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• Services - are deeds, processes, performance that are provided co-produced or co-created by an entity or person for another entity or person with another entity or person
• Tangibility Spectrum - Mary Jo Bitner wrote that products and services lie on this. Pure products lie at the tangible end while pure services lie at the intangible end.
• Definition

  Goods - are tangible products that customers are ready to purchase for a price.

  Services - are the amenities, help, or benefits provided by the other person.
• Nature

  Goods - tangible item that can be seen, touched, or felt.

  Services - intangible item that cannot be seen, touched or felt.
• Ownership

  Goods - can be transferred from the seller to the buyer.

  Services - cannot be transferred
• Evaluation

  Goods - can be estimated easily

  Services - difficult to estimate since every service provider has a different approach to carrying out a service
• Production and Consumption

  Goods - produced, traded, and finally consumed.

  Services - produced and consumed at the same time
• Storable

  Goods - can be stored in a particular place

  Services - cannot be stored
• Service Marketing

  an exclusive branch of marketing that sprung up in the early '80s because some specialized services required unique strategies, unlike physical marketing strategies
• Marketing - exchange of activities conducted by an individual or organization for the purpose of satisfying human needs and wants with the view of accomplishing individual or organization objectives.
• Characteristic of Service Marketing

  • Heterogeneity
  • Intangibility
  • Perishability
  • Inseparability
• Heterogeneity - service quality never stays the same. It depends on who, where, when and how it was provided
• Intangibility - services cannot be felt before purchase
• Perishability - services cannot be stored for later use or sale
• Inseparability - services are generated and consumed together. It cannot be separated from their providers
• Types of Service Marketing

  • Internal Marketing
  • External Marketing
  • Interactive Marketing
• Internal Marketing - marketing done by the company to its employees

  • empowerment training and programs
• External Marketing - most common type of marketing. Its is done by the company to its customers.

  • advertisements, promotions, Online PR
• Interactive Marketing - this type of marketing is between the employees and customers.

  Customer supporty, interactions on social media, and personal employees
• Traditional Marketing Mix - also known as 4 Ps can be used by the marketers as a tool to assist in defining the marketing strategy
• Traditional Marketing Mix - marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 variables in an optimal way
• Product

  Customers Touchpoints - Functionality, quality, appearance, packaging, brand, service, support, warranty
• Price

  customers touchpoints - List price, discounts, financing, leasing options, allowances
• Place

  Customers touchpoints - locations, logistics, channel members, channel motivation, market coverage, service levels, internet mobile
• Promotions

  customers touchpoints - advertising, public relations, message, direct sales, sales, media, budget
• Expanded Marketing Mix - The 7 ps is more useful for services industries and arguably also for knowledge intensive environments
• The 3 extra P's

  • People
  • process
  • physical evidence
• Booms and Bitners have added the following 3 additional ps to the original marketing mix
• People - all people that are directly or indirectly involved in the consumption of a service are important part of the extended marketing mix.
• under PEOPLE, this is added significant value to the total product or service offering

  • Knowledge workers
  • management
  • consumers
• Process - procedure, mechanism, and flow of activities by which services are consumed (customer management processes) are essential element of the marketing strategy
• Physical Evidence - the ability and environment in which the service is delivered. Both tangible goods that help to communicate and perform the service, and the intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers
• Product

  • design
  • technology
  • perceived utility
  • perceived convenience
  • perceived quality
  • packaging
  • accessories
  • warranties
• Price

  • Skimming pricing
  • penetration
  • value-based
  • cost-plus
  • loss leader
  • cost leadership
• place

  • distribution channels
  • web-based channel
  • peer to peer
  • multi-channel
• Promotions

  • special offers
  • ads
  • promotions
  • direct marketing
  • competitions
  • joint ventures
• People

  • employees
  • organization culture
  • customer service
  • customer relationship management
• process

  • standardization
  • service delivery
• Physical evidence

  • Interface
  • artifacts
  • facilities