Transcript SERVICES NEED MARKETING

1
CHAPTER
11
SERVICES
NEED MARKETING
11-1 What Are Services?
11-2 Classifying Types and Evaluating
Quality
11-3 Developing a Service Marketing Mix
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
2
©BRITISH AIRWAYS
Focus Questions:
 After reviewing the
advertisement, who do
you think British Airways is
targeting?
 How is it promoting its
services?
 Do you think the visual
image used in the
advertisement is effective?
Why or why not?
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
3
11-1
WHAT ARE SERVICES?
GOALS
Explain the growing importance of
services to the U.S. economy.
Describe four important qualities of
services that are not shared by
products.
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
4
Growth and Importance
of Service Industries
Prosperity
Automation
Complexity
Foreign competition
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
5
Fastest-Growing Industries
10-Year
Growth Rate
Number of
Jobs Added
Education and Health Services
30.6%
5.19 million
Professional and Business Services
27.8%
4.57 million
Leisure and Hospitality
17.7%
2.22 million
Information Services
11.6%
0.36 million
Financial Activities
10.5%
0.85 million
Trade, Transportation, Utilities
10.3%
2.62 million
Industry
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
6
Unique Qualities of Services
Intangible
Inseparable
Perishable
Heterogeneous
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
7
11-2 CLASSIFYING TYPES AND
EVALUATING QUALITY
GOALS
Describe the various ways marketers
categorize service businesses in order
to develop effective marketing mixes.
Identify the three types of service
standards that are used to evaluate
service quality.
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
8
Service Organization
Classifications
Type of market
Goals of the organization
Labor intensiveness
Customer contact
Level of skill
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
9
Evaluating Service Quality
Competition
Performance standards
Customer satisfaction
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
10
11-3
DEVELOPING A SERVICE
MARKETING MIX
GOALS
Explain how businesses plan and
promote services.
Describe the importance of pricing and
distribution of services.
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
11
Service Planning and Promotion
Service planning
Promotion
 Endorsements
 Word of mouth
 Personal selling
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning
12
Price and Distribution
Price
Distribution
Chapter 11
MARKETING
© 2009 South-Western, Cengage Learning