Assignment and Reflection about Principles of Marketing

Services and Nonprofit Organization Marketing

Unrestricted

“The result of applying human or mechanical efforts to people or objects.

Services involve a deed, performance, or an effort that cannot be physically possessed

(owned).”

What is a service?

Shostack’s Continuum

Value creation through intangible elements

• Inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

Intangibility

• Production and consumption are simultaneous, meaning the consumer takes part in productionInseparability

• Variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods

Heterogeneity

• Inability of services to be stored, warehoused, or inventoriedPerishability

Differences between goods and services

• Services can be difficult to evaluate

• Search quality: Can be assessed before purchase • Experience quality: Can be assessed after use • Credence quality: Can be difficult to assess without

knowledge or expertise

Differences between goods and services

• Product • Place (and time) • Price • Promotion (and education) • Process • Physical environment • People

The 7 Ps of services marketing

• Ability to perform a service dependably, accurately, and consistentlyReliability

• Ability to provide prompt serviceResponsiveness

• Knowledge and courtesy of employees and their ability to convey trustAssurance

• Caring, individualized attention to customersEmpathy

• Physical evidence of a serviceTangibles

Components of service quality

People processing

Possession processing

Mental stimulus processing

Information processing

Categories of services

Categories of services

The flower of service

Nonprofit organization marketing

“An organization that exists to achieve some goal other than the usual business goals of

profit, market share, or return on investment”

What is a nonprofit?

Identifying desired customers

Specifying objectives explicitly or implicitly

Developing, managing, and eliminating programs and services

Deciding on prices

Scheduling events or programs

Communicating their availability

Nonprofit marketing activities

• Objectives: • To generate enough funds to cover expenses • To provide equitable, effective, and efficient services • Respond to the wants and preferences of users,

donors, politicians, the media, and the general public

Nonprofit marketing

• Apathetic or strongly opposed targets • Vaccinations, counseling

• Pressure to adopt undifferentiated strategies • May feel the need to serve as many as possible • May find economies of scale en masse

• Complementary positioning • Often need to work with other community nonprofits,

rather than directly compete

Target market issues

• Benefit complexity • Ideas may be difficult to communicate • Ex: Messages to quit smoking or taking drugs

• Benefit strength • Benefits to a single individual are often indirect • Ex: Why give blood?

• Involvement • People may have very low involvement • Ex: Prevent forest fires

Product decisions

Product decisions

• Distributing goods or service where and when customers want it is key

• Things to consider: • Customer privacy • Special facilities or tools needed • Ability to provide materials online • Use of technology • Portability

Place decisions

• Professional volunteers • Sales promotion activities • Public service announcements (PSAs)

Promotion decisions

• Pricing objective is to cover costs and to allocate resources fairly

• Nonfinancial prices • Indirect payment (taxes) • Separation between payment and users • Below-cost pricing

Pricing decisions