TANGIBILIZING THE INTANGIBLE

AMRITA CHOWDHURY AVIK PAUL

SERVICES
Any act of performance that one partly can offer another that is essentially intangible and does not result in the ownership of anything;

Its production may or may not be tied to a physical product.

SERVICE MIX
Pure tangible goods Good accompanying services Hybrid

Service accompanying goods Pure service

Characteristics of services
Intangibility Cant see/touch/feel Inseparability Production/distribution / consumption simultaneous

Heterogeneity
variation in quality/ time consumed/extent of service

Perishability
Cant be stored

Therefore, challenges

.. Tangibilize the intangible

.. Increase productivity of providers who are inseparable from products .. Standardize the quality .. Optimize demand movement & supply capacity

Intangibility

Inconsistency

Services

Inventory

Inseparability

SERVICE CHARACTERISTICSINTANGIBILITY
Manage the evidence and tangibilize the intangible Create physical image of service offer and add physical evidence.

Intangibility
Marketing Implications - No patent - No ready display - Communications problem - Pricing difficulty Strategies -Tangible clues- place / people / equipment / symbols - Personal sources - Word of mouth - Image / branding

TANGIBILIZATION AND EVIDENCE CHECKLIST

Place People Equipment Communication material Symbol Price

TANGIBILIZING THE INTANGIBLE

Visualization Association Physical Representation Documentation People Involvement Promotion Branding

PROBLEMS OF INTANGIBILITY
AbstractnessE.g.- abstract concepts such as financial security, expert advice or safe transportation. GeneralityE.g.- airline seats, flight attendants, cabin service. NonsearchabilityE.g.- physical attributes, such as the appearance of a health club and equipment installed, can be checked in advance but the not the experience of working with a trainer

TANGIBILIZING THE INTANGIBLES

VISUALIZATION Hotels depicting benefits of dinning at restaurant through advertisement.

TANGIBILIZING THE INTANGIBLE

ASSOCIATION

Abhishek Bachan with Idea

Shah Rukh Khan with Airtel

TANGIBILIZING THE INTANGIBLE

PHYSICAL REPRESENTATION
Citibank credit card in gold or Platinum symbolizes a status.

Airline dress symbolizes visibility,reliability and cleaniness.

TANGIBILIZING THE INTANGIBLE

DOCUMENTATION
Citing facts and figures in support of performance.

100% placement No. 1 rank in India

Major Awards Won By Jet Air

% Of People Preferring Jet Air

TANGIBILIZING THE INTANGIBLE

PEOPLE INVOLVEMENT People are often critical element in service delivery

TANGIBILIZING THE INTANGIBLE

PROMOTION
Personal care through promotion campaigns/communication material offers life long assurance scheme.

Aviva- Kal par control

HDFC- Sir utha ke jiyo

Brochures

TANGIBILIZING THE INTANGIBLE

BRANDING Branding helps in differentiation of the service from competitors.

THANK YOU