Service Product and Strategies of Service Product

Service Product

The thing which cannot be seen or touched is called service product. Service product is also called non-physical product. Such product does not have physical existence. Communication service, transport service, insurance service, hotel service, restaurant service, advertisement service, counseling service etc. are the instances of service product. Such service
products become perishable. They cannot be stored. Price and quality of the service product also cannot have uniformity. Such service can be classified into two types: personal or person related services and equipment related services. The former service is based on person or person related service. Teacher’s service, doctors’ service, lawyer’s service, technical service, counseling service etc. are provided by persons. The later service is related with equipment. This type of services includes lifting machine, vending machine, television, computer, and other equipment used by a business firm.

Some organizations can be operated in order to provide profitable or business services. Bank, nursing home, private sector school, etc are profitable business services. Similarly, non-profitable services also can be operated. Government hospital, government school etc. are non-profitable services. Such services can be provided at different times. The services can be provided by giving information or knowledge to the possible customers earlier than providing services. In the course of selling services or goods, agreement can be done for counseling services, repair services, guaranty services etc. Besides, services can be provided after the sale of the goods. For example, transport cost for exchanging goods, free repair services etc. can be provided. In the same way, necessary technical services can also be provided free of charge.
Nature of Service goods
Product service becomes invisible. So, the customers cannot touch, taste, see such services. Service product becomes inseparable. It becomes difficult to divide or separate this service. All the organizations or firms cannot provide same types of services. Standard or level of service may be different according to capacity, goodwill, place and time. No organizations can keep store service; they are determined to provide service according to necessity. So, it becomes clear from different facts that the products which cannot be touched, seen, felt, and are invisible, perishable, inseparable and remain changing time to time.

Strategies of Service Product

Every business organization should maintain quality of service product. Service oriented organizations should also form proper strategies to satisfy customers’ new wants by carrying out market research and study. Generally, service oriented business organizations should adopt the following marketing strategies.

1. Price Strategy

A service company/firm should give full confidence about price to the customers of target market. Different price strategies should be adopted to keep the customers intact. Such strategies may be one price strategy, flexible pricing strategy, price competition strategy etc.

2. Product mix strategy

Products may have several lines. They may decrease or increase or improve. The customers can be kept intact/ loyal towards the services. The following strategies are included under product mix strategy:
  • Service line featuring strategy
  • Limited line strategy
  • Service mix consistency strategy
  • Broad line strategy
  • Strategy for expansion of semi line length
  • Service line modification

3. Promotion strategy

Service Company/ firm should, at first, disseminate and advertise its service products giving every information about quality and features of its product. A short description of operating methods of the product should also be made. Sample of the new products also may be provided to certain customers of the target market. The following strategies can be adopted under promotional strategies:
  • Personal selling,
  • Advertising,
  • Sales promotion activities,
  • Publicity.

4. Distribution strategy

In the course of distributing products, simple distribution method should be arranged. At first warehouse should be managed at right place for easy distribution. This may minimize distribution cost. The following strategies can be adopted for distribution.
  • Selection of suitable place,
  • Selection of suitable channel.

5. People strategy

Skill and intelligence of the people involved in business organization can help to achieve organizational goal. The manpower providing such services should be given training and motivation including different facilities. For this, the following strategies can be adopted:
  • Interactive marketing strategy: In this method, effort is made to establish warm relationship between organization and customers. It helps to maintain the loyalty and belief of the customers to the organizations.
  • Internal marketing strategy: Under this strategy, company or firm gives training, motivation, knowledge and other facilities to the manpower due to which they get involved in the campaign to provide services to meet the wants, need and interest of the customers.

6. Physical strategy

The process of providing service strategy also plays important role in marketing services. As the process also becomes different according to the nature of services, there is no certain fixed method or process. Every proper process should be applied according to the nature of services. Service providing organizations, firms, persons, or group should apply different delivery methods. Price should also be fixed by different methods.

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