1. Definining Services
“A service is any act or performance that one party offers to another, that is essentially intangible, does not result in the ownership of anything. Its production may or may not be tied to any physical product.” Philip Kotler.

2. Goods Service Continuum

3. CHARACTERISTICS OF SERVICES:
INTANGIBILITY
INSEPARABILITY
HETEROGENITY
PERISHABILITY

4. Marketing problems caused by intangibility
Services are subjectively evaluated
Services are difficult to sample before purchase
Services cannot be stored
Patent problems are there
Difficulty in pricing services
Difficulty in displaying or communicating services.

5. Possible solutions to Intangibility problems:
Use of Tangible clues.
Use of personal sources of information
Creation of strong organizational image.

6. Marketing problems caused by inseparability
Service provider is physically connected to the service being provided
Involvement of customers and other customers in the service production process:
To start and stop
For processing
Mental involvement
Heterogeneity and Quality issues
Uncertainity in scheduling
Catering to individual customer demand is difficult
Arrivals are not under control
Mass production is diff.

7. Possible solutions to inseparability problems:
Employee selection, training, and motivation.
Consumer management
seggregating customers
home delivery
Prohibit customer entry in certain areas
Use of multisite location

8. Marketing problems caused by Heterogeneity:
Service standardization and Quality Control are difficult.
Many errors in service operations are one time events.

9. Possible solutions to Heterogeneity problems:
Customization
takes extra time
adds to cost
uncertanity associated with customised services
Standardization
Use of machines
Training

10. SOME COMPANIES STANDARDISE THE CORE PRODUCT
ALLOW CUSTOMERS TO SEMI CUSTOMISE THE FINAL OUTCOME

11. Marketing problems caused by Perishability:
Inventoring problem
Problem of Demand – Supply Management
Higher demand than supply
lower demand than supply

12. Possible solutions to Perishability problems:
Creative Pricing
attract customers in off peak hours
attract another segment
separate diverse target markets
Reservation Systems
Development of Complementary Services
Capacity Sharing
Part –Time Employee Utilization
Increase in Customer Participation

13. CLASSIFICATION OF SERVICES
On the basis of degree of Tangibility
On the basis of Labor Intensiveness
On the basis of Degree of Customer Contact
On the basis of skill level of the Service Provider
On the basis of Goal of Service Provider

14. Service Process Matrix
Given By Roger Schmenner
Low Degree Of Interaction and customisation and Low degree of Labor Intensity: Service Factory Airlines,Hotels
Low Degree Of Interaction & Cus and High degree of Labor Intensity: Mass Service, Schools, Retailing
High Degree Of Interaction & Cus and Low degree of Labor Intensity: Service Shops, Hospitals
High Degree Of Interaction & Cus and High degree of Labor Intensity: Professional Service, Physicians, Lawyers

15. Nature of the service act and the recipient of the service
Services where tangible actions are directed at peoples’ bodies: Health care, beauty saloons
Services where tangible actions are directed at Physical goods: laundry, repair &maintenance
Services where intangible actions are directed at peoples’ bodies: education, information
Services where intangible actions are directed at Physical goods: banking legal services

16. Nature of Service delivery and type of relationship between Service Organization and its Customers
Continuous delivery of service and membership relationship: electric utility
Discrete transactions and membership relationship:Transit pass, buying club
Continuous delivery of service and No formal relationship:Radio station, Police protection
Discrete transactions service and No formal relationship: movie theater, Restaurant

17. Customization & Judgment In service Delivery
High Extent of judgement and High customization : Surgery,Taxi.
High Extent of judgement and Low customization :Education, Preventive Health Programme
Low Extent of judgement and Low customization :Public Transport.
Low Extent of judgement and High customization: Retail Banking

18. Nature of Demand &Supply
Wide Demand Fluctuations but peak demand can be met without delay: electricity , telephone
Wide Demand Fluctuations and peak demand cannot be met without delay: Tax preparations, hotels.
Narrow Demand Fluctuations and peak demand can be met without delay: Insurance ,banking
Narrow Demand Fluctuations but peak demand cannot be met without delay: Fast food, Movie theater

19. On the basis of Nature of Interaction between Customer & Service Organisation and Availability of service outlets
Single site location where customer travels to service firm: Theater, Barber shop
Single site location where service provider travels to customer :Taxi
Single site location where transaction is at arm’s length: Local TV Station
Multiple site location where customer travels to service firm: Bus service
Multiple site location where service provider travels to customer: Mail Delivery
Multiple site location where transaction is at arm’s length: Telephone company