BSB126 Lecture Notes - Lecture 6: Queensland University Of Technology, Igor Ansoff, Strategic Planning
Marketing – Services and Strategies for Growth
- Services
oA product, but not a tangible good
oMarketing a service
Intangibility
Problems
oCannot be stored; demand difficult to manage
oNot protected by patents
oNot easy to display or communicate – customers can’t
test/trial
oPricing is difficult
oCan be difficult to evaluate after use if knowledge of service
is not high
Solutions
oTangible/Physical cues
oPersonal Sources of information (e.g. testimonials)
oCreate a strong organisational image/reputation
Inseparability
Problems
oMass production is difficult
oProvider is involved in the production process
oCustomer is involved in production process
oOther customers may also be involved
oQuality depends on what happens in real time
Solutions
oCareful selection and rigorous training of service personnel
oStrategies to manage consumers
Heterogeneity
Problems
oDifficulty in measuring and controlling service quality
oPeople do not operate like machines
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oNo service is exactly the same – one version of the service
may be excellent, the other may be average depending on
people
Solutions
oCustomisation – increased profit
oStandardisation – faster, cheaper, more consistent
oStaff need to be trained in service recovery
Perishability
Problems
oCannot be inventories
oManaging supply and demand is difficult
oService recovery is more difficult than with physical goods
Solutions
oKeeping customers ‘in stock’
oDevelopment of service recovery strategies
oCreative management of supply and demand
Level demand
Manage capacity
oGoods/Services Continuum
oProduct quality affects ease of evaluation
Search qualities – attributes of colour, shape, price, fit etc.
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Document Summary
Services: a product, but not a tangible good, marketing a service. Solutions: tangible/physical cues, personal sources of information (e. g. testimonials, create a strong organisational image/reputation. Problems: mass production is difficult, provider is involved in the production process, customer is involved in production process, other customers may also be involved, quality depends on what happens in real time. Solutions: careful selection and rigorous training of service personnel, strategies to manage consumers. Problems: difficulty in measuring and controlling service quality, people do not operate like machines, no service is exactly the same one version of the service may be excellent, the other may be average depending on people. Solutions: customisation increased profit, standardisation faster, cheaper, more consistent, staff need to be trained in service recovery. Problems: cannot be inventories, managing supply and demand is difficult, service recovery is more difficult than with physical goods. Solutions: keeping customers in stock", development of service recovery strategies, creative management of supply and demand.
