Chapter 1 Understanding Services Marketing FiskGroveJohn4 e Copyright

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Chapter 1 Understanding Services Marketing Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved.

Chapter 1 Understanding Services Marketing Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|1

Objectives 1. To examine the nature of services 2. To differentiate the marketing of

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 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|2

Outline I. Introduction II. Definition of Services III. How Does Services Marketing Differ from

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 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|3

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

Definition of Services • A service is "a deed, a performance, an effort" (Rathmell 1966). Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|4

How Does Services Marketing Differ From Physical Goods Marketing? Fisk/Grove/John-4 e, Copyright © Cengage

How Does Services Marketing Differ From Physical Goods Marketing? Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|5

Characteristics of Services • Intangibility – Most services cannot be seen, touched, held, or

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. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|6

Classifications Based on Services Fields • Health Care Services • Financial Services • Professional

Classifications Based on Services Fields • Health Care Services • Financial Services • Professional Services • Knowledge Services • Travel and Hospitality Services Source: Fisk & Tansuhaj (1985) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|7

Classifications Based on Services Fields (cont’d) • Entertainment Services • Information Services • Supply

Classifications Based on Services Fields (cont’d) • Entertainment Services • Information Services • Supply Services • Personal and Maintenance Services • Governmental, Quasi-Governmental, and Nonprofit Services Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|8

Classifications Based on Services Customers • Consumer services – provided to customers who are

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. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|9

Lovelock’s Classification • Tangible acts on a person’s body – Services such as health

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. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 10

Lovelock’s Classification (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 |

Lovelock’s Classification (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 11

The Services Marketing Triangle • Based on three key components: organizations, providers, and customers.

The Services Marketing Triangle • Based on three key components: organizations, providers, and customers. • Linking these components: internal marketing, external marketing, and interactive marketing. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 12

The Services Marketing Triangle (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved.

The Services Marketing Triangle (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 13

Overview of Book • Part I – Foundations of Services Marketing • Part II

Overview of Book • Part I – Foundations of Services Marketing • Part II – Creating the Interactive Experience • Part III – Promising the Interactive Experience • Part IV – Delivering & Ensuring a Successful Customer Experience • Part V – Management Issues in Services Marketing Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 14

Overview of Book (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1

Overview of Book (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 15

Web Sites • Apple (http: //www. apple. com), p. 2 • You. Tube (http:

Web Sites • Apple (http: //www. apple. com), p. 2 • You. Tube (http: //www. youtube. com/watch? v=OYecf. V 3 ub. P 8), p. 2 • Red Adair (http: //www. redadair. com), p. 7 • Boots and Coots (http: //www. bootsandcoots. com) , p. 7 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 16

Web Sites • Veterinary Pet Insurance (http: //www. petinsurance. com), p. 12 • Zappos

Web Sites • Veterinary Pet Insurance (http: //www. petinsurance. com), p. 12 • Zappos (http: //zappos. com), p. 14 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 17