Beckman PowerPoint Presentation

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g o o d s and s e r v i c e s
Page 257-258
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Consumer Goods Consumer Services Industrial
Goods Industrial Services
Industrial Business
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g o o d s and s e r v i c e s
Goods - things you can touch - tangible Services
- things you cant touch - but you can see their
effect intangible services are not physical,
they are intangible
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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.
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Service
A product without physical characteristics a
bundle of performance and symbolic attributes
designed to produce consumer want satisfaction.
Not in the text
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Tangible / Intangible Attributes

• Tangible
• touch
• see
• taste
• smell

• Intangible
• cant see
• cant touch
• cant smell
• cant taste

GOODS
SERVICES
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Goods and Services Scale of Elemental Dominance
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4 Characteristics of Services
1. Intangibility - u cant 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 cant buy 2 haircuts
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Characteristics of Services

• 1. Intangibility - u cant 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

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Characteristics of Services

• 1. Intangibility - u cant touch this
• Hard to explain and display Services if you
  cant see them
• Prices are difficult to set - depends on
  customers expectations

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Characteristics of Services

• 1. Intangibility - u cant 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
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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
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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
• ie. Insurance sales come to your home

Not in the text
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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
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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 did.
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Characteristics of Services
4. Perishability - cannot be put in inventory or
stored for later use ie. You cant buy 2
haircuts Demand fluctuates and changes,
sometimes depending on the season, or weather eg.
Taxi in the rain, vacation in summer
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Service Providers

• service providers have product lines and product
  mixes as wellexamples
• Mastercard
• insurance
• telephone services
• cable services
• ISPs - internet service providers
• airlines, first class, economy class
• banks

Not in the text