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Slide 1
Page 257-258
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 2
Industrial = Business
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 3
Goods - things you can touch “tangible”
Services - things you can’t touch - but
you can see their effect “intangible”
“… services are not physical, they are
intangible…”
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 4
Service
A Service is a type of a product.
“… a deed performed by one party for
another…”
Discussions about the marketing of goods
apply to services as well.
Services have special characteristics that
make them different than products.
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 5
Service
A product without physical characteristics;
a bundle of performance and symbolic
attributes designed to produce consumer
want satisfaction.
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 6
Tangible / Intangible Attributes
• Tangible
– touch
– see
– taste
– smell
• Intangible
– can’t see
– can’t touch
– can’t smell
– can’t taste
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 7
Goods and Services: Scale of
Elemental Dominance
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
the
text
Compiled byNot
Prof.in
Tim
Richardson
ppt slides
Slide 8
4 Characteristics of Services
1. Intangibility - “u can’t touch this”
2. Production (or performing the service)
and Consumption (using the service) happens at the same time
3. Heterogeneity - services are not
always delivered the same way
4. Perishability - cannot be put in
inventory or stored for later use
ie. You can’t buy 2 haircuts
To accompany
Not in the text
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 9
Characteristics of Services
1. Intangibility - “u can’t touch this”
• Services cannot be stored
• Services cannot be protected through
patents
- therefore a really great travel package and
service can be copied
a really great physical object can be
patented, and NOT allowed to be copied
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 10
Characteristics of Services
1. Intangibility - “u can’t touch this”
• Hard to explain and display Services if you
can’t see them
• Prices are difficult to set - depends on
customers expectations
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 11
Characteristics of Services
1. Intangibility - “u can’t touch this”
Marketing Strategies
• stress tangible cues, eg. Smiling face
• use personal information, sources, references
• use word-of-mouth
• contact customers after they buy to stimulate
continued enthusiasm and hope they “talk it up”
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 12
Characteristics of Services
2. Inseparability of Production (or
performing the service) and Consumption
(using the service) - happens at the same
time
• Many people involved in delivering a service
• mass production of services is hard to do
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 13
Characteristics of Services
2. Inseparability of Production (or
performing the service) and Consumption
(using the service) - happens at the same
time
Marketing Strategies
• Emphasize how much you train your people - so
their ability to give you good service will be high
• Have many locations so customers can get to you
Not in the text
•
ie.
Insurance
sales
come
to
your
home
To accompany
Basic Marketing, Shapiro, 10 & 11 Cdn Ed.
th
th
Compiled by Prof. Tim Richardson
ppt slides
Slide 14
Characteristics of Services
3. Heterogeneity - services are not always
delivered the same way
It is very difficult to standardize services
eg. A machine can make ice cream cones a
standard size 100% of the time
A person filling an ice cream cone with a
scoop cannot do it the same amount each
time, unless you use a machine to dispense
the ice cream
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 15
Characteristics of Services
3. Heterogeneity - services are not always
delivered the same way
It is very difficult to standardize services
eg. A Taxi driver cannot drive you to the office
in exactly the same time each day because
the traffic patterns change
eg. A travel agent can sell you a vacation
package - but cannot guarantee you will like
the trip exactly the same way another tourist
Not in the text
did.
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 16
Characteristics of Services
4. Perishability - cannot be put in
inventory or stored for later use
ie. You can’t buy 2 haircuts
Demand fluctuates and changes, sometimes
depending on the season, or weather
eg. Taxi in the rain, vacation in summer
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 17
Service Providers
service providers have product lines and
product mixes as well
examples
• Mastercard
• insurance
• telephone services
• cable services
• ISPs - internet service providers
Not in the text
• airlines, first class, economy class
• banks
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides