Understanding Services Marketing Chapter 1 Understanding Services Marketing

Objectives To examine the nature of services To differentiate the marketing of services from the marketing of physical goods and their facilitating services To explain the characteristics of all services To classify various services

Outline Introduction Definition of Services How Does Services Marketing Differ from Physical Goods Marketing? Characteristics of Services Classifications of Services Overview of Book Summary and Conclusion

Definition of Services A service is "a deed, a performance, an effort" (Rathmell 1966).

How Does Services Marketing Differ From Physical Goods Marketing?

Characteristics of Services Intangibility – Most services cannot be seen, touched, held, or put on a shelf. Inseparability – For most services, the production and consumption of the service occur simultaneously. Variability – It is hard for a service organization to standardize the quality of its service performance. Perishability – Most services cannot be produced or stored before consumption. They exist only at the time of their production. Rental/Access – Services provide temporary possession or access instead of ownership.

Classifications Based on Services Fields Health Care Services Financial Services Professional Services Knowledge Services Travel and Hospitality Services Source: Fisk & Tansuhaj (1985)

Classifications Based on Services Fields (cont’d) Entertainment Services Information Services Supply Services Personal and Maintenance Services Governmental, Quasi-Governmental, and Nonprofit Services

Classifications Based on Services Customers Consumer services – provided to customers who are purchasing for their own personal needs. Prominently visible in any community: banks, schools, restaurants, etc. Business-to-business services – provided to customers who are purchasing on behalf of their organizations. Rarely seen by the general public: professional service firms, transportation firms, etc.

Lovelock’s Classification Tangible acts on a person’s body – Services such as health care, hotels, airlines, beauty salons and fitness centers. Intangible acts on a person’s mind – Services such as education, advertising, entertainment and broadcasting. Tangible acts on physical possessions – Services such as laundry, landscaping, repair and maintenance, and freight transportation. Intangible acts directed at intangible assets – Services such as accounting, banking, insurance and legal services.

Lovelock’s Classification (cont’d)

The Services Marketing Triangle Based on three key components: organizations, providers, and customers. Linking these components: internal marketing, external marketing, and interactive marketing.

The Services Marketing Triangle (cont’d)

Overview of Book Part I – Foundations of Services Marketing Part II – Creating the Interactive Experience Part III – Promising the Interactive Experience Part IV – Delivering & Ensuring a Successful Customer Experience Part V – Management Issues in Services Marketing

Overview of Book (cont’d)

Web Sites Apple YouTube Red Adair Boots and Coots

Web Sites Veterinary Pet Insurance Zappos