Services are known to be deeds, processes, and performances provided or coproduced by a person for another person. There are four types of services in the market, Service Industries and Companies where industries and companies core product is a service, Service as a Product represents a wide range of intangible products, Customer Service the service provided in support of a company’s core product, Derived Service the value of a physical good is really the service provided by that good.
Intangibility determines on whether an offering is a service, which indicates that service itself could hardly be measured but there is a technique which differentiates between products (tangible) and services (intangible) which is the Tangibility Spectrum, this technique makes it easier for a person to view the offered service as tangible or intangible product. A major reason why the services field exists is technology. Information Technology is being a major influence and is the main field of service marketing. There are some influences that technology has on the service market.
The first influence, potential for new service offering allows businesses to offer new services t the customers. For example, the newspaper companies have an online service to allow the customer arrange the sections in the newspaper according to their preferences and needs. Another influence is, new ways to deliver services it makes basic customer service functions easier to the customer. Technology changed most of the face-to-face services to the internet. For example, people that used to pay their bills by person now they can do it by a single click on the internet.
Technology also enables both customers and employees to be more effective in taking the service for the customers and for the employees to provide the service. For example, for the customers online banking where customers can enter their accounts and apply for loans. The employees they can allow the information about their service available to the customers. Another influence is extending the global reach of services, so that companies can reach potential customers in other areas in the world. The internet is a services it allows organizations to reach their target market. Either to offer their goods and services or just to post information. P. 14-17) There some differences between goods and services. Goods are tangible and services are intangible they cannot be stored, cannot be seen or felt and it’s difficult to price for example health care services. Goods are standardized and services are heterogeneous the service delivery and customer satisfaction depends on employee action and also the action or the emotion of the customer while having the services done, for example a tax accountant may provide different service experiences to two different people in the same day because the customers emotion might be different and the action of the accountant is different.
The production of the goods is separate from consumption and for the services the are simultaneous the (production and consumption), the customer participate in and influence the transaction, both customers and employees affect the outcome for example restaurants the food is delivered and is consumed at the same time. Goods are considered as nonperishable and services are perishable which means that the service cannot be stored, saved or resold or even returned for example a bad haircut cannot be returned. (P. 20-22)
Services adopted the marketing mix, which are the elements that controls the communication between the firm’s image to customers that influences customer satisfaction with the firms products, the marketing mix consists of Product, Price, Place and Promotion. There is an extended marketing mix which completes the traditional marketing mix and consists of extra elements, People all personals that has a role in service of the firm which consists of employee’s and customer, Physical Evidence is usually the environment where the customer and firm do their transaction together, Process the operating system and procedures of the service delivery. P. 24-25) In conclusion, there are many differences between goods and service. Service also uses an extended marketing mix because the basic four P’s fails to recognize a number of key factors, which marketing managers in the service sector use to design their service output. Technology has a great influence on the service field.