Transcript SUPPLEMENTAL “SERVICES” PRODUCT ELEMENT

SUPPLEMENTAL “SERVICES”
PRODUCT ELEMENT
FRAMEWORKS
FOR
MKTG 490
Lamb, Hair, McDaniel
MKTG2007-2008
11
CHAPTER
Designed by
Amy McGuire, B-books, Ltd.
Services and
Nonprofit
Organization
Marketing
Prepared by
Deborah Baker, Texas Christian University
Learning
Outcomes
LO1
LO2
LO3
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
Learning
Outcomes
LO4
LO5 Develop marketing mixes for
services
LO6
LO7 Discuss relationship marketing in
services
LO8
Explain internal marketing in
services
1
LO
The Importance of Services
Discuss the
importance of
services to the
economy
Service
Service
LO1
The result of
applying human
or mechanical
efforts to people
or objects.
LO1
REVIEW LEARNING
OUTCOME
The Importance of Services
Services
Deed
Performance
Effort
Services as a percentage of GDP
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
81%
Services as a percentage of employment
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
81%
LO2
How Services Differ from
Goods
Discuss the
differences between
services and goods
How Services Differ from
Goods
Intangible
Inseparable
Heterogeneous
Perishable
LO2
How Services Differ from
Goods
Intangibility
 Search Qualities
 Experience
Qualities
 Credence
LO2 Qualities
http://www.webmd.com
Online
LO3
Service Quality
Describe the
components
of service quality
and the gap model
of service quality
LO3
Components of Service
Quality
Reliability
The ability to perform the
service right the first time.
Responsiveness
The ability to provide
prompt service.
Assurance
The knowledge and courtesy
of employees.
Empathy
Caring, individualized
attention to customers.
Tangibles
The physical evidence
of a service.
LO3
The Gap Model of
Service Quality
Biz Flix
LO3
Intolerable
Cruelty
LO3
REVIEW LEARNING
OUTCOME
Service Quality
4
LO
Marketing Mixes for Services
Develop marketing
mixes for services
Product Strategies for
Services
LO4
Process
Core and
Supplementary
Standardization
or
Customization
Service
Mix
Service as a Process
People
Processing
Possession
Processing
Mental Stimulus
Processing
Information
Processing
LO4
The Service Factory
Possession processing
LO4
Mental-stimulus
processing
The Service Offering
Core
Service
The most basic benefit the
consumer is buying.
Supplementary
Service
A group of services that support
or enhance the core service.
LO4
Core and Supplementary
Services for FedEx
Problem
solving
Billing
statements
Tracing
LO4
Advice and
information
Overnight
transportation
and delivery of
packages
Documentation
Order taking
Supplies
Pickup
Customization/Standardizati
on
Mass
Customization
LO4
A strategy that
uses technology
to deliver
customized
services on a
mass basis.
The Service Mix
 Determine what new services to
introduce
 Determine target market
 Decide what existing services to
maintain
and
to
eliminate
4
LO
Place (Distribution) Strategy
Convenience
Number of outlets
Direct or indirect
distribution
Location
LO4
Scheduling
Promotion Strategy
Stress tangible cues
Use personal information
sources
Create a strong
organizational image
LO4
Engage in postpurchase
communication
Price Strategy
Pricing Challenges for Services
 Define the unit of service
consumption
 Determine if multiple elements
are “bundled” or priced
LO4
separately
Pricing Objectives
Revenue-Oriented
Pricing
Maximize the surplus of income
over costs
Operations-Oriented
Pricing
Match supply and demand by
varying price
Patronage-Oriented
Pricing
Maximize the number of
customers by varying price
LO4
http://www.etrade.com
http://www.tdameritrade.com
http://www.schwab.com
Online
REVIEW LEARNING
OUTCOME
LO4
Marketing Mixes for Services
PRODUCT
=
SERVICE
PLACE
PROMOTION
PRICE
Process
Number of
outlets
Tangible
cues
Revenue
oriented
Core and
Supplementary
Direct
Personal
information
Operations
oriented
Mass
Customization
Indirect
Strong image
Patronage
oriented
Standardization
Location
Post-purchase
communication
LO5
Relationship Marketing
Discuss relationship
marketing in services
LO5
REVIEW LEARNING
OUTCOME
Relationship Marketing in Services
3
Structural
Social
Financial
Creating value-added
services not available
elsewhere
2
Social
Financial
Design services to
meet customer needs
1
Financial
Pricing incentives
LO6
Internal Marketing in
Service Firms
Explain internal
marketing in services
LO6
Internal Marketing
Internal
Marketing
Treating employees
as customers and
developing systems
and benefits that
satisfy their needs.
LO6
REVIEW LEARNING
OUTCOME
Internal Marketing in Services
LO7
Global Issues in
Services Marketing
Discuss global issues
in services marketing
LO7
REVIEW LEARNING
OUTCOME
Global Issues in Services
Marketing
U.S.A.
United States
is world’s largest
exporter of services.
LO8
Nonprofit Organization
Marketing
Describe nonprofit
organization
marketing
Nonprofit Organization
Marketing
Nonprofit
Organization
Marketing
LO8
An organization that
exists to achieve
some goal other than
the usual business
goals of profit,
market share, or
return on investment.
Nonprofit Organization
Marketing
 Government
 Museums
 Theaters
LO8
 Schools
 Churches
Nonprofit Organization
Marketing
Market intangible products
Shared
Characteristics
with
Service
Organizations
LO8
Production requires
customer’s presence
Services vary greatly
Services cannot be stored
Nonprofit Organization
Marketing
Identify desired customers
Specify objectives
Develop, manage, eliminate programs and services
Decide on prices
Schedule events or programs
Communicate their availability
LO8
Unique Aspects of Nonprofit
Organization Marketing Strategies
 Setting of marketing
objectives
 Selection of target markets
 Development of marketing
mixes
LO8
Objectives
Provide services that respond to the wants of :
 Users
 Payers
 Appointed
officials
 Donors
 Media
 Politicians
LO8
 General Public
Target Markets
Apathetic or
strongly opposed
targets
Pressure to adopt
undifferentiated
segmentation
LO8
Complementary
positioning
Unique Issues
of Nonprofit
Organizations
Product Decisions
Distinctions between
Business and Nonprofit Organizations
 Benefit complexity
 Weak or indirect benefit strength
 Low involvement
LO8
Promotion Decisions
Professional volunteers
Sales promotion activities
Public service advertising
LO8
http://www.adcouncil.com
Online
Pricing Decisions
Pricing objectives
Characteristics
Distinguishing
Pricing Decisions
of Nonprofit
Organizations
LO8
Nonfinancial prices
Indirect payment
Separation between
payers and users
Below-cost pricing
LO8
REVIEW LEARNING
OUTCOME
Nonprofit Organization Marketing
Benefit
complexity
PRODUCT
Benefit
strength
Involvement
Professional
volunteers
PROMOTION
PLACE
Special
facilities
TARGET
• Apathetic or
strongly opposed
• Undifferentiated
segmentation
• Complementary
positioning
Sales
Public Service
Advertising
Nonfinancial
Indirect
payment
Separation
Below cost
pricing
PRICE