4 Unique Characteristics of Services

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Chapter 12

• 4 Unique Characteristics of Services
• Intangibility
• Cannot be touched, seen, tasted, heard, felt,
  stored
• Easy to duplicate
• Inseparability
• Involved in production (haircuts)
• RULE Quality of service firms are able to
  deliver depends on the quality of their employees.

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Chapter 12

• 4 Unique Characteristics of Services
• 3. Heterogeneity
• Physicians in a practice
• Seeks to be standardized and uniform by training,
  preparation procedures and process mechanization
• 4. Perishability
• Services cannot be stored, warehoused or
  inventoried
• Objective 1 Synchronize Demand
• Objective 2 Encourage Demand During Offpeak
  Times

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Chapter 12

• (P. 375)
• Service Quality 5 Components
• Reliability ability to perform (get it right
  the first time)
• Responsiveness ability to provide prompt
  service (quick call backs)
• Assurance knowledge, courtesy and trustworthy
  (treated with respect)
• Empathy caring (listening)
• Tangibles physical evidence (facilities, tools,
  appearance)

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Chapter 12

• (P. 376, Exh. 12.2)
• Gap Model of Service Quality
• 5 Gaps you dont want them
• Services Marketing in Manufacturing
• A competitive advantage for companies who make
  things by providing service for their customers /
  users.
• Product Strategy 3 types of Processing
• People Processing
• Possession Processing
• Information Processing

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Chapter 12

• (P. 380)
• Distribution Strategy Issues
• Convenience
• Number of outlets
• Distribute directly / indirectly
• Location of services
• Scheduling

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Chapter 12

• (P. 381)
• Promotion Strategy Issues
• Stress tangible cues
• Use personal information sources
• Create a strong organizational image
• Engage in post-purchase communication

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Chapter 12

• (P. 381-382)
• Price Strategy Issues
• Define the unit of service consumption paid for
  action or paid for time
• Bundling or separately pay for what is used
• Pricing objectives
• Revenueoriented prices surplus over cost
• Operationsoriented prices peak / slow
• Patronage-oriented prices maximize customers

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Chapter 12

• Relationship Marketing Levels
• Financial
• Financial, Social
• Financial, Social, Structural

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Chapter 12

• Internal Marketing
• Treat employees as customers
• Competing for talent
• Offer a vision
• Train employees
• Stress teamwork
• Give employees more freedom to make decisions
• Measure and reward good service performance
• Know employee needs

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Chapter 12

• What Makes Nonprofit Marketing Unique?
• Setting of marketing objectives generally not
  dollar related
• Target markets
• Apathetic or strongly opposed targets
• Pressure to adopt undifferentiated segmented
  strategies no average user
• Complementary positioning works with other
  similar providers

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Chapter 12

• What Makes Nonprofit Marketing Unique?
• Product Decisions
• Benefit complexity complex, long term,
  intangible
• Benefit strength weak and indirect benefit of
  driving 55 mph
• Involvement low to high dont litter, stop
  smoking
• Distribution Decisions
• Where do people want to perform?

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Chapter 12

• What Makes Nonprofit Marketing Unique?
• Promotion Decisions
• PSAs
• Licensing Name
• Pricing Decisions
• Pricing objectives cost leveling
• Non-financial prices
• Indirect payment
• Separation between payers and users
• Below cost pricing