PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e

Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of Services Chapter Nine: Services Marketing Strategies Learn more on page 317 What is a Product A product is something you can touch What is a Service? A service is an action performed by someone (labour). If you buy a new battery for your car, that's a product. The installation of that battery is a service.

Rix Marketing: A Practical Approach 7e Next: The Special Characteristics of Services Chapter Nine: Services Marketing Strategies Learn more on page 317 The scope of the services market Communication ProfessionalPersonal care Health careEducation HouseholdAccommodation Recreation & entertainment Travel and transport Plus a huge range of B2B services

Rix Marketing: A Practical Approach 7e Next: Distinctive Colour Adds Tangibility to a Service Chapter Nine: Services Marketing Strategies Learn more on pages The Special Characteristics of Services Intangibility o customer cannot experience prior to purchase o need to add physical evidence Variability o customer receives a different product each time o need to either standardise or customise service o allows for market segmentation by customising service Perishability and fluctuating demand o ‘real time’ services are lost if not used o demand has peaks and troughs o need to use marketing mix to manage supply and demand o allows for segmentation through pricing and promotion Inseparability o hard to separate service from service provider o customer is involved in service delivery o need to manage ‘moments of truth’ Services marketing requires some different strategies because of:

Distinctive Colour Adds Tangibility to a Service Rix Marketing: A Practical Approach 7e Next: Managing Inseparability & Fluctuating Demand Chapter Nine: Services Marketing Strategies

Rix Marketing: A Practical Approach 7e Next: Another way of Promoting to Add Tangibility Chapter Nine: Services Marketing Strategies Learn more on pages Developing a Marketing Mix for Services Distribution o making the service ‘accessible’ is the key task o convenient location o short channel length o technology (Net) is critical Product o to add tangibility, a services brand should highlight the service benefit o must manage quality ‘service gaps’ Promotion o adding tangibility is the main task o show the service encounter o avoid over-promising o build relationships Pricing o customers are often unaware of service provision costs o pricing is often based on inputs such as ‘hours spent’ o changing prices in response to demand levels is common Many of the mix strategies are the same as for physical goods. Some differences are:

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

Rix Marketing: A Practical Approach 7e Next: NFP Marketers Chapter Nine: Services Marketing Strategies Learn more on pages Additional Mix Elements for Services Physical evidence strategies o used to add tangibility o use visuals, aromas, sounds, textures o exterior/interior of premises o ads, brochures, uniforms o map servicescapes People strategies o identify boundary spanning roles o recruit ‘service-oriented’ people o empower front-line staff o reward and motivate Process strategies o manage service activities o identify ‘moments of truth’ o construct service blueprints

Five Minute Quiz 1.Define services 2.List five ways of classifying services 3.List four characteristics of services that differentiate them from physical goods 4.List the three additional elements of the marketing mix (Ps) for services 5.List three target markets that NFP organisations need to appeal to Rix Marketing: A Practical Approach 7e Chapter Nine: Services Marketing Strategies