©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-0 Chapter 11 Marketing What Isn’t There: Intangibles and Services

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-1 Chapter Objectives  Explain the marketing of people, places, and ideas  Describe the four characteristics of services, and understand how services differ from goods  Explain how marketers create and measure service quality  Explain marketing strategies for services

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-2 Strategies for Marketing People_1  Pure selling approach - an agent presents a client’s qualifications to potential “buyers” until he finds one who is willing to act as an intermediary  Product improvement approach - the agent works with the client to modify certain characteristics that will increase market value; person’s image changes to conform to what is currently in demand

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-3 Strategies for Marketing People_2  Market fulfillment approach - agent scans the market to identify unmet needs. Then agent finds a person that meets qualifications and develops product –“manufactured stars” –N-Sync, The Spice Girls, New Kids on the Block

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-4 Marketing Places  Place marketing strategies treat a city, state, country, or other locale as a brand and attempt to position this location so that consumers choose to visit  Examples: –The New York Miracle –Buffalo-Niagara

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-5 Marketing Ideas  Idea marketing is about gaining market share for a concept, philosophy, belief, or issue  Examples: –Sexual responsibility –Drinking responsibly –Nissan’s Food from the Hood –Newman’s Own

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-6 What is a Service?  Services are acts, efforts, or performances exchanged from producer to user without ownership rights –Consumer services –Business services

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-7 Characteristics of Services  Intangibility  Perishability  Variability  Inseparability

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-8 The Goods/Services Continuum  Good-Dominated Products - tangible products supported by supporting services –embodying - strategy of including a service with the purchase of a physical good  Equipment or Facility-Based Services - heavy reliance on both equipment and personnel –hospitals, tanning salons, health clubs  People-Based Services –wardrobe consultants, decorators, realtors

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 11-9 Core and Augmented Services  Core service is a benefit that a customer gets from the service  Augmented services are additional offerings that differentiate the firm –Example: Airline transportation –Core: travel –Augmented services: frequent flier miles, sky caps, in-flight entertainment services and Internet access

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition The Service Encounter  Social contact dimension  Economic dimension  Production dimension

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition Evaluative Dimensions of Service Quality  Search qualities - characteristics of a product that the consumer can examine prior to purchase  Experience qualities - characteristics that customers can determine during or after consumption  Credence qualities - attributes we find difficult to evaluate even after we’ve experienced them

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition Measuring Service Quality  Gap Analysis - measurement tool that gauges the difference between a customer’s expectation of service quality and what actually occurred  Critical Incident Technique - company collects and closely analyzes very specific customer complaints to identify critical incidents

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition Service Failure and Recovery  When services do fail, recover fast! –Apologize –Resolve the problem –Do not further inconvenience the customer  Analyze what happened to eliminate future failures

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition Strategies for Services  Targeting: Defining the Service Customer or Audience  Positioning: Defining the Service to Customers

©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition Positioning Services  Tangibles  Responsiveness  Empathy  Assurance  Reliability