Chapter 3Characteristics of Services

TIP Pharmacists provide services - not drugs.

Chapter 3 slides for Marketing for Pharmacists, 2nd Edition

Learning ObjectivesDefine the following terms: services, value-

added services, pure services. Identify four characteristics of services that

differentiate them from products.Discuss how the characteristics of services

make them difficult to market.Describe service categorization methods that

can be used to develop strategic insights into the provision of pharmaceutical services.

Apply marketing strategies for dealing with the unique characteristics of services.

Defining ServicesServices are performances or processes

that benefit others.They can accompany tangible product or be of

value by themselves.Services that accompany a tangible product often

called value-added services.Pure services do not accompany a tangible

product.Pharmacy is a service profession.

Services often revolve around the provision of a tangible product.

Pharmacist servicesPharmacist value-added services

enhance value of tangible products. The level of service or product

orientation of a pharmacy depends on the intangibility of the offering.

Characteristics Unique to ServicesIntangible

Actions or eventsCan’t be seen, held, or touched

HeterogeneousNo two service experiences alikeService quality depends on uncontrollable factorsActual service often not what was planned

Characteristics Unique to Services

Production and consumption inseparableServices can’t be saved, returned, or resoldOnce services are delivered, they are lostDifficult to synchronize supply and demand

Customers participate and influence serviceCustomers influence each other’s experiences

Challenges in Marketing Services

It is difficult to promote their valueChallenging to get customers to notice and

desire a product when it cannot be seen or touched

Customers have difficulty evaluating servicesIntangibility and variability makes them

difficult to assess Often invisibleDifficult to synchronize supply and demand

Classifying Pharmacist Services

Classifying helps identify new strategies for serving patients and competing.Avoids inbreeding.

TIP To market services, we

must understand them.

Tangible/Product Oriented

Mix

Intangible/Service Oriented

Mix

Low ServiceDispensing

High ServiceDispensing

DrugInformation

Durable MedicalEquipment

OTCs/Herbals

Home TestingEquipment

FIGURE 3-1Pharmacist services on a continuum of product to

service orientation

Professional or nonprofessional

ProfessionalsConsidered to have unique skills, expertise,

and training Have distinct group identity and are largely

self-regulatory Are experts in specialized fields and use

their expertise to advise and assist customers

Are less subject to price sensitivity and promoted more through word of mouth

Strategies for Marketing Services

Use tangible clues to the quality of your services Lighting, cleanliness, neatnessDress, appearance, and body language

of the pharmacist Organization of merchandise on shelves

Provide something tangible with your services

Strategies for Marketing Services

Take advantage of word-of-mouth promotional communications.Ask customers to recommend the pharmacy to others. Identify and cultivate opinion leaders.

Emphasize the professional nature of pharmacist services.Use good judgment and show professionalism.Emphasize expertise, competence, and training.

http://www.npr.org/templates/story/story.php?storyId=5675094

Marketing insurance

Can marketing work with pharmacist services?

Strategies for Marketing Services

Establish and maintain a strong image in the mind of customersThrough all elements of marketing mix.

Practice relationship marketing.Develop formal and informal

relationships.Take a long-term view of transactions.

Strategies for Marketing Services

Expand services to more than one site.

Store services if possible.Manage supply and demand.

ATM-style dispensing machines

In physicians’ officesIn pharmaciesFor refills or new

prescriptions

Self-diagnostic testsPharmacists conduct diagnostic testing

and provide information and assistance on OTC diagnostic products:Pregnancy Cholesterol Blood glucose Blood pressure AIDS Narcotics use

Point-of-purchase

Touchscreen informationSelf checkout and payment

ConclusionThe pharmacy profession needs to

look beyond current ways of practice and explore how other businesses serve customers.

Pharmacists can learn by emulating the best practices of businesses outside pharmacye.g., hospitality, retailing, and food

service industries.