Saturday 14 September 2013

Service and Services Marketing

The world economy nowadays is increasingly characterized as a service economy. This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries.

No longer are goods considered separate from services. Rather, services now increasingly represent an integral part of the product and this interconnectedness of goods and services is represented on a goods-services continuum.

The American Marketing Association defines services as - “Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods.”
The defining characteristics of a service are:

  • Intangibility: Services are intangible and do not have a physical existence. Hence services cannot be touched, held, tasted or smelt. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering.
  • Heterogeneity/Variability: Given the very nature of services, each service offering is unique and cannot be exactly repeated even by the same service provider. While products can be mass produced and be homogenous the same is not true of services. In the case of Kissan Jam, each has different way of having it, some might spread it on a roti while another might spread it on a biscuit and thus it characterizes Variability.
  • Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer. eg: A customer dissatisfied with the services of a barber cannot return the service of the haircut that was rendered to him. At the most he may decide not to visit that particular barber in the future. In the case of Kissan Jam, if the customer doesn't like it, probably once the packet opened cannot return it back to the shop-keeper, probably from the next time would not purchase this brand


The above was the generic view on services. But in my case of Kissan Jam, the service isn't much, its just about delivering the right flavour and consistently maintaining it.


Also, if we see the jar of Kissan Jam, there is usually a mail id or phone number given, in case there is any problem or spoilage, we can contact that. This is a kind of service. 

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