1. © 2009 South-Western, Cengage LearningMARKETING 1 Chapter 11 SERVICES NEED MARKETING 11-1What Are Services? 11-2Classifying Types and Evaluating Quality 11-3Developing a Service Marketing Mix CHAPTER 11

2. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 2 Focus Questions: After reviewing the advertisement, who do you think British Airways is targeting? How is it promoting its services? Do you think the visual image used in the advertisement is effective? Why or why not? ©BRITISH AIRWAYS

3. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 3 WHAT ARE SERVICES? GOALS Explain the growing importance of services to the U.S. economy. Describe four important qualities of services that are not shared by products. 11-1

4. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 4 Growth and Importance of Service Industries Prosperity Automation Complexity Foreign competition

5. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 5 Fastest-Growing Industries Industry 10-Year Growth Rate Number of Jobs Added Education and Health Services30.6%5.19 million Professional and Business Services27.8%4.57 million Leisure and Hospitality17.7%2.22 million Information Services11.6%0.36 million Financial Activities10.5%0.85 million Trade, Transportation, Utilities10.3%2.62 million

6. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 6 Unique Qualities of Services Intangible Inseparable Perishable Heterogeneous

7. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 7 CLASSIFYING TYPES AND EVALUATING QUALITY GOALS Describe the various ways marketers categorize service businesses in order to develop effective marketing mixes. Identify the three types of service standards that are used to evaluate service quality. 11-2

8. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 8 Service Organization Classifications Type of market Goals of the organization Labor intensiveness Customer contact Level of skill

9. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 9 Evaluating Service Quality Competition Performance standards Customer satisfaction

10. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 10 DEVELOPING A SERVICE MARKETING MIX GOALS Explain how businesses plan and promote services. Describe the importance of pricing and distribution of services. 11-3

11. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 11 Service Planning and Promotion Service planning Promotion Endorsements Word of mouth Personal selling

12. © 2009 South-Western, Cengage LearningMARKETING Chapter 11 12 Price and Distribution Price Distribution