1. What is a Service?
Services are acts, efforts, or performances exchanged from producer to user without ownership rights
Consumer services
Business services

2. Business Services

3. Characteristics of Services
Intangibility
Perishability
Variability
Inseparability

4. Perishability If unused, the opportunity to sell a service perishes.
Ex: If an airplane takes off with an empty seat, the airline has lost the chance to sell that seat for that flight.

5. Intangibility
You cannot hold a service in your hands, as you can with a regular product. But you should have some evidence that the service was performed.

6. Variability No two service encounters are alike.
Ex: You can go to the same hairdresser and ask for the same hairstyle on two occasions. One time the hairstyle is great, the next time it is not.

7. Inseparability
The service and the provider of the service are the same person or firm. You cannot get the service without direct contact with the provider.
Ex: You cannot get a hairstyle without direct contact with the hairdresser.

8. Perishability

9. Tangible Benefits
MasterCard
emphasizes
the tangible
benefits

10. Classification of Services

11. Goods/Services Continuum

12. The Goods/ Services Continuum
Good-Dominated Products - tangible products supported by supporting services
automobiles, home appliances, electronics
Equipment or Facility-Based Services - heavy reliance on both equipment and personnel
hospitals, tanning salons, health clubs
People-Based Services
decorators, realtors
Video: Starbucks and its focus on service

13. 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

14. Core versus Augmented Components
Augmented services often attract customers

15. Services on the Internet
Banking/ brokerages
Software
Music
Travel
“Free” services
Blogs
Photo sharing
Social networking
Dating
Career development
Distance learning
Medical care
TV and movies
Advice and opinions

16. The Service Encounter
Social
Contact
Economic
Production

17. Exceeding Expectations

18. Servicescapes
Elaborate servicescapes underscore claims of luxury

19. 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

20. Service Experience Blueprint

21. 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

22. 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

23. Strategies for Services
Targeting: Defining the Service Customer or Audience
Positioning: Defining the unique aspects of the Service to Customers

24. The Future of Services Changing demographics Globalization
Technological advances
Shift to flow of information

25. Services that were once unimaginable will be part of our future

26. 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

27. The Stages of Madonna

28. 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

29. Marketing People
People may serve many roles as celebrities

30. 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
Example:
The New York Miracle

33. Marketing Places

34. 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