Services and Nonprofit Organization Marketing

Transcription

1 Services and Nnprfit Organizatin Marketing LO1: The Imprtance f Services Service Result f applying human r mechanical effrts t peple r bjects 98% f ttal emplyment Hard t distinguish clearly between manufacturing and service firms Definitin Intangible task Any deed, act, r perfrmance Imprtance f services Service as a percentage f GDP: 81% Service as a percentage f emplyment: 81% LO2: Hw Services Differ Frm Gds Intangibility Services cannt be tuched, seen, tasted, heard, r felt in the same way that gd can be sensed Search quality Characteristic that can be easily assessed befre purchase, like clr Experience quality Characteristic that can nly be assessed after use, such as a restaurant meal Credence quality Characteristic that cnsumers may have difficulty assessing even after purchase because they have d nt have the necessary knwledge r experience Medical cnsulting services These qualities make is harder fr marketers t cmmunicate benefits. Facilities are a critical tangible part f the ttal service ffering. Inseparability Prductin and cnsumptin are inseparable activities Services are als inseparable frm the perspective f the services prvider. Cnsumers generally must be present Must manage cnsumers and educate them Hetergeneity Variability f inputs and utputs, tend t be less standardized and unifrm than gds Standardizatin and training help increase cnsistency and reliability. Different frm time t time Prduced and delivered thrugh peple but all peple are different Must set standards, use scripts Chick-fil-a: My pleasure. Cannt separate cnsumer frm service Perishability They cannt be stred, warehused, r inventried Synchrnize supply and demand Cannt be prduced ahead f time and stred Prductin and cnsumptin ccur at the same time Can nt inspect defects Clsely manage supply and demand Cannt build up inventry LO3: Service Quality Mre difficult t measure define and measure than is the quality f tangible gds Evaluate service quality by 5 cmpnent: Reliability perfrmance Is service perfrmed crrectly? Hard t judge whether service was dne crrectly

2 Mst imprtant factr Respnsiveness prmptitude Is the service perfrmed n time? Easy t judge Nt always related t quality/ reliability Assurance trust D emplyees lk like/ talk like they knw what they are ding? Cnfidence and prfessinalism Empathy- care D emplyees care? Tangibles Are physical surrundings attractive, clean, etc.? The Gap Mdel f Service Quality Gap mdel Five gaps that can cause prblems in service delivery and influence custmer evaluatins f service quality Gap 1 Gap between what cnsumers want and what management thinks they want Gap 2 Gap 3 Between what managers think custmers want and the quality specificatins that management develps t prvide service Between the service quality specificatins and the service that is actually prvided Gap 4 Between what cmpany prvides and what cnsumers is tld it prvides Gap 5 Between the service that custmers receive and the service they want When ne r mre gap is large, service quality is perceived as lw. Adjusting the Market Mix Basic marketing mix (4Ps) is expanded Strategies/ applicatins differ in each f the 4Ps as cmpared t applicatins f physical gds Expanded 4Ps f Marketing Peple Emplyees The custmer And ther cnsumers all influence quality f experience Kids in a restaurant r baby crying n a flight ruin experience Sme restaurants d nt prvide high chairs r kids menus Physical Evidence Tangible part f the service The servicescape (landscape) Dentist ffice waiting rm nw has a spa feel Prcesses Activities which lead up t and are part f the service Cnsumer invlved in prcess Prbably a gd thing: if we knew hw sme fd r makeup was made we may nt use it Watching it and waiting fr it t be prduced LO4: Marketing Mixes fr Services Adjusting the Basic Marketing Mix

3 Prduct (Service) Strategy Prduct everything a persn receives in an exchange Emphasize service prcesses Service as a Prcess Tw brad categries f things gets prcessed in service rganizatins: Peple Objects Service Prcesses can be placed in ne f 4 categries Peple prcessing require custmers t enter a service factry, which is a physical lcatin Pssessin prcessing fcus n creating an envirnment and training Mental stimulus prcessing Infrmatin prcessing Cre and Supplementary Service Prducts Cre service the mst basic benefit the custmer is buying, and a grup f invlves peple prcessing becmes a cmmdity as cmpetitin increases Supplementary service Supprt r enhance the cre service Infrmatin prcessing Sme firms psitin themselves in the marketplace by reducing supplementary services Custmizatin/ Standardizatin Custmized services are mre flexible and respnd t individual custmer s needs Mass custmizatin Uses technlgy t deliver custmized services n a mass basis, which results in giving each custmer whatever she r he asks fr The Service Mix Mst service rganizatins market mre than ne service. Each part f the service mix shuld make a different cntributin t achieving a firm s gals. Build brand image Place (Distributin) Strategy Cnvenience key factr in influencing the selectin f a service prvider Intensity f the distributin shuld meet the target market s needs and preferences. Decide whether t distribute services t end users directly r indirectly. The lcatin f the service mst clearly reveals the relatinship between the target market strategy and distributin strategy. Generally n intermediaries Cnvenience is imprtant Service can cme t custmer Prmtin Strategy Stressing tangible cues Fcus n making services seem tangible Using persnal infrmatin surces Share gd perfrmance ratings Creating a strng rganizatinal structure Fcus n cre service Engaging in pst-purchase cmmunicatin Use a lg that reflects service (interactive imagery) Examples: Verizn dead znes, Allstate vs. GEICO lg Allstate is better, Traveler s insurance represented by an umbrella Price Strategy

4 1. Define the unit f service cnsumptin 2. Decide whether the pricing shuld be based n a bundle f elements r whether each element shuld be priced separately Three categries f pricing suggestins: Revenue-riented pricing Maximizing the surplus f incme ver csts Operatins-riented pricing Match supply and demand by varying prices Patrnage-riented pricing Maximize number f custmers using the service Prices are harder t set and justify t custmers fr many services Mre s paying fr intellectual labr Use price t adjust demand and supply LO5: Relatinship Marketing in Services Develp strng lyalty by creating satisfied custmers wh will buy additinal services frm the firm and are unlikely t switch t a cmpetitr Membership services Relatinship marketing Knws wh it custmers are and hw and when they use the services ffered Can be practiced at 3 levels: Level 1: Pricing Incentives Level 2: Scial Bnds Level 3: Financial and Scial Bnds

5 The Experience Ecnmy: Principles f Marketing James H. Gilmre Fcus n: Definitin f authenticity Examples f what is and what is nt authenticity Achieving f authenticity Impacts f a cmpany n that level f authenticity Technlgy Gumball wizard Hrrible supply chain management But icnic in experiential marketing Prgressin f Ecnmic Value Agrarian ecnmy - cmmdities Cmmdities are fungible: freely substituted Cannt differentiate prducts Industrial ecnmy - gds N lnger extracting but manufacturing Gds are tangible and stred in inventry Service ecnmy - services Use the gd fr smene else, intangible 1950s first time majrity wrked in service Argument tday is that we are autmating service Experience ecnmy - experience Service delivered upn demand Experiences are memrable Paying fr time r experience Brand Harvard Business Review brand is the prmise f an experience prblem: actual experience fails t meet prmise check int ad, eat the burger n the paper Peter Drucker Purpse f marketing is t make selling superfluus Engage cnsumers in an experience Placemaking It is in the place that a cmpany defines wh it is and what is ffers Examples f Experience Apple Stre Like being inside a Mac Created a place Genius Bar Place inside the place Geek Squad Rbert Stevens, funder Advertising is the price yu pay fr being unremarketable. Cmedy with a straight face, theme Giant DON T List N pl shirts N minivans, geek mbiles and cined black and white Badges, stages an experience when smene cmes t yur hme

6 Missin Statement Wrld Dminatin. Ggle Experience with lg n the hmepage Chick-fil-a Grand pening events Experience: games, Dan Cathy, all night lng, date nights with mm r dad, backstage turs Jie de Vivre hspiltality Selects a magazine as a theme fr each htel Pyschdemgraphic segment First htel: Rlling Stnes Virtual cncierge: htel matchmaker In the industry f identity refreshment business Authenticity Dislikes used t be junk, nw fake But if they like fake, then faux Almst fauxthenticity, synthetic authenticity Cnsumer sensibility fr each stage Agrarian: supply availability Industrial: cntrl cst Service: imprve quality Experience: learn t render authenticity Self image Purchasing n a basis f cnfrming t self image I like that. I am that. D nt self prclaim yur wn authenticity If yu are authentic, d nt have t say it Ask the questin, where are we mst fake? Plnius Test 1. Be true t yurself Disney animal kingdm is nt true t its fake self 2. Thu cannt be false t any man are yu wh yu say yu are? British fd cmpany named EAT: the real fd cmpany vs. Fatburger actually is what it says

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