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The Five Categories of Service Offering according to Kotler Essay Example

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The Five Categories of Service Offering according to Kotler

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The Five Categories of Service Offering according to Kotler. The other group that can be included is services, which though they are intangible, may at times be durable. For instance, the repairs, surgery, helping pregnant mothers deliver and feeding the sick are considered to be durable services that sometimes recur in health setting (Kotler, 1967). Thus, it can be concluded that the understanding of durability and tangibility of products and services in health setting is very essential as it helps professionals to differentiate the nature of products or services that they offer.Cheap-Value Strategy- This is a pricing strategy where products and services are fixed prices depending on the value that the products or services add to the consumers. This is applied in situations where the value of the products or services is less to the consumer;

hence the producers strategize at making the price less (Szabo, 2004).Out-of-Step Strategy- This is applied in scenarios where the demand for a product aligns with the supply and the sellers are forced to sell their products at the market price suitable to other producers.Exploitative Strategy- This is a price-quality strategy that applies most in monopoly businesses, where an organization is the sole producer and distributor of the product. Irrespective of the price that they fix or the quality of the products, they are sure that people will purchase (Kotler & Sidney, 1969).Good value- This is a price offered to products whose quality is good, and the producers are after making more sales. They are therefore, forced to place their products at affordable prices due to the quality and demand of the products from reliable and potential consumers.Premium strategy-This is common when the suppliers are looking upon raising the prices in future. They tend to convince the buyers to like the product, and use them with the perception that even after raising the price, the product will still be purchased (Kotler, 1967).Super Value strategy- This is a pricing strategy where the price of a commodity raises with respect to the quality of the product. Increase in quality consequently leads to increase in price (Vanderwater, 2004).High-Value Strategy- Products that are of high value such as the precious products and medication; the products that people cannot live without, are mostly sold at high prices as compared to those that are used to satisfy tertiary. The Five Categories of Service Offering according to Kotler.

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References

Balow, J. (2004). Generic manufacturer Mylann Laboratories to buy brand-name drug maker. Knight Ridder Tribune Business News, p.1. Retrieved on 28th January 2015 from: ABI/INFORM Compete database

Gombeski, Jr., W., Kantor, D., & Klein, R. (2002). Physician-based brand strategies. Marketing Health Services, 22 (4), 28-34. Retrieved on 28th January 2015 from: ABI/INFORM Complete database

Kirmani, A., Sood, S. & Bridges, S. (1999). The ownership effect in consumer responses to brand line stretches. Journal of Marketing, 63(1), 88-101. Retrieved on 28th January 2015 from: ABI/INFORM Complete database

Kotler, P. & Sidney, J. L. (1969). Broadening the Concept of Marketing. Journal of Marketing, Vol. 33, Issue 1, pp.10-15

Kotler, P. (1967). Marketing Management: Analysis, Planning and Control. Englewood Cliffs, N.J., Prentice-Hall.

Kotler, P. (2003). Marketing Management. Upper Saddle River, New Jersey: Prentice Hall, Chs. 14-16, pp. 406-502.

Painter, R. (2004). Medicare payment in 2005: Whats up and whats down. Urology Times, 32 (13), 38. Retrieved on 28th January 2015 from: ABI/INFORM Complete database

Szabo, J. (2004). Cash-only practices: Going back to the future. Physicians Financial News, 22(8), 16/ Retrieved on 28th January 2015 from: ABI/INFORM Complete database.

Van Vliet, V. (2012). Five product levels (Kotler)). Retrieved on 28th January 2015 from: http://www.toolshero.com/five-product-levels-kotler

Vanderwater, J. (2004). Rising cost threaten employment-based insurance in America. Knight Ridder Tribune Business News, p. 1. Retrieved on 28th January 2015 from: ABI/INFORM Complete database.

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