services and other intangibles: marketing the product that isn’t there
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Services and Other Intangibles:
Marketing the Product That Isn’t There
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Chapter Objectives
• 4 characteristics of services• service continuum• core and augmented services, • marketing of services
on the Internet,
• service encounter
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Chapter Objectives
• service quality to marketers: search qualities, experience qualities, credence qualities
• SERVQUAL
• Gap Analysis
• marketing of people, places, and ideas
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Marketing What Isn’t There
• Intangibles: services and other experience-
based products that cannot be touched
• Does marketing work for intangibles? Yes!
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What Are Services?
• Services are:
• acts, efforts, or performances
• exchanged from producer to user • without ownership rights.
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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
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Characteristics of Services (cont’d)
•Variability: can’t standardize the same service performed by the same individual
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Characteristics of Services (cont’d)
• 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 How???
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Services by: Inputs & Tangibility
Figure 10.1
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The Services Continuum•
Figure 10.2
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The Services Continuum (cont’d)
• Goods-dominated products
• Equipment- or facility-based services
• People-based services
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Core and Augmented Services
• Core service: the benefit a customer gets from the service
• Augmented service: core service + added services that enhance
value
INDOOR CLIMBING WALL AT
UNIVERSITY OF HOUSTON
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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
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The Service Encounter
• Social elements: employees and customers
• Physical elements: Service-scapesother intangibles
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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)
JET BLUE AIRLINES
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Measuring Service Quality
• SERVQUAL
• Gap analysis
• Critical incident technique
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Strategies for Developing and Managing Services
• Act fast to resolve a service failure.
• Identify potential failures
• make recovery plans ahead of time.
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Strategies for Developing and Managing Services
• Train employees to listen for complaints
• empower them to take action.
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The Future of Services
• New dominant logic for marketing
• Changing demographics
• Globalization
• Technological advances
• Shift to flow of information
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Marketing People
• Marketing peoplePoliticians
Celebrities
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Marketing Places
• Marketing placesAttempting to position a city, state, country, or
other locale so consumers choose the brand over
competing destinations
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Marketing Ideas
• Marketing ideasGaining market share for a concept, philosophy, belief, or
issue
LICKGLOBALWARMING.COM MADD
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Then end
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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
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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.
UNIVERSAL STUDIOS THEME PARK
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Group Activity
• Pick a sport and define the core service its sporting event provides at your university/college.
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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?
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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?
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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 mealAn airline flightAutomobile repairsYour college education
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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?
MYSPACE.COM
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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.
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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?
SENATOR HILLARY RODHAM CLINTON
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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?
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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.
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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?
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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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