LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:
Describe four unique elements of services.
Recognize how services differ and how they can be classified.
Explain how consumers purchase and evaluate services.
Develop a customer contact audit to identify service advantages.
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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Describe four unique elements of services.LO1Recognize how services differ and how they can be classified.Explain how consumers purchase and evaluate services.LO3LO2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:Develop a customer contact audit to identify service advantages.LO4Discuss the important roles of internal marketing and customer experience management in service organizations.Explain the role of the seven Ps in the services marketing mix.LO6LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:LO5SERVICES: CONSUMERS WANT AUTHENTIC EXPERIENCESFIGURE 12-1 Services are a larger part of the U.S. GDP than goodsTHE UNIQENESS OF SERVICESTHE FOUR I’S OF SERVICESLO1ServicesFour I’s of ServicesIntangibilityInseparabilityInconsistencyInventoryIdle ProductionCapacitySingapore Airlines and American ExpressWhich Four I’s of services element?LO1FIGURE 12-2 Inventory carrying costs of services depend on the cost of employees and equipmentTHE UNIQENESS OF SERVICESTHE CONTINUUM & CLASSIFICATION OF SERVICESLO2Service ContinuumClassifying ServicesDelivery by People or EquipmentProfit or Nonprofit OrganizationsGovernment SponsoredFIGURE 12-3 The service continuum shows how offerings can vary in their balance of products and servicesFIGURE 12-4 Services can be classified as equipment-based or people-basedMerrill Lynch and The American Red CrossWhat is the classification of each service?LO2MARKETING MATTERSSocial Marketing is a Must for NonprofitsLO2HOW CONSUMERSPURCHASE SERVICESThe Purchase ProcessSearch PropertiesExperience PropertiesCredence PropertiesLO3FIGURE 12-5 Consumers use search, experience, and credence properties to evaluate servicesHOW CONSUMERSPURCHASE SERVICESLO3Assessing Service QualityGap AnalysisMonitoring Service FailureFIGURE 12-6 The five dimensions of service qualityGOING ONLINEHow Can You Learn About Service Failures?Media Monitoring!LO4Google BlogsTechnoratiBuzzLogicReputationDefenderHOW CONSUMERSPURCHASE SERVICESLO4Customer Contact andRelationship Management Customer Contact AuditService EncountersA Customer’s Car Rental ActivitiesRelationship MarketingFIGURE 12-7 Customer contact audit for a car rental agency (green boxes = customer activity; orange boxes = employee activity)MANAGING THE MARKETING OF SERVICESTHE SEVEN Ps OF SERVICESLO5Seven Ps of Services Marketing Product (Service)BrandingPrice Off-Peak PricingMANAGING THE MARKETING OF SERVICESTHE SEVEN Ps OF SERVICESLO5Place (Distribution)PromotionPublicityPublic Service Announcements (PSAs)PeopleInternal MarketingCustomer Experience Management (CEM)Physical EnvironmentProcessCapacity ManagementMANAGING THE MARKETING OF SERVICESTHE SEVEN Ps OF SERVICESLO6FIGURE 12-8 Different prices and packages help match demand to capacityUSING MARKETING DASHBOARDSAre JetBlue’s Flights Profitably Loaded?Airline Operating Income (Loss) per Available Seat Flown One Mile (ASM)LO6Technological AdvancesMobilityConvergenceSERVICES IN THE FUTURELO6PersonalizationSustainabilityPHILADELPHIA PHILLIES, INC.: SPORTS MARKETING 101VIDEO CASE 12VIDEO CASE 12PHILADELPHIA PHILLIESVIDEO CASE 12PHILADELPHIA PHILLIES1. (a) What is the “product” thatthe Phillies market? (b) What “products” are the Philliescareful not to market?VIDEO CASE 12PHILADELPHIA PHILLIES2. How does the “quality” dimension in marketing the Philadelphia Phillies as an entertainment service differ from that in marketing a consumer product such as a breakfast cereal?VIDEO CASE 12PHILADELPHIA PHILLIES3. In terms of social network marketing strategy, (a) what are the likely characteristics of the Phillies fans and (b) what should the Phillies’ Facebook fan page contain?VIDEO CASE 12PHILADELPHIA PHILLIES4. Considering all five elements of the promotional mix (advertising, personal selling, public relations, sales promotion, and direct marketing), what specific promotional activities should the Phillies use? Which should be used off-season? During the season?VIDEO CASE 12PHILADELPHIA PHILLIES5. What kind of special promotion gift days (with premiums) and event days (no premiums) can the Phillies use to increase attendance by targeting thesefan segments: (a) 14 and under,(b) 15 and over, (c) other special fan segments, and (d) all fans?ServicesServices are the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.Four I’s of ServicesThe four I’s of services consistsof the four unique elements to services: intangibility, inconsistency, inseparability,and inventory.Idle Production CapacityIdle production capacity occurs when the service provider is available but there is no demand for the service.Service ContinuumThe service continuum consists of the range of offerings companies bring to the market, from the tangible to the intangible or product-dominant to service-dominant offerings.Gap AnalysisGap analysis is a type of analysis that compares the differences between the consumer’s expectations about and experiences with a service based on dimensions of service quality.Customer Contact AuditA customer contact audit is a flowchart of the points of interaction between consumers and a service provider.Seven Ps of Services MarketingThe seven Ps of services marketing is an expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process.Off-Peak PricingOff-peak pricing involves charging different prices during different times of the day or during different days of the week to reflect variations in demand forthe service.Internal MarketingInternal marketing is the notion that a service organization must focus on its employees, orinternal market, before successful programs can be directed at customers.Customer Experience Management (CEM)Customer experience management (CEM) is the process of managing the entire customer experience within the organization.Capacity ManagementCapacity managementintegrates the service component of the marketing mix with effortsto influence consumer demand.