Services — Transcript

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1. 0:00when we talk about Market offerings in
2. 0:03marketing we generally loan products and
3. 0:05services together but in reality there
4. 0:07are some unique characteristics about
5. 0:09services that differentiate them from
6. 0:11products quite significantly so in this
7. 0:14video what I want to do is take a look
8. 0:15at some of those unique characteristics
9. 0:18of services
10. 0:22here are the special characteristics of
11. 0:23services which make them a little bit
12. 0:25different than products the first one
13. 0:28we're going to discuss is this idea of
14. 0:30intangibility so when you consider a
15. 0:34product let's say a can of Coke that is
16. 0:36a very tangible product you can hold the
17. 0:38can of Coke you can see it you can touch
18. 0:41it you have an understanding of what it
19. 0:43is before you purchase services on the
20. 0:46other hand we consider to be intangible
21. 0:48you can't hold or see or touch a service
22. 0:52before purchase you can't see or touch a
23. 0:56haircut right or if someone cuts your
24. 0:59lawn you can't understand what that's
25. 1:02going to be beforehand right so that
26. 1:05idea of of quality is something that's a
27. 1:08little bit harder to convey as a
28. 1:10marketer
29. 1:13next up is variability this basically
30. 1:16means that the quality of services
31. 1:17depends on who provides them and when
32. 1:21and where and how so I'm going to go
33. 1:23back to my can of Coke example here for
34. 1:25a second and hopefully it's easy to
35. 1:28understand that that can of Coke is
36. 1:30going to have a very low variability
37. 1:33whether I purchase that at a grocery
38. 1:35store or a vending machine or different
39. 1:37parts of the country Coca-Cola has very
40. 1:41high quality assurance standards that
41. 1:43ensures that what is contained in that
42. 1:45can is going to be very very consistent
43. 1:48uh everywhere
44. 1:50that cannot be said for services even if
45. 1:54we consider a large chain let's let's
46. 1:57say McDonald's
47. 1:58where they try their very best to limit
48. 2:01variability the the quality of that
49. 2:04service is going to depend on maybe the
50. 2:06person taking your order or who's
51. 2:08preparing the meal that day and it can
52. 2:10be very very different across multiple
53. 2:12McDonald's even though their efforts are
54. 2:14there to to make that less variable so
55. 2:17with Services we see high variability
56. 2:22another key distinction of services is
57. 2:24this idea of perishability you cannot
58. 2:27store services for later use so once a
59. 2:31service is consumed it's gone and
60. 2:33likewise let's think of the example of
61. 2:35an airplane that takes off with 10 empty
62. 2:38seats that Airline cannot store those
63. 2:41empty seats and and use those as a
64. 2:43surplus on a different flight once that
65. 2:45flight takes off those empty seats are
66. 2:48are lost Revenue you can sort of see
67. 2:50where those implications come into with
68. 2:53Dynamic pricing in the in the airline
69. 2:55industry in order to make sure that
70. 2:57those flights are are full with products
71. 3:00again the can of Coke example we can
72. 3:03store products in inventory we can build
73. 3:05buffers to make sure that uh our supply
74. 3:09meets demand much more easily than with
75. 3:12Services again because of this idea of
76. 3:14perishability
77. 3:17and finally we have the idea of
78. 3:19inseparability you cannot separate the
79. 3:22service experience from the service
80. 3:23provider so that goes for something like
81. 3:27teaching right I'm providing a service
82. 3:30in this class uh however you as the
83. 3:33student are part of that service and the
84. 3:36outcome of that service is going to
85. 3:37depend not only on me but on you as well
86. 3:40are you paying attention are you
87. 3:42studying
88. 3:43um those types of things a similar
89. 3:45argument could be made for the doctor
90. 3:47patient relationship the doctor is
91. 3:50offering a service their expertise but
92. 3:52if the patient does not follow the
93. 3:54advice of the doctor does not take the
94. 3:56appropriate medication
95. 3:58etc etc the outcome of that service is
96. 4:01not going to be good this is what we
97. 4:03mean by inseparability the service
98. 4:06experience depends not only on the
99. 4:08provider but on the on the individual as
100. 4:11well
101. 4:12so intangibility variability
102. 4:14perishability and inseparability these
103. 4:17are the key characteristics of services
104. 4:19that make them slightly different than
105. 4:22products and they're going to have
106. 4:23implications for how we as marketers
107. 4:25approach them