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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Texas Christian University
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.
4. Develop marketing mixes for services.
5. Discuss relationship marketing in services.
6. Explain internal marketing in services.
7. Discuss global issues in services marketing.
8. Describe nonprofit organization marketing.
Discuss the importance of services to the economy.
The result of applying human or mechanical efforts to people or objects.
Services account for 76% of U.S. GDP
Service occupations will be responsible for all net job growth through 2005The Importance of Services
Discuss the differences
between services and goods.
Are Intangible Performances
Services Are Produced and Consumed Simultaneously
Services Have Greater Variability
Services Are PerishableHow Services Differ from Goods
Describe the components of service quality and the gap model
of service quality.
The ability to perform the service right the first time.
The ability to provide
The knowledge and courtesy
Caring, individualized attention to customers.
The physical evidence
of a service.Components of Service Quality
Develop marketing mixes for services.
InformationProcessingMarketing Mixes for Services
The most basic benefit the consumer is buying.
A group of services that support
or enhance the core service.Core and Supplementary Services
Overnight transportation and delivery of packages
DocumentationCore and Supplementary Servicesfor FedEx
A strategy that uses technology to deliver customized services on a mass basis.
is the Key
Number of Outlets
Focus forDistribution Strategies
Direct vs. Indirect
SchedulingDistribution Strategy Issues
Use personal information sources
Create a strongorganizational image
Engage in postpurchase communicationPromotion Strategy Issues
Determine if multiple elements are “bundled”
Trends have made pricing an
active componentPrice Strategy
Discuss relationship marketing in services.
Financial, Social, Structural
FinancialRelationship Marketing in Services
Three Levelsof Relationship Marketing
Explain internal marketing in services.
Treating employees as customers and developing systems and benefits that satisfy their needs.
InternalMarketingActivitiesInternal Marketing Activities
Discuss global issues in services marketing.
U.S. is world’s largest exporter of services
Hotel ChainsGlobal Issues in Services Marketing
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Other Non-GovernmentNonprofit Organizations
Services vary greatly
Services can not be storedNonprofit Organization Marketing
Develop, manage, eliminate programs/services
Communicate through advertising/PRNonprofit Organization Marketing Activities
Selection of Target Markets
Development of Marketing MixesUnique Aspects of Nonprofit Organization Marketing Strategies
General PublicMarket Objectives
Provide Services to:
Pressure to adopt undifferentiated segmentation
Complementary positioningTarget Markets
Unique Issues of Nonprofit
Low InvolvementProduct Decisions
Distinctions betweenBusiness and NonprofitOrganizations
Public ServiceAdvertisingPromotion Decisions
Pricing Decisionsof Nonprofit Organizations
Separation BetweenPayers and Users
Below-Cost PricingPricing Decisions