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Marketing Mix for services and non-profit marketing (Special…
Marketing Mix for services and non-profit marketing
Special characteristics of services
Intangibility
They are not physical offerings, although they may contain physical elements
Inseparability
Production and consumption are simultaneous
Variability
Service quality may vary depending on the person who performs the service
Perishability
Service is provided at a point in time and cannot be stored in the same way that physical goods can
People
Play a key role in not only serving the customer but in representing the brand
Rather than trying to interest customers in the top-of-the-range options to provide a higher anchor price (a common strategy), it is recommended to adopt a tailored sales approach to customers budgets.
Relationship quality is paramount
Processes
Customers are described as co-producers
Some companies make a feature of the process (eg subway showing you them making the sandwich)
Not all customers want to be co-producers and would prefer it all done for them behind the scenes (eg opting to go into a bank to talk rather than do online banking)
Processes are also important for maintaining the efficiency of services
Physical evidence
Consumers will assess the atmosphere, quality and décor of any service setting, such as the physical quality of a restaurant
Physical evidence is important in representing a brand and provides tangible cues to support an offering
The physical environment that accompanies a service environment also offers the opportunity for differentiation and adding value. For example free refreshments in car show rooms or banks