Question

explain, with examples, the four characteristics of services that a company must consider when designing marketing programs. (Marketing An Introduction 12e)

Answer 1

Designing marketing programs for a service is quite different from designing marketing programs for a product. Characteristics of a service business have certain special importance which must be clearly defined and understood before designinga marketing plan.

The four characteristics of service businesses are as follows:

1) Intangibility: Products are tangible which provide basic information to consumers before buying it. For exa, a consumer can touch an electronic item like TV, music system, etc., also can run it before buying it. But incase of service, we can't touch it because services are intangible. So how to sort out this problem? The only answer is communication. We can use the customer's feedback as the best option to reduce the level of intangibility for our service. In addition to this, we can explain our service in much detail so that customers will feel impressed of our service. A perfectly designed brochure or website can provide enough information to your customers before they start a dialogue with you.

2) Inseparability: Incase of a product, its production, purchase and consumption places are different. For exa, when a TV is purchased, its manufacturing unit is in a different place, its purchase place and its use place are also in a different place. But in case of a service, its manufacturing, purchase place and its use place are same. For exa, when you are taking services of a doctor, you have to pay for it at the same place where you are taking the service. Because of inseparability, consumption of services leads to disappointment if their expectations are not met.

To handle the challenges of satisfying a customer is to provide a good quality service which will satisfy customers.

3) Perishability: It means a certain item tends to spoil if it isn't sold at a right time. For exa, if an electronic item can't be sold today then it can be stored for future use or sale. But incase of a service, if a certain service can't be sold at right time, then it would bring loss to you. For exa, if the rooms of a hotel are booked for two days then there will be no loss to the owner of that hotel. But if the rooms of the hotel are empty then it will put impact on the profits.

This problem can be sorted out with the help of supply & demand. If the hotel has a rush period then it can take more staffs to work, but when the hotel is doing less business it can employ less staffs leading to an increase in profits.

4) Variability: The quality of a service varies from company to company. For exa, when we are taking the services of a beautician, it will vary from one place to another. This challenge can be handled by providing consistency in service. Employees can be trained to provide an uniform service to all.