Transcript Services and Other Intangibles: Marketing the Product That Isn’t There
Services and Other Intangibles: Marketing the Product That Isn’t There
Chapter Objectives • Describe the four characteristics of services • Understand how services can be classified along a service continuum • Explain core and augmented services, marketing of services on the Internet, and the elements of the service encounter • Appreciate the importance of the three attributes of service quality to marketers: search qualities, experience qualities, and credence qualities • Discuss the concepts of SERVQUAL and gap analysis • Explain the marketing of people, places, and ideas 2
Real People, Real Choices • Universal’s Theme Parks in Orlando (Robyn Eichenholz) • How to plan for anticipated record-breaking attendance at Donna Summer in concert Option 1: don’t make any special plans for the event Option 2: create a plan to accommodate extremely large crowds Option 3: publicize the big expected turnout to let guests know the event might be exceptionally crowded 3
Marketing What Isn’t There • Intangibles: services and other experience-based products that cannot be touched • Does marketing work for intangibles? Yes!
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What Are Services?
• Services are acts, efforts, or performances exchanged from producer to user without ownership rights.
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Characteristics of Services • Intangibility: can’t see, touch, or smell good service • Perishability: can’t store a service for later sale or consumption Capacity management: firms adjust their services to match supply with demand 6
Characteristics of Services (cont’d) • Variability: can’t standardize the same service performed by the same individual • Inseparability: can’t separate production from consumption Service encounter: the interaction between the customer and the service provider Disintermediation: eliminating the interaction between customers and salespeople 7
Classifying Services • We can classify by whether the service is performed directly on the customer or on something the customer owns whether the service consists of tangible or intangible actions 8
The Services Continuum • Most products are a combination of goods and services • Products vary in their level of tangibility.
Tangible: salt, necktie, dog food Intangible: teaching, nursing, theater Balanced products: fast food, television 9
The Services Continuum (cont’d) • Goods-dominated products • Equipment- or facility-based services • People-based services 10
Core and Augmented Services • Core service: the benefit a customer gets from the service • Augmented service: core service plus additional services that enhance value 11
Services on the Internet • Anything that can be delivered can be sold on the Web --Banking and brokerage services --Software --Music --Travel services --Dating services --Career-related services --Medical care 12
The Service Encounter • Social elements: employees and customers • Physical elements: servicescapes and other intangibles 13
Providing Quality Service: Service Quality Attributes • Search qualities: examine before purchase • Experience qualities: determine during or after consumption • Credence qualities: evaluate after experiencing them (difficult to do) 14
Measuring Service Quality • SERVQUAL • Gap analysis • Critical incident technique 15
Strategies for Developing and Managing Services • Act fast to resolve a service failure.
• Identify potential failures and make recovery plans ahead of time.
• Train employees to listen for complaints and empower them to take action.
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The Future of Services • New dominant logic for marketing • Changing demographics • Globalization • Technological advances • Shift to flow of information 17
Marketing People • Marketing people Politicians Celebrities 18
Marketing Places • Marketing places Attempting to position a city, state, country, or other locale so consumers choose the brand over competing destinations 19
Marketing Ideas • Marketing ideas Gaining market share for a concept, philosophy, belief, or issue 20
Real People, Real Choices • Universal’s Theme Parks in Orlando (Robyn Eichenholz) • Robyn selected a combination of options 2 and 3 to alleviate crowding concerns and enhance the guest experience.
In addition to enjoying themselves in the concert area, guests partied in the streets and had a great evening.
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Marketing in Action Case: You Make the Call • What is the decision facing XM Satellite Radio?
• What factors are important in understanding this decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your recommendation?
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Keeping It Real: Fast-Forward to Next Class Decision Time at Taco Bell • Meet Danielle Blugrind, Director of Consumer and Brand Insights for Taco Bell.
• Competitors claimed they provided better fast-food value.
• The decision: How to update the Taco Bell value menu pricing. 23