Senin, 04 Juni 2012

MARKETING SERVICES VERSUS PHYSICAL GOODS



The dynamic environment of services today places a premium on effective marketing. Although it's still very important to run an efficient operation, it no longer guarantees success.The service product must be tailored to customer needs, priced realistically, distributed through convenient channels, and actively promoted to customers. New market entrants are positioning their services to appeal to specific market segments through their pricing, communication efforts, and service delivery, rather than trying to be all things to all people. But are the marketing skills that have been developed in manufacturing companies directly transferable to service organizations? The answer is often no, because marketing management tasks in the service sector tend to differ from those in the manufacturing sector in several important respects.

Basic Differences Between Goods and Services

Every product—a term used in this book to describe the core output of any type of industry—delivers benefits to the customers who purchase and use them. Goods can be described as physical objects or devices and services are actions or performances.6) Early research into services sought to differentiate them from goods, focusing particularly on four generic differences, referred to as intangibility, heterogeneity (or variability), perishability of output, and simultaneity of production and consumption.7) Although these characteristics are still cited, they have been criticized for over-simplifying the realworld environment. More practical insights, which lists nine basic differences that can help us to distinguish the tasks associated with service marketing and management from those involved with physical goods. It's important to note that in identifying these differences we're still dealing with generalizations that do not apply equally to all services. In Chapter 2, we classify services into distinct categories, each of which presents somewhat different challenges for marketers and other managers. We also need to draw a distinction between marketing of services and marketing goods through service. In the former, it's the service itself that is being sold and in the latter, service is added—usually free of charge—to enhance the appeal of a manufactured product. Now, let's examine each of the nine differences in more detail.

Customers Do Not Obtain Ownership
 Perhaps the key distinction between goods and services lies in the fact that customers usually derive value from services without obtaining permanent ownership of any substantial tangible elements. In many instances, service marketers offer customers the opportunity to rent the use of a physical object like a car or hotel room, or to hire the labor and skills of people whose expertise ranges from brain surgery to knowing how to check customers into a hotel. As apurchaser of services yourself, you know that "while your main interest is in the final output, the way in which you are treated during service delivery can also have an important impact on your satisfaction.

Service Products as Intangible Performances
Although services often include tangible elements—such as sitting in an airline seat, eating a meal, or getting damaged equipment repaired—the service performance itself is basically an intangible. The benefits of owning and using a manufactured product come from its physical
characteristics (although brand image may convey benefits, too). In services, the benefits come from the nature of the performance. The notion of service as a performance that cannot be wrapped up and taken away leads to the use of a theatrical metaphor for service management, visualizing service delivery as similar to the staging of a play with service personnel as the actors and customers as the audience. Some services, such as rentals, include a physical object like a car or a power tool.
But marketing a car rental performance is very different from attempting to market the physical object alone. For instance, in car rentals, customers usually reserve a particular category of vehicle, rather than a specific brand and model. Instead of worrying about styling, colors, and upholstery, customers focus on price, location and appearance of pickup and delivery facilities, extent of insurance coverage, cleanliness and maintenance of vehicles, provision of free shuttle buses at airports, availability of 24-hour reservations service, hours when rental locations are staffed, and quality of service provided by customer- contact personnel. By contrast, the core benefit derived from owning a physical good normally comes specifically from its tangible elements, even though it may provide intangible benefits, too. An interesting way to distinguish between goods and services is to place them on a scale from tangible dominant to intangible dominant.

Customer Involvement in the Production Process
Performing a service involves assembling and delivering the output of a combination of physical facilities and mental or physical labor. Often, customers are actively involved in helping create the service product, either by serving themselves (as in using a laundromat or ATM) or by cooperating with service personnel in settings such as hair salons, hotels, colleges, or hospitals. As we "will see in Chapter 2, services can be categorized according to the extent of contact that the customer has with the service organization.


People as Part of the Product
In high-contact services, customers not only come into contact with service personnel, but they may also rub shoulders with other customers (literally so, if they ride a bus or subway during the rush hour).The difference between service businesses often lies in the quality of employees serving the customers. Similarly, the type of customers who patronize a particular service business helps to define the nature of the service experience. As such, people become part of the product in many services. Managing these service encounters—especially those between customers and service employees—is a challenging task.

Greater Variability in Operational Inputs and Outputs
The presence of personnel and other customers in the operational system makes it difficult to
standardize and control variability in both service inputs and outputs. Manufactured goods can be produced under controlled conditions, designed to optimize both productivity and quality, and then checked for conformance with quality standards long before they reach the customer. (Of course, their subsequent use by customers will vary widely, reflecting customer needs and skills, as well as the nature of the usage occasion.) However, when services are consumed as they are produced, final "assembly" must take place under real-time conditions, which may vary from customer to customer and even from one time of the day to another. As a result, mistakes and shortcomings are both more likely and harder to conceal. These factors make it difficult for service organizations to improve productivity, control quality, and offer a consistent product. As a former packaged goods marketer observed some years ago after moving to a new position at Holiday Inn:

We can't control the quality of our product as well as a Procter and Gamble control engineer on a production line can. . . . Wlien you buy a box of Tide, you can reasonably be 99 and 44/100ths percent sure that this stuff will work to get your clothes clean. When you buy a Holiday Inn room, you're sure at some lesser percentage that it will work to give you a good night's sleep without any hassle, or people banging on the walls and all the bad things that can happen in a hotel.9)

Not all variations in service delivery are necessarily negative. Modern service businesses are recognizing the value of customizing at least some aspects of the service offering to the needs and expectations of individual customers. In some fields, like health care, customization is essential.10)

Harder for Customers to Evaluate
Most physical goods tend to be relatively high in "search attributes ."These are characteristics that a customer can determine prior to purchasing a product, such as color, style, shape, price, fit, feel, and smell. Other goods and some services, by contrast, may emphasize "experience attributes" that can only be discerned after purchase or during consumption (e.g., taste, wearability, ease of handling, quietness, and personal treatment). Finally, there are "credence attributes"—characteristics that customers find hard to evaluate even after consumption. Examples include surgery and auto repairs, where the results of the service delivery may not be readily visible.11)

No Inventories for Services
Because a service is a deed or performance, rather than a tangible item that the customer keeps, it is "perishable" and cannot be inventoried. Of course, the necessary facilities, equipment, and labor can be held in readiness to create the service, but these simply represent productive capacity, not the product itself. Having unused capacity in a service business is rather like running water into a sink without a stopper. The flow is wasted unless customers (or possessions requiring service) are present to receive it. When demand exceeds capacity, customers may be sent away disappointed, since no inventory is available for backup. An important task for service marketers, therefore, is to find ways of smoothing demand levels to
match capacity.
Importance of the Time Factor
Many services are delivered in real time. Customers have to be physically present to receive service from organizations such as airlines, hospitals, haircutters, and restaurants. There are limits as to how long customers are willing to be kept waiting and service must be delivered fast enough so that customers do not waste time receiving service. Even when service takes place in the back office, customers have expectations about how long a particular task should take to complete—whether it is repairing a machine, completing a research report, cleaning a
suit, or preparing a legal document.Today's customers are increasingly time sensitive and speed is often a key element in good service.

Different Distribution Channels
Unlike manufacturers that require physical distribution channels to move goods from factory to customers, many service businesses either use electronic channels (as in broadcasting or electronic funds transfer) or combine the service factory, retail outlet, and point of consumption at a single location. In the latter instance, service firms are responsible for managing customer-contact personnel. They may also have to manage the behavior of customers in the service factory to ensure smoothly running operations and to avoid situations in which one person's behavior irritates other customers who are present at the same time.

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