MKT 4050 Chapter 1 (Introduction to Services)
What are services?
services are deeds, processes, and performances provided or coproduced by one entity or person from another entity or person.
What are Service Industries?
those industries and companies typically classified within the service sector where the core product is a service. Examples: hotels, airlines, financial services, and healthcare clinics.
Service as a Product
represents a wide range of intangible product offerings that customers value and pay for in the marketplace.
the service provided in support to a company's core product. companies do not typically charge for customer service.
the value derived from physical goods is really the service provided by the good, not the good itself.
Why Service Marketing?
many forces have led to the growth of services marketing, and many industries, companies, and individuals have defined the scope of concepts, frameworks, and strategies that define the field.
marketing concepts and strategies have developed in response to the tremendous growth of services industries, resulting in an increased importance to the U.S. and world economies
specific demand for service marketing concepts has come from deregulated industries and professional services as both these groups have gone through rapid changes in the ways they do business. example: airlines, banking,telecommunication, etc.
investments in service initiatives and promoting service quality as ways to differentiate themselves and create competitive advantage.
New ways to deliver service
providing approaches for delivering existing services in more accessible, convenient, productive ways. facilitates basic customer service functions , transactions, and learning and information seeking.
Service via the internet
the internet is just "one big service.' all businesses and organizations that operate on the internet are essentially providing services whether they are giving information, performing basic customer service functions, facilitating transactions, or promoting social interactions among individuals.
Characteristics of Services
intangibility, heterogeneity/variability, simultaneous production and consumption, perishability,
services are actions rather than objects, they cannot be seen, felt, tasted, or touched they way you can with tangible goods. example: surgery, treatments, examination, etc.
services are performances, frequently produced by humans, not two services will be precisely alike. Differ from day to day or hour to hour. Different people perform services differently each time, no two customers are alike.
Simultaneous Production or Consumption
many services are sold first and then produced and consumed simultaneously. example: restaurants.
refers to the fact that services cannot be saved, stored, resold, or returned. examples: seat on an airplane, restaurant, a hour of a lawyer's time, etc.
Properties of Products
search qualities, experience qualities, credence qualities
attributes that a customer can determine before purchasing a product
attributes that can be discerned only after purchase or during consumption.
characteristics that the consumer may find impossible to evaluate even after purchase and consumption
Traditional Marketing Mix
Product, Place, Promotion, Price
Expanded Marketing Mix for Services
People, Physical Evidence, Process
all human actors who play a part in the service delivery
the environment in which the service is delivered.
the procedures, mechanisms, and flow of activities by which the service is delivered.
A focus on the customer
all strategies are developed with an eye on the customer, al implementations are carried out with an understanding of their impact on the customer.