chapter 1 origin

8/3/2019 Chapter 1 Origin

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1 - 1

SERVICES MARKETING

BUSE 3004

Solomon Habtay


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Course Outline 2009Overview of Services Marketing

Why Study Services Marketing?

What are Services?

The Differences in Marketing Management between theServices and the manufacturing sector

The Expanded Marketing Mix Required for Services

The Objective of the Course

Questions


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Why study services?Service Industries

Advertising

Financial services

Insurance

Telecom

Airlines

Entertainment

HealthcareSecurity services

Tourism

Hotels

Education

Diet and Weight ReducingCenters

Management Consulting Services

Environmental Consulting

Telemarketing


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Why study services?Transformation of the Service Economy

Government

Policies

BusinessTrends

SocialChanges

Advances inIT

Globalization

The only way of long term survival is innovation!!!

But innovation is not easy!!!!

Success hinges on:

Understanding customers and competitors (Part I 10 Feb)

Creation of value for customers and firm (Part III)

Viable business model innovation (Part IV)

Product life cycles are getting shorter

Strategy life cycles are getting shorter More intense competition


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Defining Services

Services Are economic activities offered by one party to another

Most commonly employ time-based performances to bring aboutdesired results in:

recipients themselves objects or other assets for which purchasers have responsibility

In exchange for their money, time, and effort, servicecustomers expect to obtain value from

Access to goods, labor, facilities, environments, professional skills,networks, and systems

But they do not normally take ownership of any of the physicalelements involved


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What Are Services?

The historical view

Goes back over 200 years to Adam Smith and Jean-Baptiste Say

Different from goods because they are perishable (Smith 1776)

Consumption cannot be separated from production, services areintangible (Say 1803)

A fresh perspective: Services involve a form of rental,offering benefits without transfer of ownership

Include rental of goods

Marketing tasks for services differ from those involved in sellinggoods and transferring ownership



Services Pose DistinctiveMarketing Challenges

Marketing management tasks in the service sectordiffer from those in the manufacturing sector

The eight common differences are:

1. Most service products cannot be inventoried

2. Intangible elements usually dominate value creation

3. Services are often difficult to visualize and understand

4. Customers may be involved in co-production

5. People may be part of the service experience

6. Operational inputs and outputs tend to vary more widely7. The time factor often assumes great importance

8. Distribution may take place through nonphysical channels

What are the marketing challenges for services?



Product Place

The target market

Price Promotion

Walker, O.C., Mullins, J. W., Boyd, H. W., & Larreche, J .C. (2006). Marketing Strategy, 5th Ed. New York. McGraw-Hill, pp. 153-169.

The 4Ps



The 8Ps of Services Marketing(Course outline)

Product Elements 16 Feb

Service innovation

Promotion and Education 17 Feb

Promoting the value proposition

Positioning services 23 Feb

Place and Time 24 Feb

Service value chain Process 2 March

Designing and managing services process

Productivity and Quality 3 March

Servqual

Balancing demand and productivity 9 March

Managing relationship 10 Mar

Price and Other User Outlays 16 Mar

Physical Environment (Chapter 10)

People 23 March

Managing people for service advantage

Organizing for change management 24 March

Working in Unison: The8Ps of Services

Marketing



The Objective of the Course:To develop your analytical skills on how to:

Analyze market opportunities

Pursue services value innovation

Design and manage profitablebusiness models

Implement effective strategies for managingprofitable businesses



Individual Assignment: Research PaperFormat and Marking Criteria

Structure Mark

Introduction

Study background

Problem statement

10%

Literature review (relevance) 10%

Empirical analysis (application) 20%

Findings/conclusions 10%

Recommendation 10%

Research methodology 20%

Academic content (originality, quality, citations,

references)20%

Total 100%



Performance Evaluation

Component Mark

Group of 4 = 7 case studies (Top 5)

Submission on each tutorial day

25%

Individual assignment:Final submission date 31 March, 2009

15%

Final exam 60%

Total 100%


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WebCIT/Blackboard

Reading material and notes are available at: http://ignite.wits.ac.za

Log in to the Black Board Learning System

Using your student No. BUSE3004 Services Marketing

Go to: Student View
http://ignite.wits.ac.za/http://ignite.wits.ac.za/



BUSE3004 Time Table

Mon 08:0008:45

LB 144

09:0009:45

LB 144

Tues 10:15-11:00

LB 145

11:15-12:00

LB 145

Wed 12:30

13:15Tut

CB128



CONSULTATION TIMES

Monday 14:00

15:00pm

Tuesday 14:00 - 15:00pm

Other times by appointment

NCB, Office No. 208Office Tel: 011-7178085

Email: [email protected]
mailto:[email protected]:[email protected]


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