Services Marketing Chapter 1 Understanding Services Marketing

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Chapter 1
Understanding
Services Marketing

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Objectives
1. To examine the nature of services
2. To differentiate the marketing of services from
the marketing of physical goods and their
facilitating services
3. To explain the characteristics of all services
4. To classify various services

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Outline
I. Introduction
II. Definition of Services
III. How Does Services Marketing Differ from
Physical Goods Marketing?
IV. Characteristics of Services
V. Classifications of Services
VI. Overview of Book
VII.Summary and Conclusion

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Definition of Services
• A service is "a deed, a
performance, an effort"
(Rathmell 1966).

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How Does Services Marketing
Differ From Physical Goods Marketing?

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Characteristics of Services
• Intangibility – Most services cannot be seen, touched,
held, or put on a shelf.
• Inseparability – For most services, the production and
consumption of the service occur simultaneously.
• Variability – It is hard for a service organization to
standardize the quality of its service performance.
• Perishability – Most services cannot be produced or
stored before consumption. They exist only at the time of
their production.
• Rental/Access – Services provide temporary possession
or access instead of ownership.

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Classifications Based
on Services Fields
• Health Care Services
• Financial Services
• Professional Services
• Knowledge Services
• Travel and Hospitality Services
Source: Fisk & Tansuhaj (1985)

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Classifications Based
on Services Fields (cont’d)
• Entertainment Services
• Information Services
• Supply Services
• Personal and Maintenance Services
• Governmental, Quasi-Governmental, and
Nonprofit Services

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Classifications Based
on Services Customers
• Consumer services – provided to customers who
are purchasing for their own personal needs.
– Prominently visible in any community: banks,
schools, restaurants, etc.
• Business-to-business services – provided to
customers who are purchasing on behalf of their
organizations.
– Rarely seen by the general public: professional
service firms, transportation firms, etc.

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Lovelock’s Classification
• Tangible acts on a person’s body – Services such
as health care, hotels, airlines, beauty salons and
fitness centers.
• Intangible acts on a person’s mind – Services such
as education, advertising, entertainment and
broadcasting.
• Tangible acts on physical possessions – Services
such as laundry, landscaping, repair and
maintenance, and freight transportation.
• Intangible acts directed at intangible assets –
Services such as accounting, banking, insurance
and legal services.

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Lovelock’s
Classification
(cont’d)

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The Services
Marketing Triangle
• Based on three key components: organizations,
providers, and customers.
• Linking these components: internal marketing,
external marketing, and interactive marketing.

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The Services
Marketing Triangle (cont’d)