Services and Nonprofit Organization Marketing

1
Chapter 11
Services Marketing
2
Chapter 12 Objectives

• 1. Discuss the importance of services to the
• economy.
• 2. Discuss the differences between services
• and goods.
• Describe the components of service quality and
  the gap model of service quality.
• 4. Develop marketing mixes for services.
• 5. Discuss relationship marketing in services.

3
Services

• A service is any act or performance that one
  party can offer to another that is essentially
  intangible and does not result in the ownership
  of anything. Its production may or many not be
  tied to a physical product.

4
Service Industries

• Government Sector
• Courts, hospitals, military services, police,
  fire departments, post office, schools
• Private Nonprofit Sector
• Museums, charities, churches, colleges,
  foundations, and hospitals
• Business Sector
• Airlines, banks, hotels, insurance companies, law
  firms, real estate firms.

5
Categories of Service Mix

• Pure tangible good
• soap or toothpaste. No services accompany the
  product
• Tangible good w/services
• the more technologically sophisticated
  (computers) more dependent on customer services
  (repairs, training, installation advice)
• Hybrid
• equal parts service/goods, restaurants
• Major service w/minor good
• Airlines
• Pure service
• the offering consists primarily of a service,
  massage

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How Services Differ from Goods
Characteristics That Distinguish Services
7
How Services Differ from Goods
Evaluating Services vs. Goods
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Service Quality
Components for Evaluating Service Quality
9
The Gap Model of Service Quality
Provider
10
Marketing Mixes for Services
11
Core and Supplementary Services
12
Mass Customization
High
Customization
Low
Low
High
Cost
13
Distribution Strategy
14
Promotion Strategy
Stress tangible cues
Use personal information sources
Service Promotion Strategies
Create a strongorganizational image
Engage in postpurchase communication
15
Price Strategy