1. MKT 346: Marketing of Services Dr. Houston
Chapter 1:
Introduction to Services Marketing
MKT 346: Marketing of Services Dr. Houston

2. Why Study Services? Most New Jobs are Generated by Services
Services Dominate the Economy in Most Nations
Most New Jobs are Generated by Services

3. Transforming the Service Economy
Government
Policies
Business
Trends
Social
Changes
Advances in IT
Globalization
Five Major Forces
Are
Transforming
The Service Economy

4. Transforming the Service Economy
Government
Policies
Business
Trends
Social
Changes
Advances in IT
Globalization
New markets and product categories
Increase in demand for services
More intense competition
Innovation in service products & delivery systems, stimulated by better technology
Customers have more choices and exercise more power
Success hinges on:
Understanding customers and competitors
Viable business models
Creation of value for customers and firm

5. What Do Services Involve?
A form of rental
Benefits without transfer of ownership
Customers pay for the temporary right to:
Hire the labor and expertise of personnel
Obtain access to facilities and networks

6. Five Broad Categories of Non-Ownership Framework
Rented goods and services
Defined space and place rentals
Labor and expertise rentals
Access to shared physical environments
Systems and networks (access and usage)

7. Four Categories Of Services (Fig 1.10)

8. Defining Services
Activities, processes, and performances offered by one party to another
In exchange for money, time, and/or effort

9. Eight Distinctive Challenges of Marketing Services
Intangibility
Difficult to visualize and understand
Cannot be stored (perishability)
Co-produced with customers
Service personnel and customers play key role
Service experience varies widely
Time factor is very important
Distribution can be through non-physical channels

10. Services Require An Expanded Marketing Mix
Marketing can be viewed as:
A strategic and competitive direction
A set of functional activities
A customer-driven orientation
Marketing is the only function that brings operating revenues into a business
All other functions are cost centers
- Standardize bullets

11. Expanded Services Marketing Mix: The Seven Ps of Services Marketing
Product elements (Chapter 4)
Place and time (Chapter 5)
Price and other user outlays (Chapter 6)
Promotion and education (Chapter 7)
Process (Chapter 8)
Physical environment (Chapter 10)
People (Chapter 11)
Standardize gap between orange bullets and words

12. Framework For Developing Effective Service Marketing Strategies
Understanding Service Products, Consumers & Markets
Part I: Chapters 1 - 3
Applying the 4 Ps to Services
Part II: Chapters 4 - 7
Implementing Profitable Service Strategies
Part IV: Chapters
Managing the Customer Interface
Part III: Chapters

13. MKT 346 Chapter 1 Key Concepts
Why study services?
Eight common differences/special challenges of services (versus products)
Seven Ps of services marketing
Defining services
Five major forces transforming service economy
What are services?
Five broad categories within service non-ownership framework
Four broad categories of service