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Chapter 10Module 1
Chapter 10Services and intangible market offerings
Chapter Objectives1. Describe the characteristics of services and the
ways marketers classify services.2. Appreciate the importance of service quality to
marketers.3. Explain the marketing of people, places, and
ideas.
Suppose an airline was considering eliminating pilot uniforms (in favor of suits).
As a member of the airline’s marketing department, would you support or object to eliminating uniforms?
Services &
Intangibles
All services are intangibles, but not all
intangibles are services.
Both services and other intangibles can
be branded and marketed.
ConcertsHair cuts
Government Museums
ZooCar washNail salonChurch
Health careLegal
What’s a service?A service: intangible products (acts of effort) that are exchanged directly from the producer to the receiver (purchaser).
The service provider is inseparable from the service, making the service encounter a primary component.
The service sector is growing because it is more cost effective (Outsourcing).
intangibiliintangibilityty
perishabiliperishabilityty
variabilityvariability inseparabilinseparabilityity
We cannot see, touch, or smell it.
We cannot store a service for later use. The service outcome can never be exactly replicated.
End Module 1
Chapter 10Module 2
Is the customer or his possession the recipient?
Augmented Augmented ServiceService
The service continuumMost products: are a combination of tangible and
intangible market offerings, i.e., they are both product and service.
Core Core serviceservice
Housecleaning
Includes deep-steam cleaning of carpets Type of restaurant?
Pause: Short Activity
List and describe the core and augmented services of each of the following:•A personal trainer•An accountant•A drycleaner•A public swimming pool• Your personal banker
The Service EncounterA service encounter: is especially important for offerings high on the service continuum.... Remember, the service provider is inseparable from the service itself!A service encounter: is influenced by both the person & the physical surroundings. Ever been in a dirty waiting room? This environment is called the servicescape, and includes all components of the environment: parking lot, waiting room, restroom, music, lighting, etc...
Servicescapes: can have positive influences on purchase decisions, upselling, service evaluations, satisfaction with service delivery, repeat business, word of mouth, etc....
Pause: Short TaskAssume you are a marketing consultant for a local bank. There is a great deal of local competition in the banking industry.
List and describe the challenges the bank faces as a service provider.
Then, come up with one tactic to address each challenge to give your bank a competitive advantage or point of differentiation.
intangibiliintangibilityty
perishabiliperishabilityty
variabilityvariability inseparabiinseparabilitylity
Measure Service Quality
SERVQUAL: A survey instrument that measures consumers’ perceptions of service quality in terms of: Tangibles - facilities, servicescapeReliability - received what was promised?Responsiveness - willingness to help customersAssurance - knowledge and courtesyEmpathy - caring and attention given
GAP ANALYSIS: measuring the difference between expectations and actual experiences in the service encounter.
CRITICAL INCIDENCE: An analysis of specific complaints that result in dissatisfaction.
SERVQUAL
On a 7-pt scale - (disagree-agree)
1. ACME has up-to-date equipment2. ACME employees are well dressed and neat.3. ACME is dependable4. ACME provides services at the time it promises to do so.5. ACME is dependable6. You can trust ACME employees7. ACME employees are polite., etc...
End Module 2
Chapter 10 Module 3
Marketing the Intangibleex: marketing places
Marketing the Intangibleex: marketing ideas
Service RecoveryResolving Customer Dissatisfaction: Is a strategic issue.
Firms must take quick action to resolve the problem.
Who is good at service recovery?
Service Future
The service industry: - Is the largest employer of any other type of industry. - Is the fastest growing as services are going global and populations are aging.- Is being expanded due to technological capabilities.
End Chapter 10