TANGIBILIZING THE INTANGIBLE

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

Perishability 

 variation in quality/ time

Cant be stored

consumed/extent of service

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

Inseparability 

• Inventory 

SERVICE CHARACTERISTICSINTANGIBILITY • “Manage the evidence” and “tangibilize “ 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

TANGI ANGIBILI BILIZA ZATION TION AND EVID EVIDENC ENCE E CHECKLIST • • • • • •

Place People Equipment Communication material Symbol Price

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE •  Visualization •  Association • Physical Representation • Documentation • People Involvement • Promotion • Branding

PROBLEMS OF INT INTANGIBILIT ANGIBILITY Y •  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

TANGI ANGIBIL BILIZIN IZING G THE INT INTANGI ANGIBLES BLES  VISUALIZATION Hotels depicting benefits of dinning at restaurant through advertisement.

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE  ASSOCIATION

 Abhishek Bachan with Idea

Shah Rukh Khan with Airtel

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE PHYSICAL REPRESENTATION REPRESENTATION Citibank credit card in gold or Platinum symbolizes a status.

 Airline dress symbolizes  visibility,reliability  visibility,reliability and cleaniness.

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE DOCUMENTATION Citing facts and figures in support of performance.

100% placement No. 1 rank in India

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE PEOPLE INVOLVEMENT People are often critical element in service delivery 

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE PROMOTION Personal care through promotion campaigns/communication material offers life long assurance scheme.

 Aviva- “   Kal  par  par control” 

HDFC- “Sir utha “Sir utha ke jiyo”  jiyo” 

Brochures

TANGI ANGIBIL BILIZIN IZING G THE THE INT INTANGI ANGIBLE BLE BRANDING Branding helps in differentiation of the service from competitors.

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