PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e

Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of ServicesChapter Nine: Services Marketing Strategies Learn more on page 317

What is a ProductA product is something you can touch

What is a Service?A service is an action performed by someone (labour).

If you buy a new battery for your car, that's a product.

The installation of that battery is a service.

Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of ServicesChapter Nine: Services Marketing Strategies Learn more on page 317

The scope of the services

market

Communication

ProfessionalPersonal care

Health care Education

HouseholdAccommodationRecreation & entertainment

Travel and transport

Plus a huge range of B2B

services

Rix Marketing: A Practical Approach 7e Next: Distinctive Colour Adds Tangibility to a ServiceChapter Nine: Services Marketing Strategies Learn more on pages 317 - 322

The Special Characteristics of Services

• Intangibilityo customer cannot experience prior to purchaseo need to add physical evidence

• Variabilityo customer receives a different product each timeo need to either standardise or customise service o allows for market segmentation by customising service

• Perishability and fluctuating demando ‘real time’ services are lost if not usedo demand has peaks and troughso need to use marketing mix to manage supply and demando allows for segmentation through pricing and promotion

• Inseparabilityo hard to separate service from service provider o customer is involved in service deliveryo need to manage ‘moments of truth’

Services marketing requires some different strategies because of:

Distinctive Colour Adds Tangibility to a Service

Rix Marketing: A Practical Approach 7e Next: Managing Inseparability & Fluctuating Demand Chapter Nine: Services Marketing Strategies

Rix Marketing: A Practical Approach 7e Next: Another way of Promoting to Add TangibilityChapter Nine: Services Marketing Strategies Learn more on pages 322 - 332

Developing a Marketing Mix for Services

• Distributiono making the service ‘accessible’ is the key tasko convenient locationo short channel lengtho technology (Net) is critical

• Producto to add tangibility, a services brand should highlight the service benefito must manage quality ‘service gaps’

• Promotiono adding tangibility is the main tasko show the service encountero avoid over-promisingo build relationships

• Pricingo customers are often unaware of service provision costso pricing is often based on inputs such as ‘hours spent’o changing prices in response to demand levels is common

Many of the mix strategies are the same as for physical goods. Some differences are:

Another way of promoting to add tangibility

Rix Marketing: A Practical Approach 7e Next: Additional Mix Elements for ServicesChapter Nine: Services Marketing Strategies Learn more on pages 317 - 322

Rix Marketing: A Practical Approach 7e Next: NFP MarketersChapter Nine: Services Marketing Strategies Learn more on pages 332 - 339

Additional Mix Elements for Services

• Physical evidence strategieso used to add tangibilityo use visuals, aromas, sounds, textureso exterior/interior of premiseso ads, brochures, uniformso map servicescapes

• People strategieso identify boundary spanning roleso recruit ‘service-oriented’ peopleo empower front-line staffo reward and motivate

• Process strategieso manage service activitieso identify ‘moments of truth’o construct service blueprints

Five Minute Quiz

1. Define services2. List five ways of classifying services3. List four characteristics of services that

differentiate them from physical goods4. List the three additional elements of the

marketing mix (Ps) for services5. List three target markets that NFP

organisations need to appeal to

Rix Marketing: A Practical Approach 7e Chapter Nine: Services Marketing Strategies