1. Teaching Services Marketing Russian Experience Marketing Conference 15 April 2010 Plekhanov Russian Academy of Economics Prof. Karen F. A. Fox Santa Clara University

2. The History of Services Marketing Courses Services marketing courses existed before 1980 but not called services marketing The first course titled Services Marketing was taught in the early 1980s by Christopher Lovelock at Harvard Business School Services marketing courses soon launched in Scandinavia, France, the UK, and the Netherlands Now several hundred US and European universities have courses in services marketing and also industry-specific courses

3. Why has interest in Services Marketing courses grown in the US? The service sector represents a growing share of the US economyabout 80% of the US GDP (Gross Domestic Product) is from private and government services. About 80% of US workers are employed in the service sector

4. Services Dominate the U.S. Economy (% of GDP) Services, 68% Agriculture, Forestry, Mining, Fishing, 2.3% Manufacturing and Construction, 17.3% Government, 12.4% (mostly Services) Source: Bureau of Economic Analysis, Survey of Current Business, May 2005, Table 1 INSIGHTS Private sector service industries account for over two-thirds of GDP Adding government services, total is almost four-fifths of GDP

5. Why has interest in Services Marketing courses grown in the US? US product manufacturing has increasingly moved to other countries where costs are lower, but most US service business have grown in number and importance in the US However some services have gone off- shore, such as tech support by phone from India to customers in the US

6. The Changing Structure of Employment as Economic Development Evolves Industry Services Agriculture Time Share of Employment Source: IMF, 1997

8. Services Marketing in the Russian Economy The quantity and quality of services has greatly increased in Russia in the past two decades, after many decades of highly centralized services, some of poor quality Russian university graduates are now moving into very responsible positions in Russian and international service companies

9. Current Status of Services Marketing Courses in Russia Growth of specialized course in banking, hospitality management, tourism marketing, etc. Few courses in services marketing in Russian universities Few pages of services marketing included in most marketing textbooksin US and in international/Russian editions

10. Its time to increase study of services marketing Better career preparation for our students Continue the improvement of service quality Contributes to better quality of life for everyone, to have access to a range of services that are of better quality

11. Areas for Less Emphasis in Services Marketing Courses Less focus on how services and products are differentthat debate is very old and overworked, yet is featured in most marketing textbooks

12. Areas for Greater Emphasis in Services Marketing Courses –The similarities of services marketing across industries, and how we can learn from other industries –How to use service blueprinting to design and pretest new and updated services –How to apply a wider variety of pricing strategies and tactics for services –How to include more customer education and to make the service more tangible to prospective consumers through marketing communications –How to use marketing research tools to improve service delivery and customer satisfaction