11 Services and Nonprofit Organization Marketing Prepared by Chapter 11 11 Services and Nonprofit Organization Marketing Prepared by Deborah Baker Texas Christian University

Chapter 11 Learning Objectives 1. Discuss the importance of services to the economy 2. Discuss the differences between services and goods 3. Describe the components of service quality and the gap model of service quality

Learning Objectives (continued) Chapter 11 Learning Objectives (continued) 4. Develop marketing mixes for services 5. Discuss relationship marketing in services 6. Explain internal marketing in services

Learning Objectives (continued) Chapter 11 Learning Objectives (continued) 7. Discuss global issues in services marketing 8. Describe nonprofit organization marketing

The Importance of Services Chapter 11 The Importance of Services 79% of workers are in service sector. U.S. service exports will top $650 billion by 2010, the same value as manufactured goods. Service occupations will be responsible for nearly all net job growth through 2012. 64 of Fortune’s top 100 companies are service companies. 1

How Services Differ from Goods Chapter 11 How Services Differ from Goods Intangible Inseparable Heterogeneous Perishable Online: National Amusements and AMC Theatres Online http://www.nationalamusements.com http://www.amctheatres.com http://www.movietickets.com 2

Components of Service Quality Chapter 11 Components of Service Quality Tangibles Empathy Assurance Responsiveness Reliability Gaps in Quality Can Appear at Several Points 3

Product Strategies for Services Chapter 11 Product Strategies for Services Service Mix Standardization or Customization Core and Supplementary Process 4

Service Processing People Processing Service Processing Categories Chapter 11 Service Processing Service Processing Categories Mental Stimulus Processing People Processing Possession Processing Information Processing 4

Marketing Mixes for Services Chapter 11 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 Patronage oriented Summary Slide 4

Relationship Marketing in Services Chapter 11 Relationship Marketing in Services Level 2 Social Financial Level 1 Level 3 Structural 5

Internal Marketing Activities Chapter 11 Internal Marketing Activities Competing for Talent Offering a Vision Stressing Teamwork Training Employees Empowerment Knowing Employees’ Needs Rewarding Performance 6

Nonprofit Organizations Chapter 11 Nonprofit Organizations Government Private Museums Theaters Schools Churches Other Non-Government Nonprofit Organizations 8

Unique Aspects of Nonprofit Organization Marketing Strategies Chapter 11 Unique Aspects of Nonprofit Organization Marketing Strategies Setting of Marketing Objectives Selection of Target Markets Development of Marketing Mixes Online http://www.peta.com 8

Target Markets Unique Issues of Nonprofit Organizations Chapter 11 Target Markets Apathetic or strongly opposed targets Pressure to adopt undifferentiated segmentation Complementary positioning . Unique Issues of Nonprofit Organizations 8

Distinctions between Business and Nonprofit Organizations Chapter 11 Product Decisions Distinctions between Business and Nonprofit Organizations Benefit complexity Weak benefit strength Low involvement 8

Promotion Decisions Professional volunteers Sales promotion activities Chapter 11 Promotion Decisions Sales promotion activities Public service advertising Professional volunteers Online http://www.adcouncil.org 8

Pricing Decisions Pricing objectives Nonfinancial prices Chapter 11 Pricing Decisions Below-cost pricing Separation between payers and users Indirect payment Nonfinancial prices Pricing objectives Characteristics Distinguishing Pricing Decisions of Nonprofit Organizations 8