SUPPLEMENTAL “SERVICES”PRODUCT ELEMENT
FRAMEWORKS
FOR
MKTG 490
MKTG
Designed byAmy McGuire, B-books, Ltd.
Prepared byDeborah Baker, Texas Christian University
Lamb, Hair, McDaniel 2007-2008 Services
and Nonprofit Organization Marketing
11
CHAPTER
Learning Outcomes
Discuss the importance of services to the economy
Discuss the differences between services and goods
Describe the components of service quality and the gap model of service quality
LO1
LO2
LO3
Learning Outcomes
Develop marketing mixes for services
Discuss relationship marketing in services
Explain internal marketing in services
Discuss global issues in services marketing
Describe nonprofit organization marketing
LO6
LO5
LO7
LO8
LO4
Discuss the importance of services to the
economy
The Importance of ServicesThe Importance of ServicesLO1
LO1
Service
The result of applying human or mechanical efforts to people or objects.
Service
REVIEW LEARNING OUTCOME
LO1
The Importance of Services
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81%
Services as a percentage of GDP
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81%
Services as a percentage of employment
ServicesDeedPerformanceEffort
Discuss the differences between services and goods
How Services Differ from How Services Differ from GoodsGoodsLO2
How Services Differ from Goods
LO2
Intangible
Inseparable
Heterogeneous
Perishable
How Services Differ from Goods
LO2
Intangibility
Search Qualities
Experience Qualities
Credence Qualities
Online
http://www.webmd.com
Describe the components
of service quality and the gap model of service quality
Service QualityService QualityLO3
Components of Service QualityLO3
Tangibles The physical evidence of a service.
Empathy Caring, individualized attention to customers.
Assurance The knowledge and courtesyof employees.
Responsiveness The ability to provideprompt service.
Reliability The ability to perform the service right the first time.
The Gap Model of Service QualityLO3
Biz Flix
LO3Intolerable Cruelty
REVIEW LEARNING OUTCOME
LO3
Service Quality
Develop marketing mixes for services
Marketing Mixes for ServicesMarketing Mixes for ServicesLO4
LO4
Product Strategies for Services
ServiceMix
Standardizationor
Customization
Core andSupplementaryProcess
LO4
Service as a Process
Mental StimulusProcessing
People Processing
PossessionProcessing
InformationProcessing
LO4
The Service Factory
Possession processing
Mental-stimulus processing
LO4
The Service Offering
CoreService
SupplementaryService
The most basic benefit the consumer is buying.
A group of services that supportor enhance the core service.
LO4
Core and Supplementary Services for FedEx
Overnight Overnight transportation transportation and delivery of and delivery of
packagespackages
Problem solving
Billing statements
Tracing Documentation
Order taking
Supplies
Pickup
Advice andinformation
LO4
Customization/Standardization
A strategy that uses technology to deliver customized services on a mass basis.
MassCustomization
LO4
The Service Mix
Determine what new services to introduce
Determine target market
Decide what existing services to maintain and to eliminate
LO4
Place (Distribution) Strategy
Scheduling
Location
Direct or indirect distribution
Number of outlets
Convenience
LO4
Promotion Strategy
Stress tangible cues
Use personal information sources
Create a strong organizational image
Engage in postpurchase communication
LO4
Price Strategy
Pricing Challenges for Services
Define the unit of service consumption
Determine if multiple elements are “bundled” or priced separately
LO4
Pricing ObjectivesRevenue-OrientedPricing
Operations-OrientedPricing
Patronage-OrientedPricing
Maximize the surplus of income over costs
Match supply and demand by varying price
Maximize the number of customers by varying price
http://www.etrade.comhttp://www.tdameritrade.comhttp://www.schwab.com
Online
REVIEW LEARNING OUTCOME
LO4
Marketing Mixes for Services
PLACE PROMOTION PRICEPRODUCT
= SERVICE
Process
Core and Supplementary
Mass Customization
Standardization
Number ofoutlets
Direct
Indirect
Location
Tangiblecues
Personalinformation
Strong image
Post-purchasecommunication
Revenueoriented
Operationsoriented
Patronageoriented
Discuss relationship marketing in services
Relationship MarketingRelationship MarketingLO5
REVIEW LEARNING OUTCOME
LO5
Relationship Marketing in Services
2Social
Financial1
Financial
3Structural
SocialFinancial
Pricing incentives
Design services to meet customer needs
Creating value-added services not available elsewhere
Explain internal marketing in services
Internal Marketing in Internal Marketing in Service FirmsService FirmsLO6
Internal MarketingLO6
Internal Marketing Treating employees
as customers and developing systems and benefits that satisfy their needs.
REVIEW LEARNING OUTCOME
LO6
Internal Marketing in Services
Discuss global issues
in services marketing
Global Issues in Global Issues in Services MarketingServices MarketingLO7
REVIEW LEARNING OUTCOME
LO7
Global Issues in Services Marketing
United States is world’s largest exporter of services.
U.S.A.
Describe nonprofit organization
marketing
Nonprofit Organization Nonprofit Organization MarketingMarketingLO8
Nonprofit Organization Marketing
LO8
NonprofitOrganization
MarketingAn organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Nonprofit Organization Marketing
LO8
Government
Museums
Theaters
Schools
Churches
Nonprofit Organization Marketing
LO8
Market intangible products
Production requires customer’s presence
Services vary greatly
Services cannot be stored
Shared Characteristics
with Service
Organizations
Nonprofit Organization Marketing
LO8
Identify desired customers
Specify objectives
Develop, manage, eliminate programs and services
Decide on prices
Schedule events or programs
Communicate their availability
Unique Aspects of Nonprofit Organization Marketing Strategies
LO8
Setting of marketing objectives
Selection of target markets
Development of marketing mixes
Objectives
LO8
Provide services that respond to the wants of :
UsersPayersDonorsPoliticians
Appointed officialsMediaGeneral Public
Target Markets
LO8
Apathetic or strongly opposed
targets
Pressure to adopt undifferentiated segmentation
Complementary positioning
Unique Issues of Nonprofit
Organizations
Product Decisions
LO8
Distinctions between Business and Nonprofit Organizations
Benefit complexity
Weak or indirect benefit strength
Low involvement
Promotion Decisions
LO8
Sales promotion activities
Public service advertising
Professional volunteers
Online
http://www.adcouncil.com
Pricing Decisions
LO8 Below-cost pricing
Separation betweenpayers and users
Indirect payment
Nonfinancial prices
Pricing objectives
Characteristics Distinguishing
Pricing Decisionsof Nonprofit
Organizations
REVIEW LEARNING OUTCOME
LO8
Nonprofit Organization Marketing
TARGET• Apathetic or
strongly opposed• Undifferentiated
segmentation• Complementary
positioning
PRODUCT
PROMOTION
PLACE
PRICE
Professional
volunteersSales
Public ServiceAdvertising
Involvement
Benefitstrength
Benefitcomplexity
Specialfacilities
Nonfinancial
Indirect payment
Separation
Below costpricing