Service Offer

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Service Offer► A service means an idea or a

good that involves a mix of tangible and intangible elements, which aims to satisfy the consumers.

► A Service package is a bundle of features and benefits relevant to specific target market.

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Potential Product

Augmented Product

Actual Product

Core Product

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Service Product LevelDifferent levels at which product offers certain benefits that satisfy the customer needs i.e.

Core level (Basic benefits)

Actual level (Design, quality, Packaging, Brand name)

Augmented level(Warranty, installation, delivery, customer service)

Potential level (customized service features like hairstyling, signatures)

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Level1:Core Benefits.

► The core benefit of any product is to satisfy the basic needs of a customer.

► For example, when a customer hires the services of a tax consultant, he expects the consultant to calculate the tax to be paid on his income.

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Potential Product

Augmented

Product

Actual Produc

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Core Produc

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Level 2 Actual Product: ► The tangible aspects like

brand name, features, design, quality etc, are attached to the services, along with service, constitute the actual service offering.

► For example, when a company hires the services of a reputed consultant like Mckinsey, the quality, some special features and design, and the brand name accompany the core service of consultation.

► The strategy at this level involves organizations branding, adding features and benefits to ensure that their product offers a differential advantage from their competitors.

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Potential Product

Augmented

Product

Actual Produc

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Core Produc

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Level 3: Augmented Product:

► The intangible aspects that support a service constitute the augmented product along with the actual product.

► These are developed around the actual and core products to satisfy the customer like: after sales service, warranty, delivery and installation so on.

► Marketers differentiates their services with the help of augmented product.

► For example, when a customer hires the services of a caterer, apart from food, the caterer takes care of decorating the dining hall, inviting the guests and serving them well.

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Potential Product

Augmented

Product

Actual Produc

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Core Produc

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Level 4: Potential Product:

► The features or benefits that can be added and which would be of value to the customers contribute to the potential product.

► This scope for adding more benefits or features, provides an opportunity for marketers to redefine their products by extending the present offerings and thus attracting new customers.

► For example, A parlour can enable customers to choose their personalized hairstyle with the help of new technology by superimposing various hairstyles on the self image of a customer.

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Potential Product

Augmented

Product

Actual Produc

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Core Produc

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Activity 1

►Choose a service company with which you are familiar and show how services marketing applies specific to a product?

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Duration 5 minutes

Thank you

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