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ServicesMarketingCopyright©HoughtonMifflinCompany.Allrightsreserved.PowerPointPresentationbyCharlieCook13PartThree
Product
DecisionsChapterLearningObjectivesTounderstandthenatureandimportanceofservicesToidentifythecharacteristicsofservicesthatdifferentiatethemfromgoodsTodescribehowthecharacteristicsofservicesinfluencethedevelopmentofmarketingmixesforservicesTounderstandtheimportanceofservicequalityandexplainhowtodeliverexceptionalservicequalityToexplorethenatureofnonprofitmarketing2Copyright©HoughtonMifflinCompany.Allrightsreserved.*ChapterOutlineTheNatureandImportanceofServicesCharacteristicsofServicesDevelopingandManagingMarketingMixesforServicesServiceQualityNonprofitMarketing3Copyright©HoughtonMifflinCompany.Allrightsreserved.*TheNatureandImportanceofServicesServiceAnintangibleproductinvolvingadeed,performance,oreffortthatcannotbephysicallypossessedApplicationofhumanand/ormechanicaleffortsdirectedatpeopleorobjectsServiceFacts(U.S.)Serviceindustriesaccountforover50%ofGDP.Serviceindustriesemploy80%ofnonfarmworkers.Morethanhalfofnewbusinessesareservicefirms.Serviceshaveincreasedintandemwiththelong-termgrowthoftheU.S.economy.4Copyright©HoughtonMifflinCompany.Allrightsreserved.*CharacteristicsofServicesIntangibilityServicesareactionsthathavenopermanentphysicalqualitiesasopposedtogoodswhichcanbetouchedandpossessedovertime.InseparabilityofProductionandConsumptionTheproductionofaservicecannotbeseparatedfromitsconsumptionbythecustomer.Servicesareproduced,sold,andconsumedallatthesametime.PerishabilityServicescannotbeproducedaheadoftimeandstoreduntilneeded.5Copyright©HoughtonMifflinCompany.Allrightsreserved.*TheTangibilityContinuumFIGURE13.16Copyright©HoughtonMifflinCompany.Allrightsreserved.*CharacteristicsofServices(cont’d)HeterogeneityVariationinthequalityofservicesdeliveredbyindividualsandorganizationsClient-BasedRelationshipsInteractionsthatresultinsatisfiedcustomerswhouseaservicerepeatedlyovertime7Copyright©HoughtonMifflinCompany.Allrightsreserved.*CharacteristicsofServices(cont’d)CustomerContactThelevelofinteractionbetweentheserviceproviderandthecustomernecessarytodelivertheserviceHigh-contactservicesrequirethecustomertobepresentduringtheproductionoftheservice.Highcontactservicesrequirewell-trainedandmotivatedservicepersonnel.Low-contactservicesdonotrequirethecustomer’scontinuouspresencewhiletheserviceiscarriedout.8Copyright©HoughtonMifflinCompany.Allrightsreserved.*9Copyright©HoughtonMifflinCompany.Allrightsreserved.*10Copyright©HoughtonMifflinCompany.Allrightsreserved.*DevelopingandManagingMarketingMixesforServicesDevelopmentofServicesPackageorbundleofservicesconsistsofcoreservicesthataretheexpectedbasicserviceexperience.supplementaryservicesthatdifferentiatetheservicebundlefromthoseofothercompetitors.“Basic,”“Standard,”and“Deluxe”servicecombinationsarecustom-tailoredtoconsumers’specificneeds.11Copyright©HoughtonMifflinCompany.Allrightsreserved.*DevelopingandManagingMarketingMixesforServices(cont’d)DevelopmentofServices(cont’d)EffectivedeliveryofservicesSegmentthepleasureandcombinethepainGetbadexperiencesoutofthewayassoonaspossibleBuildcommitmentthroughchoiceGiveritualtoconsumersFinishstrong12Copyright©HoughtonMifflinCompany.Allrightsreserved.*DevelopingandManagingMarketingMixesforServices(cont’d)DistributionofServicesCustomerscometoaservicefacility.Servicesarebroughttotheconsumer.Servicesareprovidedat“arm’slength”,withnoface-to-facecustomercontact.13Copyright©HoughtonMifflinCompany.Allrightsreserved.*24/7ATMDevelopingandManagingMarketingMixesforServices(cont’d)DistributionofServicesMarketingchannelsaretypicallyshortanddirect,withnoorfewintermediaries.Inseparabilityofservicerequiresafocusonservicedemand/supplymanagement(e.g.,schedulingofservicedelivery).Accessibilitytoservicesis
increasedbysubstituting
automatedequipmentfor
contactpersonnel.14Copyright©HoughtonMifflinCompany.Allrightsreserved.*DevelopingandManagingMarketingMixesforServices(cont’d)PromotionofServices—OvercomingtheIntangibilityofServicesProvidingtangible(symbolic)cues/imagesPromotingprice,guarantees,availability,personnelUsingconcrete,specificlanguageinadvertisingUsingpersonalsellingandword-of-mouthadvertisingOfferingservicesonatrialbasis15Copyright©HoughtonMifflinCompany.Allrightsreserved.*DevelopingandManagingMarketingMixesforServices(cont’d)PricingofServicesPerformanceofspecifictasks—carwashingAmountoftimetocompletetheservice—babysittingVariablepricingbasedonthelevelofdemand;highpriceatpeakdemand,lowerpriceswhendemandslackens—airlineseatsBundlingofservicesrequiresdecisionsonunit,combination,orseparatepricing—telephoneservicesPricingasanindicatorofqualityisusedwhenconsumershavenoothercuestoindicatequality.16Copyright©HoughtonMifflinCompany.Allrightsreserved.*ServiceQualityModelFIGURE13.2Source:“ServiceQualityModel,”adaptedfromA.Parasuraman,LeonardL.Berry,andValarieA.Zeithaml,“AnEmpiricalExaminationofRelationshipsinanExtendedServiceQualityModel,”MarketingScienceInstituteWorkingPaperSeries,Reportno.90-112(Cambridge,MA:MarketingScienceInstitute,1990).Usedwithpermission.17Copyright©HoughtonMifflinCompany.Allrightsreserved.*ServiceQualityServiceQualityCustomers’perceptionofhowwellaservicemeetsorexceedstheirexpectationsServicequalityisjudgedfromthecustomer’sviewpoint.18Copyright©HoughtonMifflinCompany.Allrightsreserved.*ServiceQuality(cont’d)CustomerEvaluationofServiceQualitySearchqualitiesTangibleattributesthatcanbejudgedbeforethepurchaseofaproductExperiencequalitiesAttributesassessableonlyduringpurchaseandconsumptionofaserviceCredencequalitiesAttributesthatcustomersmaynotbeabletoevaluateevenafterpurchasingandconsumingtheservice19Copyright©HoughtonMifflinCompany.Allrightsreserved.*20Copyright©HoughtonMifflinCompany.Allrightsreserved.*DeliveringExceptionalServiceQualityAnalysisofCustomerExpectationsLevelsofcustomerserviceexpectationsDesired:ifmet,customerisverysatisfiedAcceptable:ifmet,customerisnotdissatisfiedConductmarketingresearchFocusgroupsCommentcardsAskingemployeesDesiredServiceAcceptableServiceZoneofTolerance21Copyright©HoughtonMifflinCompany.Allrightsreserved.*DeliveringExceptionalServiceQuality(cont’d)ServiceQualitySpecificationsEstablishgoalsforservicedeliverySecuremanagement’scommitmenttoservicequalityEmployeePerformanceTraincustomer-contactemployeesatalllevelsIncorporateservicequalityintoemployeeevaluationandcompensationsystems22Copyright©HoughtonMifflinCompany.Allrightsreserved.*DeliveringExceptionalServiceQuality(cont’d)ManagementofServiceExpectationsConductadvertisingcampaignsthatmakerealisticpromisesofserviceEstablish
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