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Services and Nonprofit Organization Marketing

Services and Nonprofit Organization Marketing. Key Concepts. Deed Performance Effort. Services. Services as a percentage of GDP. 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%. 81%. Services as a percentage of employment. 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%. 81%.

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Services and Nonprofit Organization Marketing

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  1. Services and Nonprofit Organization Marketing Key Concepts

  2. Deed Performance Effort Services Services as a percentage of GDP 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81% Services as a percentage of employment 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81% The Importance of Services

  3. How Services Differ from Goods What are the differences between services and goods?

  4. Intangible Inseparable Heterogeneous Perishable How Services Differ from Goods

  5. How Services Differ from Goods Intangibility • Search Qualities • Experience Qualities • Credence Qualities

  6. Reliability The ability to perform the service RIGHT the first time. Responsiveness The ability to provide PROMPT service. Assurance The KNOWLEDGE and courtesy of employees. Empathy CARING, individualized attention to customers. Tangibles The PHYSICAL EVIDENCE of a service. Components of Service Quality

  7. Marketing Mixes for Services Develop marketing mixes for services

  8. Process Core andSupplementary StandardizationorCustomization Service Mix Product Strategies for Services

  9. People Processing PossessionProcessing Mental StimulusProcessing InformationProcessing Service as a Process

  10. The Service Factory Possession processing Mental-stimulus processing

  11. CoreService The most BASIC BENEFIT the consumer is buying. Supplementary Service A group of services that SUPPORT or ENHANCE the core service. The Service Offering

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

  13. A strategy that uses technology to deliver CUSSTOMIZED SERVICES on a MASS basis. Customization/Standardization MassCustomization

  14. The Service Mix • Determine what new services to introduce • Determine target market • Decide what existing services to maintain and to eliminate

  15. Convenience Number of outlets Direct or indirect distribution Location Scheduling Place (Distribution) Strategy

  16. Stress tangible cues Use personal information sources Create a strong organizational image Engage in postpurchase communication Promotion Strategy

  17. Price Strategy • Define the unit of service consumption • Determine if multiple elements are “bundled” or priced separately Pricing Challenges for Services

  18. Revenue-OrientedPricing Maximize the surplus of income over costs Operations-OrientedPricing Match supply and demand by varying price Patronage-OrientedPricing Maximize the number of customers by varying price Pricing Objectives

  19. PRODUCT = SERVICE PLACE PROMOTION PRICE Process Number ofoutlets Tangiblecues Revenueoriented Core and Supplementary Direct Personalinformation Operations oriented Mass Customization Indirect Strong image Patronageoriented Standardization Location Post-purchasecommunication Marketing Mixes for Services

  20. Internal Marketing Treating employees as customers and developing systems and benefits that satisfy their needs. Internal Marketing

  21. NonprofitOrganization Marketing An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. Nonprofit Organization Marketing LO8

  22. Nonprofit Organization Marketing • Government • Museums • Theaters • Schools • Churches

  23. Market intangible products Shared Characteristics with Service Organizations Production requires customer’s presence Services vary greatly Services cannot be stored Nonprofit Organization Marketing

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

  25. Unique Aspects of Nonprofit Organization Marketing Strategies • Setting of marketing objectives • Selection of target markets • Development of marketing mixes

  26. Provide services that respond to the wants of : • Users • Payers • Donors • Politicians • Appointed officials • Media • General Public Objectives

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

  28. Product Decisions • Benefit complexity • Weak or indirect benefit strength • Low involvement Distinctions between Business and Nonprofit Organizations

  29. Professional volunteers Sales promotion activities Public service advertising Promotion Decisions

  30. Pricing objectives Nonfinancial prices Characteristics Distinguishing Pricing Decisionsof Nonprofit Organizations Indirect payment Separation betweenpayers and users Below-cost pricing Pricing Decisions

  31. Benefitcomplexity PRODUCT PLACE Special facilities Benefitstrength • TARGET • Apathetic or strongly opposed • Undifferentiated segmentation • Complementary positioning Involvement Nonfinancial Professional volunteers Indirect payment Sales Separation PROMOTION PRICE Below costpricing Public Service Advertising Nonprofit Organization Marketing

  32. MARKETING OF FAMILY PLANNING SERVICES & AIDS PREVENTION The special case of CABBAGES AND CONDOMS program in Thailand

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