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Chapter 13: Introduction to Services Marketing

12-09...

Why Study Services? Services dominate economy in most nations. Most new jobs are generated by services. Fastest growth expected in knowledge-based industries. Many new jobs are well-paid positions requiring good educational qualications. Many manufacturing rms moved to marketing stand-alone services Dening Services Services involve a form of rental and non-ownership. Meaning access and usage fees, for a dened period of time, instead of buying it outright. Services non-ownership framework. Rental-good services - right to a physical good Dened space and place rentals - private space shared with other customers. Labour and expertise rentals - hire people. Access to shared physical environments - share use of an environment, not private. Systems and networks: access and usage - rent right to participate. Importance of Services Services dominate economy in most nations. Service sector is growing rapidly. Most new jobs are generated by services. Powerful forces are transforming service markets. Reshaping of demand, supply, competition, customers. What are Services? Five broad categories within non-ownership framework: Rented goods services. Dened space and place rentals. Labour and expertise rentals. Access to shared physical environments. Systems and networks: access and usage. Four broad categories of services: Based on differences in nature of service act (tangible/intangible) and who or what is direct recipient of service (people/ possessions), there are four categories of services:

possessions), there are four categories of services: People processing. Possession processing. Mental stimulus processing. Information processing.

Differentiate between services and goods Marketing tasks in services differ from the manufacturing sector Eight common differences: Service products cannot be inventoried. Intangible elements dominate value creation. Services difcult to visualize and understand. Customers may be involved in co-production. People may be part of the service experience. Operational inputs and outputs tend to vary widely. Time factor assumes great importance. Distribution through nonphysical channels. What are marketing implications? The 7 Points of Services Marketing Product elements. Place and time. Price and other user outlays. Promotion and education. Process. Physical environment. People.

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