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TANGIBILIZING THE INTANGIBLE
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         • Inventory




                Inseparability
SERVICE CHARACTERISTICS-
INTANGIBILITY

• “Manage the evidence” and “tangibilize the
  intangible”

• Create physical image of service offer and add
  physical evidence.
Intangibility
Marketing Implications        Strategies

  - No patent            -Tangible clues- place /
  - No ready display       people / equipment /
  - Communications         symbols
     problem               - Personal sources
  - Pricing difficulty     - Word of mouth
                           - Image / branding
TANGIBILIZATION AND EVIDENCE
CHECKLIST

•   Place
•   People
•   Equipment
•   Communication material
•   Symbol
•   Price
TANGIBILIZING THE INTANGIBLE
•   Visualization
•   Association
•   Physical Representation
•   Documentation
•   People Involvement
•   Promotion
•   Branding
PROBLEMS OF INTANGIBILITY
• Abstractness-
  E.g.- abstract concepts such as financial
  security, expert advice or safe transportation.
• Generality-
  E.g.- airline seats, flight attendants, cabin
  service.
• Nonsearchability-
  E.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
TANGIBILIZING THE INTANGIBLES
VISUALIZATION
Hotels depicting benefits of dinning at restaurant
through advertisement.
TANGIBILIZING THE INTANGIBLE
ASSOCIATION




 Abhishek Bachan with Idea   Shah Rukh Khan with Airtel
TANGIBILIZING THE INTANGIBLE
PHYSICAL REPRESENTATION

Citibank credit card in gold
or Platinum symbolizes a status.




Airline dress symbolizes
visibility,reliability and
cleaniness.
TANGIBILIZING THE INTANGIBLE
DOCUMENTATION
Citing facts and figures in support of performance.




       100% placement
      No. 1 rank in India         Major Awards Won By Jet Air

                                   % Of People Preferring Jet Air
TANGIBILIZING THE INTANGIBLE
PEOPLE INVOLVEMENT
People are often critical element in service delivery
TANGIBILIZING THE INTANGIBLE
   PROMOTION
   Personal care through promotion campaigns/communication material
   offers life long assurance scheme.




                           HDFC- “Sir utha ke jiyo”   Brochures
Aviva- “Kal par control”
TANGIBILIZING THE INTANGIBLE
BRANDING
Branding helps in differentiation of the service
from competitors.
THANK YOU

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