Product: Packaging the Service

-Shivani Shah

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Product
 An idea, a service or a good that involves a
mix of tangible and Intangible elements,
which aims to satisfy the consumers.

Packaging a Service
 A critical element of the marketing mix.
 A way of designing and presenting its
services to the customers.
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Service Product Level

Potential Product

Augmented Product

Actual Product
level
level
Core Product

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 product level
 Core Service: Core benefit is the most important level of hierarchy. At this level, the
customer is buying the essential benefit or service. Here, marketers are the benefit
providers to customers. For example, guest of a hotel is buying rest and sleep, a
woman at a spa resort is buying comfort and luxury.
 Expected Service: At this level, the marketer needs to prepare an expected service. An
expected service comprises of all those attributes which a customer expects while
buying a service. For example, a visitor at a restaurant expects clean table, good
quality food, quick services and vibrant ambience. Mostly, all restaurants try to provide
these attributes, but customers also look for least expensive restaurant along with
these attributes.
 Augmented Service: The third level of service provides augmented service to its
customers, which is beyond their expectations. These types of services have additional
attributes and benefits which enable the customers to differentiate between the
available service and other services offered by competitors. For example, a hotel may
include fine dining and 24x7 room service, fresh flowers, a remote-control television
set, rapid check-in and express check-out, which are all extended services provided by
the hotel to build up a augmented service.
 Potential Service: The last and the fourth level is that which offers the potential
service. This type of service covers all the prospective alterations and extensions that
the service may go under in future. At this level, the companies make most of their
efforts to find out new ways to gratify their customers and offer unique services to
them. For example an innovative transformation of the traditional hotel service can be 4
like offering all-suite hotels where the occupant books a set of rooms.
Service product decision
 individual service level decision
• A)Service attribute
• 1) service quality
• 2) service feature
• B) Branding
• C)support service
product line decision
Product mix decision
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Service product mix

 The set of services offered by the service firm for sale is known as service
product mix. It can be evaluated in terms of depth, length, width and
consistency. Here, the depth signifies the number of variations offered in a
particular service line; length is the total number of service items included in a
mix. Likewise, width signifies the number of different service lines as offered by
the service firm and consistency refers to how diligently the service lines are
interrelated with the marketing aspects like perception of consumers, channels
of distribution, etc. For example, in a well-known medical centre, there are
individual managers for every service line offered by the centre like children's
services, emergency services, orthopaedics, heart, cancer, etc.
 Here, all the various product lines offered by the centre will be its
service product mix. Similarly, the service product mix of a bank may
include more than a hundred financial services.

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 Width of the Service Product Mix: The number of different product lines
as offered by the service firm is regarded as the width of the service
product mix. Depending upon the service firm, this width ca be either wide
or narrow. For example, the core service of India airlines is air travel and
holidays, which is regarded as narrow depth service product mix. While on
the other hand, the Indian Tobacco Company (ITC) offers different
variations of products and services lil cigarettes, hotel accommodations,
food groupings, etc., which regarded as a wide service product mix.

Depth of the service product line- The number of product or services

present in a particular products regarded as the depth of service
product mix. For example as had youd depth of service produce mix
as it offers economic as weto as luxurious range of hotels in its hotel
accommodation category to target and satisfy the needs and
requirements of different segments of market, i.e, people from
different strata of society.
Institute
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flower of services
 Core Services
 The service product can be
thought of as core service which is
combined along with
supplementary services. The core
service seeks to address some
specific needs of the consumer.
Examples can be transportation
from one place to another,
treatment of a particular ailment,8

professional
 Supplementary Service
 The supplementary services augment the core product
of the company by adding value and appeal and
increasing its application. They are provided as a tool
to differentiate the core product from other competing
services. It increases the value of the service for the
customer and it also allows the company to charge a
premium for the extra services that are being provided.
The applicability of core services is enhanced with the
help of supplementary services. They have a wide
range of options like information provided,
documentation facilities, advice or help, problem
resolution for the consumers,

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flower of service
 Facilitating Services:
 The facilitating services ensure that the core
 services are delivered smoothly in a timely and appropriate manner. Many times
the users or customers take these services as a given and expect that these
should be offered along with the core service that is being bought.
 For example, the after sales demonstration of a washing machine or technical
support in the form of call centre support or voice messaging service. The types
of facilitating services that are provided are as follows:
 Information: Before making a product purchase decision the customer normally
requires information about the product for evaluating and making a purchase
decision. Organisations also provide information to customers in order to
convince them or educate them about the features of the product/service that
they are offering. Many times providing information is due to statutory
requirement, like giving information related to warnings (in case of cigarettes,
tobacco, etc.) warranty, sale, changes made in product, reminders, etc.
 ii) Order Taking: The first step in the transaction is taking order.
 Many organisations like banks, small financing institutions, insurance
companies, etc., require that the customers fill in a form before the transaction
is executed. For example, filling a deposit form is necessary in banks before
depositing the money in the account. Organisations can make order entry or do
advance reservations.
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 iii) Billing: Billing is an important activity both for customers and the
company. The customers expect that the bill should be fair, accurate, and
simple in terms of readability and understandability.
 The companies can also provide periodic statements of customer's account
like weekly or monthly or the customers can also generate their own bill on
company's portal. Self-generated bills enact greater transparency in the
process.
 Payment: Once the billing is completed the next step is payment These
include activities like cash management, cheque handling, online transfers
and payment, credit systems etc. The payment mechanism should be easy
and convenient for the customers.

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 Enhancing Services: Enhancing services are generally not expected by customers but rather are
means of delighting them. The service providers can thus charge a premium or expect customer
loyalty in return. For example, voice messages services from any part of the world via internet
and facility to download and save this media. The enhancing aspect leads to service levels being
redefined and these, in turn, determine the kind of premium that can be charged by the
company. The premium is directly linked to the value addition that is done through the service
enhancement feature.
 The service features that are offered by a company lose their differentiation over the course of
time. This is because of the continuous modifications or novelty added by the competitors in the
market. This also leads to a redefinition of the enhancing features and these may then become
core features or facilitating or support features. For example, toll-free features are now very
much part of the core service because of the expectations of the customer. Similarly, many
features are also mandated by the regulatory bodies and these become a part of the core features
of the product. Some examples are as follows:
 i) Consultation: A process of consultation requires an interaction with the customers to
understand their requirements and come up with a customised solution. This also helps the
customer to introspect and come up with solutions which are most suitable to their situation on
their own.

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 Hospitality: In hospitality services, the importance is provided to both new
customers as well as existing ones. The employees are trained to understand
their guests and delight them with their services. The courtesy is a part of the
service design for both face to face as well as telephonic interactions.
 Safekeeping (Looking ale the Customer's Possessions): Many times the
customers also seek hep in safeguarding their precious belongings .
 Expectation

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branding
 According to American marketing association, brand is a name, term, sign,
symbol or design or a combination of them, which is intended to identify the
goods or services of one seller or a group of seller and differentiate them
from those of competitor
 Branding policy for service firm
 Family branding
 Individual branding
 Corporate branding

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problem in branding of service
 Intangibility
 Commoditisation
 Complexity
 Inconsistency
 Real time

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brand development strategy
 brand extension
 Multi branding
 Cannibalisation
 Co-branding
 Private generic brand

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building brand equity
 The idea behind the concept of brand equity is the
value attached to the brand which is more than value
attached to its tangible attributes.
 Therefore, brand equity comes under the category of
intangible assets of an organisation. Additional
revenues or cashflows brought by a particular brand to
the firm describe the brand equity of that brand.
Products with higher brand equity are generally priced
higher.
 drivers of brand equity
 Brand awareness
 Brand association
 Brand loyalty
 perceived quality
 Other proprietary asset
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types of new service

 1) Style Modifications: Style modifications refer to the basic form of

innovation, which usually does not involve any changes in either process
or efficiency. Yet, modification in style is frequently seen, which helps in
arousing enthusiasm, and it can also encourage the staff.
 For example, giving a new colour to the retail outlets and means of
transportation, redesigning the uniform of the employees, introducing
payments through a new bank check or introducing trivial change in the
service guidelines for the staff.
 2)Service Improvements: Service improvement is the usual form of
innovation. It involves moderate changes in the efficiency of the products
by either enhancing the basic product or adding the additional services.
For example, extending service hours of banks, adding facilities to the
hotel room, etc.
 3) Supplementary-Service Innovations:Supplementary-service innovations
include adding supplementary service to a basic service or further
enhancing the supplementary services.
 4) Process-Line Extensions: Process-line extensions are not as innovative
as process innovations. However, it involves novel ways of delivering the
products or services, which offers more comfort and a novel experience 18
for the present customers.
 Product-line Extensions: Product-line extension refers to adding
more products to the existing product lines. Those who take the
first move are considered as pioneers and the rest as followers.
These services can cater to serve broader needs of the existing
customers and/or attract new ones with varying needs.
 6) Major Process Innovations: When the existing core services of
an organisation are offered with new service processes alongwith
additional benefits, it is called process innovation. These
innovations help in adding new customers to the organisation.
 7)Major Service Innovations: Major service innovations refer to
introducing novel services in the market which have never seen
before.
 Generally, these services have new features/benefits and are
offered through new processes.

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Service Product Decisions

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Ansoff’s Product Growth Matrix
 Market Penetration
 Maintaining or increasing the market share of
existing services.
 Driving away competitors by restructuring a mature
market.
 Inducing existing customers to use the service
frequently.
 Market development
 Product/Service development
 Diversification
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Branding in Services
 Types of Branding
 Manufacturer branding
 Multi-Product Branding
 Blanket Branding
 Multi-Branding
 Licensed branding
 Combination-brand name

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 Categories for New Service
Development
 Major innovations
 New services for existing markets
 Improvement in offerings
 Minor changes

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 New Service Development
Processes
 Generation of Ideas
 Internal sources
 External sources
 Screening
 Testing the Concept
 Business analysis and Design of Service
 Test Marketing
 Infrastructure Development
 Service Launch

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New Service Development
Processes
Generation of Ideas

Screening

Testing of Concept
Business Analysis and
Design of Service

Test marketing
Infrastructure development
Service launch
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Product Life Cycle

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Thank you

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