Professional Documents
Culture Documents
SM
SM
Sommers Barnes
Ninth Canadian Edition
Presentation by
Chapter Goals
To gain an understanding of:
The nature and importance of services Characteristics of services and their marketing implications Issues related to the planning and marketing of services The four Rs of services marketing The relationship marketing approach The impact of technology in providing services
Copyright 2001 McGraw-Hill Ryerson Limited 12 - 2
Canned Ready- AutoDraperies, Rest- Repairs: Air Insurance, foods made mobiles Carpets aurant auto, house, travel Consulting, clothes meals landscaping Teaching
MOSTLY GOODS
MOSTLY SERVICES
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Importance of Services
Three-fourths of the Canadian labour force is employed in service industries. Over 70% of the nations gross national product is produced by services. From 1986 to 2000, virtually all new jobs will be in the service industries. Huge growth in personal services as well as business services.
Copyright 2001 McGraw-Hill Ryerson Limited Copyright 1998 by The McGraw-Hill Companies, Inc. 12 - 6
Characteristics of Services
intangibility difficult to sample and to intangibility: evaluate inseparability: difficult to separate services inseparability: from the service provider; mainly direct sales; staff are essential to the delivery of quality services heterogeneity virtually every service is heterogeneity: different; very difficult to standardize quality perishability: those not sold can not be stored perishability: fluctuating demand: demand for some demand: services fluctuates by season, or even by time of day
Copyright 2001 McGraw-Hill Ryerson Limited 12 - 7
Pricing Services
The characteristics of perishability, inability to store, and fluctuating demand for services create pricing challenges.
Pricing Strategies include: Discount strategies: Cheaper by the week. A variable pricing strategy: Kids eat free, movies cheaper on Tuesdays. Price competition.
Copyright 2001 McGraw-Hill Ryerson Limited 12 - 11
Distribution of Services
because most services are tied directly to a specific service provider, most have been distributed directly to customers with advancing technology, many firms are now delivering services through machines channels of distribution are necessarily short; some firms use one agent intermediary, such as insurance, real estate, and travel agents some firms use franchises to distribute services
Copyright 2001 McGraw-Hill Ryerson Limited 12 - 12
Promotion of Services
customer contact personnel represent the main channel of customer communication service providers must ensure that each service encounter is a positive one if customers are to develop a positive image many professional service firms are now permitted to advertise other elements of the promotional mix are used, including publicity and community affairs
Copyright 2001 McGraw-Hill Ryerson Limited 12 - 13
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