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Home » Management Homework Help » Marketing Management Help » Services Differentiation
Services Differentiation
How can services which are largely intangible and variable be differentiated?

As with products, service marketers can develop a differentiated service offering in the following different ways:

1. Product offering can include innovative features. The customer’s minimum expectations are the core service elements. To this the marketer can offer optional secondary service features which enhance the core elements. In the hotel industry, hotels offer special facilities for business travelers like fax machines, secretarial services and computers. Likewise to passengers transiting through the city they offer check in and check out as per the arrival and departure schedules of major airlines. Many companies use the internet to offer value added services as secondary service features.

2. People can become an important service differentiator. The frontline service personnel’s understanding, responsiveness, willingness to assist customers, courtesy and empathy shown towards customers are what differentiate the service offering. Such service organisations put a lot of emphasis on hiring the right people, training, motivating and developing the employees. Such best practices are difficult to imitate and offer a very sustainable point of differentiation.

3. Faster service delivery and timeliness of response can be a service differentiator. However service companies have to ensure that the reliability of the service is not lay down clear service standards and quantify the exact parameters of timely service. To achieve each standard, detailed processes and systems have to put into to help employees achieve the service standards consistently. Dominos Pizza differentiates it’s offering on the basis of this guaranteed delivery within 30 minutes or else the customer gets the Pizza free. To achieve this service standard, a lot of thought has to go into selection of outlet sites, menu offerings, processes for preparing the pizza and so on.

4. Image differentiation through building a reputation as a trusted and dependable service is a powerful differentiator especially in the service business. Several hospitals have achieved mega brand reputation for being the best in their field such as Manipal Hospital, Escorts Heart centre or Apollo Hospital. These hospitals could open clinics in other cities and attract patients on the basis of their brand reputation.

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