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  1. 1. Services and non-profit marketing
  2. 2. Classifying services The product - service spectrum Figure 22.1
  3. 3. <ul><li>Means of classifying service products </li></ul><ul><li>Tangibility. </li></ul><ul><li>How the service is delivered. </li></ul><ul><li>The extent the service is constrained or the demand fluctuates. </li></ul><ul><li>Degree of involvement of people and facilities in the service. </li></ul><ul><li>Level of customisation. </li></ul><ul><li>Service benefit duration. </li></ul>
  4. 4. Characteristics of service markets Figure 22.2
  5. 5. Generic differences between services and physical goods Lovelock et al 1999 Table 22.1 Source : Lovelock et al . (1999).
  6. 6. The services marketing mix Figure 22.3
  7. 7. Service experience <ul><li>Quality of outcome </li></ul><ul><li>Access. </li></ul><ul><li>Reliability. </li></ul><ul><li>Credibility. </li></ul><ul><li>Security. </li></ul><ul><li>Understanding the customer. </li></ul><ul><li>Quality of inputs </li></ul><ul><li>Responsiveness. </li></ul><ul><li>Courtesy. </li></ul><ul><li>Competence. </li></ul><ul><li>Communication. </li></ul><ul><li>Tangibles. </li></ul>
  8. 8. <ul><li>Barriers to service quality </li></ul><ul><li>(Parasuraman, 1985) </li></ul><ul><li>Misconceptions. </li></ul><ul><li>Inadequate resources. </li></ul><ul><li>Inadequate delivery. </li></ul><ul><li>Exaggerated promises. </li></ul>
  9. 9. Factors affecting consumers’ service expectations Figure 22.4
  10. 10. <ul><li>Ensuring a productive service workforce </li></ul><ul><li>Positivity - the ‘satisfaction mirror’. </li></ul><ul><li>Careful recruitment. </li></ul><ul><li>Retaining service staff - higher capability levels. </li></ul><ul><li>Training both visible and invisible service staff. </li></ul><ul><li>Fair and flexible measures of service productivity. </li></ul><ul><li>Efficient systems and technology. </li></ul><ul><li>Reduction in service levels. </li></ul><ul><li>Changing customer interaction. </li></ul><ul><li>Reduce mismatch between supply and demand. </li></ul>
  11. 11. <ul><li>Franchising </li></ul><ul><li>Type of vertical marketing system. </li></ul><ul><li>Contractual relationship between a franchisor and franchisee. </li></ul><ul><li>The owner of a product licenses another to use, buy, sell or operate it in exchange for some form of payment. </li></ul><ul><li>Can offer small business with route to achieving more rapid growth. </li></ul>
  12. 12. <ul><li>Types of franchise relationship </li></ul><ul><li>Distributorships. </li></ul><ul><li>Licenses to manufacture. </li></ul><ul><li>Celebrity endorsements. </li></ul><ul><li>Trade marks. </li></ul><ul><li>Business format franchising (e.g. McDonald’s). </li></ul>
  13. 13. <ul><li>Types of business format franchise </li></ul><ul><li>Executive. </li></ul><ul><li>Retail. </li></ul><ul><li>Distribution. </li></ul><ul><li>Job. </li></ul>
  14. 14. Variations in franchise independence Table 22.3 Source : Felstead (1991).
  15. 15. The franchisor’s perspective <ul><li>Benefits </li></ul><ul><li>Financial - rapid growth in market coverage and penetration. </li></ul><ul><li>Committed managerial resource. </li></ul><ul><li>Economies of scale. </li></ul><ul><li>Problems </li></ul><ul><li>Handling ineffective or remote franchises. </li></ul><ul><li>Grouping of franchisees for negotiation. </li></ul>
  16. 16. The franchisee’s perspective <ul><li>Benefits </li></ul><ul><li>Participation in system of established image, etc. </li></ul><ul><li>Access to organised systems. </li></ul><ul><li>National or regional advertising. </li></ul><ul><li>Guidance on purchases. </li></ul><ul><li>Problems </li></ul><ul><li>Contract compliance. </li></ul><ul><li>Tension in relationship. </li></ul><ul><li>Negative effects from poor decision making by franchisor. </li></ul>
  17. 17. Launching new franchise systems Figure 22.5
  18. 18. Non-profit organisations Table 22.6