Key Concepts
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%
Place the
patient’s
interests above
all others and
practice
teamwork.
2
Any act or performance that one
party can offer to another that is
essentially intangible and does
not result in the ownership of
anything.
3
Tangible good
with
accompanying
services
Pure tangible
good
Hybrid
Major service
with
accompanying
minor goods and
services
Pure service
4





Government
Private nonprofit
Business
Manufacturing
Retail
5
6
Intangibility
Inseparability
Variability
Perishability
7
8
Pricing
 Inconvenience
 Core service
failure
 Service
encounter
failure

Response to
service failure
 Competition
 Ethical problems
 Involuntary
switching

9
10
11
Reliability
Responsiveness
Assurance
Empathy
Tangibles
12
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.
Mass
Customization
A strategy that uses
technology to deliver
customized services
on a mass basis.
Strategic concept
 Top-management commitment
 High standards
 Self-service technologies
 Monitoring systems
 Satisfying customer complaints
 Satisfying employees as well as
customers

13



Focus on
understanding and
meeting customers’
needs
Cross-train and
empower
employees
Listen carefully and
tactfully ask
questions


Apologize when
appropriate and
offer an acceptable
solution
Tell the customer
what will happen
and when, and then
follow through to
ensure satisfaction
14
Primary service
package
Secondary service
features
15
Choosing brand
elements
Establishing image
dimensions
Devising branding
strategy
16
Failure frequency
Downtime
Out-of-pocket
costs
17
Offer facilitating
services
Add valueaugmenting
services
Offer service
contracts
18
Nonprofit Organization
Marketing
Nonprofit
Organization
Marketing
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

Schools

Churches
Nonprofit Organization
Marketing
Market intangible products
Shared
Characteristics
with
Service
Organizations
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
Unique Aspects of Nonprofit
Organization Marketing Strategies



Setting of marketing
objectives
Selection of target markets
Development of marketing
mixes
Objectives
Provide services that respond to the wants of :
 Users
 Appointed officials
 Payers
 Media
 Donors
 General Public
 Politicians
Target Markets
Apathetic or
strongly opposed
targets
Pressure to adopt
undifferentiated
segmentation
Complementary
positioning
Unique Issues
of Nonprofit
Organizations
Product Decisions
Distinctions between
Business and Nonprofit Organizations

Benefit complexity

Weak or indirect benefit strength

Low involvement
Promotion Decisions
Professional volunteers
Sales promotion activities
Public service advertising
Pricing Decisions
Pricing objectives
Characteristics
Distinguishing
Pricing Decisions
of Nonprofit
Organizations
Nonfinancial prices
Indirect payment
Separation between
payers and users
Below-cost pricing
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



The restaurant is managed by the Population
& Community Development Association of
Thailand.
Incomes generated by the restaurant help
fund population control, AIDS awareness, and
a host of rural development programs.
Aids Awareness and Prevention


http://www.pbs.org/wgbh/rxforsurvival/series/
champions/mechai_viravaidya.html
http://www.pbs.org/newshour/bb/asia/julydec02/aids_10-22.html#