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Marketing
Chapter 11
Marketing Services
Gilbert A. Churchill, Jr.
Irwin/McGraw-Hill
J. Paul Peter
© The McGraw-Hill Companies, Inc., 1997
Slide
11-1a
Table
11.1
Characteristics that Distinguish
Services from Goods
Characteristic
Services
Goods
Client
relationship
Services often involve an
ongoing personal
relationship.
Goods often involve an
impersonal, short-term
relationship, although
relationship strength and
duration are increasing.
Perishability
Services can be used only
at the time they are
offered.
Goods can be placed in
inventory for use at another
time.
Intangibility
The customer owns only
memories or outcomes,
such as greater
knowledge or styled hair.
The customer owns
objects that can be used,
resold, or given to others.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1997
Slide
11-1b
Table
11.1
Characteristics that Distinguish
Services from Goods
Characteristic
Services
Goods
Inseparability
Services often cannot be
separated from the
person providing them.
Goods typically are produced
and sold by different people.
Customer
effort
Customer can be more
involved in production of
services.
Customer’s involvement
may be limited to buying
completed product and
using it.
Uniformity
Because of inseparability
and high involvement,
each service may be
unique, with the quality
likely to vary.
Variations in quality and
variance from standards
can be corrected before
customers purchase
products.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1997
Slide
11-2
Goods/Service Continuum
Mostly
Tangible
Goods
Lumber
Computer with
Service Contract
Restaurant
Dinner
Oil Change
Maid Service
Mostly
Intangible
Services
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1997
Slide
11-3
Categorizing Services
Equipment
Based
People
Based
America
Online
Irwin/McGraw-Hill
Kelly
Services
© The McGraw-Hill Companies, Inc., 1997
Slide
11-4
The Marketing Mix for Services:
Product
Standardized
Goods
Customized
Services
Camping
Equipment
Camping
Trips
Identical for
each Customer
Varies by
Customer
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1997
Slide
11-5
The Marketing Mix for Services:
Pricing
Tools
– Massachusetts Highway Department
Road Use
Fees
– Yellowstone Park Entrance
Rent
– Koger Center Office Space
Fare
– Taxi Ride
Rate
– Marriott Hotel Room
Tuition – Harvard Degree
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1997
Slide
11-6
Table
11.3
The Marketing Mix for Services:
Placement
TYPE of Interaction
DESCRIPTION
Nature
Availability ofEXAMPLE
Service
between
Outlets
ProductCustomer and
Service
Single Site
Multiple Sites
Organization
Customer goes to
service organization
Theater
Barbershop
Bus service
Fast-food chain
Service organization
comes to customer
Lawn care service
Pest Control service
Taxi service
Mail Delivery
Emergency repair
service
Customer and service
organization transact
at arm’s length (by
mail or electronic
communications
Credit card company Broadcast TV
Local TV station
network
Telephone
company
Sources: Reprinted from Christopher H. Lovelock, Services Marketing, 2nd ed. (Englewood Cliffs, N.J.: Prentice Hall, 1991), p. 33.
An earlier version of this figure appeared in Christopher H. Lovelock, “Classifying Services
to Gain
Strategic Marketing
Insights,”
© The
McGraw-Hill
Companies,
Inc., 1997
Irwin/McGraw-Hill
Journal of Marketing (Summer 1983), p. 18.
Slide
11-7
Table
11.3
The Marketing Mix for Services:
Promotion
Promotion
Advertizing
Personal Selling
Intangibles require promotion to explain what the
service is and how it will benefit the buyer.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1997