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11-2
Services Marketing
Chapter 11Chapter 11Chapter 11Chapter 11
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
11-3
Chapter GoalsChapter GoalsChapter GoalsChapter Goals
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
• Importance of services in advanced economies• Nonbusiness services marketing• Characteristics of services and their marketing
implications• Design of a services marketing mix• Managing service quality• Productivity and performance challenges of service
marketers
11-4
Definition of ServicesDefinition of Services
Identifiable, intangible activities
that are the main objectof a transaction
designed to provide want-satisfaction to customers
Identifiable, intangible activities
that are the main objectof a transaction
designed to provide want-satisfaction to customers
Supplementary Services
support the sales of a good or service
Supplementary Services
support the sales of a good or service
11-7
Characteristics of ServicesCharacteristics of Services
IntangibilityIntangibility PerishabilityPerishability
HeterogeneityHeterogeneityInseparabilityInseparability
11-8
For Profit
Services CustomerServices Customer
Target MarketTarget Market
NonbusinessClientClientProviderProvider
11-9
Selecting Target MarketsSelecting Target Markets
Buying Behavior
GeographicDemographic
MarketSegmentation
11-10
Product PlanningProduct Planning
ServicesOffering
Product-MixStrategies
Product Features
DifferentiateDifferentiate Expandthe lineExpandthe line
Contractthe mix
Contractthe mix
Alter the service
Alter the service
Manage thelife cycle
Manage thelife cycle
Tangible object
Tangible object
Memorableslogan
Memorableslogan
Distinctivecolor schemeDistinctive
color scheme
CREATE ABRAND
CREATE ABRAND
11-11
Pricing StructurePricing Structure
Pricing for
Profit Firms
Pricing for
Nonprofits
MarkupMarkup
PerishabilityPerishability
Supply-DemandSupply-Demand
Less importantLess important
Client chargesdo not cover costs
Client chargesdo not cover costs
Willing to payWilling to payContributions set
by providerContributions set
by provider
11-12
Pricing StrategiesPricing Strategies
Discounts
Flexible price
One price
Markup
Non-price competition
Segmentation and price
Intense price competition
Three levels of price competition
11-13
Location
Distribution SystemDistribution System
Channelsof
Distribution
InseparabilityShortsimple
HeterogeneityNumber
ofmiddlemen
Convenience
Accessibility
DistributionFacilities
11-14
Promotional ProgramPromotional Program
AdvertisingAdvertising
PersonalSelling
Customer-contactpersonnel
PersonalSelling
Customer-contactpersonnel
SalesPromotion
SalesPromotion
Inseparability ServiceEncounterService
Encounter
Cause-relatedCause-related
IncentivesIncentives
11-15
Managing Service QualityManaging Service Quality
Compared toExpectations
of the customerHow work was
performed
Quality is defined by the customer
Helpformulate
expectations
Measureexpectation
level
Service qualityat or aboveexpectation
11-16
Future of Services MarketingFuture of Services Marketing
Impact of
Technology
IncreaseProductivity
PerformanceMeasurement
Prospectsfor
Growth
11-17
Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
• Services
• For-profit services firms
• Not-for-profit services organizations
• Nonprofit organizations
• Intangibility
• Inseparability
• Heterogeneity
• Perishability
• Provider market
• Client market
• Service encounter
• Service quality