Designing and managing services

Based on the book, marketing management by Kotler et. Al.

How do we define and classify services, and how do they differ from goods ?

What is a service ?

It’s an act of performance

Offered by one to the other

A service is essentially intangible

A service does not result in ownership of anything !

Every sense of loss comes from a false sense of Ownership. – Buddhism.

Production of a service may or may not be tied to a physical product.

Examples of services (government services)

Examples of services (Private non-profit)

Private non-profit collegesPrivate non-profit organizations

Examples of services (Business)

Examples of services (Manufacturing)

Examples of services (retail)

Categories of service mix

1. Pure tangible good

Soap

toothpaste

2. Tangible good with accompanying services

Car

Car service

Hybrid mix of goods & services

= +

preparationFoodRestaurant meal

Service with accompanying tangible goods

Additional goods like snacks

Air travel also offers

Pure service

Distinctions between services

1. Equipment based or people based

Automated car wash Manual window washing

v/s

2. Difference between service processes

buffet Fast food Candle light

3. Need (or lack of) of client’s presence

Brain surgery: presence needed Car repair: presence not needed

v/s

4. Needs to meet: personal or business ?

5. Difference in objectives and ownership

Unique characteristics of services

1. inseparability

• Service cannot be separate from the service provider

• the Service provider eventually becomes a part of the service.

• Production and consumption of services go hand in hand

2. variability

• Services are highly variable in nature and differ in quality from one service provider to the next.

• They depend on who provides them, where, when & to whom!

3. intangibility

• Services cannot be seen, tasted felt, heard or smelt before they are bought.

• They are essentially intangible in nature.

4. perishability

• Services cannot be stored.

• They’re perishable, and subject to their demand and supply.

Credits & References

• Flickr.com • Images.google.com

Created by Dhananjay Goel, IIT Delhi, During an Internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com

PROF. SAMEER MATHURIIM LUCKNOW

DHANANJAY GOELIIT DELHI