mThe nature and importance of services

mCharacteristics of services and their marketing

implications
mIssues related to the planning and marketing of services
mThe four Rs of services marketing
mThe relationship marketing approach
mThe impact of technology in providing services
It is the part of the product or the full product
for which the customer is willing to see value
and pay for it.
2 It is intangible.
2 It does not result in ownership.
2 It may or may not be attached with a physical product
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M principal purpose of the transaction, as in the rental of a car,

a haircut, or legal services

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M service is performed in support of the sale of a tangible

product
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2 Three-fourths of the Canadian labour force
is employed in service industries.
2 Over 70% of the nation¶s gross national
product is produced by services.
2 From 1986 to 2000, virtually all new jobs
will be in the service industries.
2 Huge growth in personal services as well as
business services.
2  
 R difficult to sample and to evaluate

2  

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service provider; mainly direct sales; staff are essential to
the delivery of quality services

2 M 
 R virtually every service is different; very

difficult to standardize quality

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 RR those not sold can not be stored

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  R demand for some services
fluctuates by season, or even by time of day

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M Customer involvement includes self-service and cooperation
M Customer behavior and competence can help or hinder productivity, so
marketers need to educate/train customers
M Changing the delivery process may affect role played by customers
M Design service facilities, equipment, and systems with customers in mindR
user-friendly, convenient locations/schedules
2 Ô 

   

  
M  nderstand value added by labor and expertise of personnel
M Effective HR management
M Make highly intangible services more ³concrete´ by creating and
communicating physical images or metaphors and tangible clues
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M Frontline service personnel reflect both marketing and operational criteria
M Recognize that appearance and behavior of other customers which influence
service experience positively or negatively
M Avoid inappropriate mix of customer segments at same time
M Manage customer behavior (the customer is §
always right!)
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M Must work hard to control quality and achieve consistency
M Seek to improve productivity through standardization
M Need to have effective service recovery policies in place because it is more
difficult to shield customers from service failures
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M Educate customers to help them make good choices, avoid risk
M Tell customers what to expect, what to look for
M Encourage positive word-of-mouth from satisfied customers
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M Offer convenience of extended service hours up to 24/7
M  nderstand customers¶ time constraints and priorities
M Minimize waiting time
2 
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M Tangible activities must be delivered through physical channels
M  se electronic channels to deliver intangible, information-based
elements instantly and expand geographic reach
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