Rke Tin g1 06: Page 257-258

r 9 Slide 1
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Page 257-258
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
r 9 Slide 2
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Industrial = Business
r 9 Slide 3
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Goods - things you can touch -

“tangible”
Services - things you can’t touch - but
you can see their effect “intangible”
“… services are not physical, they are
intangible…”
r 9 Slide 4
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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.
r 9 Slide 5
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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

r 9 Slide 6
pte 06
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• Tangible • Intangible
– touch – can’t see
– see – can’t touch
– taste – can’t smell
– smell – can’t taste
Not in the text

r 9 Slide 7
p te 06
a 1
Ch ting
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Ma
Elemental Dominance
Compiled byNot
Prof. in
Timthe text
Richardson
r 9 Slide 8
pte 06
a 1 4 Characteristics of Services
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1. Intangibility - “u can’t 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 can’t buy 2 haircuts Not in the text
r 9 Slide 9
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a 1 Characteristics of Services
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• 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
Not in the text
r 9 Slide 10
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• Hard to explain and display Services if you
can’t see them
• Prices are difficult to set - depends on
customers expectations
Not in the text

r 9 Slide 11
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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
r 9 Slide 12
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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

r 9 Slide 13
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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
Not in the text
• ie. Insurance
To accompany
sales come to your home
Basic Marketing, Shapiro, 10 & 11 Cdn Ed.
th th
ppt slides
r 9 Slide 14
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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
Not in the text
r 9 Slide 15
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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. Not in the text
r 9 Slide 16
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4. Perishability - cannot be put in
inventory or stored for later use
ie. You can’t buy 2 haircuts
Demand fluctuates and changes, sometimes

depending on the season, or weather
eg. Taxi in the rain, vacation in summer
Not in the text

r 9 Slide 17
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Ch ting
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service providers have product lines and product
mixes as well
examples
• Mastercard
• insurance
• telephone services
• cable services
• ISPs - internet service providers
• airlines, first class, economy class
Not in the text
• banks

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r 9 Slide 1

Goods - things you can touch -

“… a deed performed by one party for

A product without physical characteristics;

Not in the text

Not in the text

Not in the text

Not in the text

Demand fluctuates and changes, sometimes

Not in the text

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