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Services and Other Intangibles: Marketing the Product That Isn’t There

Services and Other Intangibles: Marketing the Product That Isn’t There. Chapter Objectives. Describe the four characteristics of services Understand how services can be classified along a service continuum

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Services and Other Intangibles: Marketing the Product That Isn’t There

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  1. Services and Other Intangibles: Marketing the Product That Isn’t There

  2. Chapter Objectives • Describe the four characteristics of services • Understand how services can be classified along a service continuum • Explain core and augmented services, marketing of services on the Internet, and the elements of the service encounter • Appreciate the importance of the three attributes of service quality to marketers: search qualities, experience qualities, and credence qualities • Discuss the concepts of SERVQUAL and gap analysis • Explain the marketing of people, places, and ideas

  3. Real People, Real Choices • Universal’s Theme Parks in Orlando (Robyn Eichenholz) • How to plan for anticipated record-breaking attendance at Donna Summer in concert • Option 1: don’t make any special plans for the event • Option 2: create a plan to accommodate extremely large crowds • Option 3: publicize the big expected turnout to let guests know the event might be exceptionally crowded

  4. Marketing What Isn’t There • Intangibles: services and other experience-based products that cannot be touched • Does marketing work for intangibles? Yes!

  5. What Are Services? • Services are acts, efforts, or performances exchanged from producer to user without ownership rights.

  6. Characteristics of Services • Intangibility: can’t see, touch, or smell good service • Perishability: can’t store a service for later sale or consumption Capacity management: firms adjust their services to match supply with demand

  7. Characteristics of Services (cont’d) • Variability: can’t standardize the same service performed by the same individual • Inseparability: can’t separate production from consumption • Service encounter: the interaction between the customer and the service provider • Disintermediation: eliminating the interaction between customers and salespeople

  8. Classification of Services by Inputs and Tangibility Figure 10.1

  9. The Services Continuum Figure 10.2

  10. The Services Continuum (cont’d) • Goods-dominated products • Equipment- or facility-based services • People-based services

  11. INDOOR CLIMBING WALL AT UNIVERSITY OF HOUSTON Core and Augmented Services • Core service: the benefit a customer gets from the service • Augmented service: core service plus additional services that enhance value

  12. Group Activity • Pick a sport and define the core service its sporting event provides at your university/college.

  13. Services on the Internet • Anything that can be delivered can be sold on the Web • --Banking and brokerage services • --Software • --Music • --Travel services • --Dating services • --Career-related services • --Medical care

  14. Discussion • Why are first impressions formed about a service on the Internet so important? • What can a service firm do to ensure a favorable first impression online?

  15. Discussion • Internet dating services, while popular, may present some dangers for those who use them. --Who do you think uses Internet dating services? --What, if anything, should these services do to protect their clients?

  16. The Service Encounter • Social elements: employees and customers • Physical elements: servicescapes and other intangibles

  17. JET BLUE AIRLINES Providing Quality Service: Service Quality Attributes • Search qualities: examine before purchase • Experience qualities: determine during or after consumption • Credence qualities: evaluate after experiencing them (difficult to do)

  18. Discussion • Sometimes service quality may not meet customers’ expectations. --What problems have you experienced with quality in the delivery of the following services? A restaurant meal An airline flight Automobile repairs Your college education

  19. Measuring Service Quality • SERVQUAL • Gap analysis • Critical incident technique

  20. MYSPACE.COM Discussion • What “service” do providers such as MySpace.com convey? • What core and augmented services do they offer? • How should users evaluate the quality of MySpace.com’s service?

  21. Strategies for Developing and Managing Services • Act fast to resolve a service failure. • Identify potential failures and make recovery plans ahead of time. • Train employees to listen for complaints and empower them to take action.

  22. The Future of Services • New dominant logic for marketing • Changing demographics • Globalization • Technological advances • Shift to flow of information

  23. Individual Activity/Discussion • You are a customer for a college education, a very expensive service product. --Develop a list of recommendations for your school for improving the delivery of its service.

  24. Marketing People • Marketing people Politicians Celebrities

  25. SENATOR HILLARY RODHAM CLINTON Discussion • There has been much recent criticism about the way politicians are marketed. --What are some ways such marketing has helped our political process? --What are some ways it might have an adverse effect on our government?

  26. Marketing Places • Marketing places Attempting to position a city, state, country, or other locale so consumers choose the brand over competing destinations

  27. LICKGLOBALWARMING.COM MADD Marketing Ideas • Marketing ideas • Gaining market share for a concept, philosophy, belief, or issue

  28. Discussion • Many not-for-profit and religious organizations have found they can become more successful by marketing their ideas. --What are some ways these organizations market themselves that are similar to, and different from, marketing by for-profit businesses?

  29. UNIVERSAL STUDIOS THEME PARK Real People, Real Choices • Universal’s Theme Parks in Orlando (Robyn Eichenholz) • Robyn selected a combination of options 2 and 3 to alleviate crowding concerns and enhance the guest experience. In addition to enjoying themselves in the concert area, guests partied in the streets and had a great evening.

  30. Marketing Plan Exercise • Select a familiar service such as a bank, an airline, or even your university. • Develop strategies for creating a servicescape that will be a positive influence on customers’ purchase decisions, their evaluations of service quality, and their ultimate satisfaction with the service.

  31. Marketing in Action Case:You Make the Call • What is the decision facing XM Satellite Radio? • What factors are important in understanding this decision situation? • What are the alternatives? • What decision(s) do you recommend? • What are some ways to implement your recommendation?

  32. Keeping It Real: Fast-Forward to Next Class Decision Time at Taco Bell • Meet Danielle Blugrind, Director of Consumer and Brand Insights for Taco Bell. • Competitors claimed they provided better fast-food value. • The decision: How to update the Taco Bell value menu pricing.

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