Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Services Defined The benefits provided by an organization that satisfy a buyers needs without conferring ownership of tangible goods. An insurance company offers benefits many people don’t want to think about. 1
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Growth in Services The service industry is a growing industry creating more and more jobs each year. Growth is due to: Technology and online business models Changing customer characteristics Marketing and customer service orientations in business Outsourcing practices by companies. 2
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Characteristics of Services 3 Services Intangibility Quality Variability Inseparability Demand Perishable
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Consumer Buying Behaviour 4 Attitudes Needs and Motives Purchase Behaviour A good impression is a strong influencer. People seek advice from current users. Convenience, expertise and personal attention help sell a service. People pay more attention when ready to buy.
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Services Marketing Mix 5 Product Consistency Attitude Completeness Environment Availability and timing Supplementary Services
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Services Marketing Mix 6 Price Regulated Pricing Traditional Pricing Negotiated Pricing
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Services Marketing Mix 7 Distribution Direct Channel Personal Contact Online Contact
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Services Marketing Mix 8 Marketing Communications Advertising for awareness Personal selling and direct response for desire and action Web communications for detailed information and action
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Characteristics of N-F-P Marketing 9 There are some differences between not-for-profit marketing and profit-oriented marketing. Not-for-ProfitProfit Philosophy People, causes and ideas Goods and services Target Markets Donors and clientsClients Exchange Money, time and expertise Money
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Characteristics of N-F-P Marketing 10 Not-for-ProfitProfit Objectives Financial and Non- financial (attitudes) Financial: sales, profit, ROI Benefits Many contribute but few benefit Buyers benefit directly
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Goals of Not-for-Profit Marketing 11 The goal is to promote social consciousness. Effective marketing will increase the acceptability of social ideas.
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada Types of N-F-P Marketing 12 Not-for-profit marketing embraces a variety of situations: Organizations People Places Ideas
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada N-F-P Marketing Strategy 13 Product Organizations believe they provide what the public needs. The public simply needs to be made aware of a certain viewpoint. Price Money may change hands (donation) but time and expertise are volunteered.
Chapter 18: Services and Not-for-Profit Marketing Copyright © 2010 Pearson Education Canada N-F-P Marketing Strategy 14 Marketing Communications Mass advertising for awareness and direct response and online communications for details and action. Distribution Channels are direct (organization to donor).