Principles and Practice of Marketing
David Jobber
Chapter 19
Marketing Services
Characteristics of services
Intangibility
Inseparability
Service
characteristics
Variability
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Perishability
2
Characteristics of services
Intangibility
a deed, performance
or effort
 difficulty in evaluation
 use tangible cues
 benefits on nonownership

Inseparability
Service
characteristics
Variability
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Perishability
3
Characteristics of services
Inseparability
Intangibility
simultaneous production
and consumption
 importance of service
provider
 selection, training and
rewarding of staff
 avoid inter-customer
conflict

Service
characteristics
Variability
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Perishability
4
Characteristics of services
Intangibility
Inseparability
Service
characteristics
Variability
standardization difficult
 selection, training and
rewarding of staff
 evaluation systems
 use of reliable equipment

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Perishability
5
Characteristics of services
Intangibility
Inseparability
Perishability

consumption cannot be stored
Service
characteristics match supply and demand
use of part-time staff
 multi-skilling
 participation by consumers
 differential pricing
 stimulation of off-peak demand
 comfortable waiting area
 reservation system

Variability
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
6
Barriers to the matching of expected
and perceived service levels
Expected service
Barriers
misconceptions
 inadequate resources
 inadequate delivery
 exaggerated promises

Perceived service
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
7
Positioning for service
Target customer
needs
Target
segment
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Positioning Differential
advantage
Services
marketing mix
8
Target
customer needs
 accessibility
 reliability
 credibility
 security
 responsiveness
 courtesy
 competence
 confidence
 wide selection
 value
 prestige
 guarantees
 credit
 comfort
 privacy
 technical advice
 speed
Positioning for service
Target
segment
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Positioning Differential
advantage
Services
marketing mix
9
Positioning for service
Target customer
needs
Target
segment
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Positioning Differential
advantage
Services
marketing mix
 price
 promotion
 place
 product
 people
 physical evidence
 process
10
Target and halo customers
Halo
customers
Target
customers
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
11
Achieving differentiation in service
quality
High
Underperformance
Value of
criterion to
customers
Target area
Overkill
Low
Low
High
Customers’ perception of your
performance on criterion
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
12