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Services and Nonprofit Organization Marketing. Chapter 11. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Discuss the importance of services to the economy. 2. Discuss the differences between services and goods.

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Services and nonprofit organization marketing l.jpg

Services andNonprofit Organization Marketing

Chapter 11

Prepared by

Deborah Baker

Texas Christian University


Learning objectives l.jpg
Learning Objectives

1. Discuss the importance of services to the economy.

2. Discuss the differences between services and goods.

3. Describe the components of service quality and the gap model of service quality.


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Learning Objectives (continued)

4. Develop marketing mixes for services.

5. Discuss relationship marketing in services.

6. Explain internal marketing in services.


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Learning Objectives (continued)

7. Discuss global issues in services marketing.

8. Describe nonprofit organization marketing.


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Learning Objective

1

On Line

http://www.yellowfreight.com

Discuss the importance of services to the economy.


Service l.jpg
Service

1

The result of applying human or mechanical efforts to people or objects.


The importance of services l.jpg

79% of workers are in

service sector

Services account for 76% of U.S. GDP

Service occupations will be responsible for all net job growth through 2005

The Importance of Services

1



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Learning Objective

2

On Line

http://www.sheraton.com

Discuss the differences

between services and goods.


How services differ from goods l.jpg

Services

Are Intangible Performances

Services Are Produced and Consumed Simultaneously

Services Have Greater Variability

Services Are Perishable

How Services Differ from Goods

2

On Line

http://www.nationalamusements.com

http://www.amctheatres.com

http://www.movietickets.com


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Learning Objective

3

Describe the components of service quality and the gap model

of service quality.


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Reliability

The ability to perform the service right the first time.

Responsiveness

The ability to provide

prompt service.

Assurance

The knowledge and courtesy

of employees.

Empathy

Caring, individualized attention to customers.

Tangibles

The physical evidence

of a service.

Components of Service Quality

3



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Learning Objective

4

Develop marketing mixes for services.


Marketing mixes for services l.jpg

People

Processing

Product

(Service)

Strategy

PossessionProcessing

Mental StimulusProcessing

InformationProcessing

Marketing Mixes for Services

4


Core and supplementary services l.jpg

CoreService

The most basic benefit the consumer is buying.

Supplementary

Service

A group of services that support

or enhance the core service.

Core and Supplementary Services

4


Core and supplementary services for fedex l.jpg

Problem solving

Advice and

information

Order taking

Overnight transportation and delivery of packages

Billing

statements

Supplies

Tracing

Pickup

Documentation

Core and Supplementary Servicesfor FedEx

4


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Mass Customization

4

A strategy that uses technology to deliver customized services on a mass basis.


Mass customization19 l.jpg

MassCustomization

CustomizedFocus

Mass Customization

4

Technology

is the Key

High

Customization

StandardizedFocus

Low

High

Low

Cost


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Service Mix Strategy

4

  • Determine what new services to introduce

  • Determine target market

  • Decide what existing services to maintain and/or eliminate


Distribution strategy issues l.jpg

Convenience

Number of Outlets

Focus forDistribution Strategies

Direct vs. Indirect

Distribution

Location

Scheduling

Distribution Strategy Issues

4


Promotion strategy issues l.jpg

Stress tangible cues

Service

Promotion

Strategies

Use personal information sources

Create a strongorganizational image

Engage in postpurchase communication

Promotion Strategy Issues

4


Price strategy l.jpg

Define unit of

service consumption

Pricing Challenges

Determine if multiple elements are “bundled”

Trends have made pricing an

active component

Price Strategy

4


Pricing objectives l.jpg

Revenue-OrientedPricing

Categories ofPricingObjectives

Operations-OrientedPricing

Patronage-OrientedPricing

Pricing Objectives

4

On Line

http://www.etrade.com

http://www.ameritrade.com

http://www.schwab.com


Learning objective25 l.jpg
Learning Objective

5

Discuss relationship marketing in services.


Relationship marketing in services l.jpg

Level 3

Financial, Social, Structural

Level 2

Financial, Social

Level 1

Financial

Relationship Marketing in Services

5

Three Levelsof Relationship Marketing


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Learning Objective

6

Explain internal marketing in services.


Internal marketing l.jpg
Internal Marketing

6

Treating employees as customers and developing systems and benefits that satisfy their needs.


Internal marketing activities l.jpg

Competing

for Talent

Offeringa Vision

TrainingEmployees

StressingTeamwork

Empowerment

KnowingEmployees’ Needs

RewardingPerformance

InternalMarketingActivities

Internal Marketing Activities

6


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Learning Objective

7

Discuss global issues in services marketing.


Global issues in services marketing l.jpg

Financial

Construction

Engineering

Insurance

U.S. is world’s largest exporter of services

Hotel Chains

Global Issues in Services Marketing

7


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Learning Objective

8

Describe nonprofit

organization marketing.


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Nonprofit Organization Marketing

8

An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.


Nonprofit organizations l.jpg

Nonprofit Organizations

Government

Private Museums

Theaters

Schools

Churches

Other Non-Government

Nonprofit Organizations

8


Nonprofit organization marketing35 l.jpg

Market intangible products

Shared Characteristics

with

Service Organizations

Production requires

customer’s presence

Services vary greatly

Services can not be stored

Nonprofit Organization Marketing

8


Nonprofit organization marketing activities l.jpg

Identify Desired Customers

Specify Objectives

Develop, manage, eliminate programs/services

Set prices

Schedule events

Communicate through advertising/PR

Nonprofit Organization Marketing Activities

8


Unique aspects of nonprofit organization marketing strategies l.jpg

Setting of Marketing Objectives

Selection of Target Markets

Development of Marketing Mixes

Unique Aspects of Nonprofit Organization Marketing Strategies

8

On Line

http://www.peta.com


Market objectives l.jpg

Users

Payers

Donors

Politicians

Appointed officials

Media

General Public

Market Objectives

8

Provide Services to:


Target markets l.jpg

Apathetic or strongly opposed

targets

Pressure to adopt undifferentiated segmentation

Complementary positioning

Target Markets

8

Unique Issues of Nonprofit

Organizations


Product decisions l.jpg

Benefit

Complexity

Weak

Benefit Strength

Low Involvement

Product Decisions

8

Distinctions betweenBusiness and NonprofitOrganizations


Promotion decisions l.jpg

ProfessionalVolunteers

Sales PromotionActivities

Public ServiceAdvertising

Promotion Decisions

8

On Line

http://www.adcouncil.org


Pricing decisions l.jpg

Pricing Objectives

Nonfinancial Prices

Characteristics

Distinguishing

Pricing Decisionsof Nonprofit Organizations

Indirect Payment

Separation BetweenPayers and Users

Below-Cost Pricing

Pricing Decisions

8


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