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Understanding Service Phenomenon

The document discusses service industries and marketing implications. It begins by debunking myths about services and explores reasons for the growth of the sector. Key points made include that services are intangible, produced and consumed simultaneously, and involve customer experiences. The document also examines segmentation strategies and positioning approaches for service businesses. It concludes by outlining characteristics of services like intangibility and their associated marketing challenges.

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Shahamat Mufti
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1K views12 pages

Understanding Service Phenomenon

The document discusses service industries and marketing implications. It begins by debunking myths about services and explores reasons for the growth of the sector. Key points made include that services are intangible, produced and consumed simultaneously, and involve customer experiences. The document also examines segmentation strategies and positioning approaches for service businesses. It concludes by outlining characteristics of services like intangibility and their associated marketing challenges.

Uploaded by

Shahamat Mufti
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Understanding Service

Phenomenon
Myths about Services Industries

 Service Production is primarily Labour- Intensive


 People satisfy their product need before the
need of services
 Service businesses are “Cottage industries” &
service jobs are low-paying
 Services are only offered by Govt. Sector
Reasons for Growth & Current
Status
 Affluence
 Leisure Time
 Life Expectancy
 Dual Earning Couples/ Working wives
 Product Complexity/ Evolved Products
 Life’s Complexity
Service Phenomenon
Definitions of services provided by different
scholars which highlight that services are:
 Intangible
 Do not include transfer of ownership
 Produced & Consumed simultaneously
 Variable
The Service Experience
 Sum- total of all the encounters between the
customer & the service provider while using the
service, feelings about the encounter
immediately after the event or recollections after
a period of time.
Popular ways of looking at services:
 Moments of truth- Popularized by Jan Carlson
 Servuction Model- Bateson
The Service Experience
 Servuction Model
There are two components- the visible & the
invisible – on the service provider’s end (people
& inanimate environment)
 Customer interacts with the the visible or tangible
parts
 Since large parts of services is intangible, there is a
tendency to draw conclusion about service quality
based on tangibles
The Service Experience
Service theatre
Implies comparing the experience of service
planning, design & delivery to that of theatrical
performance
Actors Visible service providers
Teamwork of front-stage & backstage people

Success of performance (Service Task)


Segmentation of service market

 Geographic
 Demographic
 Psychographic
 Behavioural
Segmenting Institutional Customers

 Volume of purchase
 Amount of Paper work involved
 Decision-making type
 Price Sensitive vs Quality Conscious
 Technically aware vs Unaware
Positioning a Service Business

 Positioning by Features
 Positioning by Comparison
 Positioning by benefit
 Positioning through Guarantees
 Positioning as a Leader
 Positioning through Emotions, Concern for
Environment
Service Characteristics & Marketing
Implications
Characteristics M. Implications Strategies
Intangibility Difficult to sample, Physical
judge & value Evidence
WOM
Corporate Image
Inseparability Requires presence Work in larger
of provider groups
Geographically Multi-site
limited market Locations
Service Characteristics & Marketing
Implications
Characteristics M. Implications Strategies

Variability Difficult to Training


Standardize Benchmarking
Mechanization
Perishability Cannot be stored Establish better
match between
supply & demand

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