Transcript Consumers Rule - Lampung University

Services and Other
Intangibles:
Marketing the Product
That Isn’t There
Chapter Objectives
• 4 characteristics of services
• service continuum
• core and augmented services,
• marketing of services
on the Internet,
• service encounter
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Chapter Objectives
• service quality to marketers:
 search qualities,
 experience qualities,
 credence qualities
• SERVQUAL
• Gap Analysis
• marketing of people, places, and ideas
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Marketing What Isn’t There
• Intangibles:
services and other experiencebased products that cannot be
touched
• Does marketing work for
intangibles?
Yes!
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What Are Services?
•
•
•
•
Services are:
acts, efforts, or performances
exchanged from producer to user
without ownership rights.
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Characteristics of Services
• Intangibility:
 can’t see, touch, or smell good service
• Perishability:
 can’t store a service for later sale or
consumption
• Capacity management:
 firms adjust their services to match supply with
demand
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Characteristics of Services (cont’d)
• Variability:
can’t standardize
the same service
performed by the same individual
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Characteristics of Services (cont’d)
• Inseparability:
can’t separate production from consumption
• Service encounter:
the interaction between the customer and the
service provider
• Disintermediation:
eliminating the interaction between
customers and salespeople
How???
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Services by: Inputs & Tangibility
Figure 10.1
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The Services Continuum
•
Figure 10.2
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The Services Continuum (cont’d)
• Goods-dominated products
• Equipment- or facility-based
services
• People-based services
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Core and Augmented Services
• Core service:
the benefit a customer gets from the
service
• Augmented service:
core service + added services that enhance
value
INDOOR CLIMBING
WALL AT
UNIVERSITY OF HOUSTON
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Services on the Internet
• Anything that can be delivered
• can be sold on the Web
 --Banking and brokerage services
 --Software
 --Music
 --Travel services
 --Dating services
 --Career-related services
 --Medical care
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The Service Encounter
• Social elements:
employees and customers
• Physical elements:
Service-scapes
other intangibles
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Providing Quality Service:
Service Quality Attributes
• Search qualities:
examine before purchase
• Experience qualities:
determine during or after consumption
• Credence qualities:
evaluate after experiencing them (difficult to do)
JET BLUE AIRLINES
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Measuring Service Quality
• SERVQUAL
• Gap analysis
• Critical incident technique
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Strategies for Developing and
Managing Services
• Act fast
 to resolve a service failure.
• Identify potential failures
• make recovery plans ahead of
time.
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Strategies for Developing and
Managing Services
• Train employees
 to listen for complaints
• empower them
 to take action.
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The Future of Services
•
•
•
•
•
New dominant logic for marketing
Changing demographics
Globalization
Technological advances
Shift to flow of information
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Marketing People
• Marketing people
Politicians
Celebrities
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Marketing Places
• Marketing places
Attempting to position a city, state, country, or
other locale
so consumers choose the brand over
competing destinations
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Marketing Ideas
• Marketing ideas
Gaining market share
for a concept, philosophy, belief,
or issue
LICKGLOBALWARMING.COM
MADD
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Then end
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Real People, Real Choices
• Universal’s Theme Parks in Orlando (Robyn
Eichenholz)
• How to plan for anticipated record-breaking
attendance at Donna Summer in concert
 Option 1: don’t make any special plans for the event
 Option 2: create a plan to accommodate extremely large crowds
 Option 3: publicize the big expected turnout to let guests know
the event might be exceptionally crowded
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Real People, Real Choices
• Universal’s Theme Parks in
Orlando (Robyn Eichenholz)
• Robyn selected a combination of
options 2 and 3 to alleviate
crowding concerns and enhance
the guest experience.
In addition to enjoying themselves in the
concert area, guests partied in the streets
and had a great evening.
UNIVERSAL STUDIOS THEME PARK
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Group Activity
• Pick a sport and define the
core service its sporting
event provides at your
university/college.
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Discussion
• Why are first impressions formed about a
service on the Internet so important?
• What can a service firm do to ensure a
favorable first impression online?
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Discussion
• Internet dating services,
while popular, may
present some dangers
for those who use them.
--Who do you think uses
Internet dating services?
--What, if anything, should
these services do to
protect their clients?
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Discussion
• Sometimes service quality
may not meet customers’
expectations.
--What problems have you
experienced with quality in the
delivery of the following
services?
A restaurant meal
An airline flight
Automobile repairs
Your college education
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Discussion
• What “service” do providers such as
MySpace.com convey?
• What core and augmented services do
they offer?
• How should users evaluate the quality of
MySpace.com’s service?
MYSPACE.COM
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Individual Activity/Discussion
• You are a customer for a
college education, a very
expensive service product.
--Develop a list of
recommendations for your
school for improving the
delivery of its service.
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Discussion
• There has been much recent
criticism about the way
politicians are marketed.
--What are some ways such
marketing has helped our
political process?
--What are some ways it might
have an adverse effect on our
government?
SENATOR HILLARY
RODHAM CLINTON
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Discussion
• Many not-for-profit and
religious organizations have
found they can become more
successful by marketing their
ideas.
--What are some ways these
organizations market
themselves that are similar
to, and different from,
marketing by for-profit
businesses?
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Marketing Plan Exercise
• Select a familiar service such as a bank,
an airline, or even your university.
• Develop strategies for creating a
servicescape that will be a positive
influence on customers’ purchase
decisions, their evaluations of service
quality, and their ultimate satisfaction with
the service.
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Marketing in Action Case:
You Make the Call
• What is the decision facing XM Satellite
Radio?
• What factors are important in
understanding this decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
recommendation?
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Keeping It Real: Fast-Forward to Next
Class Decision Time at Taco Bell
• Meet Danielle Blugrind, Director of
Consumer and Brand Insights for Taco
Bell.
• Competitors claimed they provided better
fast-food value.
• The decision: How to update the Taco Bell
value menu pricing.
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