6. Consider the impact of intangibility, inseparability, heterogeneity, andperishability on marketing’s relationship to other functions within the serviceorganization.
Marketing plays a very different role in service-oriented organizations than itdoes in pure goods organizations. The concept of operations being responsiblefor producing the product and marketing being responsible for selling it, cannotwork in a service firm. The invisible and visible parts of the organization, thecontact personnel and the physical environment, the organization and itscustomers, and the customers themselves are all bound together by a complexseries of relationships. Consequently, the marketing department must maintaina much closer relationship with the rest of the service organization than iscustomary in many goods businesses.
Opening Vignette: GEICO and the Gecko
One company that has excelled in the insurance sector is GEICO. The companywas based on the idea that if it could lower costs by focusing on specific targetmarkets, the company could charge lower premiums and still be profitable.
Contributing to the company’s success has been the introduction of the GEICO“gecko”. The gecko with his English voice has become a recognizable tangiblesymbol and an advertising icon for the company.
I.IntroductionA.Marketing educators felt the marketing of services was not significantlydifferent from the marketing of goods.B.However, specific differences are primarily attributed to four uniquecharacteristics – intangibility, inseparability, heterogeneity, andperishability.II.Intangibility: The Mother of All Unique Differences
- a distinguishing characteristic of services that makes them unable to seen, felt,tasted, or touched in the same manner as physical goods.
Chapter 2 Fundamental Differences Between Goods and Services
PowerPoint Slide: #3