Professional Documents
Culture Documents
Service Marketing
Characteristics of a Service
What exactly are the characteristics of a service? How are services different from a product? In
fact many organisations do have service elements to the product they sell, for example
McDonald’s sell physical products i.e. burgers but consumers are also concerned about the
quality and speed of service, are staff cheerful and welcoming and do they serve with a smile on
their face?
There are five characteristics to a service which will be discussed below.
1. Lack of ownership.
You cannot own and store a service like you can a product. Services are used or hired for a
period of time. For example when buying a ticket to the USA the service lasts maybe 9 hours
each way , but consumers want and expect excellent service for that time. Because you can
measure the duration of the service consumers become more demanding of it.
2. Intangibility
You cannot hold or touch a service unlike a product. In saying that although services are
intangible the experience consumers obtain from the service has an impact on how they will
perceive it. What do consumers perceive from customer service? the location, and the inner
presentation of where they are purchasing the service?.
3. Inseparability
Services cannot be separated from the service providers. A product when produced can be taken
away from the producer. However a service is produced at or near the point of purchase. Take
visiting a restaurant, you order your meal, the waiting and delivery of the meal, the service
provided by the waiter/ress is all apart of the service production process and is inseparable, the
staff in a restaurant are as apart of the process as well as the quality of food provided.
4. Perishibility
Services last a specific time and cannot be stored like a product for later use. If travelling by
train, coach or air the service will only last the duration of the journey. The service is developed
and used almost simultaneously. Again because of this time constraint consumers demand more.
5. Heterogeneity
It is very difficult to make each service experience identical. If travelling by plane the service
quality may differ from the first time you travelled by that airline to the second, because the
airhostess is more or less experienced.
A concert performed by a group on two nights may differ in slight ways because it is very
difficult to standardise every dance move. Generally systems and procedures are put into place to
make sure the service provided is consistent all the time, training in service organisations is
essential for this, however in saying this there will always be subtle differences.
Characteristics of a Service
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Marketing a product focuses on getting the item to as many people as possible. You can sell and ship a
product to any geographical area, as it allows for physical handling. Hence, broad marketing strategies
designed to reach the largest possible audience like mass-market techniques, in-store promotions, and
direct mail work perfectly for a product-based business.
In a service business, you are marketing yourself - your expertise and capabilities, your reliability, and
commitment to excellent service. Your service technically does not exist until the customer pays for it.
Service is not a tangible good, so what you are selling is the promise to deliver what you set out to deliver.
Your marketing efforts will have to focus on communicating that promise to your clientele.
Mass marketing strategies do not work well with a service business. You are constrained by the amount of
clients you can service well. To please your clients, you can focus only on a select number of accounts or
customers to sustain your business. If you decide to get as much clients as possible, there is risk that you
will spread yourself too thin that the quality of your work eventually suffers.
A solo home-based web designer, for example, cannot mass market his services as he can only create a
limited number of web pages in a day. A massage specialist can only massage a finite number of clients
before her hands give up. A wedding consultant can coordinate a few clients at one time to ensure
optimum service. The doctors and the dentists. too.
Selling a service is more difficult than selling a tangible product. Consumers are much less certain when
they are buying a service, since what they are buying is merely a promise that someone will do something
for them in a way that will satisfy their expectations. Authors Jean Withers and Carol Vipperman in their
book "Marketing Your Service Business," recommend the following promotional tools in marketing a
service business:
1. Referrals. The recommendation of a satisfied client or a professional colleague is often the most
effective way of bringing in new clients. People tend to view recommendations from those who have
previously used the service as highly credible, and are more inclined to use the recommended service.
Referrals, however, do not always come easily. Most often, you have to ask for it. If one of your clients
seem satisfied with your service, request him or her to refer your business to their friends or
acquaintances who may benefit from your service. To reinforce your request, you may give them
promotional materials such as business cards or brochures that they may share with others. Other
entrepreneurs even make it a point to reward those who refer a client to them. It may not be money (some
professions frown on the practice of giving money for referrals), but a simple note or a small act of
thoughtfulness to show your clients that you appreciate their effort to spread the word about your
business.
2. Client relations. The authors define client relations as "consistent courtesy + common sense +
professional dignity = effective client relations." Clients will patronize your service repeatedly - if they are
satisfied. It is therefore important to cultivate your existing client base and bond with them. Your beauty
salon may not have the latest hairstyling techniques, but if you treat your customers well, you'd have a
greater chance of seeing them back to your shop again. More than a product-based business, you need
to practice excellent customer service every second that you deal with a client. Your business depends on
it.
3. Participation in organizations. Networking is the key promotional technique in marketing a
service business, and participating actively in organizations is the best way to network. Joining an
organization allows you to network with potential clients and industry players, increase your exposure to
your community and professional colleagues, and even get new business. You can choose from the more
general organizations (e.g. small business groups) with members coming from all walks of life or industry
specific organizations.
Your competitor, who belongs to the same organization as you, may be experiencing a surge in demand
and direct some of his or her clients to you instead. Another member may refer your business to people
they know who needs the kind of service you provide. Of course, you must make your participation in
these organizations worthwhile by actively participating in the group's projects and activities.
Networking has been made easier with Web 2.0 social networking sites. LinkedIn.com or Facebook.com
facilitates the meeting of potential clients, partners and strategic alliances.
4. Direct mail. A good way to promote your business is to send letters or brochures to your target
market. The key to success in direct mail is to reach out to the right people. An accountant I know
watches out for the listings of new businesses in the Washington D.C. area published by a local business
journal. He then sends a letter to owners of these new businesses offering his services. The business he
generates from his mailings more than compensate for the yearly subscription to the publication.
You also need to regularly send out mail to your existing clients, if only to remind them of you and what
you can do to help them. Mailing to previous customers is an absolute must, whether you are sending
them a quarterly newsletter or an announcement of a new service or promotions such as discount off the
regular price of a service, etc.
Another important tool in marketing your service business is a web site. For the price of an advertisement
in the yellow pages, you can have a Web site that can serve as a brochure, direct mail piece and
newsletter all rolled into one. The Web is an avenue that should never be ignored.
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A service is the action of doing something for someone or
something. It is largely intangible (i.e. not material). A
product is tangible (i.e. material) since you can touch it
and own it. A service tends to be an experience that is
consumed at the point where it is purchased, and cannot
be owned since is quickly perishes. A person could go to a
café one day and have excellent service, and then return
the next day and have a poor experience. So often
marketers talk about the nature of a service as:
Inseparable - from the point where it is consumed, and
from the provider of the service. For example, you cannot
take a live theatre performance home to consume it (a
DVD of the same performance would be a product, not a
service).
Wingate By Wyndham -
Tampa
Holiday Inn Express -
Tampa
Business generated from the Internet is rapidly on the increase. In 2004 16% of all revenues in
hospitality will be generated from the Internet (14% in 2003). By 2006, the Internet will
contribute over 24% of all hotel bookings (CSFB). This year 54% of all Internet bookings in
hospitality will be direct-to-consumer (i.e. via hotel-owned web sites). Some major brands (e.g.
Marriott, Hilton) and proactive hotels and resorts already enjoy Direct vs. Indirect online
distribution ratios of 75:25. Direct online distribution cuts costs (such as brochures), attracts
affluent customers and lessens the dependency on online discounters and more traditional and
expensive channels.
Whether you are an independent or branded hotel, a major hotel chain or hotel management
company, you can stay ahead of your competitors and capture new market share with an effective
Direct Online Distribution Strategy. The center-point of this strategy is the development of the
hotel's own web site, in addition to their franchise web-presence (if any).
As part of your comprehensive Total Online Distribution Strategy, JHS can assist in:
Evaluating the overall use of the Internet as a hotel marketing tool.
Development and deployment of the hotel web site.
Perform a web site Optimization Strategy to make your existing hotel web site user-friendly,
search engine-friendly and travel booker-friendly.
Perform a robust Search Engine Strategy designed to improve your web site positioning on search
engines in order to boost direct consumer bookings.
85% of Internet users rely on search engines to locate information on the Web and that
search patterns for accommodations are strictly destination-focused.