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Lamb, Hair, McDaniel

Lamb, Hair, McDaniel. CHAPTER 12. Services and Nonprofit Organization Marketing. Deed Performance Effort. Services. 10 20 30 40 50 60 70 80 90 100. 81%. 10 20 30 40 50 60 70 80 90 100. ~50%. The Importance

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Lamb, Hair, McDaniel

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  1. Lamb, Hair, McDaniel CHAPTER 12 Services and Nonprofit Organization Marketing

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

  3. Intangibility Inseparability Heterogeneity Perishability How Services Differ from Goods No physical object makes it hard to communicate benefits. Production and consumption are simultaneous, meaning the consumer takes part in production. Services depend on their employees for quality, which makes consistency difficult to achieve. Services cannot be saved, and it is challenging to synchronize supply and demand.

  4. The Tangibility Continuum

  5. 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

  6. Use Phone Reservation Parking Overnight rental of a bedroom Room Service Check-in Check-out Pay TV Porter Supplementary Services Core and Supplementary Services for a Luxury Hotel

  7. 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

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

  9. Creating value-added services not available elsewhere 3 Structural Social Financial 2 Social Financial Design services to meet customer needs 1 Financial Pricing incentives RelationshipMarketing in Services

  10. Global Issues in Services Marketing • The U.S. is the world’s largest exporter of services • The marketing mix must reflect each country’s cultural, technological, and political environment

  11. Nonprofit Organization • An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. • Government • Museums • Theaters • Schools • Churches LO8

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

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

  14. Ch 12 Discussion Questions • Define services and explain how they differ from goods. • Define service and explain its components. • What is service quality? Explain in the context of nonprofit organization marketing.

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