All rights reserved. . Inc.Chapter 11 Services Marketing 11-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies.

All rights reserved. .Chapter Goals • Importance of services in advanced economies • Nonbusiness services marketing • Characteristics of services and their marketing implications • Design of a services marketing mix • Managing service quality • Productivity and performance challenges of service marketers 11-3 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies. Inc.

intangible activities that are the main object of a transaction designed to provide want-satisfaction to customers Supplementary Services support the sales of a good or service 11-4 .Definition of Services Identifiable.

Goods-Services Continuum 11-5 .

Scope of Services For Profit Not For Profit NonProfit 11-6 .

Characteristics of Services Intangibility Perishability Inseparability Heterogeneity 11-7 .

Services Customer For Profit Target Market Provider Nonbusiness Client 11-8 .

Selecting Target Markets Geographic Demographic Buying Behavior Market Segmentation 11-9 .

Product Planning Services Offering Differentiate Product-Mix Strategies Expand the line Contract the mix Product Features CREATE A BRAND Tangible object Alter the service Manage the life cycle 11-10 Memorable slogan Distinctive color scheme .

Pricing Structure Pricing for Profit Firms Markup Willing to pay Perishability SupplyDemand 11-11 Pricing for Nonprofits Less important Contributions set by provider Client charges do not cover costs .

Pricing Strategies Discounts Flexible price One price Markup Three levels of price competition Non-price competition Segmentation and price Intense price competition 11-12 .

Distribution System Channels of Distribution Short simple Distribution Facilities Location Inseparability Heterogeneity Number of middlemen Convenience Accessibility 11-13 .

Promotional Program Inseparability Personal Selling Customer-contact personnel Service Encounter Incentives Advertising Cause-related 11-14 Sales Promotion .

Managing Service Quality Quality is defined by the customer How work was performed Expectations of the customer Compared to Help formulate expectations 11-15 Measure expectation level Service quality at or above expectation .

Future of Services Marketing Impact of Technology Increase Productivity Performance Measurement 11-16 Prospects for Growth .

.Key Terms and Concepts • Services • For-profit services firms • Not-for-profit services organizations • Nonprofit organizations • Intangibility • Inseparability • • • • • • Heterogeneity Perishability Provider market Client market Service encounter Service quality 11-17 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies. Inc. All rights reserved.

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