Objective 4

Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require. <pp 268-275)

Services are characterized by four key characteristics: they are intangible, inseparable, variable, and perishable. Each characteristic poses problems and marketing requirements. Marketers work to find ways to make the service more tangible, to increase the productivity of providers who are inseparable from their products, to standardize the quality In the face of variability, and to improve demand movements and supply capacities in the face of service perishability.

Good service companies focus attention on both customers and employees. They understand the service-profit chain, which links service firm profits with employee and customer satisfaction. Services marketing strategy calls not only for external marketing but also for internal marketing to motivate employees and interactive marketing to create service delivery skills among service providers. To succeed, service marketers must create competitive differentiation, offer high service quality, and find ways to increase service productivity.

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