Download presentation
Presentation is loading. Please wait.
Published byArline Clarke Modified over 8 years ago
1
Copyright © 2007 McGraw-Hill Ryerson Limited., Examples of Service Industries Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, bed & breakfast ski resort, rafting Travel airline, travel agency, theme park Others hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design
2
Copyright © 2007 McGraw-Hill Ryerson Limited., A Services View of Marketing Getting beyond the marketing mix Product and price are not enough Service - a strategic competitive advantage Treatment is as important as the product Service differentiates and adds value
3
Copyright © 2007 McGraw-Hill Ryerson Limited., Different Perspectives SERVICES: All economic activities whose output is not a physical product Service industries (e.g., transportation, shipping, lodging, health care, etc.) Services as “products” (IT consulting by IBM/Dell/HP, service insurance by Sony, etc.) Customer service (answering questions, handling complaints, taking orders, etc. Typically no charge) Service derives from use of products (e.g., computers provide information services)
4
Copyright © 2007 McGraw-Hill Ryerson Limited., Tangibility Spectrum Tangible Dominant Intangible Dominant Salt Soft Drinks Detergents Automobiles Cosmetics Advertising Agencies Airlines Investment Management Consulting Teaching Fast-food Outlets Fast-food Outlets Figure 1.2
5
Copyright © 2007 McGraw-Hill Ryerson Limited., Characteristics of Service(s) Intangibility Heterogeneity Simultaneous production/consumption Perishability
6
Copyright © 2007 McGraw-Hill Ryerson Limited., Implications of Intangibility Services can not be inventoried Services can not be easily patented Services can not be readily displayed or communicated (quality) Pricing is difficult
7
Copyright © 2007 McGraw-Hill Ryerson Limited., Implications of Heterogeneity Service delivery and customer satisfaction depend on employee and customer actions Service quality depends on many uncontrollable factors There is no sure knowledge that the service delivered matches what was planned and promoted
8
Copyright © 2007 McGraw-Hill Ryerson Limited., Implications of Simultaneous Production and Consumption Customers participate in and affect the transaction Customers affect each other Employees affect the service outcome Decentralization may be essential Mass production is difficult
9
Copyright © 2007 McGraw-Hill Ryerson Limited., Implications of Perishability It is difficult to synchronize supply and demand with services Services can not be returned or resold Services can not be put in inventory
10
Copyright © 2007 McGraw-Hill Ryerson Limited., Add to the Mix More than the conventional marketing mix People All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment. Physical Evidence The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service. Process The actual procedures, mechanisms, and flow of activities by which the service is delivered—the service delivery and operating systems.
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.