RAVI MANI
SHUKLA
231160
Assignment 1
Q1. List the four characteristics of service and discuss how each
would impact the marketing of a chain of fitness centers that is
being started by six former Olympic athletes.
Answer: Services are very different from the products and so as their
marketing elements. Because of their unique features it is important to
understand the type and different elements of that service before going
into market.
The four important characteristics of services are following:
a)
b)
c)
d)
Intangibility
Inseparability
Perishability
Variability
For marketing any service these points are taken into consideration. In the
following section how these points are considered for marketing a chain of
fitness center
a) Intangibility: Intangibility is a characteristic of service indicating that
it is has no physical attributes & as a result impossible for a
customer to test, feel or smell before buying it thus in most
cases services are bought on trust. So in this case the trust factor
will be the founders accomplishments. The image of Olympic
athletes should be highlighted in the marketing campaigns. Other
points are relation with some tangible evidence. In this case the
health benefits that the consumers will receive after joining the
fitness center will provide the tangible evidence mentioned above.
b) Inseparability: Inseparability is characteristic of services.
Including that it cannot be separated from the creator seller of the
product. Many services are created delivered & consumed
simultaneously through interaction between customer and services
product e.g. - dental care by a dentist. In most of the case the
customer receives and consumes the services at the service
producer premises, so called the services factory. In this case the
equipments and the consultancy will be provided the gym itself
means the service production and consumption will be at the same
place. So presence of good and latest machines along with the
skilled trainers will lead to good image of the center. The
expectation of the customers is high in this case because of the
Product
Place
Price
Promotion
People
Process
Physical evidence
Delivery process: the process used to deliver the core product. In this case
booking the room online, greeting with customers with a smile etc.
Q7. Discuss the impacts of the competition globalization driver on
people processing, possession processing, and information-based
service categories. Give at least one example of a firm that falls
into each category.
People processing: These involve the consumers participation as a part
of production process. For example Dells Direct system where consumers
are encouraged to customize systems that fit to their needs. The impact
of globalization is that the companies have learned from one market and
applied to the other. This way they have created the consistency in
service industry also like the products. Example: The service centers of
Apple Company have the same interior design all over the globe.
Possession Processing Services: Possession processing don not
require customer participation in the production process itself but that
services are enhanced at the time of delivery. For example Automobile
services can pick the customers at the designated time and place. For
these services, the lead role of technology creates the driver for
competitors with a technical edge. The impact is the extension in the
services for example; Dell used parts produced in different countries and
assembles them in one place.
Information-based service: These kinds of services involve collecting,
interpreting, transmitting data and information on behalf of the target
customers. The best example for this is our NEWS channels. Due to
globalization they have connected the world and the consumer base has
increased many folds.