1. 1 Copyright ©2009 by Cengage Learning Inc. All rights reserved Designed by Eric Brengle B-books, Ltd. CHAPTER 12 Services and Nonprofit Organization Marketing Prepared by Amit Shah Frostburg State University Marketing Lamb, Hair, McDaniel 10

2. Copyright ©2009 by Cengage Learning Inc. All rights reserved Service 2 LO I The result of applying human or mechanical efforts to people or objects.

3. Copyright ©2009 by Cengage Learning Inc. All rights reserved How Services Differ from Goods 3 LO 2 Intangible Inseparable Heterogeneous Perishable

4. Copyright ©2009 by Cengage Learning Inc. All rights reserved Components of Service Quality 4 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.

5. Copyright ©2009 by Cengage Learning Inc. All rights reserved The Service Offering 5 LO 4 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.

6. Copyright ©2009 by Cengage Learning Inc. All rights reserved Customization/Standardization 6 LO 4 Mass Customization A strategy that uses technology to deliver customized services on a mass basis.

7. Copyright ©2009 by Cengage Learning Inc. All rights reserved The Service Mix Determine target market Determine what new services to introduce Decide what existing services to maintain and to eliminate 7 LO 4

8. Copyright ©2009 by Cengage Learning Inc. All rights reserved Place (Distribution) Strategy 8 LO 4 Scheduling Location Direct or indirect distribution Direct or indirect distribution Number of outlets Convenience

9. Copyright ©2009 by Cengage Learning Inc. All rights reserved Promotion Strategy 9 LO 4 Stress tangible cues Use personal information sources Create a strong organizational image Engage in postpurchase communication

10. Copyright ©2009 by Cengage Learning Inc. All rights reserved Price Strategy Define the unit of service consumption Determine if multiple elements are “bundled” or priced separately 10 LO 4 Pricing Challenges for Services

11. Copyright ©2009 by Cengage Learning Inc. All rights reserved Internal Marketing 11 LO 6 Internal Marketing Treating employees as customers and developing systems and benefits that satisfy their needs.

12. Copyright ©2009 by Cengage Learning Inc. All rights reserved Nonprofit Organization Marketing 12 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.

13. Copyright ©2009 by Cengage Learning Inc. All rights reserved Nonprofit Organization Marketing Government Museums Theaters Schools Churches 13 LO 8

14. Copyright ©2009 by Cengage Learning Inc. All rights reserved Nonprofit Organization Marketing 14 LO 8 Identify desired customers Specify objectives Develop, manage, eliminate programs and services Decide on prices Schedule events or programs Communicate their availability

15. Copyright ©2009 by Cengage Learning Inc. All rights reserved Unique Aspects of Nonprofit Organization Marketing Strategies Setting of marketing objectives –Selection of target markets Development of marketing mixes 15 LO 8

16. Copyright ©2009 by Cengage Learning Inc. All rights reserved Objectives & Target Markets 16 LO 8 Provide services that respond to the wants of :  Users  Payers  Donors  Politicians  Appointed officials  Media  General Public