Transcript Chapter 10

MARKETING
Real People, Real Choices
Fourth Edition
CHAPTER 10
Services and Other Intangibles:
Marketing the Product
That Isn’t There
Michael R. Solomon
Greg W. Marshall
Elnora W. Stuart
Chapter Objectives
• Describe the four characteristics of services
• Understand how services differ from goods
• Explain how marketers create and measure
service quality
• Explain marketing strategies for services
• Explain the marketing of people, places, and
ideas
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What is a Service?
• Services are acts, efforts, or
performances exchanged from producer
to user without ownership rights
– Consumer services
– Business services
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Characteristics of Services
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Intangibility
Perishability
Variability
Inseparability
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The Goods/ Services Continuum
• Good-Dominated Products - tangible
products accompanied by supporting services
– automobiles, home appliances, electronics
• Equipment or Facility-Based Services - heavy
reliance on both equipment and personnel
– hospitals, tanning salons, health clubs
• People-Based Services
– wardrobe consultants, decorators, realtors
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Core and Augmented Services
• Core service is a benefit that a customer gets
from the service
• Augmented services are additional offerings
that differentiate the firm
• Example: Airline transportation
– Core: travel
– Augmented services: frequent flier miles,
sky caps, in-flight entertainment services
and Internet access
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Services on the Internet
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Banking/ brokerages
Software
Music
Travel
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Dating
Career development
Distance learning
Medical care
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The Service Encounter
• Social contact dimension
• Economic dimension
• Production dimension
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Customer Rage
• Checkout counter rage
• Pub rage
• ATM rage
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Dimensions of Service Quality
• Search qualities - characteristics of a
product that the consumer can examine
prior to purchase
• Experience qualities - characteristics
that customers can determine during or
after consumption
• Credence qualities - attributes we find
difficult to evaluate even after we’ve
experienced them
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Measuring Service Quality
• Gap Analysis - measurement tool that
gauges the difference between a
customer’s expectation of service
quality and what actually occurred
• Critical Incident Technique - company
collects and closely analyzes very
specific customer complaints to identify
critical incidents
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Gap Analysis
• Gap between consumer expectations and
management perceptions
• Gap between management perception and
quality standards set by the firm
• Gap between established quality standards
and service delivery
• Gap between service quality standards and
consumer expectations
• Gap between expected service and perceived
service
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Service Failure and Recovery
• When services do fail, recover fast!
– Apologize
– Resolve the problem
– Do not further inconvenience the
customer
• Analyze what happened to eliminate
future failures
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Strategies for Services
• Targeting: Defining the Service
Customer or Audience
• Positioning: Defining the Service to
Customers
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The Future of Services
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Changing demographics
Globalization
Technological advances
Shift to flow of information
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Strategies for Marketing People_1
• Pure selling approach – an agent
presents a client’s qualifications to
potential “buyers” until he finds one who
is willing to act as an intermediary
• Product improvement approach – the
agent works with the client to modify
certain characteristics that will increase
market value; person’s image changes
to conform to what is currently in
demand
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Strategies for Marketing People_2
• Market fulfillment approach – agent
scans the market to identify unmet
needs. Then agent finds a person that
meets qualifications and develops
product
– “manufactured stars”
– N-Sync, The Spice Girls, New Kids on
the Block
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Marketing Places
• Place marketing strategies treat a city,
state, country, or other locale as a brand
and attempt to position this location so
that consumers choose to visit
• Example:
– The New York Miracle
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Marketing Ideas
• Idea marketing is about gaining market
share for a concept, philosophy, belief
or issue
• Examples:
– Sexual responsibility
– Drinking responsibly
– Nissan’s Food from the Hood
– Newman’s Own
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Issues for Discussion_1
• What problems have you experienced
with quality in the delivery of the
following services? What do you think is
the reason for the poor quality?
– A restaurant meal
– An airline flight
– Automobile repairs
– Your college education
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Issues for Discussion_2
• Internet dating services may present
some dangers for those who use them.
Who do you think uses Internet dating
services? What should the services do
to protect their clients?
• What are some ways that marketing has
helped our political process? What are
some ways the marketing of politicians
might have an adverse effect on our
government?
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Issues for Discussion_3
• What are some ways that nonprofit and
religious organizations market
themselves that are similar to and
different from marketing by for-profits?
• Why do you think developed countries
are primarily service economies? Is this
a good thing or bad thing for a country?
Do you think the trend will continue?
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