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Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,*,*,*,Services Marketing,MTG 410,Fall 2000,Prof:Donna J.Hill,Ph.D.,What Are Services?,Services are deeds,processes,and performances.,Nature of product.,Greater involvement of customers in the production process.,People as part of the product.,Greater difficulties in maintaining quality control standards.,A Different Context for Services Marketing,Narrow definition of marketing by other managers.,Limited appreciation for marketing skills.,Different organizational structure.,A relative lack of competitive data.,Problems determining costs.,Constraints and opportunities facing marketers of public and nonprofits.,Examples of Service Industries,Health Care,hospital,medical practice,dentistry,eye care,Professional Services,accounting,legal,architectural,Financial Services,banking,investment advising,insurance,Hospitality,restaurant,hotel/motel,bed&breakfast,ski resort,rafting,Travel,airlines,travel agencies,theme park,Others:,hair styling,pest control,plumbing,lawn maintenance,counseling services,health club,Figure 1-2,Percent of,U.S.Labor Force by Industry,0,10,20,30,40,50,60,70,80,1929,1948,1969,1977,1984,1996,Percent of GDP,Source:Survey of Current Business,April 1998,Table B.8,July 1988,Table 6.6B,and July 1992,Table 6.4C;Eli Ginzberg and George J.Vojta,“The Service Sector of the U.S.Economy,Scientific American,244,3(1981):31-39.,Year,Services,Manufacturing,Mining&Agriculture,0,10,20,30,40,50,60,70,80,1948,1959,1967,1977,1987,1996,Figure 1-3,Percent of U.S.Gross Domestic,Product by Industry,Percent of GDP,Year,Source:Survey of Current Business,August 1996,Table 11,April 1998,Table B.3;Eli Ginzberg and George J.Vojta,“The Service Sector of the U.S.Economy,Scientific American,244,3(1981):31-39.,Services,Manufacturing,Mining&Agriculture,Importance of Service Sector,$3.52 trillion of U.S.GDP,53.2%of U.S.GDP,71%of total employment,91%of new jobs from 1992 to 2005,Services,Fast growing services for the next decade,Health services,Business services,Finance,insurance,real estate,Residential care,Computer&data processing,Child day-care,Social services,Transportation services,Factors Contributing to Growth,Movement to information age,Shift to industrialized economy,Aging population,Longer life expectancies,Increase leisure time,High per capita income,Changing social and cultural values,Advances in technology,Challenges for Services,Defining and improving quality,Communicating and testing new services,Communicating and maintaining a consistent image,Motivating and sustaining employee commitment,Coordinating marketing,operations and human resource efforts,Setting prices,Standardization versus personalization,Differences Between Goods and Services,Intangibility,Perishability,Simultaneous,Production,and,Consumption,Heterogeneity,Figure 1-1,Tangibility Spectrum,Tangible,Dominant,Intangible,Dominant,Salt,Soft Drinks,Detergents,Automobiles,Cosmetics,Advertising,Agencies,Airlines,Investment,Management,Consulting,Teaching,Fast-food,Outlets,Fast-food,Outlets,Implications of Intangibility,Services cannot be inventoried,Services cannot be patented,Services cannot be readily displayed or communicated,Pricing is difficult,Implications of Heterogeneity,Service delivery and customer satisfaction depend on employee actions,Service quality depends on many uncontrollable factors,There is no sure knowledge that the service delivered matches what was planned and promoted,Implications of Simultaneous Production and Consumption,Customers participate in and affect the transaction,Customers affect each other,Employees affect the service outcome,Decentralization may be essential,Mass production is difficult,Implications of Perishability,It is difficult to synchronize supply and demand with services,Services cannot be returned or resold,Table 1-2,Services are Different,Source:Adapted from Valarie A.Zeithaml,A.Parasuraman,and Leonard L.Berry,“Problems and Strategies in Services Marketing,Journal of Marketing 49(Spring 1985):33-46.,Figure 1-5,The Services Marketing Triangle,Internal Marketing,Interactive Marketing,External Marketing,Company,(Management),Customers,Employees,“enabling the,promise,“delivering the promise,“setting the,promise,Source:Adapted from Mary Jo Bitner,Christian Gronroos,and Philip Kotler,Services Marketing Triangle Applications Exercise,Focus on a service organization.In the context you are focusing on,who occupies each of the three points of the triangle?,How is each type of marketing being carried out currently?,Are the three sides of the triangle well aligned?,Are there specific challenges or barriers in any of the three areas?,Ways to Use the Services Marketing Triangle,Overall Strategic Assessment,How is the service organization doing on all three sides of the triangle?,Where are the weaknesses?,What are the strengths?,Specific Service Implementation,What is being promoted and by whom?,How will it be deliver
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