Week 7 - Services Marketing

• Intangible products

  • Often purchased with physical goods

  • Delivered in form/ acts/ deeds

  • performed for/ with customer

1. MKT Intangibility

• Convey benefits of service

• Set consumer expectations

  • Whether roof is done in 5 or 8 days

1. Intangibility (Unantastbarkeit)

• Not difficult to copy

• Displaying services & communication about them is difficult

• Consumers perceive greater risk in services

• Many services are difficult to evaluate

1. Perishability (Verderblichkeit)

• Businesses cannot hold services in inventory (Bestand)

• Balancing supply & demand is diffult

• Consumers can’t return services

1. Variability

• Mass producing services that humans must deliver isn’t possible

• Managing customer satisfaction is harder

• Archieving consistent service performance is difficult

1. Inseparability

• Customers impact other cutstomers

• Employees impact the outcome

• Customer involvement is a must

1. Intangibility

• Convey benefits of service

• Set consumer expectations

Challenges

• Services have no physical presence, which complicates pricing & communication

• Consumers often have trouble evaluating them

1. Prishability

• Companies should invest in resources & personal to deliver services at appointed time

Challanges

• Impossible to store/ transport services

• Once a time of opportunity passes, the chaance to sell selvice instantly vanishes

1. Variablity

• Train staff well

• Have precise performance standards

• Measure service outcomes to determine customer satisfaction

Challanges

• Custhomers will rarely want exact same service

1. Inseparability

• Service, service provider, customer are intertwined

  —> Opportunity to create unique & memoreable experience for customers

Challanges

• Not possible to divorce production & deliver of a service from its consumption

• The satisfaction a customer has with every aspect of a brand

  • through every service encounter across entire life of relationship

• Visual representation of every encounter & experience a typical customer can have

Effective when …

• Built from customer’s perspective

• Include all points of contact (touchpoints) - digital & physical

• Span full customer relationship lifecycle

• Total profit associated with a customer for duration of their relationship with brand

• Far less likely to consider competing service alternatives

• Less price sentive

• Open to purchasing other services form brand

• Advocates for service brands —> lower marketing costs

• Source of new ideas, suggestions for growing business

• More forgivign of service failure

• More profitable (good customer lifetime value)