lhm 12e ch12_ppt_ie

8/13/2019 LHM 12e ch12_PPT_IE

1/49

Chapter 12: Services and Nonprofit

Organization Marketing

Prepared and Designed by Laura Rush, B-books Ltd.

1Copyright Cengage Learning 2013All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

2/49

Learning Outcomes

Discuss the importance of services to the

economy

Discuss the differences between servicesand goods

Describe the components of service quality

and the gap model of service quality

Develop marketing mixes for services


LO1

LO2

LO3

LO4

8/13/2019 LHM 12e ch12_PPT_IE

3/49

Learning Outcomes

Discuss relationship marketing in services

Explain internal marketing in services

Discuss global issues in services marketing

Describe nonprofit organization marketing


LO5

LO6

LO7

LO8

8/13/2019 LHM 12e ch12_PPT_IE

4/49

The Importance of Services

Discuss the importance of

services to the economy.

LO1


8/13/2019 LHM 12e ch12_PPT_IE

5/49

Service

The result of applying human or

mechanical efforts to

people or objects.


8/13/2019 LHM 12e ch12_PPT_IE

6/49

Review Learning OutcomeThe Importance of Services

LO1

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

81%

Services as a percentage of GDP

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

81%

Services as a percentage of employment

Services

Deed

Performance

Effort

6Copyright Cengage Learning 2013

All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

7/49

How Services Differ from Goods

Discuss the differences between

services and goods.

LO27

Copyright Cengage Learning 2013

All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

8/49

8/13/2019 LHM 12e ch12_PPT_IE

9/49

How Services Differ from Goods

Search Qualities

Experience

Qualities

CredenceQualities

Intangibility

Online

http://www.webmd.com

http://www.webmd.com/http://www.webmd.com/

8/13/2019 LHM 12e ch12_PPT_IE

10/49

Service Quality

Describe the componentsof service quality

and the gap model

of service quality.

LO310


All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

11/49

Components of Service Quality

TangiblesThe physical evidence

of a service.

EmpathyCaring, individualized

attention to customers.

AssuranceThe knowledge and courtesy

of employees.

ResponsivenessThe ability to provide

prompt service.

Reliability The ability to perform dependently,accurately, and consistently.


8/13/2019 LHM 12e ch12_PPT_IE

12/49

The Gap Model of Service Quality

12

8/13/2019 LHM 12e ch12_PPT_IE

13/49

Review Learning OutcomeService Quality

LO313


All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

14/49

Marketing Mixes for Services

Develop marketing mixes

for services.

LO414


All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

15/49

Product Strategies for Services

Service

Mix

Standardization

orCustomization

Core and

SupplementaryProcess


8/13/2019 LHM 12e ch12_PPT_IE

16/49

8/13/2019 LHM 12e ch12_PPT_IE

17/49

The Service Factory

Possession processing

Mental-stimulus processing


All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

18/49

The Service Offering

Core ServiceThe most basic

benefit the customer is buying.

Supplementary ServiceA

group of services that support

or enhance the core service.


8/13/2019 LHM 12e ch12_PPT_IE

19/49

Core and Supplementary Services

for a Luxury Hotel

19Source: Christopher H. Lovelock and Jochen Wirtz, Services Marketing(Upper Saddle River, NJ: Pearson Education,Inc., 2006). Electronically reproduced with permission of Pearson Education, Inc.

8/13/2019 LHM 12e ch12_PPT_IE

20/49

Customization/Standardization

Mass Customization

A strategy that uses technology

to deliver customized services

on a mass basis.


8/13/2019 LHM 12e ch12_PPT_IE

21/49

The Service Mix

Determine what new services to introduce

Determine target market

Decide what existing services to maintain

and to eliminate


8/13/2019 LHM 12e ch12_PPT_IE

22/49

Place (Distribution) Strategy

Scheduling

Location

Direct or indirectdistribution

Number of outlets

Convenience


8/13/2019 LHM 12e ch12_PPT_IE

23/49

Promotion Strategy


Engage in postpurchasecommunication

Create a strongorganizational image

Use personal informationsources

Stress tangible cues

8/13/2019 LHM 12e ch12_PPT_IE

24/49

Price Strategy

Define the unit of service consumption

Determine if multiple elements are bundledor priced separately

Pricing Challenges for Services


8/13/2019 LHM 12e ch12_PPT_IE

25/49

Pricing Objectives

Revenue-OrientedPricing

Operations-Oriented

Pricing

Patronage-OrientedPricing

Maximize the surplus of incomeover costs

Match supply and demand by

varying price

Maximize the number ofcustomers by varying price

Online

http://www.etrade.com

http://www.tdameritrade.com

http://www.schwab.com

25Copyright Cengage Learning 2013 All Rights Reserved

Online

O
http://www.etrade.com/http://www.tdameritrade.com/http://www.schwab.com/http://www.schwab.com/http://www.tdameritrade.com/http://www.etrade.com/

8/13/2019 LHM 12e ch12_PPT_IE

26/49

Review Learning OutcomeMarketing Mixes for Services

PLACE PROMOTION PRICEPRODUCT

=SERVICE

Process

Core and

Supplementary

MassCustomization

Standardization

Number of

outlets

Direct

Indirect

Location

Tangible

cues

Personal

information

Strong image

Post-purchase

communication

Revenue

oriented

Operations

oriented

Patronageoriented


8/13/2019 LHM 12e ch12_PPT_IE

27/49

Relationship Marketing

Discuss relationship

marketing in services.

LO5

27


All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

28/49

Relationship Marketing

Attracting, developing, and retaining customerrelationships to build strong customer loyalty.

Level 1:

Pricing incentives

Level 2:Pricing incentives + social bonds with customers

Level 3:Pricing incentives + social bonds + structural bonds


8/13/2019 LHM 12e ch12_PPT_IE

29/49

8/13/2019 LHM 12e ch12_PPT_IE

30/49


All Rights Reserved 30

Internal Marketing in Service Firms

Explain internal

marketing in services.

LO6

8/13/2019 LHM 12e ch12_PPT_IE

31/49

Internal Marketing

Treating employees as

customers and developing

systems and benefits that

satisfy their needs.


R i L i O t

8/13/2019 LHM 12e ch12_PPT_IE

32/49

Review Learning Outcome

LO6

Internal Marketing in Services


8/13/2019 LHM 12e ch12_PPT_IE

33/49

Global Issues in Services Marketing

Discuss global issues

in services marketing.

LO7

33


All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

34/49


The U.S. is the worlds largest exporter ofservices. International competition is increasing.

To be successful, global service firms mustdetermine the nature of the core product. Additional services

Place

Promotion

Pricing Distribution


O

8/13/2019 LHM 12e ch12_PPT_IE

37/49

8/13/2019 LHM 12e ch12_PPT_IE

38/49


Government

Museums

Theaters

Schools

Churches


8/13/2019 LHM 12e ch12_PPT_IE

39/49


Market intangible products

Production requires

customers presence

Services vary greatly

Services can not be stored

Shared

Characteristicswith

ServiceOrganizations


8/13/2019 LHM 12e ch12_PPT_IE

40/49


Identify desired customers

Specify objectives

Develop, manage, eliminate programs and services

Decide on prices

Schedule events or programs

Communicate their availability


8/13/2019 LHM 12e ch12_PPT_IE

41/49

Unique Aspects of Nonprofit

Organization Marketing Strategies

Setting of marketing objectives

Selection of target markets

Development of marketing mixes


8/13/2019 LHM 12e ch12_PPT_IE

42/49

8/13/2019 LHM 12e ch12_PPT_IE

45/49

Promotion Decisions

Sales promotion activities

Public service advertising

Professional volunteers

Online

http://www.adcouncil.com

Peer-to peer-communications


All Rights Reserved
http://www.adcouncil.com/http://www.adcouncil.com/

8/13/2019 LHM 12e ch12_PPT_IE

46/49

Pricing Decisions

Below-cost pricing

Separation between

payers and users

Indirect payment

Nonfinancial prices

Pricing objectives

CharacteristicsDistinguishingPricing Decisions

of NonprofitOrganizations

46

Copyright Cengage Learning 2013 All Rights Reserved


8/13/2019 LHM 12e ch12_PPT_IE

47/49

Review Learning OutcomeNonprofit Organization Marketing

LO8

TARGET

Apathetic orstrongly opposed

Undifferentiated

segmentation

Complementary

positioning

PRODUCT

PROMOTION

PLACE

PRICE

Professional

volunteers

Sales

Public Service

Advertising

Involvement

Benefit

strength

Benefit

complexity

Special

facilities

Nonfinancial

Indirect

payment

Separation

Below cost

pricing

47

Copyright Cengage Learning 2013 All Rights Reserved

8/13/2019 LHM 12e ch12_PPT_IE

48/49

Chapter 12 Company Clip

Kodak isnt selling only products, these

days. The company has an entire division

dedicated to delivering service solutions to

business customers.

http://www.cengage.com/marketing/book_content/

9781111821647_lamb/videos/ch12.html


All Rights Reserved48
http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch12.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch12.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch12.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch12.html

8/13/2019 LHM 12e ch12_PPT_IE

49/49

Part 3 Video: Rogue Sheep

This video focuses on Rogue Sheep and

their iPhone app Postage. Brad and Chris

discuss what goes into developing,

marketing, and keeping an iPhoneapplication fresh and new.

http://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part03.html

Copyright Cengage Learning 2013 49
http://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part03.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part03.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part03.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part03.html

lhm 12e ch12_ppt_ie

Documents