Services Flashcards
What are the 5 characteristics that make services different from goods?
Intangibility Inseparability Perishability Variability Impossibility of being owned
Outline the 7Ps
Product Price Promotion Place People Processes Physical Evidence
What are the 3 types of marketing in service industries?
Internal
External
Interactive
What makes up the “Product” element of services?
Core service - Essential benefits offered to the customer through the service
Secondary service - Tangible element of the service e.g. food at restaurant
How is “promotion” different for services?
They are intangible - difficult to promote in terms of touch/experiment
What affects “processes” in the 7Ps?
Inseparability - customer is sometimes part of producing the final product
Why is “physical evidence” important in services marketing (2 points)?
Intangibility - added perceived risk as it is difficult for the customer to judge the service.
Physical evidence reduces the percieved risk
How is “price” different in the services sector (2 points)?
Due to inseparability - consumed at the point of sale so price discrimination is more effective
Segments of the market can be charged different prices
Why are “people” added to the marketing mix?
Perceived quality of the service is sometimes dependant on human interaction
What characteristic of services alters the “place” concept?
Inseparability
What are the 2 types of services (explain each)?
Producer services - inputs to firms’ production processes
Consumer services - Customers who have bought a product are provided with extra services e.g. technical support/warrranty
Why must we use the extended marketing mix for service marketing?
The traditional 4Ps marketing mix is limited in its application to services
What does the “service marketing triangle” do (3 points)?
Breaks a firms marketing tasks into 3 types.
Each side represents a type of marketing
The corners are the agents who interact
What are the three types of marketing in the “service marketing triangle”?
Internal (company > employees)
External (company > customers)
Interactive (employees > customers)
What is the marketing that goes on between the employees and customers?
Explain
Interactive marketing
Goal is to satisfy customers to generate customer loyalty
