MNM3713 Services Marketing-
2017 Exam Preparation Notes and Summary. By: Dubst3phs
NB: Do not use bullet points in long questions.
Don’t take personal knowledge when approaching case studies- only use information in the case study.
TOPIC 1
Study Unit 1: Introduction to Services Marketing
1.1 THE IMPORTANCE OF SERVICE IN THE DELIVERY OF NEED-SATISFYING PRODUCTS
Known as the Tertiary Sector of the Economy. Primary being agriculture, fishing and extracting (mining) and the
secondary being manufacturing. Tertiary is referred to as a soft product.
Services are a dead, a process or performance which is required by the customer.
5 Different characteristics of services marketing.
I. Intangibility- can’t be touched, tasted, smelt or felt. Challenge is pricing as no one sees the cost of goods
yet there is time as cost of good. Branding is easier for tangible goods and services are seen as a riskier
product because it can’t be expected until completed.
II. Inseparability- production and delivery take place at the same time
III. Heterogeneity- variation in consistency between different service transactions. Quality measure controls
on tangible products differ from that of services.
IV. Perishability- tangible products have a can be stores while services can’t.
V. Lack of ownership- Services can’t be owned. Customers can purchase the right to a service but as there is
no physical exchange of goods it’s never owned.
Classification of services: 2 Groups
- Equipment based
- People based
1.2 THE NATURE OF SERVICES AND SERVICES MARKETING (DEFINING SERVICES & SERVICES MARKETING)
Over and above the characteristics there are 2 other perspectives on services:
A. Palmers Product/Service Continuum
Pure Tangible Product- raw materials
Tangible products with peripheral services- what consumer buys (physical end product)
Physical with an integral service component- Hybrid product such as restaurant.
Pure Service with a peripheral physical component- physical component is used to deliver the service
B. The service/product concept
Service Image- customers general perception
Augmented Servcies- additiona services (pre/post sales services
Tangible Services- delivery of the service
Core Services- what the client originally needed to satisfy their need
2017 Exam Preparation Notes and Summary. By: Dubst3phs
NB: Do not use bullet points in long questions.
Don’t take personal knowledge when approaching case studies- only use information in the case study.
TOPIC 1
Study Unit 1: Introduction to Services Marketing
1.1 THE IMPORTANCE OF SERVICE IN THE DELIVERY OF NEED-SATISFYING PRODUCTS
Known as the Tertiary Sector of the Economy. Primary being agriculture, fishing and extracting (mining) and the
secondary being manufacturing. Tertiary is referred to as a soft product.
Services are a dead, a process or performance which is required by the customer.
5 Different characteristics of services marketing.
I. Intangibility- can’t be touched, tasted, smelt or felt. Challenge is pricing as no one sees the cost of goods
yet there is time as cost of good. Branding is easier for tangible goods and services are seen as a riskier
product because it can’t be expected until completed.
II. Inseparability- production and delivery take place at the same time
III. Heterogeneity- variation in consistency between different service transactions. Quality measure controls
on tangible products differ from that of services.
IV. Perishability- tangible products have a can be stores while services can’t.
V. Lack of ownership- Services can’t be owned. Customers can purchase the right to a service but as there is
no physical exchange of goods it’s never owned.
Classification of services: 2 Groups
- Equipment based
- People based
1.2 THE NATURE OF SERVICES AND SERVICES MARKETING (DEFINING SERVICES & SERVICES MARKETING)
Over and above the characteristics there are 2 other perspectives on services:
A. Palmers Product/Service Continuum
Pure Tangible Product- raw materials
Tangible products with peripheral services- what consumer buys (physical end product)
Physical with an integral service component- Hybrid product such as restaurant.
Pure Service with a peripheral physical component- physical component is used to deliver the service
B. The service/product concept
Service Image- customers general perception
Augmented Servcies- additiona services (pre/post sales services
Tangible Services- delivery of the service
Core Services- what the client originally needed to satisfy their need
