Services and Other

woebegoneidealInternet and Web Development

Nov 18, 2013 (3 years and 6 months ago)

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Services and Other
Tangibles:



Marketing the Product


that Isn’t There

Chapter Ten

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall
.


© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
-
2

Chapter Objectives


Describe the characteristics of
services and the ways marketers
classify services


Appreciate the importance of service
quality to marketers


Explain the marketing of people,
places, and ideas

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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3

Real People, Real Choices:

Decision Time at the Philadelphia 76ers


What is the best way to compile more
detailed information on the 76ers
customer base?


Option 1:

Phase in a CRM database


Option 2:

Send out surveys to season
ticket holders annually


Option 3:

Analyze the lifetime value of
customers

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

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Marketing What Isn’t There


Intangibles:

Services and other experience
-
based
products that cannot be touched


Example:
concerts, tax preparation,
haircuts, medical diagnosis, etc.


Does marketing work for intangibles?
Yes!



© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

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5

What is a Service?


Services:

Are acts, efforts, or performances
exchanged from producer to user
without ownership rights


Services accounted for 75% of US
employment in 2010


Services may target consumers and/or
businesses


© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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Characteristics of Services


Intangibility:


Can’t see, touch, or smell a service


Perishability:


Can’t be stored for later sale or use


Variability:


Even the same service performed

by the same person will vary


Inseparability:


It is impossible to separate the production of
a service from its consumption

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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7

Characteristics of Services


Service encounter:

The interaction between the customer
and the service provider


Service encounter dimensions:


Social contact dimension


Physical dimension


The quality of service is only as good
as its worst employee

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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8

The Service Continuum


The service continuum classifies
services based on:


Whether the service is performed
directly on the
customer

or on some
possession

that the customer owns


Whether the service consists of
tangible

or
intangible

actions

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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9

The Services Continuum


Most products are a combination of
goods and services


Products vary in their level of
tangibility:


Tangible: salt, necktie, dog food


Intangible: teaching, nursing, theater


Balanced products: fast food, television

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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10

The Services Continuum


Goods
-
dominated products include:


Firms that sell tangible products still
provide support services


Equipment
-

or facility
-
based services
include:


Operational factors, locational factors,
and environmental factors are important


People
-
based services include:


Increasing in importance as people lack
the time or expertise to do on their own

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

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11


Core service:


The benefit a customer gets from the
service


Augmented service:


Core service plus additional services
that enhance value


Augmented services help to
differentiate businesses from one
another

Core and Augmented Services

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

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12

The Service Encounter


Physical elements of the service
encounter


Servicescape:

Environment in which the service is
delivered and where the firm and
customer interact


Servicescapes influence purchase
decisions, service quality evaluations,
and customer satisfaction

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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13

The Service Encounter


Web sites influence customer
perceptions


First stop for many potential customers


Poor navigation, unattractive sites offer
negative first impressions


SEO (search engine optimization) is
critical for getting noticed

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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14

Providing Quality Service


Quality service ensures that customers
are satisfied with that for which they
have paid


Satisfaction is based on customer
expectations


Not all customers expect the same level
of service


Not all customers can be satisfied

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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15

Service Quality Attributes


Search qualities:


Characteristics that the consumer can
examine before purchase


Experience qualities:


Characteristics that buyers can
determine during or after consumption


Credence qualities:


Characteristics that are difficult to
evaluate even after they have been
experienced

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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16

Measuring Service Quality


Several methods of measuring service
quality exist:


Mystery shoppers


Lost customers


SERVQUAL scale



Gap analysis


Critical incident technique


© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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17

Measuring Service Quality


SERVQUAL scale

(questionnaire)
measures customer perceptions of five
key dimensions as follows:


Tangibles


Reliability


Responsiveness


Assurance


Empathy


© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
-
18

Measuring Service Quality


Additional methods of measuring
service quality:


Gap analysis

measures the difference
between actual and expected service
quality


Critical incident technique

uses
customers’ complaints to identify
problems that lead to dissatisfaction

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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19

Strategic Issues in Delivering
Service Quality


Maximizing the likelihood that a
customer will use a service and
become a loyal user requires:


Development of effective marketing
strategies


Fast and appropriate responses to
service failures


© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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20

The Future of Services


New dominant logic for marketing:


Argues that service is the central core
deliverable in every exchange


Services will continue to grow due to
several factors:


Changing demographics


Globalization


Technological advances


Proliferation of information


© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

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Politicians and celebrities are
commonly marketed as follows:


Consultants “package” candidates or
celebrities


Celebrities often rename themselves to
craft a “brand identity”


Other techniques for selling celebrities:


The pure selling approach


The product improvement approach


The market fulfillment approach

Marketing People, Places, and
Ideas

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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22

Marketing People, Places, and
Ideas


Place marketing strategies treat a city,
state, country, or other locale as a
brand


The marketing mix creates an identity


Example:

Shreveport
-
Bossier shares
more characteristics with East Texas
than it does with New Orleans, and now
markets itself using the “Louisiana’s
Other Side" campaign

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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23

Marketing People, Places, and
Ideas


Marketing ideas include:


Gaining market share for a concept,
philosophy, belief, or issue


Example:

Religious institutions market
ideas about faith


Consumers often do not perceive the
value they receive when they conform
with an idea or fail to believe an idea is
worth its ultimate cost

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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24

Real People, Real Choices:

Decision Made at the Philadelphia 76ers


Lara chose option 1


Why do you think Lara chose to
implement a CRM database?

© 2012 Pearson Education, Inc. publishing as Prentice
-
Hall.

10
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25

Keeping It Real:

Fast
-
Forward to
Next Class Decision Time at Taco Bell


Meet Cosmo Kapoor, Manager of Food &
Beverage Operations at Disney’s
Epcot theme park in Orlando, Florida


Cosmo’s goal is to consistently deliver
immersive dining experiences for guests
visiting any Epcot restaurant.


The decision to be made:

How to maximize the number of guests
attending Epcot’s International Food and
Wine Festival in light of the gloomy
economic climate.