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1、Services MarketingMTG 410Fall 2000Prof: Donna J. Hill, Ph.D.What Are Services?n nServices are deeds, processes, and performances.Nature of product.Nature of product.Greater involvement of customers in the Greater involvement of customers in the production process.production process.People as part of
2、 the product.People as part of the product.Greater difficulties in maintaining quality Greater difficulties in maintaining quality control standards.control standards.A Different Context for Services Marketingn nNarrow definition of marketing by other managers.n nLimited appreciation for marketing s
3、kills.n nDifferent organizational structure.n nA relative lack of competitive data.n nProblems determining costs.n nConstraints and opportunities facing marketers of public and nonprofits.Examples of Service Industriesn nHealth CareHealth Care hospital, medical practice, dentistry, eye carehospital,
4、 medical practice, dentistry, eye caren nProfessional ServicesProfessional Services accounting, legal, architecturalaccounting, legal, architecturaln nFinancial ServicesFinancial Services banking, investment advising, insurancebanking, investment advising, insurancen nHospitalityHospitality restaura
5、nt, hotel/motel, bed & breakfast, restaurant, hotel/motel, bed & breakfast, ski resort, raftingski resort, raftingn nTravelTravel airlines, travel agencies, theme parkairlines, travel agencies, theme parkn nOthers:Others: hair styling, pest control, plumbing, lawn hair styling, pest control, plumbin
6、g, lawn maintenance, counseling services, health clubmaintenance, counseling services, health clubFigure 1-2 Figure 1-2 Percent of U.S. Labor Force by Industry01020304050607080192919481969197719841996Percent of GDPSource: Survey of Current Business, April 1998, Table B.8, July 1988, Table 6.6B, and
7、July 1992, Table 6.4C; Eli Ginzberg and George J. Vojta, “The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39. Yearn Servicesn Manufacturingn Mining & Agriculture0102030405060708019481959196719771987 1996Figure 1-3 Figure 1-3 Percent of U.S. Gross Domestic Product by Ind
8、ustryPercent of GDPYearSource: Survey of Current Business, August 1996, Table 11, April 1998, Table B.3; Eli Ginzberg and George J. Vojta, “The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39. n Servicesn Manufacturingn Mining & AgricultureImportance of Service Sectorn n
9、$3.52 trillion of U.S. GDP $3.52 trillion of U.S. GDP n n53.2% of U.S. GDP53.2% of U.S. GDPn n71% of total employment71% of total employmentn n91% of new jobs from 1992 to 91% of new jobs from 1992 to 20052005ServicesFast growing services for the next decadeHealth servicesBusiness servicesFinance, i
10、nsurance, real estateResidential careComputer & data processingChild day-careSocial servicesTransportation servicesFactors Contributing to Growthn nMovement to information ageMovement to information agen nShift to industrialized economyShift to industrialized economyn nAging populationAging populati
11、onn nLonger life expectanciesLonger life expectanciesn nIncrease leisure timeIncrease leisure timen nHigh per capita incomeHigh per capita incomen nChanging social and cultural Changing social and cultural valuesvaluesn nAdvances in technologyAdvances in technologyChallenges for Servicesn nDefining
12、and improving qualityDefining and improving qualityn nCommunicating and testing new servicesCommunicating and testing new servicesn nCommunicating and maintaining a consistent Communicating and maintaining a consistent imageimagen nMotivating and sustaining employee Motivating and sustaining employe
13、e commitmentcommitmentn nCoordinating marketing, operations and Coordinating marketing, operations and human resource effortshuman resource effortsn nSetting pricesSetting pricesn nStandardization versus personalizationStandardization versus personalizationDifferences Between Goods and ServicesIntan
14、gibilityPerishabilitySimultaneousProductionandConsumptionHeterogeneityFigure 1-1Figure 1-1Tangibility SpectrumTangibleDominantIntangibleDominantSaltSoft DrinksDetergentsAutomobilesCosmeticsAdvertisingAgenciesAirlinesInvestmentManagementConsultingTeachingFast-foodOutletsFast-foodOutletsImplications o
15、f IntangibilityServices cannot be inventoriedServices cannot be patentedServices cannot be readily displayed or communicatedPricing is difficultImplications of HeterogeneityService delivery and customer satisfaction depend on employee actionsService quality depends on many uncontrollable factorsTher
16、e is no sure knowledge that the service delivered matches what was planned and promotedImplications of Simultaneous Production and ConsumptionCustomers participate in and affect the transactionCustomers affect each otherEmployees affect the service outcomeDecentralization may be essentialMass production is difficultImplications of PerishabilityIt is difficult to synchronize supply and demand with servicesServices cannot be returned or resoldTable 1-2 Table 1-2 Services are DifferentSource: Adapt
