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Chapter 1:
New Perspectives On
Marketing in the
Service Economy
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Overview of Chapter 1
1. Why Study Services?
2. What are Services?
3. Marketing Challenges Posed by Services
4. Extended Marketing Mix Required for Services
5. Integration of Marketing with Other Management Functions
6. Developing Effective Service Marketing Strategies
Slide 2010 by Lovelock & Wirtz
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Agriculture
Share of
Employment
Services
Industry
Time (per capita income)
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Manufacturing
(32, 29) %
Services
(64, T69~71, U79,
Agriculture
C40) %
(4, 2) %
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(4) Advances in IT
Growth of Internet
Greater bandwidth, e.g., 4G
Compact mobile equipment
Wireless networking
Faster, more powerful software
Self-service technology
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(5) Internationalization
More companies operating on transnational basis
Increased international travel
International mergers and alliances
Offshoring of customer service
Foreign competitors invade domestic markets
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Definition of Services
Services
are economic activities offered by one party to another
most commonly employ time-based performances to
bring about desired results
In exchange for their money, time, and effort, service
customers expect to obtain value from
normally do not take ownership of any of the physical
elements involved.
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Categories of Services
2*2
Tangible, Intangible
People: Passenger Transportation, Education
Possessions: fright transportation, Accounting
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8 characteristics of services
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Services Require
An Extended Marketing Mix
Marketing can be viewed as:
A customer-driven orientation for the entire organization
Marketing is only function to bring operating revenues into a
business; all other functions are cost centers
The 7 Ps of services marketing are needed to create viable
strategies for meeting customer needs profitably
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5. Integration of Marketing
with Other Management
Functions
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Overview of Framework
Understanding Service Products,
Consumers and Markets
Applying the 4 Ps of
Marketing to Services
The Extended Services Marketing Mix
for Managing the Customer Interface
Implementing Profitable Service
Strategies
Slide 2010 by Lovelock & Wirtz
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