Title: CHAPTER 10 Services and Other Intangibles: Marketing the Product That Isnt There
1CHAPTER 10Services and Other Intangibles
Marketing the Product That Isnt There
M A R K E T I N G
Real People, Real Choices Fourth Edition
Michael R. Solomon Greg W. Marshall
Elnora W. Stuart
2Chapter Objectives
- Describe the four characteristics of services
- Understand how services differ from goods
- Explain how marketers create and measure service
quality - Explain marketing strategies for services
- Explain the marketing of people, places, and ideas
3Not-for-Profit Marketing
- Not-for-profits know marketing is key to success
4What is a Service?
- Services are acts, efforts, or performances
exchanged from producer to user without ownership
rights - Consumer services
- Business services
5Business Services
6Characteristics of Services
Intangibility
Perishability
Variability
Inseparability
7Perishability
8Tangible Benefits
MasterCard emphasizes the tangible benefits
9Figure 10.1 Classification of Services
10Figure 10.2 Goods/Services Continuum
11The Goods/ Services Continuum
- Good-Dominated Products - tangible products
supported by supporting services - automobiles, home appliances, electronics
- Equipment or Facility-Based Services - heavy
reliance on both equipment and personnel - hospitals, tanning salons, health clubs
- People-Based Services
- decorators, realtors
Video Starbucks and its focus on service
12Core and Augmented Services
- Core service is a benefit that a customer gets
from the service - Augmented services are additional offerings that
differentiate the firm - Example Airline transportation
- Core travel
- Augmented services frequent flier miles, sky
caps, in-flight entertainment services, and
Internet access
13Core versus Augmented Components
- Augmented services often attract customers
14Services on the Internet
- Banking/ brokerages
- Software
- Music
- Travel
- Dating
- Career development
- Distance learning
- Medical care
15The Service Encounter
Social Contact
Economic
Production
16Customer Rage
- Checkout counter rage
- Pub rage
- ATM rage
17Exceeding Expectations
18Servicescapes
- Elaborate servicescapes underscore claims of
luxury
19Dimensions of Service Quality
- Search qualities - characteristics of a product
that the consumer can examine prior to purchase - Experience qualities - characteristics that
customers can determine during or after
consumption - Credence qualities - attributes we find difficult
to evaluate even after weve experienced them
20Figure 10.3 Service Experience Blueprint
21Measuring Service Quality
- Gap Analysis - measurement tool that gauges the
difference between a customers expectation of
service quality and what actually occurred - Critical Incident Technique - company collects
and closely analyzes very specific customer
complaints to identify critical incidents
22Gap Analysis
- Gap between consumer expectations and management
perceptions - Gap between management perception and quality
standards set by the firm - Gap between established quality standards and
service delivery - Gap between service quality standards and
consumer expectations - Gap between expected service and perceived service
23Service Failure and Recovery
- When services do fail, recover fast!
- Apologize
- Resolve the problem
- Do not further inconvenience the customer
- Analyze what happened to eliminate future failures
24Strategies for Services
- Targeting Defining the Service Customer or
Audience - Positioning Defining the Service to Customers
25The Future of Services
- Changing demographics
- Globalization
- Technological advances
- Shift to flow of information
26- Services that were once unimaginable will be part
of our future
27Strategies for Marketing People_1
- Pure selling approach - an agent presents a
clients qualifications to potential buyers
until he finds one who is willing to act as an
intermediary - Product improvement approach - the agent works
with the client to modify certain characteristics
that will increase market value persons image
changes to conform to what is currently in demand
28The Stages of Madonna
29Strategies for Marketing People_2
- Market fulfillment approach - agent scans the
market to identify unmet needs. Then agent finds
a person that meets qualifications and develops
product - Manufactured stars
- N-Sync, The Spice Girls, New Kids on the Block
30Marketing People
- People may serve many roles as celebrities
31Marketing Places
- Place marketing strategies treat a city, state,
country, or other locale as a brand and attempt
to position this location so that consumers
choose to visit - Example
- The New York Miracle
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34Marketing Places
35Marketing Ideas
- Idea marketing is about gaining market share for
a concept, philosophy, belief, or issue - Examples
- Sexual responsibility
- Drinking responsibly
- Nissans Food from the Hood
- Newmans Own
36Marketing Religion
Religious organizations can use
marketing strategies to grow their organizations
37Issues for Discussion_1
- What problems have you experienced with quality
in the delivery of the following services? What
do you think is the reason for the poor quality? - A restaurant meal
- An airline flight
- Automobile repairs
- Your college education
38Issues for Discussion_2
- Internet dating services may present some dangers
for those who use them. Who do you think uses
Internet dating services? What should the
services do to protect their clients? - What are some ways that marketing has helped our
political process? What are some ways the
marketing of politicians might have an adverse
effect on our government?
39Issues for Discussion_3
- What are some ways that non-profit and religious
organizations market themselves that are similar
to and different from marketing by for-profits? - Why do you think developed countries are
primarily service economies? Is this a good thing
or bad thing for a country? Do you think the
trend will continue?