Marketing Chapter 12

Explain internal marketing in services

Internal marketing means treating employees as customers and developing systems and benefits that satisfy their needs. Employees who like their jobs and are happy with the firm they work for are likely to deliver good service

Develop marketing mixes for services

"Product" (service) strategy issues include what is being processed (people, possessions, mental stimulus, information), core and supplementary services, customization versus standardization, and the service mix. Distribution (place) decisions involve convenience, number of outlets, direct vs indirect distribution, and scheduling. Stressing tangible cues, using personal sources of information, creating strong organizational images, and engaging in post-purchase communication are effective promotion strategies. Pricing objectives for services can be revenue oriented, operations oriented, patronage oriented, or a combination of the three

Describe the components of service quality and the gap model of service quality

-Service quality has five components: reliability (ability to perform the service dependably, accurately and consistently), responsiveness (providing prompt service), assurance (knowledge and courtesy of employees and their ability to convey trust), empathy (caring, individualized attention), and tangibles (physical evidence of the service) -The gap model identifies five key discrepancies that can influence customer evaluations of service quality. When the gaps are large, service quality is low. As the gaps shrink, service quality improves. Gap 1 is found between customers' expectations and management's perceptions of those expectations. Gap 2 is found between between management's perception of what the customer wants and specifications for service quality. Gap 3 is found between service quality specifications and delivery of the service. Gap 4 is found between service delivery and what the company promises to the customer through external communication. Gap 5 is found between customers' service expectations and their perceptions of service performance.

Describe nonprofit organization marketing

Nonprofit organizations pursue goals other than profit, market share and return on investment. Nonprofit organization marketing facilitates mutually satisfying exchanges between nonprofit organizations and their target markets. Several unique characteristics distinguish non business marketing strategy, including a concern with services and social behaviors rather than manufactured goods and profits; a difficult, undifferentiated, and in some ways marginal target market; a complex product that may have only indirect benefits and elicit very low involvement; distribution that may or may not require special facilities depending on the service provided; a relative lack of resources for promotion; and prices only indirectly related to the exchange between the producer and the consumer of services.

Discuss relationship marketing in services.

Relationship marketing in services involves attracting, developing, and retaining customer relationships. There are four levels of relationship marketing: level 1 focuses on pricing incentives; level 2 uses pricing incentives and social bonds with customers; level 3 focuses on customization; and level 4 uses pricing, social bonds, and structural bonds to build long-term relationships.

Discuss the difference between services and goods

Services are distinguished by four characteristics. Services are intangible performances in that they lack clearly identifiable physical characteristics, making it difficult for marketers to communicate their specific benefits to potential customers. The production and consumption of service occurs simultaneously

Discuss global issues in services marketing:

The United States has become the world's largest exporter of services. Although competition is keen, the United States has a competitive advantage because of its vast experience in many service industries. To be successful globally, service firms must adjust their marketing mix for the environment of each target country.

Discuss the Importance of services to the economy

The service sector plays a crucial role in the U.S. economy. In 2014, service industries accounted for 68 percent of U.S. GDP and four out of five U.S. jobs. Services have unique characteristics that distinguish them from goods, and marketing strategies need to be adjusted for these characteristics.

Experience Quality

a characteristic that can be assessed only after use

Search Quality

a characteristic that can be easily assessed before purchase

Credence Quality

a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience

Supplementary Services

a group of services that support or enhance the core service

Gap Model

a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality

Mass Customization

a strategy that uses technology to deliver customized services on a mass basis- NikeID

Public Service Advertising (PSA)

an announcement that promotes a program of a federal, state, or local government or of a non profit organization

Nonprofit organization

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

Empathy

caring, individualized attention to customers

Reliability

the ability to perform a service dependably, accurately, and consistently

Responsiveness

the ability to provide prompt service

Nonprofit Organization Marketing

the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets

Perishability

the inability of services to be stored, warehoused, or inventoried

Intangibility

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

Inseparability

the inability of the production and consumption of a service to be separated; consumers must be present during the production

Assurance

the knowledge and courtesy of employees and their ability to convey trust

Core Service

the most basic benefit the customer is buying

Tangibles

the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service

Service

the result of applying human or mechanical efforts to people or objects.

Heterogeneity

the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods

Internal marketing

treating employees as customers and developing systems and benefits that satisfy their needs- Google?