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Service Marketing Week 1 Notes

by: 12

Service Marketing Week 1 Notes MKTG 4400-001

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About this Document

chapters 1 and 2
Service management and marketing
Jeffery Ferguson
Class Notes
Marketing, service, business




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This 2 page Class Notes was uploaded by 12 on Friday January 22, 2016. The Class Notes belongs to MKTG 4400-001 at University of Colorado Colorado Springs taught by Jeffery Ferguson in Fall 2016. Since its upload, it has received 48 views. For similar materials see Service management and marketing in Marketing at University of Colorado Colorado Springs.


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Date Created: 01/22/16
SERVICE MARKETING: Week 1- introduction Why service marketing?  Dominates economy  Entry level jobs  Goods and services leads to revenue  How to make more money? Improve your customer service people are paying for  Intanglible aspects make companies different  All tanglible things cannot be completely minimized Tangible dominant: Salt, soft drinks Intangible dominant: teaching, consulting Service Industries:  Health Care: hospital, medical practice, dentistry, eye care  Professional Services: accounting, legal, architectural  Financial Services: banking, investment advising, insurance  Hospitality: restaurant, hotel/motel, bed & breakfast, ski resort, rafting  Travel: airline, travel agency, theme park  Others: hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design Why Focus on Services?  Profit margin  Differentiation  Customer satisfaction  Loyalty 4 ways services tend to be different than products:  Intangibility: hard to price and cannot be inventoried  Heterogeneity: hard to standardize service (McDonald’s has, in some ways)  Simultaneous production in consumption: consume= output  Perishability: once the time passes, that revenue is lost. Missed appointments, seats for flights, golf lessons Secret to services is to execute the same thing, day in and day out. People do not like surprises. Is the car fixed in 3 days or not? Is this line usually fast or slow? Good service needs training and commitment all the time. Being nice is an emotional labor intensive job Employees affect service outcome. Customers affect transactions. And customers also affect each other. Angry or excited Marketing Mix:  Product  Price  Promotion  Place  People: how to deal with  Physical evidence: environment of service  Process: procedures and flow of activities, delivery and operating system Service Theater Framework:  Actors: service workers  Audience: customers  Setting: service environment  Performance: result of interaction  Costumes: uniforms and dress code  Scripts: training  Roles: job description/ position  Rehearsal: review, training  Front stage: front desk workers  Backstage: planning and execution Core: basics we need to do to stay in business (food and beverages for restaurants) Supplementary: things that support the core, (tables chair, knives, forks) Casa Bonita is the opposite, more on the experience of having fun with the amusement park and not focused on food.


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