chapter 14 services marketing 14 | 3copyright © houghton mifflin company. all rights reserved....
TRANSCRIPT
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Objectives
• Understand nature and importance of services• Identify characteristics of services that
differentiate them from goods• Describe how the characteristics of services
influence development of marketing mixes for services
• Understand importance of service quality and explain how to deliver exceptional service quality
• Explore nature of nonprofit marketing
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The Nature andImportance of Services
• Services as products
• Relationship to economic growth and lifestyle
• Business services
• Theater framework
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Characteristics of Services
• Intangibility – not perceived by the senses or physically possessed
• Inseparability – being produced and consumed simultaneously
• Perishability – unused services can’t be used at a future time
AUA Presentation, Hallas, 21 November 2005, p.1
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Characteristics of Services (cont’d)
• Heterogeneity – variation in quality
• Client-based Relationships – interactions resulting in satisfied customers who use a service repeatedly
• Customer contact – the necessary level of interaction between provider and customer to deliver the service
Customer Contact Association
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Developing andManaging Mixes for Services
K. Douglas Hoffman and John E. G. Bateson, Services Marketing: Concepts, Strategies, and Cases, 3rd ed. (Cincinnati: Thomson/South-Western, 2006); Valarie A. Zeithaml, A. Parasuraman, and
Leonard L. Berry, Delivering Quality Service: Balancing Customer Perceptions and Expectations (New York: Free Press, 1990); Leonard L. Berry and A. Parasuraman, Marketing Services:
Competing through Quality (New York: Free Press, 1991), p. 5.
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Development Of Services
• Core Service- basic
• Supplementary Service- differentiates from bundle of competitors’
• Customization vs. Standardization
• Dilemma– Acceptable quality
– Efficient manner
– Satisfy customer needs
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IntangibilityAnd Service Delivery
• Promises raise expectations
• Personnel
• Physical facility
• High-contact employees
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Distribution Of Services
• Provider’s facility
• Customer home/business
• “Arm’s length”
• Marketing channel
– Direct
– Short
• Equipment supported
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Promotion Of Services
• Intangibility• Tangible cues• Promote
– Price– Guarantees– Performance documentation– Availability– Training/certification
• Personal selling• Word-of-Mouth
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Pricing Of Services
• Performance
• Time
• Demand-based
• Indicator of quality- paint and pricing (scroll 3/4 down page)
• Market conditions
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Service Quality
Customers’ perception of how well a service provider meets or exceeds their expectations.
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Search Qualities
Tangible attributes (of product) such as color, style, size, feel, fit that can be evaluated prior to purchase.
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Experience Qualities
Attributes, such as taste, satisfaction, or pleasure, which can be assessed only during purchase and consumption of a service.
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Credence Qualities
Attributes that customers may be unable to evaluate even after purchasing and consuming a service.
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Dimensions Of Service Quality
Adapted from Leonard L. Berry and A. Parasuraman, Marketing Services: Competing through Quality (New York: Free Press, 1991 ); Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, Delivering Quality Service: Balancing Customer Perceptions and Expectations (New York: Free Press, 1990); A.
Parasuraman, Leonard L. Berry, and Valarie A. Zeithaml, “An Empirical Examination of Relationships in an Extended Service Quality Model,” Marketing Science Institute Working Paper Series, Report no. 90–112 (Cambridge, MA: Marketing Science Institute, 1990), p. 29.
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DeliveringExceptional Service Quality
• Analysis of customer expectations
– Zone of tolerance
• Service Quality Specifications
– Goals and commitment
• Employee Performance
– Evaluation and compensation
• Management of Service Expectations
– Realistic expectation; word-of-mouth
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Service Quality Model
Adapted from A. Parasuraman, Leonard L. Berry, and Valarie A. Zeithaml, “An Empirical Examination of Relationships in an Extended Service Quality Model,” Marketing Science Institute Working Paper Series, Report no. 90–112, 1990. Reprinted by permission of Marketing Science Institute, and the authors.
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Nonprofit Marketing
Activities conducted to achieve some goal other than ordinary business goals such as profit, market share, or return on investment
Muscular Dystrophy Association
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How Is NonprofitMarketing Different?
• Not considered a business
• Greater opportunity for creativity
• Difficult to measure performance
• Sometimes controversial
• Provide body of knowledge
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Nonprofit Marketing Objectives
• Change values
• Financial contribution
• Donation of services
• Shaped by nature of exchange and goals
United Way
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Developing NonprofitMarketing Strategies
• Target Markets– Target– Client– General
• Develop Market Mix– Product = abstract ideas/concepts– Distribution = right media– Promotion = multiple methods– Pricing = fixed and variable costs