1. Services and Other Intangibles: Marketing the Product That Isn’t There

2. 4 characteristics of services service continuum
Chapter Objectives
4 characteristics of services
service continuum
core and augmented services,
marketing of services
on the Internet,
service encounter

3. Chapter Objectives service quality to marketers: SERVQUAL Gap Analysis
search qualities,
experience qualities,
credence qualities
SERVQUAL
Gap Analysis
marketing of people, places, and ideas

4. Marketing What Isn’t There
Intangibles:
services and other experience-based products that cannot be touched
Does marketing work for intangibles?
Yes!

5. What Are Services?
Services are:
acts, efforts, or performances
exchanged from producer to user
without ownership rights.

6. Characteristics of Services
Intangibility:
can’t see, touch, or smell good service
Perishability:
can’t store a service for later sale or consumption
Capacity management:
firms adjust their services to match supply with demand

7. Characteristics of Services (cont’d)
Variability:
can’t standardize
the same service
performed by the same individual

8. Characteristics of Services (cont’d)
Inseparability:
can’t separate production from consumption
Service encounter:
the interaction between the customer and the service provider
Disintermediation:
eliminating the interaction between customers and salespeople
How???

9. Services by: Inputs & Tangibility
Figure 10.1

10. The Services Continuum
Figure 10.2

11. The Services Continuum (cont’d)
Goods-dominated products
Equipment- or facility-based services
People-based services

12. Core and Augmented Services
Core service:
the benefit a customer gets from the service
Augmented service:
core service + added services that enhance value
INDOOR CLIMBING
WALL AT
UNIVERSITY OF HOUSTON

13. Services on the Internet
Anything that can be delivered
can be sold on the Web
--Banking and brokerage services
--Software
--Music
--Travel services
--Dating services
--Career-related services
--Medical care

14. Social elements: Physical elements: The Service Encounter
employees and customers
Physical elements:
Service-scapes
other intangibles

15. Providing Quality Service: Service Quality Attributes
Search qualities:
examine before purchase
Experience qualities:
determine during or after consumption
Credence qualities:
evaluate after experiencing them (difficult to do)
JET BLUE AIRLINES

16. Measuring Service Quality
SERVQUAL
Gap analysis
Critical incident technique

17. Strategies for Developing and Managing Services
Act fast
to resolve a service failure.
Identify potential failures
make recovery plans ahead of time.

18. Strategies for Developing and Managing Services
Train employees
to listen for complaints
empower them
to take action.

19. The Future of Services
New dominant logic for marketing
Changing demographics
Globalization
Technological advances
Shift to flow of information

20. Marketing People
Marketing people
Politicians
Celebrities

21. Marketing Places Marketing places
Attempting to position a city, state, country, or other locale
so consumers choose the brand over competing destinations

22. Marketing ideas Marketing Ideas Gaining market share
for a concept, philosophy, belief, or issue
LICKGLOBALWARMING.COM
MADD

23. Then end

24. Real People, Real Choices
Universal’s Theme Parks in Orlando (Robyn Eichenholz)
How to plan for anticipated record-breaking attendance at Donna Summer in concert
Option 1: don’t make any special plans for the event
Option 2: create a plan to accommodate extremely large crowds
Option 3: publicize the big expected turnout to let guests know the event might be exceptionally crowded

25. Real People, Real Choices
Universal’s Theme Parks in Orlando (Robyn Eichenholz)
Robyn selected a combination of options 2 and 3 to alleviate crowding concerns and enhance the guest experience.
In addition to enjoying themselves in the concert area, guests partied in the streets and had a great evening.
UNIVERSAL STUDIOS THEME PARK

26. Group Activity
Pick a sport and define the core service its sporting event provides at your university/college.

27. Discussion
Why are first impressions formed about a service on the Internet so important?
What can a service firm do to ensure a favorable first impression online?

28. Discussion
Internet dating services, while popular, may present some dangers for those who use them.
--Who do you think uses Internet dating services?
--What, if anything, should these services do to protect their clients?

29. Discussion
Sometimes service quality may not meet customers’ expectations.
--What problems have you experienced with quality in the delivery of the following services?
A restaurant meal
An airline flight
Automobile repairs
Your college education

30. Discussion What “service” do providers such as MySpace.com convey?
What core and augmented services do they offer?
How should users evaluate the quality of MySpace.com’s service?
MYSPACE.COM

31. Individual Activity/Discussion
You are a customer for a college education, a very expensive service product.
--Develop a list of recommendations for your school for improving the delivery of its service.

32. Discussion
There has been much recent criticism about the way politicians are marketed.
--What are some ways such marketing has helped our political process?
--What are some ways it might have an adverse effect on our government?
SENATOR HILLARY
RODHAM CLINTON

33. Discussion
Many not-for-profit and religious organizations have found they can become more successful by marketing their ideas.
--What are some ways these organizations market themselves that are similar to, and different from, marketing by for-profit businesses?

34. Marketing Plan Exercise
Select a familiar service such as a bank, an airline, or even your university.
Develop strategies for creating a servicescape that will be a positive influence on customers’ purchase decisions, their evaluations of service quality, and their ultimate satisfaction with the service.

35. Marketing in Action Case: You Make the Call
What is the decision facing XM Satellite Radio?
What factors are important in understanding this decision situation?
What are the alternatives?
What decision(s) do you recommend?
What are some ways to implement your recommendation?

36. Keeping It Real: Fast-Forward to Next Class Decision Time at Taco Bell
Meet Danielle Blugrind, Director of Consumer and Brand Insights for Taco Bell.
Competitors claimed they provided better fast-food value.
The decision: How to update the Taco Bell value menu pricing.