Generality-
E.g.- airline seats, flight attendants, cabin
service.
• Nonsearchability-
E.g.- physical attributes, such as the appearance
of a health club and equipment installed, can be
checked in advance but the not the experience of
working with a trainer
14. TANGIBILIZING THE INTANGIBLE
PHYSICAL REPRESENTATION
Citibank credit card in gold
or Platinum symbolizes a status.
Airline dress symbolizes
visibility,reliability and
cleaniness.
17. TANGIBILIZING THE INTANGIBLE
PROMOTION
Personal care through promotion campaigns/communication material
offers life long assurance scheme.
HDFC- “Sir utha ke jiyo” Brochures
Aviva- “Kal par control”