Intangibles, Service Continuum, & Augmented Services

Marketing’s New Dominant Logic

Intangibles and How Basic Marketing Concepts Apply to Marketing Intangibles 

Intangibles are experienced based products. These products would include services, ideas, people, and places. Intangible products are marketed in the same manner as tangible products but with some differences. For instance, a service is an intangible product and it must be differentiated from other services, but one defining characteristic of a service is that is has a perishability. The service might be a one-time service or an ongoing commitment. These types of factors need to be considered when marketing intangibles. 

Important Characteristics of Services That Make Them Different from Goods

A service is an intangible product. What differentiates services from goods is the fact that one must pay for and use the service but never own it. As well there are important characteristics of services such as variability, inseparability, and service encounter. Variability is the variations in the manner in which customers receive the same services. Inseparability refers to the service being impossible to separate the production and consumption. Service encounter refers to the interaction between the customer and the provider.

The Service Continuum, Goods-Dominated Services, Equipment or Facility-Based Services, And People-Based Services

The service or goods continuum refers to the idea that there is a continuum with pure service at one endpoint and pure goods at the other end. Goods- dominated services, equipment- or facility- based services, and people-based services are the three categories of products that firms offer. Typically, each category overlaps with the others by virtue of the fact that most companies offer intangible products along with their tangible products, i.e., warrantees.

Core and Augmented Services

The core service is the basic or fundamental benefit derived from the service. Augmented services are additional services that differentiate the firm from the competition. For example, marketers might offer specific augmented services along with the core service to make it more enticing to customers. For example, Jiffy Lube offers to clean your car along with the oil change.

Social and Physical Elements of the Service Encounter

The social contact element is the actual interaction with another person, or the interaction between service provider and customer. The physical element is the environment where the service is received. These two elements are extremely important with the service encounter because they can create negative or positive impressions of the service.

Search Qualities, Experience Qualities, and Credence Qualities

Search qualities are the product attributes of the product that the customer can examine prior to purchase. Experience qualities are the attributes that customer identifies with during and after product purchase. Credence qualities are product attributes that are difficult to determine even after purchase.

Dimensions Consumers and Business Customers Use to Evaluate Service Quality

According to Solomon, Marshall, and Stuart (2011),
• Tangibles: the physical facilities and equipment and the professional appearance of personnel
• Reliability: the ability to provide dependably and accurately what was promised
• Responsiveness: the willingness to help customers and provide prompt service
• Assurance: the knowledge and courtesy of employees, and the ability to convey trust and confidence
• Empathy: the degree of caring and individual attention customers receive Marketers evaluate service quality using what is known as gap analysis. This form of marketing research measures the difference between customer expectations of a service quality and actual service. This research can take many forms such as surveys and other tools. 

Responding to Failures in Service Quality 

Marketers need to pinpoint the problem that caused the failure. Was the failure in the marketing or in the product or service? If the products quality was overstated then this is an issue for marketers to deal with. If the product itself not produced correctly then this is an issue for operations to correct. 

The New Dominant Logic for Marketing 

The advent of a large service market which is growing forces marketers to question the traditional view of goods and services. This new logic dictates that services are an integral part of every firms core product structure even if this augmented services. With the growth rate of services continuing anyone beginning a career in marketing will need to understand this pattern.

Marketing People, Places, and Ideas

Marketing people is the selling or marketing of an individual such as a politician or movie star. Marketing places refers to the marketing of a specific place such as New York. Marketing ideas refers to the selling of an idea or concept such as evangelists selling religion in order to receive money in the form of donations.

References

Solomon, M.; Marshall, G.; Stuart, E. Marketing: Real People,Real Choices. Textbook. 7th edition. Pearson Prentice Hall. 2011. ISBN 978–0–13–217684–2