Introduction to Services Marketing
Introduction to Services Marketing MKTG - 45082 - 001
Popular in Services Marketing
MKTG - 45082 - 001
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Popular in Marketing
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This 3 page Class Notes was uploaded by Megan Angelo on Monday September 5, 2016. The Class Notes belongs to MKTG - 45082 - 001 at Kent State University taught by Eileen Bridges in Fall 2016. Since its upload, it has received 19 views. For similar materials see Services Marketing in Marketing at Kent State University.
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Date Created: 09/05/16
CH. 1 Introduction to Services Marketing 1.1Why Study Services - Services dominate most economies and are growing rapidly - Account for more than 60% GDP - Almost all economies have a substantial service sector - Most new employment is provided by services - Strongest growth area for marketing - Understanding= personal competitive advantage 1.2Powerful Forces - Social change - Business trends - Advances in IT - Globalization - Government Policies o Changes in regulation o Privatization o New rules for protection o New agreement on trade - Social o Higher consumer expectations o Personal outsource o Easier access o Migration o Growing/aging population - Business Trends o Higher shareholder value o More strategic alliances o Higher franchising - IT Advances o Internet is faster o Bandwidth is higher and better - Globalization o Transnational o Mergers/ alliances o “offshore” 1.3What are Services? - An act or performance offered by one part to another - Economic activity – no transfer of ownership - Process that creates benefits by facilitating a desired change in customers physical possessions or intangible assets - Services o Economic services offered by one party to another o Time-based performance o Money, time, effort Goods, labor, environment o No ownership - Examples o Rent goods/services o Space and place rentals (reception) o Labor and expertise rental (DJ) o Shared physical environment (Resort) o Usage of systems and networks (IT) 1.44 Services Who/ what is the Direct Recipient of the Service? Figure 1.9 People - People processing (directed at their body) - Hairstylist - Passenger transport - Health care Possessions - (directed- phusical) - Freight trains - Laundry/cleaning - Repair/ maintenance Mental Stimulus - (directed for the mind) - Education - Advertising/ Public Relations - Psychotherapy Information Processing - (intangible asset) - Accounting - Banking - Legal services People - Physically enter the service factory - Co-operate actively with the service operation - Process/output o Time, mental effort, physical effort Possession - Customers are less involved - Drop off possession - Production and consumption- separate Mental Stimulus - Ethical standards - Customers potentially manipulated - Physical presence of recipient – not required - Information bases - Inventoried Information Processing - Intangible form of service output 1.5Challenges - Most service products- no inventory - Difficult to visualize and understand - Time factor - Distribution – electronic 1.67 P’s - Product elements (core product= primary need) - Place/ time (control/convenience) - Price (time- physical effort) - Promotional/ education (provide, persuade, encourage) - Process (how) - Physical evidence (appearance) - People (customer/ employee) 1.7Effective Services Marketing Strategy - Understand - Apply - Design - Develop - Strive