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Chapter 1 Introduction to  Services Marketing
How Important is the Service Sector in Our Economy? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Services dominate the United States Economy: GDP by Industry, 2001 Source: Bureau of Economic Analysis, November 2002 Finance, Insurance,  Real Estate 20% Wholesale and  Retail Trade 16% Transport, Utilities, Communications 8%  Health 6% Business Services 5% Other Services 11% Government (mostly services) 13% Manufacturing 14% Agriculture, Forestry, Mining, Construction 8% SERVICES
Changing Structure of Employment  as Economic Development Evolves  Time, per Capita Income Share of  Employment Industry Services Agriculture Source: IMF, 1997
Major Trends in Service Sector ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some Impacts of Technological Change ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing Relevant Differences Between Goods and Services
Defining the Essence of a Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Distinguishing Characteristics of Services  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing Implications - 1 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing Implications - 2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Value Added by Tangible  vs  Intangible Elements in Goods and Services Fast food restaurant Plumbing repair Office cleaning Health club Airline flight Retail banking  Insurance Weather forecast Salt Soft drinks CD Player Golf clubs New car Tailored clothing Furniture rental Lo Hi Hi Tangible Elements   Intangible Elements
Molecular Model
What is the Servuction   model ? (Visible) Servicescape Contact personnel  Service providers  Other customers (Invisible) Organization and systems Servuction Model A framework for understanding the consumer’s  experience
Marketing Implications - 3 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing Implications - 4 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Important Differences Exist among Services
Four Categories of Services  Employing Different Underlying Processes People Processing  Possession Processing Mental Stimulus Processing  Information Processing (directed at intangible assets)  e.g., airlines, hospitals, haircutting,  restaurants hotels, fitness centers e.g.,  freight, repair, cleaning, landscaping, retailing, recycling e.g., broadcasting, consulting, education, psychotherapy e.g., accounting, banking,  insurance, legal, research TANGIBLE  ACTS INTANGIBLE ACTS  DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS What is the  Nature of the  Service Act? Who or What is the Direct Recipient of the Service?
Implications of Service Processes  (1) Seeking Efficiency May Lower Satisfaction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implications of Service Processes:  (2) Designing the Service Factory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implications of Service Processes:  (3) Evaluating Alternative Delivery Channels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implications of Service Processes:  (4) Balancing Demand and Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implications of Service Processes:  (5) Applying Information Technology ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implications of Service Processes: (6) Including People as Part of the Product ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Services  Marketing Mix
Elements of The Services Marketing Mix:  “7Ps”  vs.  the Traditional “4Ps” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The 7Ps:  (1) Product Elements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The 7Ps: (2) Place and Time ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The 7Ps: (3) Promotion and Education ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The 7Ps: (4) Price and Other User Outlays ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The 7Ps: (5) Physical Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
7Ps: (6) Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The 7Ps: (7) People ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing the 7Ps Requires Collaboration between Marketing, Operations, and HR Functions Customers Operations  Management Marketing  Management Human Resources  Management

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intro to service marketing

  • 1. Chapter 1 Introduction to Services Marketing
  • 2.
  • 3. Services dominate the United States Economy: GDP by Industry, 2001 Source: Bureau of Economic Analysis, November 2002 Finance, Insurance, Real Estate 20% Wholesale and Retail Trade 16% Transport, Utilities, Communications 8% Health 6% Business Services 5% Other Services 11% Government (mostly services) 13% Manufacturing 14% Agriculture, Forestry, Mining, Construction 8% SERVICES
  • 4. Changing Structure of Employment as Economic Development Evolves Time, per Capita Income Share of Employment Industry Services Agriculture Source: IMF, 1997
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  • 7. Marketing Relevant Differences Between Goods and Services
  • 8.
  • 9.
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  • 11.
  • 12. Value Added by Tangible vs Intangible Elements in Goods and Services Fast food restaurant Plumbing repair Office cleaning Health club Airline flight Retail banking Insurance Weather forecast Salt Soft drinks CD Player Golf clubs New car Tailored clothing Furniture rental Lo Hi Hi Tangible Elements Intangible Elements
  • 14. What is the Servuction model ? (Visible) Servicescape Contact personnel Service providers Other customers (Invisible) Organization and systems Servuction Model A framework for understanding the consumer’s experience
  • 15.
  • 16.
  • 17. Important Differences Exist among Services
  • 18. Four Categories of Services Employing Different Underlying Processes People Processing Possession Processing Mental Stimulus Processing Information Processing (directed at intangible assets) e.g., airlines, hospitals, haircutting, restaurants hotels, fitness centers e.g., freight, repair, cleaning, landscaping, retailing, recycling e.g., broadcasting, consulting, education, psychotherapy e.g., accounting, banking, insurance, legal, research TANGIBLE ACTS INTANGIBLE ACTS DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS What is the Nature of the Service Act? Who or What is the Direct Recipient of the Service?
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. The Services Marketing Mix
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34. Managing the 7Ps Requires Collaboration between Marketing, Operations, and HR Functions Customers Operations Management Marketing Management Human Resources Management