HOW CAN A SERVICE BE A

PRODUCT?
Service as a
product
Service as a product

• A Service is the performance of a vital

intangible benefit, either in it’s own
right or as a major ingredient of a
intangible product, using some form of
exchange that satisfies a need.
There are four distinctive
Service characteristics That
greatly affect the design of
marketing programs:
 Intangibility

• unlike physical
products, service
cannot be seen,
tasted, felt, heard, or
smelled before they
are bought.
Inseperability

• Service are typically

produce and
consumed
simultaneously.
 Variability
• Services are highly variable
because the quality depends on
who provides them, when and
where, and to whom.
Perishability

• Services cannot be
stored, so their
Perishability can be
problem when
demand flactuates.
At times services are complicated to
recognize because they are very much
related with a good. Some good
examples of services are
telecommunications, saunas, massages,
lawn care and even the simple haircut.
5 types of Service offering
Pure tangible goods

• It is tangible goods such as

toothpaste, with no
associated services.
Tangible goods with
accompanying services

• It is tangible
goods, like a
cellphone, that
comes with one or
more activities.
Hybrid

• It is an offering, such as
restaurant with equal parts
of goods and services.
Major services with accompanying
minor goods and services

• It is a major service, such as

air travel with additional
services or supporting
goods like beverages.
Pure Service

• It is principally an
intangible service, for
instance babysitting or
psychotherapy.
 Service differentiation
• The key to competitive success
may be in the form of added-
value services and improved
quality when the tangible product
cannot be distinguished easily.
 Ordering ease
• This is how simple it is for the
customer to make order with
the company.
 Delivery
• This is how sound the product
or service is brought to the
customer. It consists of speed,
precision and care attending
the delivery process.
Installation

• It is the work made to

create a product
operational in its designed
location. Buyers of heavy
equipment suppose good
installation service.
 Customer training
• It refers to training the
employees’ use to the vendor’s
equipment correctly and
proficiently.
Costumer consulting

• This refers to data,

information systems and
advice services that the
seller provides to buyers.
 Maintenance and repair
• It describes the service program
extended to customers to keep
purchased products in good
working order
Service marketing strategies

• A service marketing strategy

concentrates on delivering
processes, experiences, and
intangibles to customers rather
than physical goods and
transactions.
 Referrals
• Through word of mouth, services
could be marketed. A satisfied
customer is more than willing to
share his experience with friends.
 Education
• Giving customer education is
another way to market a service.
This could be in the form of
seminars, lunch-and-learns or other
educational meetings. W
 Demonstrations
• Customers might have second
thoughts about trying a service if
they are not confident what they
are getting.
 Industry specialization
• Every company should have
marketing plans to be – noticeable
amidst competition
 Social media
• Social media are difficult to escape,
with millions of people sending
texts and emails to friends when
they notice interesting items they
desire to share.
• A social media marketing strategy
allows service providers to gain
advantage of free tools like Facebook
and Twitter to educate consumers and
get them to spread the word to their
network of contacts.
 Managing service
• Customer satisfaction is
challenged every time service is
provided, making it
indispensable to manage
service quality.
• Top management ought to
demonstrate commitment
towards this strategic idea. They
must also form an ambiance to
make possible customer
satisfaction.
 New product management

• New product development (NPD) is

a process of producing a product or
service from idea to bringing it to
the market. Product development is
at all times a developing and
flowing process
 New product process
• In order to succeed when
confronted with maturing
products, companies have to
create new ones and undergo
cautiously of the process of
new product development.
Idea generation

• The process of new product

development begins with
idea generation. Idea
generation means the
methodical exploration for
new product ideas.
 Internal idea sources

• This is when the company

discovers new ideas within.
That means Research &
Development and also
contributions from employees.
 External idea sources

• This is when the company

discovers new ideas on the
outside. This includes all types
of external sources, such as
distributors and suppliers, and
even competitors.
 Idea screening

• Idea screening is the second step

in the new product development
process.
Concept development and
testing
• In order for attractive ideas to be
developed into a product concept,
companies must continue the
process. A product concept is a
comprehensive description of the
new product idea declared in
significant consumer terms.
Marketing strategy
development
• The marketing strategy
development is the next
step in new product
development process.
Business analysis

• An evaluation on the business

attractiveness of the proposed
new product by management
is done after finally deciding
for the product concept and
marketing strategy.
 Product
development

• This step is the actual product

development. Once the product
concept is able to pass the
business test, it is time to
develop the physical product.
Test marketing

• In this step, the newly

developed product and its
planned marketing
program are tested in real
market situations
 Commercialization

• This last step is the introduction

of a new product into the
market. During this time, the
company would surely incur
highest costs due to
advertising.
Introducing timing

• The company should

consider proper timing in
introducing the new
product.
 Introducing place

• A company should also decide on

the place to launch the new
product. The new product could be
launched in a single location, a
region, the national market, or
possibly the international market.
 Consumer adoption process

• A marketer should help consumers

in each step of the consumer
adoption process. Basically, it
takes different quantity of time for
every type of consumers to adopt
to new innovation.
Awareness Stage

• In this phase, a consumer is

conscious that there is a new
product or an innovation in the
market but has limited
information about it.
Interest & Information stage

• In this phase, the consumer

notices seriously the innovation
and seeks to gather more
information.
Evaluation Stage

• Now, he uses the gathered

information to appraise the
innovation.
Trial stage

• Consumer is prepared to test

the new product. He sensibly
studies it. He tests the
innovation in a small amount to
experience it himself.
Adoption Stage

• If trial produces satisfactory

results, finally the consumer
decides to adopt/buy the
innovation. He decides on
quantity, type, model, dealer,
payment, and other issues.
Post-adoption behavior stage

• This is the last phase of

consumer adoption. If a
consumer is pleased with a
new product and its associated
services, he continuously
purchases it more often.