Page 161 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes A product with such features was necessarily at the introduction stage of the life cycle. At this
stage, neither was the market/consumer mature nor was there much competition. This implied
that consumers did not really recognize the depth of their demands nor did they have much
choice in goods.
It implies that every service product should provide a basic function – which goes on to solve a
customer’s problem and satisfies his need. Without the ‘core’ product, no service offer would
exist. It is only the core product that will lure potential customers, offering benefits to them.

Example: With nearing middle age, a person is concerned about financial security post-
retirement. His problem can be solved by the following solutions: fixed deposits in reputed
banks, fixed deposits with companies, mutual and pension funds, shares of private companies
and government securities, bullion, land and other properties, etc. They all promise to offer the
same core product – security and growth; and supply the desired benefit of relieving the person’s
anxiety. Which of these offers should the potential customer go for? The final decision of the
potential customer will largely depend upon more than just the core product.
Examples of core service product attributes:
Functionality

Key benefits


Example: A tour package by SOTC/Kuoni will have guided tour of destinations as the
core service with arranged accommodation, transportation, travel formalities as key benefits.
The formal product (or the actual product): Once the first version of the product was launched
and was made available to the market, technology and manufacturing/business know-how
started permeating down to many players. This resulted in lots more competition and therefore
lots more choices for the consumers.

Example: While the internal combustion engine and motorcar were invented in Germany,
mass manufacturing and mega marketing was perfected first in USA and then in Japan, and now
South Korean carmakers like Hyundai are world-beaters.

Thus, to stay ahead of the competition, marketers started offering more features like colour,
styling, designs, brands, prices, etc., that would attract customers to their products. The intention
was that the products would be noticed and bought.

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