GOODS

TANGIBLE INTANGIBLE

SERVICES

STANDARDIZED

HETEROGENEOUS

PRODUCTION SEPARATE FROM CONSUMPTION

SIMULTANEOUS PRODUCTION AND CONSUMPTION

NONPERISHABLE

PERISHABLE

1)

INTANGIBILITY :

THE MOST BASIC AND UNIVERSALLY CITED DIFFERENCE BETWEEN GOODS AND SERVICES IS INTANGIBILITY. SERVICES ARE PERFORMANCE RATHER THAN OBJECTS. THUS, SERVICES CANNOT BE SEEN , FELT, TASTED OR TOUCHED IN THE SAME MANNER THAT WE CAN SENSE TANGIBLE GOODS. FOR EXAMPLE, HEALTH CARE SERVICES ARE ACTIONS(E.G SURGERY, DIAGNOSIS , TREATMENT ) PERFORMED BY PROVIDERS AND DIRECTED TOWARDSPATIENTS AND THEIR FAMILIES.

MARKETING IMPLICATIONS
Intangibility presents several marketing challenges. SERVICES CANNOT BE INVENTORIED, AND THEREFORE FLUCTUATION IN DEMAND AREOFTEN DIFFICULT TO MANAGE.

SERVICES CANNOT BE PATENTED LEGALLY AND NEW SERVICE

CONCEPTS AND THEREFORE EASILY BE COPIED BY COMPETITORS.

2) HETEROGENEITY (VARIABILITY) :
NO TWO SERVICES WILL BE PRECISELY ALIKE SINCE SERVICES ARE PERFORMANCES, FREQUENTLY PRODUCED BY HUMANS. THE EMPLYEES DELIVERING THE SERVICE, FREQUENTL ARE THE SERVICE IN THE CUSTOMERS EYES AND PEOPLE MAY DIFFER IN THEIR PERFORMANCE FROM DAY TO DAY OR EVEN FROM HOUR TO HOUR . HETEROGENEITY ALSO RESULTS BECAUSE NO TWO CUSTOMERS ARE PRECISELY ALIKE; EACH WILL HAVE UNIQUE DEMANDS OR EXPERIENCE THE SERVICE IN A UNIQUE WAY. HETEROGENEITY CONNECTED WITH SERVICES IS LARGELY THE RESULT OF HUMAN INTERACTION (BETWEEN AND AMONG EMPLOYEES AND CUSTOMERS) AND ALL OF THE VAGARIES THAT ACCOMPANY IT. FOR EXAMPLE, A TAX ACCOUNTANT MAY PROVIDE A DIFFERENT SERVICE EXPERIENCE TO TWO DIFFERENT CUSTOMERS ON THE SAME DAY DEPENDING ON THEIR INDIVIDUAL NEEDS AND PERSONALITIES AND ON WHETHER THE ACCOUNTANT IS INTERVIEWING THEM WHEN HE OR SHE IS FRESH IN THE MORNING OR TIRED AT THE END OF A LONG DAY OF MEETING. MARKETING IMPLICATIONS: 1) SINCE SERVICES ARE HETEROGENEOUS ACROSS TIME, ORGANISATION AND PEOPLE , ENSURING CONSISTENT SERVICE QUALITY IS CHALLENGING. 2) DUE TO THESE COMPLICATING FACTORS , THE SERVICE MANAGER CANNOT ALWAYS KNOW FOR SURE THAT THE SRVICE IS BEING DELIVERED IN A MANNER CONSISTENT WITH WHAT WAS ORIGINALLY PLANNED AND PROMOTED.

3 ) SIMULTANEOUS PRODUCTION AND CONSUMPTION : WHEREAS MOST GOODS ARE PRODUCED FIRST, THEN SOLD AND CONSUMED , MOST SERVICES ARE SOLD FIRST , THEN PRODUCED AND CONSUMED SIMULTANEOUSLY . THE CUSTOMER IS PRESENT WHILE THE SERVICE IS BEING PRODUCED AND THUS VIEWS AND MAY EVEN TAKE PART IN THE PRODUCTION PROCESS. THIS ALSO MEANS THAT FREQUENTLY CUSTOMERS WILL INTERACT WITH EACH OTHER DURING THE SERVICE PRODUCTION PROCESS AND THUS MAY AFFECT EACH OTHERS EXPERIENCES. FOR EXAMPLE, STRANGERS SEATED NEXT TO EACH OTHER IN AN AIRPLANE MAY WELL AFFECT THE NATURE OF THE SERVICE EXPERIENCE FOR EACH OTHER. THAT PASSENGERS UNDERSTAND THIS FACT IS CLEARLY APPARENT IN THE WAY BUSINESS TRAVELLERS WILL OFTEN GO TO GREAT LENGHTS TO BE SURE THEY ARE NOT SEATED NEXT TO FAMILIES WITH SMALL CHILDREN. MARKETING IMPLICATIONS :
1 ) MASS PRODUCTION IS DIFFICULT IF NOT IMPOSSIBLE SINCE SERVICES ARE OFTEN PRODUCED AND CONSUMED SIMULTANEOUSLY. 2 ) THE QUALITY OF SERVICE AND CUSTOMER SATISFACTION WILL BE HIGHLY DEPENDENT ON WHAT HAPPENS IN REAL TIME INCLUDIN ACTIONS OF EMPLOYEES AND CUSTOMERS.

4 ) PERISHABILITY : PERISHABILITY REFERS THAT MARKETERES FACE IN RELATION TO SERVICE PERISHABILITY IS RESOLD OR RETURNED. A SEAT ON AN AIRPLANE OR IN A RESTAURANT , AN HOUR OF A LAWYERS TIME OR TELEPHONE LINE CAPACITY NOT USED CANNOT BE RECLAIMED AND USED OR RESOLD AT A LATER TIME. THIS IS IN CONTRAST TO GOODS THAT CANNOT BE STORED IN INVENTORY OR RESOLD ANOTHER DAY OR EVEN RETURNED IF THE CUSTOMER IS UNHAPPY.

MARKETING IMPLICATIONS :

1 ) A PRIMARY ISSUE THAT MARKETERS FACE IN RELATION TO SERVICE PERISHABILITY IS THE INABILITY TO INVENTORY. 2 ) DEMAND FORECASTING AND CREATIVE PLANNING FOR CAPACITY USE ARE THEREFORE IMPORTANT AND CHALLENGING DECISION AREAS.

GOODS MARKETING 1 . TANGIBLE GOODS STAND AS AN EVIDENCE TO CONVINCE CUSTOMERS. THE TASK OF THE MARKETER IS RELATIVELY EASY TO PERSUADE CUSTOMERS. 2. LIMITED CONSUMER CONNECTIVITY. CONSUMERS CONNECT ONLY WITH OUTPUT AND SALE PROCESSES.

SERVICES MARKETING 1 . INTANGIBILITY OF SERVICES CREATS EVIDENCE PROBLEMS. CREAING TANGIBLE EVIDNCE IN SUPPORT OF SERVICES IS THE CRITICAL CHALLENGE. 2. GREATER CONSUMER CONNECTIVITY . CONSUMERS CONNECT WITH PRODUCTION AS WELL AS SALE PROCESSES.

3.ONLY MARKETING DEPARTMENT DEALS WITH CONSUMERS DIRECTLY.

3. MANY DEPARTMENTS OF THE ORGANIZATION DEAL WITH CONSUMERS DIRECTLY IN DIFFERENT PROCESSES.

4 . PRECISE STANDARDS CAN BE FORMULATED AND COMMUNICATED TO CONSUMERS.

4. TOTAL STANDARDIZATION IS NOT POSSIBLE IN SERVICES.

5. THE MARKETING MIX CONSISTS OF FOUR PS- PRODUCT, PRICE, PLACE AND PROMOTION.

5. SERVICE CHARACTERISTICS DEMAND THE INCLUSION OF A FEW MORE ELEMENTS IN THE MIX. THE MARKETING MIX OF SERVICE CONSISTS OF SEVEN Ps- PRODUCT , PRICE , PHYSICAL EVIDENCE , PLACE PROMOTION , PEOPLE AND PROCESS. 6. LIMITED CHANNEL OPTIONS.

6. MULTIPLE CHANNEL OPTIONS.

7. QUALITY PROBLEMS CAN BE DETECTED BEFORE GOODS ARE OFFERED TO CUSTOMERS.

7. QUALITY PROBLEMS OCCURE MOSTLY IN THE PRESENCE OF CUSTOMERS.

8. QUALITY PRIMARILY MEASURED ON THE TECHNICAL FEATURES OF THE PRODUCT.

8. QUALITY PRIMARILY MEASURED ON THE TECHNICAL FEATURES AS WELL AS FUNCTIONAL PERFORMANCE OF THE SERVICE.