Marketing services suffered a quantity of explosive scientific research over the past 20 years, however, since 1986 there has been no discussion of the concept that services are distinguished from products , and therefore they deserve a particular approach, a set of concepts and a body of knowledge (Brown, Fisk, and Bitner, 1994). This essay will explain the distinguishing characteristics of marketing services, with examples, if possible. It will start with the definition of marketing services and give a little 'basic knowledge on its divergence from product marketing. It will then examine the four characteristics of services, and then end up with an explanation of the P more found in the mix of marketing services.
In the last century there was a major shift in marketing thought; evolving from a goods views dominated, in which tangible output and discrete transactions were at the center, to a vision of dominant service, in which intangibility, exchange processes and relationships are central (Vargo and Lusch, 04). Vargo and Lusch define services as the application of specialized competences (knowledge and skills) with the facts, processes and performance for the benefit of another person or the subject itself. Four particular characteristics of the services will now be given, highlighting the reason why the marketing services is different from the basic marketing of the product.
Probably the most distinctive feature about services is their intangibility. Services are defined in (Zeithaml, Bitner, and Gremler, 06) as "acts, processes and performance." None of these are physical objects in which a customer can take ownership, although in the course of a physical trial service will be evident in the form of things like medicine the doctors prescribes to you, the photo taken of you riding the rollercoaster, or the food on your plate in a restaurant. This invisibility creates a number of problems for marketing. Firstly there is no stock, making it difficult to manage the supply and demand. Secondly, the services can not be shown or displayed to customers, making it difficult for marketers to advertise the quality of service. And finally, because there are no physically services, there is difficulty in patenting, making it easy for other companies to copy your service.
Another remarkable aspect of the products is that, on average, remain the same. If you buy a Ford Focus here in Australia, and then go buy the same model in America, chances are you will both be exactly the same. The services are different in that they are heterogeneous, in the sense that differ with each use. For example, a wildlife tour will never be the same twice, not only due to the random and unpredictable nature of animals, but the guide can be in a different mood, the time will be changed, and there will be different customers every time. These factors make it harder to consistently give a quality service, which is important for marketing, because customers will have a particular set of expectations in mind, based primarily on what was promoted in the service and previous experience in the particular field.
Another distinguishable feature about services is the fact that it is produced and consumed at the same time, as opposed to products where customers do not see how the product is manufactured. A good metaphor for this is to be at the theater. Consumers can be likened to an audience, they look actors (employees) on stage (physical location like a business store) between props (physical objects, such as chairs, tables, potted plants, etc.). The actors are 'live' and execution (production) at the same time as the audience is watching (consuming). This brings us to the concept of interactive marketing. In a service, operational staff do most of the marketing function (Klassen, Russel, and Chrisman, 1998), and marketers are left to advertising and promotion.
The final distinction that differentiates services from products is their perishability. While some products perish very quickly (like water balloons), the services simply can not be stored, saved, resold or returned at all. Marketing main concern would be the procedure for when things do not go as planned. Customers can not simply return the service and ask for another; it is up to the service provider to offer customers some kind of compensation. If passengers are forced to wait a long time for their flight, employees could provide coffee and refreshments while they wait, in an attempt to compensate for their lack of service.
With the commercialization of the product marketing mix includes the four P; product, price, place and promotion. Services use the same elements plus three more to help account for their unique nature.
First there is people, which include all that affects the perception of the buyer, including the buyer themselves. Customers have an active role in the production and, therefore, able to influence the outcome of its service or the service of the other. For example, a large family with screaming children interrupting a young couples romantic dinner in a restaurant.
Every person is important for marketing, no matter how small their role may be. Consider an IT professional who installs computers in people's homes. During installation the buyer may form an opinion of the service provider as a whole based exclusively on what performance IT professionals. Sometimes a person is the sole provider of services, such as a dentist or a lawyer, making their performance and the key aspect to obtain a high perceived quality of service.
The sixth 'P' is the physical evidence, which is the environment in which the service is provided and in which the company and the customer interact (Zeithaml, Bitner, and Gremler, 06). It also includes any physical objects that help in service provision. (Lehtinen & Lehtinen, 1991) define as the environment and its tools. With some services, guests will find it difficult to judge the quality of the service, in particular with financial advisers as credit or legal advice. It 'important that marketing managers address consumer fears regarding the risk that the results, before, during and after the conviction of consumer services (Keh & Sun, 08). Since the customer does not have the knowledge or experience to judge the actual service, instead turn their attention to other things, including the physical evidence of the quality of service. This will usually come in the form of a professional workspace, but would change with each service provider. For example, in a cleaning doctors surgery it would be expected.
Finally, there is the service process, including the procedures, mechanisms and flow of activities by which the service is delivered (Zeithaml, Bitner and Gremler, 06). When you buy a service, customers often have a set of expectations of the service process, and when these are not met, the perceived quality of service drops. For instance, in rafting a customer it might be dissatisfied if, when they arrived, they told us that they had to bring the raft to the top of the river before. The process is important because the persons participating in it, unlike products, in which the process is behind the doors.
The services represent at least 70% of the total GDP of the country for at least five countries, including the UK and Australia, making it a hot topic not only for marketing, but anyone competing in the world business. The services are distinguished from products by four characteristics; intangibility, are heterogeneous, there is the simultaneous production and consumption, and their tendency to perish. Services coincide with the marketing of the product by the fact that three additional P are added to the mixture of original sale; people, physical evidence and process.
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