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9fms pp12

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    9fms pp12 9fms pp12 Presentation Transcript

    • Chapter 12 Services Marketing and Customer Relationships Sommers  Barnes Ninth Canadian Edition Presentation by Karen A. Blotnicky Mount Saint Vincent University, Halifax, NS Copyright © 200 1 by McGraw-Hill Ryerson Limited
    • Chapter Goals
      • To gain an understanding of:
        • The nature and importance of services
        • Characteristics of services and their marketing implications
        • Issues related to the planning and marketing of services
        • The four Rs of services marketing
        • The relationship marketing approach
        • The impact of technology in providing services
      12 -
    • The Nature of Services
      • regardless of the “product”, there is a services component to the offerings of all firms
      • in some cases, a service is the principal purpose of the transaction, as in the rental of a car, a haircut, or legal services -- we refer to this as the core service
      • in others, service is performed in support of the sale of a tangible product -- these are referred to as supplementary services
      12 -
    • Goods and Services Continuum
      • There are two classes of services.
        • Services that are the main purpose of a transaction —renting a truck to move.
        • Services that supplement the sale of a tangible good — for example, an information hotline for computer software.
      • The focus here is primarily on identifiable, intangible services that are the main object of a transaction designed to provide want-satisfaction to customers; supplementary services growing in importance, however.
      12 -
    • 12 - Canned foods Ready- made clothes Auto- mobiles Draperies, Carpets Rest- aurant meals Repairs: auto, house, landscaping Air travel Insurance, Consulting, Teaching MOSTLY GOODS MOSTLY SERVICES The Goods-Services Continuum
    • Importance of Services
      • Three-fourths of the Canadian labour force is employed in service industries.
      • Over 70% of the nation’s gross national product is produced by services.
      • From 1986 to 2000, virtually all new jobs will be in the service industries.
      • Huge growth in personal services as well as business services.
      12 - Copyright © 1998 by The McGraw-Hill Companies, Inc.
    • Characteristics of Services
      • intangibility : difficult to sample and to evaluate
      • inseparability : difficult to separate services from the service provider; mainly direct sales; staff are essential to the delivery of quality services
      • heterogeneity : virtually every service is different; very difficult to standardize quality
      • perishability : those not sold can not be stored
      • fluctuating demand : demand for some services fluctuates by season, or even by time of day
      12 -
    • Strategic Services Management
      • intangibility generally makes the marketing of services a challenge
      • understanding how people buy services and the segments that exist is just as important
      • knowing more about the value of customer segments is important -- some are more valuable than others
      • knowing what they value so that service levels can be tailored is also important
      12 -
    • Strategic Product Implications
      • service organizations have to plan the introduction of new services and the management of the life cycle
      • the core service can be enhanced through the addition of supplementary services, thereby creating added value
      • the life cycle of services has to be managed
      • the branding of a service can be difficult as the customer often has nothing tangible to show
      12 -
    • Managing Service Quality
      • Quality is hard to define, measure, control, and communicate
      • Quality is defined by the consumer
      • It’s important to measure customer satisfaction with an organization’s service quality.
      • Customers see five important components:
        • Core service must measure up.
        • Quality of service , meeting expectations.
        • Technical aspects of delivery.
        • Interaction with people who deliver service.
        • Affective dimensions : How customers feel.
      12 -
    • Pricing Services
      • The characteristics of perishability, inability to store, and fluctuating demand for services create pricing challenges.
      12 -
      • Pricing Strategies include:
        • Discount strategies: Cheaper by the week.
        • A variable pricing strategy: Kids eat free, movies cheaper on Tuesdays.
        • Price competition.
    • Distribution of Services
      • because most services are tied directly to a specific service provider, most have been distributed directly to customers
      • with advancing technology, many firms are now delivering services through machines
      • channels of distribution are necessarily short; some firms use one agent intermediary, such as insurance, real estate, and travel agents
      • some firms use franchises to distribute services
      12 -
    • Promotion of Services
      • customer contact personnel represent the main channel of customer communication
      • service providers must ensure that each service encounter is a positive one if customers are to develop a positive image
      • many professional service firms are now permitted to advertise
      • other elements of the promotional mix are used, including publicity and community affairs
      12 -
    • Four Rs of Service Marketing
      • Retention
      • Referrals
      • Relationships
      • Recovery
      12 -
    • The Changing Environment for Services
      • The boom in the service economy, reduced regulation has created an increase in competition.
      • Major focus on increased productivity, efficiency
        • Work on people aspects of business:
          • Education, training programs
        • Change technology:
          • Computer-based technologies used.
        • Restructure jobs.
      • Bottom line: People are key to success!
      12 -
    • Other Considerations in Marketing Services
      • Impact of Technology:
        • Remember, not everyone likes impersonal technology
      • Performance Measurement:
        • Larger firms can use market share, etc.
        • Customer perceptions are essential.
      • Prospects for Growth:
        • It is very likely that services will continue to take an increasing share of the consumer dollar.
        • The use of marketing programs in all services is expected to increase considerably.
      12 -
    • Future Service Profitability
      • Impacted by:
        • Focusing on the right priorities
        • Increasing service quality
        • Investing in problem solving
        • Being fair to customers
        • Investing in leadership development
      12 -