Marketing Ch. 12

Produced and Consumed Simultaneously

Goods are produced, sold, and then consumed. In contrast, services are often sold, produced, and consumed at the same time. The flight is happening and being produced at the same time.

NPO Marketing Activities

1. Identify desired customers 2. Specify objectives 3. Develop, manage, eliminate programs and services 4. Decide of prices 5. Schedule events/programs 6. Communicate their availability

Heterogeneity

: Services are less standardized and uniform than goods—a characteristic known as heterogeneity. Because services are labor-intensive, consistency and quality control can be hard to achieve. Not all flights, or airlines are the same based on Jetstream, flight time, plane size, and plane line.

Non Profit Organization

An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.

Perishability

Services cannot be stored, warehoused, or inventoried. If not used, the revenue is lost. One of the most important challenges in many service industries, such as hotels and airlines, is finding ways to synchronize supply and demand. Deep discounts and off-peak pricing strategies encourage demand during nonpeak times.

Intangibility

Services cannot be touched, seen, tasted, heard, or felt in the same way as goods. Services cannot be stored and are easy to duplicate. Facilities are a critical tangible part of a service experience. An airline offers the service of flying and requires both an airport and aircraft, you are not buying the aircraft.

4 Promotional Strategies

• Type of process involved • Core and supplementary services • Standardization or customization of the service product, and • Service mix.