marketing one page single spaced read the description and the powerpoint is attached
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mktg10_ie_ch12_ppt_student.ppt© 2016 Cengage Learning. All Rights Reserved.
MKTG10
Lamb, Hair, and McDaniel
Chapter 12
Services and Nonprofit Organization Marketing
Chapter 12 Services and Nonprofit Organization Marketing
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The Importance of Services
Service industries accounted for 68 percent of U.S. GDP in 2014.
Services involve:
- Deeds
- Performances
- Efforts
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Chapter 12 Services and Nonprofit Organization Marketing
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How Services
Differ from Goods
Intangible
Inseparable
Heterogeneous
Perishable
No physical object makes it hard to communicate benefits.
Production and consumption are simultaneous, meaning the consumer takes part in production.
Services depend on their employees for quality, which makes consistency difficult to achieve.
Services cannot be saved, and it is challenging to synchronize supply and demand.
Chapter 12 Services and Nonprofit Organization Marketing
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When Services are Assessed
- Search quality: More often applied to goods, assessed before purchase
- Experience quality: Assessed after purchase
- Credence quality: Assessed only with appropriate knowledge.
Chapter 12 Services and Nonprofit Organization Marketing
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Components of Service Quality
Tangibles
The physical evidence
of the service.
Empathy
Caring, individualized
attention to customers.
Assurance
The knowledge and courtesy
of employees.
Responsiveness
The ability to provide
prompt service.
Reliability
The ability to perform the
service right the first time.
Chapter 12 Services and Nonprofit Organization Marketing
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12.1
Gap Model of Service Quality
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Chapter 12 Services and Nonprofit Organization Marketing
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Product Strategies
for Services
Customization/
Standardization
Service
Mix
Core and
Supplementary
Service as a
Process
Chapter 12 Services and Nonprofit Organization Marketing
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Service as a Process
Mental Stimulus
Processing
People
Processing
Possession
Processing
Information
Processing
Chapter 12 Services and Nonprofit Organization Marketing
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The Service Offering
Core
Service
Supplementary
Service
The most basic benefit the
consumer is buying.
A group of services that support or enhance the core service.
Chapter 12 Services and Nonprofit Organization Marketing
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Customization/Standardization
Mass
Customization
A strategy that uses technology to deliver customized services on a mass basis.
Chapter 12 Services and Nonprofit Organization Marketing
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The Service Mix
Determine which new services to introduce
Determine the target market
Decide which existing services to maintain and which to eliminate
Chapter 12 Services and Nonprofit Organization Marketing
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Place (Distribution) Strategy
Scheduling
Location
Direct or indirect
distribution
Number of outlets
Convenience
Chapter 12 Services and Nonprofit Organization Marketing
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Promotion Strategy
Stress tangible cues
Use personal information
sources
Create a strong organizational image
Engage in postpurchase communication
Chapter 12 Services and Nonprofit Organization Marketing
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Price Strategy
Define the unit of service consumption
Determine if multiple elements are “bundled” or priced separately
Pricing Challenges for Services
Chapter 12 Services and Nonprofit Organization Marketing
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Pricing Objectives
Revenue-Oriented
Pricing
Operations-Oriented
Pricing
Patronage-Oriented
Pricing
Maximize the surplus of income over costs
Match supply and demand by varying price
Maximize the number of customers by varying price
Chapter 12 Services and Nonprofit Organization Marketing
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Relationship
Marketing in Services
2
Social
1
Financial
3
Customization
Provide pricing incentives
Design services to meet customer needs
Build social bonds
4
Structural
Offer value-added services
Chapter 12 Services and Nonprofit Organization Marketing
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Internal Marketing
Treating employees as customers and developing systems and benefits that satisfy their needs.
Chapter 12 Services and Nonprofit Organization Marketing
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Nonprofit Organization
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Governments
Museums
Theaters
Schools
Churches
Chapter 12 Services and Nonprofit Organization Marketing
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Nonprofit Organization
Marketing Activities
Identify desired customers
Specify objectives
Develop, manage, eliminate programs
and services
Decide on prices
Schedule events or programs
Communicate their availability
Chapter 12 Services and Nonprofit Organization Marketing
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- Setting of marketing objectives
- Selection of target markets
- Development of marketing mixes
Unique Aspects of Nonprofit
Organization Marketing Strategies
Chapter 12 Services and Nonprofit Organization Marketing
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Objectives
Nonprofit organizations focus on generating enough funds to cover expenses.
Nonprofits provide services that respond to the wants of:
Users
Payers
Donors
Politicians
Appointed officials
Media
General Public
Chapter 12 Services and Nonprofit Organization Marketing
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Target Markets
Unique Issues
of Nonprofit
Organizations
Apathetic or strongly opposed
targets
Pressure to adopt undifferentiated segmentation
Complementary positioning
Chapter 12 Services and Nonprofit Organization Marketing
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Product Decisions
Benefit complexity
Weak or indirect benefit strength
Low involvement
Distinctions between
Business and Nonprofit Organizations
Chapter 12 Services and Nonprofit Organization Marketing
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Place Decisions
A nonprofit organization’s ability to distribute its service offerings where and when customer groups want them is a key variable in determining success.
Chapter 12 Services and Nonprofit Organization Marketing
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Promotion Decisions
Sales promotion activities
Public service advertising
Professional volunteers
Chapter 12 Services and Nonprofit Organization Marketing
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Pricing Decisions
Below-cost pricing
Separation between
payers and users
Indirect payment
Nonfinancial prices
Pricing objectives
Characteristics
Distinguishing
Pricing Decisions
of Nonprofit
Organizations
Chapter 12 Services and Nonprofit Organization Marketing
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