Scope, concepts and 4I's of Service Marketing

Scope, concepts and 4I's of Service Good and Service Categorization

Introduction

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. In fact, the growth of the service sector has long been considered as indicative of a country’s economic progress.

Economic history tells us that all developing nations have invariably experienced a shift from agriculture to industry and then to the service sector as the main stay of the economy.

This shift has also brought about a change in the definition of goods and services themselves. 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.

Definitions

"Service is an identifiable, intangible activity that is the main object of a transaction designed to provide want of satisfaction to the customers"

Service include " All economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced and provides added value in forms (such as convenience, amusement, timeliness, comfort or health) that are essentially concerns of its first purchaser.

The American marketing association defines services are " Service are activities, benefits or satisfaction which are offered for sale and provided in connection with the sale of goods".

Service are "Economic activities that produce time, place, form and psychological utilities".

Concept

The core offerings of hospitals, hotels, banks, public utility services transportation services etc.  comprise primarily deeds and actions performed for the customers, such action or deeds or performance are referred to as services.

V.A.Zeithaml. describes service as "Deeds processes and performances".

 4I's of Service Good and Service Categorization



Intangibility
Services are inherently experiential.  They will typically involve some sort of accompanying product, also known as the facilitating good; however, the primary value to the consumer is intangible

Inconsistency
Service delivery is prone to inconsistency.  The most successful service brands will often invest heavily in training and quality control programs in an attempt to reduce inconsistency.

Inseparability
In addition to being intangible, a service is also inherently inseparable from the service delivery vehicle.  It involves a necessary ‘touch point’ with the customer that is necessarily linked to the service itself.

Inventory
Although services may be linked to a facilitating good, inventory associated with a service is perishable.