Lecture Marketing (11/e): Chapter 12 – Kerin, Hartley, Rudelius
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12-1
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:
LO1
Describe four unique elements of
services.
LO2
Recognize how services differ and how
they can be classified.
LO3
Explain how consumers purchase and
evaluate services.
LO4
Develop a customer contact audit to
identify service advantages.
12-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:
LO5
Explain the role of the seven Ps in the
services marketing mix.
LO6
Discuss the important roles of internal
marketing and customer experience
management in service organizations.
12-3
SERVICES: CONSUMERS WANT
AUTHENTIC EXPERIENCES
12-4
FIGURE 12-1 Services are a larger part of
the U.S. GDP than goods
12-5
LO1
THE UNIQENESS OF SERVICES
THE FOUR I’S OF SERVICES
Services
Four I’s of Services
• Intangibility
• Inseparability
• Inconsistency
• Inventory
Idle Production
Capacity
12-6
LO1
Singapore Airlines and American Express
Which Four I’s of services element?
12-7
FIGURE 12-2 Inventory carrying costs of
services depend on the cost of employees
and equipment
12-8
LO2
THE UNIQENESS OF SERVICES
THE CONTINUUM & CLASSIFICATION OF SERVICES
Service Continuum
Classifying Services
• Delivery by People or Equipment
• Profit or Nonprofit Organizations
• Government Sponsored
12-9
FIGURE 12-3 The service continuum shows
how offerings can vary in their balance of
products and services
12-10
FIGURE 12-4 Services can be classified as
equipment-based or people-based
12-11
LO2
Merrill Lynch and The American Red Cross
What is the classification of each service?
12-12
LO2
MARKETING MATTERS
Social Marketing is a Must for Nonprofits
12-13
LO3
HOW CONSUMERS
PURCHASE SERVICES
The Purchase Process
• Search Properties
• Experience Properties
• Credence Properties
12-14
FIGURE 12-5 Consumers use search,
experience, and credence properties to
evaluate services
12-15
LO3
HOW CONSUMERS
PURCHASE SERVICES
Assessing Service Quality
• Gap Analysis
• Monitoring Service Failure
12-16
FIGURE 12-6 The five dimensions of service
quality
12-17
GOING ONLINE
LO4
How Can You Learn About Service Failures?
Media Monitoring!
Google Blogs
BuzzLogic
Technorati
ReputationDefender
12-18
LO4
HOW CONSUMERS
PURCHASE SERVICES
Customer Contact and
Relationship Management
• Service Encounters
• Customer Contact Audit
• A Customer’s Car Rental Activities
• Relationship Marketing
12-19
FIGURE 12-7 Customer contact audit for a
car rental agency (green boxes = customer
activity; orange boxes = employee activity)
12-20
LO5
MANAGING THE MARKETING OF SERVICES
THE SEVEN Ps OF SERVICES
Seven Ps of Services Marketing
Product (Service)
• Branding
Price
• Off-Peak Pricing
12-21
LO5
MANAGING THE MARKETING OF SERVICES
THE SEVEN Ps OF SERVICES
Place (Distribution)
Promotion
• Publicity
• Public Service Announcements (PSAs)
12-22
LO6
MANAGING THE MARKETING OF SERVICES
THE SEVEN Ps OF SERVICES
People
• Internal Marketing
• Customer Experience Management (CEM)
Physical Environment
Process
• Capacity Management
12-23
FIGURE 12-8 Different prices and packages
help match demand to capacity
12-24
LO6
USING MARKETING DASHBOARDS
Are JetBlue’s Flights Profitably Loaded?
Airline Operating Income (Loss) per Available Seat Flown One Mile (ASM)
12-25
