Services and NonProfit Organization Marketing

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Services and Non-Profit Organization Marketing

• Chapter 11

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Goods and Services (1)

• Goods Marketing relates to selling physical
  products.
  
• Durable goods are physical goods used over an
  extended time.
  
• Nondurable goods are consumable products made
  from materials other than metal, wood, and hard
  plastics.

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Goods and Services (2)

• Services Marketing includes rented-goods
  services, owned-goods services, and nongoods
  services.
  
• Rented-Goods Services leasing auto, hotel room,
  office space, wedding items
  
• Owned Goods Services auto or computer repairs,
  lawn care home care
  
• Nongoods Services personal advice, tutor, legal,
  and accounting

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Hidden Service Sector

• Includes such areas as
• delivery
• installation
• training
• maintenance
• repair
• Provided by firms emphasizing goods

Infrastructure
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Goods/Services Continuum
Computer Computer
Computer Computer
Systems Design
diskette software

programming Exercise In-home r
ental Use of exercise Health Club
Personal Trainer equipment
of equipment of Hotel
equip. Off-the-rack Custom-mad
e Reupholstered Cleaning
Interior
office
furniture office furniture office
furniture office furniture
decorator Self-service Full-service
Transmission Driver
education Driver education
gasoline gasoline
overhaul firm provides
auto (consumer vehicle)
Pure Goods
Pure Services
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Attributes of Service

• Intangibility of services
• Perishability of services
• Inseparability of services
• Variability of services

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A Classification System for Goods

• By Market
• Segment

4. By Goal of Organization
2. By Degree of Durability
5. By Degree of Regulation
7. By Degree of Customer Contact
3. By Amount of Value Added
6. By Length of Distribution Channel
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A Classification System for Services

• By Market
• Segment

4. By Goal of Service Provider
2. By Degree of Tangibility
5. By Degree of Regulation
7. By Degree of Customer Contact
3. By Skill of Service Provider
6. By Degree of Labor Intensiveness
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Intangibility of Services

• Services often cannot be displayed, transported,
  stored, packaged, or inspected before buying.
  
• Repair services
• Personal services
• Advice services
• ONLY the benefits derived can be described.

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Perishability of Services

• Many services cannot be stored for future sale.
• Idle time is lost
• Movies playing to an empty house, or landscape
  workers lose time due to bad weather, idle time
  cannot be recaptured.
  
• Service suppliers must try to manage service to
  consumer usage, and regulate to demand

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Inseparability of Service

• A service provider and his or her services may be
  inseparable.
  
• This is most likely when
• Service is vital
• Customer contact is an integral part
• The quality of a repair depends on skill

Information Age Knowledge Worker
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Variability in Service

• There may be differing service performance from
  one time to another.
  
• Problem diagnosis such as repairs may be hard.
• There may be a lack of standardization of
  services

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Components of Service Quality
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The Gap Model of Service Quality
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Clients Versus Donors
Accountability on the part of the organization
Convenience services
Recognition of their contribution
Donors desires
Clients desire
Inexpensive services
Efficient operations
Access to services
High success rates
Tangible benefits

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Industrialization of Services

• Hard Technologiessubstitute machinery for
  people, such as utilizing electronic financial
  transactions instead of human bank tellers.
  
• Soft Technologiessubstitute pre-planned systems
  for individual services.
  
• Hybrid Technologiescombine both hard and soft
  technologies.

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Product Strategies for Services
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Service Processing
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Core and Supplementary Services
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Core and Supplementary Services for FedEx
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Mass Customization
Mass Customization A strategy that uses technol
ogy to deliver customized services on a mass
basis.

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Mass Customization
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Service Mix Strategy

• Determine what new services to introduce
• Determine target market
• Decide what existing services to maintain and
  eliminate

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Marketing Mixes for Services
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Nonprofit Marketing

• This form of marketing is conducted by
  organizations and individuals that
  
• operate in the public interest or that
• foster a cause and do not seek
• financial profits.

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Nonprofit Organizations
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Nonprofit Organization Marketing Activities
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Unique Aspects of Nonprofit Organization
Marketing Strategies
Online http//www.peta.com
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Market Objectives

• Users
• Payers
• Donors
• Politicians

• Appointed officials
• Media
• General Public

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Target Markets
Unique Issues of Nonprofit Organizations
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Nonprofit Organization Marketing
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The Extent of Nonprofit Marketing

• It may involve
• Organizations (unions, charities, trade
  associations)
  
• People (political candidates)
• Places (resorts, convention centers, industrial
  sites)
  
• Ideas (stop smoking)
• Goods and Services (produced or sold)

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A Classification System for Nonprofit Marketing
1. By Degree of Tangibility
3. By Overall Objective
2. By Organization Structure
4. By Constituency
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Clients Versus Donors
Accountability on the part of the organization
Convenient services
Recognition of their contribution
Donors desire
Clients desire
Inexpensive services
Efficient operations
Access to services
High success rates
Tangible benefits