A service is a provision of facilities or timely benefits at a particular cost

1. - Surrogate Cues -- Surrogate Cues -

2. What is a Service?

3. • An intangible product; any product offering that is essentially
intangible
• “A service is a provision of facilities or timely
benefits at a particular cost”
• In a narrower sense, service refers to quality of
customer service: the measured appropriateness of assistance
and support provided to a customer. This particular usage occurs
frequently in retailing

4. Services may be classified in various ways:
1. End User Type –--------- Consumer
Business to Business
Industrial
2. Degree of Tangibility –-- Highly Tangible
Services Linked to Tangible Goods
Highly Intangible
3. People Based –------------ High Contact
Low Contact
4. Equipment Based
5. Expertise –----------------- Professional
Non-Professional

5. What is a Product?

6. • In marketing, a product is anything that can be offered to a
market that might satisfy a want or need.
• However it is much more than just a physical object. It is the
complete bundle of benefits or satisfactions that buyers perceive
they will obtain if they purchase the product.
• It is the sum of all physical, psychological, symbolic, and
service attributes.

7. Types of products
There are several types of products:
•Consumer products: used by end users
•Industrial products: used in the production of other goods
•Convenience goods: purchased frequently and with minimal
effort
•Shopping goods: some comparison with other goods
•Specialty goods: extensive comparisons with other goods and a
lengthy information search

8. Products & Services

9. Differences Between Service And A Product
• What exactly are the characteristics of a service? How are
services different from a product?
• There are differences between service and a product from
marketing point of view. The difference is quite real because
of the characteristics of services:

10. Characteristics of a Service
1. Lack of ownership
You cannot own and store a service like you can a product. Services are used
or hired for a period of time. For example when buying a ticket to the PIA
the service lasts maybe 4 hours each way , but consumers want and expect
excellent service for that time.
2. Intangibility
You cannot hold or touch a service unlike a product. In saying that although
services are intangible the experience consumers obtain from the service
has an impact on how they will perceive it.

11. Characteristics of a Service
3. Inseparability
Services cannot be separated from the service providers. A product when
produced can be taken away from the producer. However a service is
produced at or near the point of purchase.
4. Perishibility
Services last a specific time and cannot be stored like a product for later use.
If travelling by train, coach or air the service will only last the duration of
the journey
5. Heterogeneity
It is very difficult to make each service experience identical. If travelling by
plane the service quality may differ from the first time you travelled by
that airline to the second, because the airhostess is more or less
experienced.

12. Differences Between Service And A Product
There are two other factors that separate services from hard goods:
• First, the satisfaction criterion is different. With a hard good, the
consumer can access the product (a car, washing machine, etc.) and
see/test it. A consumer will never know how good the service is until
AFTER he gets it! This can be unsettling for the consumer.
• Second, with a service, the consumer is, essentially, "in the factory,"
watching production all along the way. It is VERY important for a service
provider or consultant to carefully manage the "production process" as the
client is able to observe it and make judgments about quality and value.

13. Differences Between Service And A Product
Mass Market and Target Market
• Product companies sell to the masses through large scale advertising
efforts.. While catchy jingles during primetime TV might work for a
product company, they are simply inappropriate for service firms.
• The right marketing program, that “touches” prospects regularly, with
highly targeted messages, will increase awareness and recognition of
serivce.

16. What are Surrogate Cues?

17.  According to Webster surrogate means “in place of others”
As services are intangible so in order to make it tangible service
organizations emphasize on 3 additional P’s of marketing mix:
People
An essential ingredient to any service provision is the use of appropriate staff
and people. Consumers make judgements and deliver perceptions of the
service based on the employees they interact with.
“Jo Dikhta See Wo Bikta See”

18. Process
This means procedures, mechanism and flow of activities by which a service
is acquired. Process decisions radically affect how a service is delivered to
customers
Physical Evidence
Where is the service being delivered? Physical evidence is an essential
ingredient of the service mix, consumers will make perceptions based on
their sight of the service provision which will have an impact on the
organisations perceptual plan of the service.

19.  Just as products do, service organizations also compete with each other
and in order to gain competitive edge, they use surrogate cues, to stand out
from others, attract customers and ensure quality.
 They provide such environment and surrounding that customers prefer
them as compared to their competitors, this is based on freuds marketing
implication that external cues are more important than internal cues.
“Jo Dikhta See Wo Bikta See”

20. Augmented & Core Services

21. Actual service offering can be broken down into levels relating to customer
need, benefits and features. The three levels typically identified are:
1. Core Service – This satisfies a core need i.e. hunger, accommodation,
thirst etc
2. Expected Service – This reflects standards required or expected by
customers to satisfy their needs.
3. Augmented Service – This is the way in which service providers fine tune
the marketing mix to differentiate their service and make it stand out
from competition.
In this study we’ll be considering and giving examples of Core and Augmented
services by showing and comparing pictures of different service organizations
i.e. Restaurants, Hotel, Health, Education, Banking, Courier Service and
Leisure industries.

24. When emirates shows this add it reflects the feeling emirates
guarantees when a customer fly’s in its planes. The feeling of
excitement, happiness and security is part of the experience Emirates
Airline offers.

25. Surrogate Cues Used by Service
Organizations
Restaurants & Hotel
Industry

26. Core Service
Usmania/Karachi Broast/Café Clifton & A Chai ki Dukaan

27. Augmented Service
Karachi Marriott & Truffles at Zamzama

28. Surrogate Cues Used by Service
Organizations
Health Industry

29. Core Service
Liaquat National Hospital

30. Augmented Service
Agha Khan Hospital

31. Surrogate Cues Used by Service
Organizations
Education Industry

32. Core Service
Government Commerce College

33. Augmented Service
Indus Valley School of Art & College of Business Management

34. Surrogate Cues Used by Service
Organizations
Banking Industry

35. Core Service
Faysal Bank/Bank Al Habib & PICIC

36. Augmented Service
ABN Amro Head Office

37. Surrogate Cues Used by Service
Organizations
Courier Service Industry

38. Core Service
Pakistan Post Office

39. Augmented Service
TCS – Express Centre

40. Surrogate Cues Used by Service
Organizations
Beauty Parlors & Salons

41. Core Service
Local Hair Dresser

42. Augmented Service
Bhabi’s Beauty Parlor

43. Surrogate Cues Used by Service
Organizations
Dubai Hotel Industry

44. Augmented Service

45. Surrogate Cues Used by Service
Organizations
Dubai Leisure Industry

46. Augmented Service

47. Surrogate Cues Used by Service
Organizations
Dubai Airport

48. Augmented Service

49. As seen in the previous slides Surrogate Cues can be applied to
organizations such as restaurants, beauty salons, hotels,
leisure/theme parks, banks etc and these organizations and
service providers use their outlook, interior, environment and
décor to differentiate them selves from competitors and to
provide an augmented service so as to exceed customer
expectations and fulfill their basic need while providing them
with something extra.

50. Surrogate Cues Applied on
Individuals

51. Just like Surrogate Cues are applied to organizations they can also be
applied to individuals. For example; A person giving a presentation would
dress differently as compared to a person going for a strole in the park.
For every body who think looks don’t matter NEWS FLASH - THEY DO!
Whither you’re going for an interview or trying to impress a girl the first
and foremost thing that matters is the way you present your self and this
is where the concept of surrogate cues comes in.

54. We are all Brands and in order to be recognized we have to sell our ideas
and attributes to people every day, whither its our college professor, our
boss or client, we have to sell them what we say and make them buy it,
believe it or not it’s the only way to SURVIVE.
In order to do this we have to look presentable and sometimes even
attractive, that’s how attractive girls usually get better service at banks
and service center's as compared to guys.
To prove this we have compared individuals focusing on their dressing or
as you may call it HULYA…

55. Local Man at Abdullah Shah Ghazi Mazar & Chai Wala Phatan

56. In prim and proper..

57. Coolllllllllll……!!!.

58. Individuals providing their service!

62. So as you can see by our dressing, style and body language we
too can apply surrogate cues to ourselves and sell ourselves as
Brands to the world.
Jo Dikhta See Wo Bikta See

63. Conclusion

64. Any Questions?