Intangibility In Marketing

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According to Kotler et al (2013), there are four characteristics involved in services that marketers must consider when designing marketing programmes. These include intangibility, perishability, variability and inseparability. These characteristics are vital for producing services and differ to those required for products. Intangibility is a critical feature that differentiates products and services. Kotler et al (2013 p260) states that ‘services cannot be seen, tasted, felt, heard or smelled before purchase’ and therefore can only be evaluated after the service. Intangibility can also differ when it comes to different services such as a hairdresser and a grocery store. However, intangibility can be overcome by tangible elements such as a …show more content…

The production and consumption of a service occurs simultaneously, making it impossible to produce and store a service prior to consumption. Services cannot be separated from their providers and therefore, the service is being evaluated as it is being provided. The services offered by a hairdresser includes this characteristic of inseperability as the hairdresser and consumer must be present at the time of the service. Inseperability can also be seen in grocery stores as staff and customers must be present at the same time in order for the service to be …show more content…

These include licensing, co-branding, manufacturer’s brand and a private brand. Licensing is the process whereby some companies create an instant brand by paying a fee to use the names or symbols of an already established brand, or the name of a celebrity or film character. The original owner of the brand is called the licensor while the company that pays a fee to use the brand is called the licensee. The licensor benefits due to the increased revenue beyond their normal revenue and profit stream. It also increases the overall awareness of the brand and attracts new customers to the brand. The licensee benefits because they do not have to spend the large amounts of time and money that it takes to build a reputable brand. The name or symbol that they now use has more credibility than competitors through brand association. Licensing is a very popular option as these names, symbols or film characters are already extensively known, such as Disney school supplies, toys and

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