PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e
What are Services? Separately identifiable activities that satisfy customer wants through mainly intangible benefits. 1. Tangibility can of tuna Restaurant bar staff training Pure good Pure service 2. Capital Investment international airline interstate bus service bicycle courier High investment Low investment 3. Extent of customer involvement online travel bookings travel agent pilot flies plane High involvement Low involvement 4. People or equipment based security alarm Equipment based People based back to base security security guard 5. Extent of customisation rail service mini bus service taxi service Standardised Customised Rix Marketing: A Practical Approach 7e Next: The Scope of Services Market Chapter Nine: Services Marketing Strategies Learn more on pages 315 -316
The scope of the services market Recreation & entertainment Accommodation Household The scope of the services market Health care Education Personal care Professional Plus a huge range of B2B services Travel and transport Communication Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of Services Chapter Nine: Services Marketing Strategies Learn more on page 317
The Special Characteristics of Services Services marketing requires some different strategies because of: Intangibility customer cannot experience prior to purchase need to add physical evidence Inseparability hard to separate service from service provider customer is involved in service delivery need to manage ‘moments of truth’ Variability customer receives a different product each time need to either standardise or customise service allows for market segmentation by customising service Perishability and fluctuating demand ‘real time’ services are lost if not used demand has peaks and troughs need to use marketing mix to manage supply and demand allows for segmentation through pricing and promotion Rix Marketing: A Practical Approach 7e Next: Distinctive Colour Adds Tangibility to a Service Chapter Nine: Services Marketing Strategies Learn more on pages 317 - 322
Distinctive Colour Adds Tangibility to a Service Rix Marketing: A Practical Approach 7e Next: Managing Inseparability & Fluctuating Demand Chapter Nine: Services Marketing Strategies
A Clever Way of Overcoming Inseparability and Fluctuating Demand Rix Marketing: A Practical Approach 7e Next: Developing a Marketing Mix for Services Chapter Nine: Services Marketing Strategies
Developing a Marketing Mix for Services Many of the mix strategies are the same as for physical goods. Some differences are: Product to add tangibility, a services brand should highlight the service benefit must manage quality ‘service gaps’ Pricing customers are often unaware of service provision costs pricing is often based on inputs such as ‘hours spent’ changing prices in response to demand levels is common Distribution making the service ‘accessible’ is the key task convenient location short channel length technology (Net) is critical Promotion adding tangibility is the main task show the service encounter avoid over-promising build relationships Rix Marketing: A Practical Approach 7e Next: Another way of Promoting to Add Tangibility Chapter Nine: Services Marketing Strategies Learn more on pages 322 - 332
Another way of promoting to add tangibility Rix Marketing: A Practical Approach 7e Next: Additional Mix Elements for Services Chapter Nine: Services Marketing Strategies Learn more on pages 317 - 322
Additional Mix Elements for Services Physical evidence strategies People strategies identify boundary spanning roles recruit ‘service-oriented’ people empower front-line staff reward and motivate Physical evidence strategies used to add tangibility use visuals, aromas, sounds, textures exterior/interior of premises ads, brochures, uniforms map servicescapes Process strategies manage service activities identify ‘moments of truth’ construct service blueprints Rix Marketing: A Practical Approach 7e Next: NFP Marketers Chapter Nine: Services Marketing Strategies Learn more on pages 332 - 339
The Not-for-Profit Market Consists of charities, religions, causes, schools and colleges, sporting teams, clubs, governments Many are quite recent converts to the ideas behind marketing NFP marketers need strategies for three target markets government funding providers corporate funding providers individual donors/volunteers Rix Marketing: A Practical Approach 7e Next: NFP advertisement Chapter Nine: Services Marketing Strategies Learn more on pages 339 - 341
NFP marketers have to appeal to several target markets Rix Marketing: A Practical Approach 7e Next: Five Minute Quiz Chapter Nine: Services Marketing Strategies Learn more on pages 317 - 322
Five Minute Quiz Define services List five ways of classifying services List four characteristics of services that differentiate them from physical goods List the three additional elements of the marketing mix (Ps) for services List three target markets that NFP organisations need to appeal to Rix Marketing: A Practical Approach 7e Chapter Nine: Services Marketing Strategies