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25 views25 pages

Mcgraw Hill/Irwin

Uploaded by

Aliph Asmawi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

A Note on the
PowerPoint Slides...
 These PowerPoint slides contain selected exhibits,
figures, and tables from the chapters as well as
objectives for the chapters. For some chapters, we
include extra lecture slides and in-class exercises that
we have compiled and used in our classes. The lecture
slides are not intended to provide full outlines or
complete lectures for the chapters, but rather may be
used selectively to enhance class sessions.

1-2
Part 1

FOUNDATIONS
FOR SERVICES
MARKETING

1-3
Chapter

Introduction to Services 1

 What are Services?


 Why Service Marketing?
 Service and Technology
 Characteristics of Services
 Service Marketing Mix
 Staying Focused on the Customer

1-4
Objectives for Chapter 1:
Introduction to Services
 Explain what services are and identify important trends in services.

 Explain the need for special service marketing concepts and practices and
why the need has developed and is accelerating.

 Explore the profound impact of technology on service.

 Outline the basic differences between goods and services and the
resulting challenges and opportunities for service businesses.

 Introduce the expanded marketing mix for services and the philosophy of
customer focus as powerful frameworks and themes that are fundamental
to the rest of the text.

1-5
Examples of Service Industries
 Health Care
 hospital, medical practice, dentistry, eye care
 Professional Services
 accounting, legal, architectural
 Financial Services
 banking, investment advising, insurance
 Hospitality
 restaurant, hotel/motel, bed & breakfast
 ski resort, rafting
 Travel
 airline, travel agency, theme park
 Others
 hair styling, pest control, plumbing, lawn maintenance, counseling services, health
club, interior design

1-6
Contributions of Service Industries to
U.S. Gross Domestic Product

1-7
Tangibility Spectrum

1-8
Why Service Marketing?

 Services dominate U.S. and worldwide


economies
 Service as a business imperative in goods-
focused businesses
 Deregulated industries and professional service
needs
 Service marketing is different
 Service leads to profits

1-9
Percent of U.S. Labor Force by Industry

1-10
Percent of U.S. Gross Domestic
Product by Industry

1-11
Examples of Goods Companies that are
Expanding into Services

Boeing

1-12
Eight Central Paradoxes of Technological
Products

1-13
Characteristics of Services
Compared to Goods

Intangibility Heterogeneity

Simultaneous
Production
and Perishability
Consumption

1-14
Comparing Goods and Services

1-15
Implications of Intangibility

 Services cannot be inventoried

 Services cannot be easily patented

 Services cannot be readily displayed or


communicated

 Pricing is difficult

1-16
Implications of Heterogeneity

 Service delivery and customer satisfaction


depend on employee and customer actions

 Service quality depends on many uncontrollable


factors

 There is no sure knowledge that the service


delivered matches what was planned and
promoted
1-17
Implications of Simultaneous Production
and Consumption
 Customers participate in and affect the
transaction

 Customers affect each other

 Employees affect the service outcome

 Decentralization may be essential

 Mass production is difficult 1-18


Implications of Perishability

 It is difficult to synchronize supply and demand


with services

 Services cannot be returned or resold

1-19
Search, Experience, and Credence Qualities

1-20
Challenges and Questions for Service
Marketers
 Defining and improving quality
 Designing and testing new services
 Communicating and maintaining a consistent image
 Accommodating fluctuating demand
 Motivating and sustaining employee commitment
 Setting prices
 Organizing to facilitate strategic and tactical decision-making
 Finding a balance between standardization and personalization
 Protecting new service concepts from competitors
 Communicating quality and value to customers
 Ensuring the delivery of consistent quality service

1-21
Traditional Marketing Mix

 Elements an organization controls that can be


used to satisfy or communicate with customers:
 Product
 Price
 Place
 Promotion

1-22
Expanded Mix for Services – The 7 Ps
 Product
 Price
 Place
 Promotion

 People
 All human actors who play a part in service delivery and thus influence the buyer’s
perceptions: namely, the firm’s personnel, the customer, and other customers in
the service environment.
 Physical Evidence
 The environment in which the service is delivered and where the firm and
customer interact, and any tangible components that facilitate performance or
communication of the service.
 Process
 The actual procedures, mechanisms, and flow of activities by which the service is
delivered—the service delivery and operating systems.

1-23
Expanded Marketing Mix for Services

1-24
Ways to Use the 7 Ps

Overall Strategic Specific Service


Assessment Implementation
 How effective is a  Who is the customer?
firm’s service  What is the service?
marketing mix?  How effectively does the
 Is the mix well-aligned service marketing mix for
with overall vision and a service communicate its
strategy? benefits and quality?
 What are the strengths  What changes/
and weaknesses in improvements are
terms of the 7 Ps? needed? 1-25

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