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Services Marketing

by: Elizabeth Gill

Services Marketing MKTG 4350

Marketplace > Auburn University > Business > MKTG 4350 > Services Marketing
Elizabeth Gill
GPA 2.8
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About this Document

notes from week 1/15
Services Marketing
Brian L. Bourdeau
Class Notes
services, Marketing




Popular in Services Marketing

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This 2 page Class Notes was uploaded by Elizabeth Gill on Monday February 8, 2016. The Class Notes belongs to MKTG 4350 at Auburn University taught by Brian L. Bourdeau in Fall 2015. Since its upload, it has received 40 views. For similar materials see Services Marketing in Business at Auburn University.


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Date Created: 02/08/16
1/15/16 Introduction to Services What makes a service a service? - core product is the actual service Overview: why services matter - services dominate U.S. and worldwide economies - service leads to customer retention and loyalty - services are growing dramatically - service leads to profits - Services help manufacturing companies differentiate themselves Why do firms focus on services? - services can provide higher profit margins and growth potential than products - customer satisfaction and loyalty are driven by service excellence - services can be used as a differentiated strategy in competitive markets Why study services marketing? - service – based economies - service as a business imperative in manufacturing and IT - deregulated industries and professional service meds - service marketing is different - service equals profits Products, goods, services - provide utility Characteristics of services compared to goods 1. intangibility -services cant be inventoried -services can’t be easily patented -services can’t be readily displayed or communicated -pricing is difficult 2. Heterogeneity - service delivery and customer satisfaction depend on employee and customer actions - service quality depends on many uncontrollable factors - there is no sure knowledge that the service delivered matches what was planned and promoted 3. Simultaneous production and consumption - Customers participate in and effect the transaction - Customers affect each other - employees affect the service outcome - decentralization may be essential - Mass production is difficult 4. Perishability - it is difficult to synchronize supply and demand with services - services cannot be returned or resold


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