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SUPPLEMENTAL SERVICES PRODUCT ELEMENT FRAMEWORKS FOR MKTG 490.

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Presentation on theme: "SUPPLEMENTAL SERVICES PRODUCT ELEMENT FRAMEWORKS FOR MKTG 490."— Presentation transcript:

1 SUPPLEMENTAL SERVICES PRODUCT ELEMENT FRAMEWORKS FOR MKTG 490

2 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University Lamb, Hair, McDaniel 2007-2008 Services and Nonprofit Organization Marketing 11 CHAPTER

3 Learning Outcomes Discuss the importance of services to the economy Discuss the differences between services and goods Describe the components of service quality and the gap model of service quality LO 1 LO 2 LO 3

4 Learning Outcomes Develop marketing mixes for services Discuss relationship marketing in services Explain internal marketing in services Discuss global issues in services marketing Describe nonprofit organization marketing LO 6 LO 5 LO 7 LO 8 LO 4

5 Discuss the importance of services to the economy The Importance of Services LO 1

6 Service The result of applying human or mechanical efforts to people or objects. Service

7 REVIEW LEARNING OUTCOME LO 1 The Importance of Services 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81% Services as a percentage of GDP 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81% Services as a percentage of employment Services Deed Performance Effort Deed Performance Effort

8 Discuss the differences between services and goods How Services Differ from Goods LO 2

9 How Services Differ from Goods LO 2 Intangible Inseparable Heterogeneous Perishable

10 How Services Differ from Goods LO 2 Intangibility Search Qualities Experience Qualities Credence Qualities Online http://www.webmd.com

11 Describe the components of service quality and the gap model of service quality Service Quality LO 3

12 Components of Service Quality LO 3 Tangibles The physical evidence of a service. The physical evidence of a service. Empathy Caring, individualized attention to customers. Assurance The knowledge and courtesy of employees. The knowledge and courtesy of employees. Responsiveness The ability to provide prompt service. The ability to provide prompt service. Reliability The ability to perform the service right the first time.

13 The Gap Model of Service Quality LO 3

14 Biz Flix LO 3 Intolerable Cruelty

15 REVIEW LEARNING OUTCOME LO 3 Service Quality

16 Develop marketing mixes for services Marketing Mixes for Services Marketing Mixes for Services LO 4

17 Product Strategies for Services Service Mix Standardization or Customization Core and Supplementary Process

18 LO 4 Service as a Process Mental Stimulus Processing People Processing People Processing Possession Processing Information Processing

19 LO 4 The Service Factory Possession processing Mental-stimulus processing

20 LO 4 The Service Offering Core Service Supplementary Service Supplementary Service The most basic benefit the consumer is buying. A group of services that support or enhance the core service. A group of services that support or enhance the core service.

21 LO 4 Core and Supplementary Services for FedEx Overnight transportation and delivery of packages Problem solving Billing statements Tracing Documentation Order taking Supplies Pickup Advice and information

22 LO 4 Customization/Standardizati on A strategy that uses technology to deliver customized services on a mass basis. Mass Customization

23 LO 4 The Service Mix Determine what new services to introduce Determine target market Decide what existing services to maintain and to eliminate

24 LO 4 Place (Distribution) Strategy Scheduling Location Direct or indirect distribution Direct or indirect distribution Number of outlets Convenience

25 LO 4 Promotion Strategy Stress tangible cues Use personal information sources Create a strong organizational image Engage in postpurchase communication

26 LO 4 Price Strategy Pricing Challenges for Services Define the unit of service consumption Determine if multiple elements are bundled or priced separately

27 LO 4 Pricing Objectives Revenue-Oriented Pricing Operations-Oriented Pricing Patronage-Oriented Pricing Maximize the surplus of income over costs Match supply and demand by varying price Maximize the number of customers by varying price http://www.etrade.com http://www.tdameritrade.com http://www.schwab.com Online

28 REVIEW LEARNING OUTCOME LO 4 Marketing Mixes for Services PLACE PROMOTION PRICE PRODUCT = SERVICE Process Core and Supplementary Mass Customization Standardization Number of outlets Direct Indirect Location Tangible cues Personal information Strong image Post-purchase communication Revenue oriented Operations oriented Operations oriented Patronage oriented

29 Discuss relationship marketing in services Relationship Marketing LO 5

30 REVIEW LEARNING OUTCOME LO 5 Relationship Marketing in Services 2 Social Financial 1 Financial 3 Structural Social Financial Pricing incentives Design services to meet customer needs Creating value-added services not available elsewhere

31 Explain internal marketing in services Internal Marketing in Service Firms LO 6

32 Internal Marketing LO 6 Internal Marketing Treating employees as customers and developing systems and benefits that satisfy their needs.

33 REVIEW LEARNING OUTCOME LO 6 Internal Marketing in Services

34 Discuss global issues in services marketing Global Issues in Services Marketing LO 7

35 REVIEW LEARNING OUTCOME LO 7 Global Issues in Services Marketing United States is worlds largest exporter of services. U.S.A.

36 Describe nonprofit organization marketing Nonprofit Organization Marketing LO 8

37 Nonprofit Organization Marketing LO 8 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.

38 Nonprofit Organization Marketing LO 8 Government Museums Theaters Schools Churches

39 Nonprofit Organization Marketing LO 8 Market intangible products Production requires customers presence Production requires customers presence Services vary greatly Services cannot be stored Shared Characteristics with Service Organizations Shared Characteristics with Service Organizations

40 Nonprofit Organization Marketing LO 8 Identify desired customers Specify objectives Develop, manage, eliminate programs and services Decide on prices Schedule events or programs Communicate their availability

41 Unique Aspects of Nonprofit Organization Marketing Strategies LO 8 Setting of marketing objectives Selection of target markets Development of marketing mixes

42 Objectives LO 8 Provide services that respond to the wants of : Users Payers Donors Politicians Appointed officials Media General Public

43 Target Markets LO 8 Apathetic or strongly opposed targets Apathetic or strongly opposed targets Pressure to adopt undifferentiated segmentation Complementary positioning Unique Issues of Nonprofit Organizations

44 Product Decisions LO 8 Distinctions between Business and Nonprofit Organizations Benefit complexity Weak or indirect benefit strength Low involvement

45 Promotion Decisions LO 8 Sales promotion activities Public service advertising Professional volunteers Online http://www.adcouncil.com

46 Pricing Decisions LO 8 Below-cost pricing Separation between payers and users Indirect payment Nonfinancial prices Pricing objectives Characteristics Distinguishing Pricing Decisions of Nonprofit Organizations Characteristics Distinguishing Pricing Decisions of Nonprofit Organizations

47 REVIEW LEARNING OUTCOME LO 8 Nonprofit Organization Marketing TARGET Apathetic or strongly opposed Undifferentiated segmentation Complementary positioning PRODUCT PROMOTION PLACE PRICE Professional volunteers Sales Public Service Advertising Involvement Benefit strength Benefit complexity Special facilities Nonfinancial Indirect payment Separation Below cost pricing


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