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12: Services Marketing
Terms in this set (23)
Intangible activities or benefits (such as airline trips, financial advice, etc) that an organization provides to satisfy consumer's needs in exchange for money or something else of value.
What are the four I's of services?
Describe the "I" Intangibility:
Services are intangible; that is, they cant be held, touched, or seen before the purchase desicion
Describe the "I" Inconsistency:
Services depend on the people who provide them, so quality is often inconsistent
Describe the "I" Inseparability:
The consumer cannot separate the deliverer of the service from the service itself.
Self-Service Technology examples?
ATMs, grocery store scanning machines, and self-service gas pump stations
With services, inventory carrying costs are more subjective and are related to ____.
idle production capacity
What is Idle Production Capacity?
When the service provider is available but there is no demand for the service.
What is the inventory cost of a service?
the cost of paying the person used to provide the service along with any needed equipment.
Example: If a physician is paid to see patients, but no one schedules an appointment, the fixed cost of the idle physician's salary is a high inventory carrying cost
Why do we need the service continuum?
Because we sometimes can't discern whether or not a company is service-based or product-based.
the range of product-dominant to service-dominant offerings in a company
Tangible products such as clothing, jewlery, and furniture, have this type of property, which can be determined before a purchase
Services such as restaurants and child care have this type of property, which can be discerned only after purchase or during consumption.
Services provided by specializes professionals such as medical diagnoses and legal services have this type of property, or characteristics that the consumer may find it impossible to evaluate even after purchase and consumption.
Differences between the consumer's expectations and experience are identified through this.
Customer Contact Audit
a flowchart of the points of interaction between consumer and service provider
another version of a customer contact audit that includes all employee actions and acknowledges that services are designed to be "experiences"
The traditional marketing mix consists of the four P's:
product, price, place, and promotion
The distinctive nature of services requires that we add to the four P's to include...
People, the Physical Environment, and the Process
charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service
Example: Airlines offer discounts for weekend travel
based on the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers
Customer Experience Management (CEM)
the process of managing the entire customer experience with the company. This process of managining suggests that the entire customer experience should be intentional and planned, consistent so that every so that every experience is similar
The service component of the marketing mix must be integrated with efforts to influence consumer demand. For example, if the patient doesnt show up to a surgery, the service capacity is lost if it is not used.
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Chapter 12 Notes
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CH 12 Services Marketing
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