11-1
Chapter 11
Services
Marketing
11-2
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Goals
• Importance of services in advanced economies
• Nonbusiness services marketing
• Characteristics of services and their marketing
implications
• Design of a services marketing mix
• Managing service quality
• Productivity and performance challenges of service
marketers
11-3
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Definition of Services
Identifiable, intangible activities
that are the main object
of a transaction
designed to provide
want-satisfaction to customers
Supplementary Services
support the sales
of a good or service
11-4
Goods-Services Continuum
11-5
Scope of Services
For Profit
Not For
Profit
NonProfit
11-6
Characteristics of Services
11-7
Intangibility
Perishability
Inseparability
Heterogeneity
Services Customer
Target
Market
For Profit
Provider
11-8
Nonbusiness
Client
Selecting Target Markets
Geographic
Demographic
Buying
Behavior
Market
Segmentation
11-9
Product Planning
11-10
Services
Offering
Product-Mix
Strategies
Product
Features
Differentiate
Expand
the line
CREATE A
BRAND
Contract
the mix
Tangible
object
Alter the
service
Memorable
slogan
Manage the
life cycle
Distinctive
color scheme
Pricing Structure
Pricing
for
Profit Firms
Markup
Willing to pay
Perishability
SupplyDemand
11-11
Pricing
for
Nonprofits
Less important
Contributions set
by provider
Client charges
do not cover costs
Pricing Strategies
Discounts
One price
Flexible
price
Markup
Three levels of price competition
Non-price competition
Segmentation and price
Intense price competition
11-12
Distribution System
Channels
of
Distribution
Inseparability
Heterogeneity
11-13
Short
simple
Number
of
middlemen
Distribution
Facilities
Location
Convenience
Accessibility
Promotional Program
Inseparability
Service
Encounter
Personal
Selling
Customer-contact
personnel
Incentives
Advertising
Cause-related
11-14
Sales
Promotion
Managing Service Quality
Quality is defined by the customer
11-15
Expectations
of the customer
Compared to
Help
formulate
expectations
Measure
expectation
level
How work was
performed
Service quality
at or above
expectation
Future of Services Marketing
Impact
of
Technology
Performance
Measurement
11-16
Increase
Productivity
Prospects
for
Growth
Key Terms and Concepts
• Services
• For-profit services firms
• Not-for-profit services
organizations
• Nonprofit organizations
• Intangibility
• Inseparability
11-17
McGraw-Hill/Irwin
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•
•
•
•
•
Heterogeneity
Perishability
Provider market
Client market
Service encounter
Service quality
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.