PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e

1. PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e

2. What is a Product A product is something you can touch What is a Service? A service is an action performed by someone (labour). If you buy a new battery for your car, that's a product. The installation of that battery is a service. Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of ServicesChapter Nine: Services Marketing Strategies Learn more on page 317

3. Recreation & entertainment Accommodation Household The scope of the services market Health care Education Personal care Professional Plus a huge range of B2B services Travel and transport Communication Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of ServicesChapter Nine: Services Marketing Strategies Learn more on page 317

4. The Special Characteristics of Services Services marketing requires some different strategies because of: • Intangibility • customer cannot experience prior to purchase • need to add physical evidence • Inseparability • hard to separate service from service provider • customer is involved in service delivery • need to manage ‘moments of truth’ • Perishability and fluctuating demand • ‘real time’ services are lost if not used • demand has peaks and troughs • need to use marketing mix to manage supply and demand • allows for segmentation through pricing and promotion • Variability • customer receives a different product each time • need to either standardise or customise service • allows for market segmentation by customising service Rix Marketing: A Practical Approach 7e Next: Distinctive Colour Adds Tangibility to a ServiceChapter Nine: Services Marketing Strategies Learn more on pages 317 - 322

5. Distinctive Colour Adds Tangibility to a Service Rix Marketing: A Practical Approach 7e Next: Managing Inseparability & Fluctuating DemandChapter Nine: Services Marketing Strategies

6. Developing a Marketing Mix for Services Many of the mix strategies are the same as for physical goods. Some differences are: • Product • to add tangibility, a services brand should highlight the service benefit • must manage quality ‘service gaps’ • Pricing • customers are often unaware of service provision costs • pricing is often based on inputs such as ‘hours spent’ • changing prices in response to demand levels is common • Distribution • making the service ‘accessible’ is the key task • convenient location • short channel length • technology (Net) is critical • Promotion • adding tangibility is the main task • show the service encounter • avoid over-promising • build relationships Rix Marketing: A Practical Approach 7e Next: Another way of Promoting to Add TangibilityChapter Nine: Services Marketing Strategies Learn more on pages 322 - 332

7. Another way of promoting to add tangibility Rix Marketing: A Practical Approach 7e Next: Additional Mix Elements for ServicesChapter Nine: Services Marketing Strategies Learn more on pages 317 - 322

8. Additional Mix Elements for Services • People strategies • identify boundary spanning roles • recruit ‘service-oriented’ people • empower front-line staff • reward and motivate • Physical evidence strategies • used to add tangibility • use visuals, aromas, sounds, textures • exterior/interior of premises • ads, brochures, uniforms • map servicescapes • Process strategies • manage service activities • identify ‘moments of truth’ • construct service blueprints Rix Marketing: A Practical Approach 7e Next: NFP MarketersChapter Nine: Services Marketing Strategies Learn more on pages 332 - 339

9. Five Minute Quiz Define services List five ways of classifying services List four characteristics of services that differentiate them from physical goods List the three additional elements of the marketing mix (Ps) for services List three target markets that NFP organisations need to appeal to Rix Marketing: A Practical Approach 7e Chapter Nine: Services Marketing Strategies