MARKETING SERVICES by yurtgc548

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									MARKETING SERVICES


   Lecture Dr. Geurts



                        1
Gross Domestic Product is made up
 of goods and services.

About 75% of GDP is services.

USA runs a trade surplus with
 services
                                     2
        A. Nature of Services
1. Characteristics
  a. Intangibility - cannot see or smell
  b. Variability of delivery.
     1. Services can vary between uses (e.g., good service/poor
      service, on time delivery/late delivery)
  c. Perishability - if services are not consumed, they
   cannot be saved
  d. Simultaneous production and consumption - short
   time between purchase and consumption. services are
   often sold first and then produced or consumed in a
   short time after purchase.(e.g., theater tickets, school
   tuition, insurance) or consumed at the time of purchase.
                                                              3
  A. Nature of Services (con’t)

2. Classification of Services
  a. Product-related services -
   warranties
  b. Equipment-based services -
   planes, telephone equipment
  c. People-based services - child
   care, legal counseling


                                      4
 B. Service Market Strategies

1. Identify marketing strategies
2. Define market segments
3. Position Services - communicate
 intangible benefits




                                      5
     B. Service Market Strategies
4. Marketing mix
  a. Brand identity
  b. Advertising of services
     1)   Informational approach
     2)   Symbols to represent tangibility of services
  c. Distribution - generally limited to a buyer and a
   seller
  d. Personal selling - manufacturer of service is also the
   sales person
  e. Pricing methods      11 3
     1)   Cost-plus
                                                          6
     2)   Target return on investment
        Goods Versus Services

Goods are more tangible than services.
Services are consumed near time of
 purchase
Services can not be stored [highly
 perishable]
Services are delivered by individuals or
 machines
Quality varies with each delivery when
 human involved.                        7
   Different views of a product:

Products are “What we produce in the
 factory”- Goods orientation of a product
Products are “ What we sell in the Store”
 View of product as Profit producer.
Products are “What our customers buy”
 View product as a bundle of benefits to
 the customer. The bundle includes goods
 and services.
Which of the above attitudes about a product is
likely to be the best at producing long term 8profi
           Services:
1. Guarantees     7. Attitude of
2. Handling of     boundary spanners
 mistakes -        8. Reduction of risk
 Recovery is the   9. Location
 term that         10. Speed response
 describes the      time
 action taken.
                   11. Pamper
3. Delivery
                   12. Expertise of
4. Gift wrap       Provider
5. Help with      13. Value
 problems                              9
      Marketing and Services
    “Marketing is all activities from
     production to possession by the
               customer”

This includes the service of getting
 products to where customers want to
 buy, and providing the volume that the
 customer wants to buy and providing
 information and assurance and
 providing help in using and repair and10
Marketing and Services (con’t)


Half the cost of products are
 marketing costs and most marketing
 costs are services.
Marketing is obtaining and servicing
 demand
Marketing is the study of the
 facilitating of demand.
                                        11
      Mostly Service industries

1.   Medical
2.   Entertainment
3.   Consulting
4.   Education
5.   Fast or convenience Food
6.   Financial
7.   Repair
8.   Transportation              12
         Service Market Strategies
   1. Porter analysis FIVE FORCES:
                              New Entrants



          Suppliers        Industry Competitors   Buyers


*Intensity of Rivalry
*Threat of New Entrants       Substitutes
*Bargaining Power of Buyers
*Bargaining Power of Suppliers
                                                      13
*Threat of Substitutes
Service Market Strategies (con’t)
2. Define market segments-
  Stage of life cycle and social class
3. Position Services - communicate
 intangible benefits
  Knowledgeable, fast, elegant, error free, clean,
   friendly, safety, feel good, and tender loving
   care
4. Pricing methods
  1) Cost-plus
  2) Target return on investment- What we want
  3) Value-basis - what people are willing to        14
     Service Market Strategies
              (con’t)

5. Marketing research:
  a. Service gaps: Difference between what customers
   expect and what employees deliver.
  b. To identify service gaps it is necessary to survey
   customers and to do in-depth focus group interviews
   focusing on expectations.
  c. The Subject is the perception of customers about the
   service provided. “The Customer is never wrong about
   their perception”
  d. Perception is often unrecognized by the customer.
   Latent expectation use in-depth interview or laddering
   [means-end]                                           15
     5. Service expectation has many
                dimensions
 a. Adaptation when         d. How delivered
  excellent service is        and equipment used
  the norm because of
  repeated providing         e. Information
  excellent service.         f. Security
  example elevator           g. Credibility
 If gap occurs it is an     h. Reliability
  “Event” to the             i. Competence
  customer. Recovery is      j. Courtesy
  critical
                             k. Responsiveness
 b. The Provider; The
  appearance and skill of    l. Server
  the provider and the        empowered         16
6. Perceptions may be formed over years
 of experience. Also formed before or at
 time of use.
7. Competitors may define what is
 expected. Need to benchmark against
 competitors.
8. Research is also needed to know what
 customer expects and to identify and rank
 which services are most important
9. Start with secondary data. Complaint
 letters.
10. Use competitor service.             17
C. Getting Employees to Provide the Level
of Service [Customer Satisfaction] Desired.
  1. Company Culture
  2. Treat employees like they are valued
  3. Train
  4. Measure
  5. Reward
  6. Surroundings
  7. Opportunity for self betterment---
   learn and advance
  8. Newest high tech equipment
  9. Hire right                        18
II.     MARKETING NONPROFIT SERVICES

      A. Types of Nonprofit Organizations
        1. Cultural (museums, operas)
        2. Knowledge Oriented (colleges, research organizations)
        3. Philanthropic (foundations, charities)
      B. Difficulties in Marketing Nonprofit
       Services
        1. Rely on funding from donors
        2. Variety of sponsors (corporations, individuals,
         government)
        3. Often influenced by outside forces
                                                              19
        4. Firms are trying to influence behavior
       III. NONPROFIT MARKETING
               STRATEGIES
A. Identify Opportunities
  1. Interviews
  2. Surveys
B. Segment Markets - identify donors and
 clients
C. Position Nonprofit Services
  1. Brand Identity
  2. Advertising - both to donors and clients
  3. Distribution - increase locations where donations can be
   made
  4. Personal Selling - used to attract funds from large donors
                                                              20

								
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