This document provides an overview of marketing channels for services. It discusses how services differ from goods in being intangible, inseparable from their production and consumption, heterogeneous in quality, and perishable. It also outlines the marketing mix considerations for services, including product, price, place, and promotion strategies. Key aspects of the service marketing mix covered are service quality dimensions, product strategies like standardization vs customization and core vs supplementary services, and distribution channel considerations.

1. SERVICES MARKETING CHANNELS
(Overview)

2. Chapter 12 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2
How Services
Differ from Goods
Intangible
Inseparable
Heterogeneous
Perishable
No physical object makes it hard to
communicate benefits.
Production and consumption are
simultaneous, meaning the
consumer takes part in production.
Services depend on their employees
for quality, which makes consistency
difficult to achieve.
Services cannot be saved, and it is
challenging to synchronize supply
and demand.
LO2

3. REVIEW LEARNING OUTCOME
LO4
Marketing Mixes for Services
PLACE PROMOTION PRICE
PRODUCT
=
SERVICE
Process
Core and
Supplementary
Mass
Customization
Standardization
Number of
outlets
Direct
Indirect
Location
Tangible
cues
Personal
information
Strong image
Post-purchase
communication
Revenue
oriented
Operations
oriented
Patronage
oriented

4. Components of Service Quality
LO3
Tangibles
The physical evidence
of a service.
Empathy
Caring, individualized
attention to customers.
Assurance
The knowledge and courtesy
of employees.
Responsiveness
The ability to provide
prompt service.
Reliability
The ability to perform the
service right the first time.

5. The Gap Model of
Service Quality
LO3

6. LO4
Product Strategies for
Services
Service
Mix
Standardization
or
Customization
Core and
Supplementary
Process

7. LO4
Service as a Process
Mental Stimulus
Processing
People
Processing
Possession
Processing
Information
Processing

8. LO4
The Service Offering
Core
Service
Supplementary
Service
The most basic benefit the
consumer is buying.
A group of services that support
or enhance the core service.

9. LO4
Core and Supplementary
Services for FedEx
Overnight
transportation
and delivery of
packages
Problem
solving
Billing
statements
Tracing
Documentation
Order taking
Supplies
Pickup
Advice and
information

10. LO4
Customization/Standardizati
on
A strategy that
uses technology
to deliver
customized
services on a
mass basis.
Mass
Customization

11. LO4
The Service Mix
Determine what new services to
introduce
Determine target market
Decide what existing services to
maintain and to eliminate

12. LO4
Place (Distribution) Strategy
Scheduling
Location
Direct or indirect
distribution
Number of outlets
Convenience