OHT 22.1

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Services and non-profit marketing

OHT 22.2

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Classifying services

The product - service spectrum

Figure 22.1

OHT 22.3

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Means of classifying service products

• Tangibility.

• How the service is delivered.

• The extent the service is constrained or the demand fluctuates.

• Degree of involvement of people and facilities in the service.

• Level of customisation.

• Service benefit duration.

OHT 22.4

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Characteristics of service markets

Figure 22.2

OHT 22.5

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Generic differences between services and physical goods

Lovelock et al 1999

Table 22.1Source: Lovelock et al. (1999).

OHT 22.6

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

The services marketing mix

Figure 22.3

OHT 22.7

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Service experience

Quality of outcome

• Access.

• Reliability.

• Credibility.

• Security.

• Understanding the customer.

Quality of inputs

• Responsiveness.

• Courtesy.

• Competence.

• Communication.

• Tangibles.

OHT 22.8

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Barriers to service quality

(Parasuraman, 1985)

• Misconceptions.

• Inadequate resources.

• Inadequate delivery.

• Exaggerated promises.

OHT 22.9

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Factors affecting consumers’service expectations

Figure 22.4

OHT 22.10

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Ensuring a productive service workforce

• Positivity - the ‘satisfaction mirror’.

• Careful recruitment.

• Retaining service staff - higher capability levels.

• Training both visible and invisible service staff.

• Fair and flexible measures of service productivity.

• Efficient systems and technology.

• Reduction in service levels.

• Changing customer interaction.

• Reduce mismatch between supply and demand.

OHT 22.11

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Franchising

• Type of vertical marketing system.

• Contractual relationship between a franchisor and franchisee.

• The owner of a product licenses another to use, buy, sell or operate it in exchange for some form of payment.

• Can offer small business with route to achieving more rapid growth.

OHT 22.12

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Types of franchise relationship

• Distributorships.

• Licenses to manufacture.

• Celebrity endorsements.

• Trade marks.

• Business format franchising (e.g. McDonald’s).

OHT 22.13

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Types of business format franchise

• Executive.

• Retail.

• Distribution.

• Job.

OHT 22.14

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Variations in franchise independence

Table 22.3Source: Felstead (1991).

OHT 22.15

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

The franchisor’s perspective

Benefits

• Financial - rapid growth in market coverage and penetration.

• Committed managerial resource.

• Economies of scale.

Problems

• Handling ineffective or remote franchises.

• Grouping of franchisees for negotiation.

OHT 22.16

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

The franchisee’s perspective

Benefits

• Participation in system of established image, etc.

• Access to organised systems.

• National or regional advertising.

• Guidance on purchases.

Problems

• Contract compliance.

• Tension in relationship.

• Negative effects from poor decision making by franchisor.

OHT 22.17

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Launching new franchise systems

Figure 22.5

OHT 22.18

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Non-profit organisations

Table 22.6