Distinctive Aspects Of Service Management
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Distinctive Aspects of Service Management By Priyanka Harivallabhdas
Every business is a service business: “ You are not a chemical company. You are a chemical services business” -Philip Kotler
What is a Service? • A service is an act or performance that one part can offer to 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.
Categories of Services • Pure Tangible good: Soap, toothpaste, salt • Tangible good with accompanying services: cars, electronics, computers • Hybrid: Restaurants, Hotels • Major service with accompanying minor goods and services: Airlines • Pure service: teaching, baby-sitting, lawyer
Further Categories • • • • •
Equipment-based/ People-based Client’s Presence Personal need/ Business need Objective Ownership
Scale of Tangibility in Goods & Services
How Service Marketing is different from Physical goods Marketing?
• Intangibility: Doctors • Variability:Different employees of the same bank • Perishability of output: airlines in vacations • Simultaneous production and consumption: singers, dancers,barber
Detailed Differentiation • No Customer ownership of services • Service products as Intangible performances • Customer Involvement in the Production process
• People as a part of the Product • Greater variability in operational inputs & outputs • Difficulty of customer evaluation
• No inventories after production • Importance of time factor • Different distribution channels
Marketing Mix
product
Promoti on & Educatio n
People
SERVICE S place
Physical evidenc e
Process
Price
Thank You
Every business is a service business: “ You are not a chemical company. You are a chemical services business” -Philip Kotler
What is a Service? • A service is an act or performance that one part can offer to 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.
Categories of Services • Pure Tangible good: Soap, toothpaste, salt • Tangible good with accompanying services: cars, electronics, computers • Hybrid: Restaurants, Hotels • Major service with accompanying minor goods and services: Airlines • Pure service: teaching, baby-sitting, lawyer
Further Categories • • • • •
Equipment-based/ People-based Client’s Presence Personal need/ Business need Objective Ownership
Scale of Tangibility in Goods & Services
How Service Marketing is different from Physical goods Marketing?
• Intangibility: Doctors • Variability:Different employees of the same bank • Perishability of output: airlines in vacations • Simultaneous production and consumption: singers, dancers,barber
Detailed Differentiation • No Customer ownership of services • Service products as Intangible performances • Customer Involvement in the Production process
• People as a part of the Product • Greater variability in operational inputs & outputs • Difficulty of customer evaluation
• No inventories after production • Importance of time factor • Different distribution channels
Marketing Mix
product
Promoti on & Educatio n
People
SERVICE S place
Physical evidenc e
Process
Price
Thank You
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