1. Understanding Services Marketing
Chapter 1
Understanding Services Marketing

2. Objectives To examine the nature of services
To differentiate the marketing of services from the marketing of physical goods and their facilitating services
To explain the characteristics of all services
To classify various services

3. Outline Introduction Definition of Services
How Does Services Marketing Differ from Physical Goods Marketing?
Characteristics of Services
Classifications of Services
Overview of Book
Summary and Conclusion

4. Definition of Services
A service is "a deed, a performance, an effort" (Rathmell 1966).

5. How Does Services Marketing Differ From Physical Goods Marketing?

6. Characteristics of Services
Intangibility – Most services cannot be seen, touched, held, or put on a shelf.
Inseparability – For most services, the production and consumption of the service occur simultaneously.
Variability – It is hard for a service organization to standardize the quality of its service performance.
Perishability – Most services cannot be produced or stored before consumption. They exist only at the time of their production.
Rental/Access – Services provide temporary possession or access instead of ownership.

7. Classifications Based on Services Fields
Health Care Services
Financial Services
Professional Services
Knowledge Services
Travel and Hospitality Services
Source: Fisk & Tansuhaj (1985)

8. Classifications Based on Services Fields (cont’d)
Entertainment Services
Information Services
Supply Services
Personal and Maintenance Services
Governmental, Quasi-Governmental, and Nonprofit Services

9. Classifications Based on Services Customers
Consumer services – provided to customers who are purchasing for their own personal needs.
Prominently visible in any community: banks, schools, restaurants, etc.
Business-to-business services – provided to customers who are purchasing on behalf of their organizations.
Rarely seen by the general public: professional service firms, transportation firms, etc.

10. Lovelock’s Classification
Tangible acts on a person’s body – Services such as health care, hotels, airlines, beauty salons and fitness centers.
Intangible acts on a person’s mind – Services such as education, advertising, entertainment and broadcasting.
Tangible acts on physical possessions – Services such as laundry, landscaping, repair and maintenance, and freight transportation.
Intangible acts directed at intangible assets – Services such as accounting, banking, insurance and legal services.

11. Lovelock’s Classification (cont’d)

12. The Services Marketing Triangle
Based on three key components: organizations, providers, and customers.
Linking these components: internal marketing, external marketing, and interactive marketing.

13. The Services Marketing Triangle (cont’d)

14. Overview of Book Part I – Foundations of Services Marketing
Part II – Creating the Interactive Experience
Part III – Promising the Interactive Experience
Part IV – Delivering & Ensuring a Successful Customer Experience
Part V – Management Issues in Services Marketing

15. Overview of Book (cont’d)

16. Web Sites Apple YouTube Red Adair Boots and Coots

17. Web Sites Veterinary Pet Insurance Zappos