Discuss 4 characteristics of services that distinguish them from products.
Illustrate each with a marketing example.
3. What does relationship marketing in services involve. Illustrate with a marketing example.
4. What do we mean by internal marketing in services?
Whenever a product is being marketed, it means that a physical item is being marketed which is tangible in nature, which can be touched, seen, sensed, smelled and valued. We see in our everyday lives, plenty of commercials and print ads where everyone and anyone is just marketing their products using all sorts of creative styles. For instance, let’s take an example of a laptop. Whenever a company makes marketing plans or strategies to market it’s latest laptop they are marketing a physical product which they can show it very easily to a consumer highlighting all it’s features and all. In this case, the buyer can actually see the product, feel it, touch it, compare it. It becomes very easy for the customer to decide if he/she wants to buy it or not and they compare the value of the product with the amount they are spending on. They can also physically test run and see it. However, this is very different from marketing a service where the company is marketing a non-tangible item which can’t be seen, touched, felt or compared. Customers are generally reluctant to pay for services as they can’t analyse or test it on their own that is why customers always do a very thorough market research before paying for any service. They take opinions from a variety of people before spending their hard-earned money. For example, when a customer takes the services of a computer rent. In this the only option with the customer is to trust the person who is giving the service and a little word of mouth. The customer feels uncomfortable in giving advance money for something where he/she cannot even try. However, in terms of the parameters, there are 4 main and the most important characterizes which differentiate a product from it’s service, these are as follows:
1. Tangible & Intangible nature – physical item is being marketed which is tangible in nature, which can be touched, seen, sensed, smelled and valued. We see in our everyday lives, plenty of commercials and print ads where everyone and anyone is just marketing their products using all sorts of creative styles. For instance, let’s take an example of a laptop. Whenever a company makes marketing plans or strategies to market it’s latest laptop they are marketing a physical product which they can show it very easily to a consumer highlighting all it’s features and all. In this case, the buyer can actually see the product, feel it, touch it, compare it. It becomes very easy for the customer to decide if he/she wants to buy it or not and they compare the value of the product with the amount they are spending on. They can also physically test run and see it. However, this is very different from marketing a service where the company is marketing a non-tangible item which can’t be seen, touched, felt or compared. Customers are generally reluctant to pay for services as they can’t analyse or test it on their own that is why customers always do a very thorough market research before paying for any service. They take opinions from a variety of people before spending their hard-earned money. For example, when a customer takes the services of a computer rent.
2. Perishablility – In lay man terms,perishability means anything which dies or decays. Hence Products except food items remain forever or take years to die (Exceptions, like food items) the rest are always there. On the other hand services are perishable in nature. As we don’t get a service whenever and always at our own demand, we get the service according to it’s availability in the market and the availability of the person who has to give a service. However, the availability of product is generally there and we can get it according to ou demands and needs. Also the products can be stored and used when needed, the similar is not possible with services. They cannot be stored, they are used as and when needed and according to the availability.
3. Seperability – Every product has different procedures attached to itself, for example it is manufactured at one place, then it is tested at other place, after that it is packed at another place, finally it is sold at an entirely different place. Hence there are so many stages and so many different areas covered so a product is separated in terms of it’s each process and area. That is how even imports and exports come into play. This is one of the advantages of a product that it need to be sold in a place where it was manufactured, it can be sold anywhere in the world. On the other hand, services are inseparable for example, if someone wants a hair cut, he/she will have to go to the place where the barber will be there and only there he/she can be provided with the service. So services don’t enjoy this luxury with the products share. The person giving the surface cannot move from one place or the other it is the customers which need to move according to the service giver.
4. Relationship Marketing:- Relationship Marketing is all about maintaining one on one relationship with the customers. To be ahead of the competitors it is very important to have customer loyalty and that comes when the company is in regular touch with its customers. Relationship marketing is very exclusive and is very different from other types of marketing. Relationship management acknowledges the future relationship with its client in order that sales are maintained even during tough days.
If any organization is ready to form a powerful and positive relationship with its client then such a company shall be able to manage its client by making use of the internet, rather than a official meeting that’s usually costlier and consuming Further the internet provides the client access to a lot of data regarding the value and price of the merchandise that has not even been in the market to client before. Hence if a company is smart enough to maintain it’s relationship with its client then there won’t be a need to communicate each and everything, hence it can just shoot a mail and be efficient and effective at the same time.