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Chapter 1: New Perspectives on Marketing in the Service Economy

Overview of Chapter 1 ,[object Object],[object Object],[object Object],[object Object]

Why Study Services? (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Why Study Services? (2) ,[object Object],[object Object],[object Object],[object Object]

Changing Structure of Employment as Economic Development Evolves Industry Services Agriculture Time, per Capita Income Share of Employment Source: IMF, 1997

Why Study Services? (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Transformation of the Service Economy Government Policies Business Trends Social Changes Advances in IT Globalization Innovation in service products & delivery systems, stimulated by better technology Customers have more choices and exercise more power ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Factors Stimulating Transformation of the Service Economy (1) ,[object Object],[object Object],[object Object],[object Object],Government Policies Business Trends Social Changes Advances in IT Globalization

Factors Stimulating Transformation of the Service Economy (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Government Policies Business Trends Social Changes Advances in IT Globalization

Factors Stimulating Transformation of the Service Economy (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Government Policies Business Trends Social Changes Advances in IT Globalization

Factors Stimulating Transformation of the Service Economy (4) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Government Policies Business Trends Social Changes Advances in IT Globalization

Factors Stimulating Transformation of the Service Economy (5) ,[object Object],[object Object],[object Object],[object Object],[object Object],Government Policies Business Trends Social Changes Advances in IT Globalization

What Are Services? (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Are Services? (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Defining Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Service Products versus Customer Service and After-Sales Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Services Pose Distinctive Marketing Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Differences, Implications, and Marketing-Related Tasks (1) ( Table 1.1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Differences, Implications, and Marketing-Related Tasks (2) ( Table 1.1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Value Added by Physical, Intangible Elements Helps Distinguish Goods and Services (Fig 1.6) Physical Elements High Low Intangible Elements High Internet Banking Source; Adapted from Lynn Shostack Salt Detergents CD Player Wine Golf Clubs New Car Tailored clothing Fast-Food Restaurant Plumbing Repair Health Club Airline Flight Landscape Maintenance Consulting Life Insurance

Expanded Marketing Mix for Services

Services Require An Expanded Marketing Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Fig 1.9 Working in Unison: The 8Ps of Services Marketing

The 8Ps of Services Marketing: (1) Product Elements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (2) Place and Time ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (3) Price and Other User Outlays ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (4) Promotion and Education ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (5) Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (6) Physical Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (7) People ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The 8Ps of Services Marketing: (8) Productivity and Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Marketing Must Be Integrated with Other Management Functions

[object Object],Marketing Must Be Integrated with Other Management Functions (Fig 1.10) Customers Operations Management Marketing Management Human Resources Management

Four Categories Of Services (Fig 2.1) ,[object Object],[object Object],[object Object],[object Object],Nature of the Service Act People Possessions Tangible Actions ,[object Object],[object Object],[object Object],[object Object],Who or What Is the Direct Recipient of the Service? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Intangible Actions

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Four Categories Of Services

Possession Processing ,[object Object],[object Object],[object Object],[object Object]

Mental Stimulus Processing ,[object Object],[object Object],[object Object],[object Object],[object Object]

Information Processing ,[object Object],[object Object],[object Object],[object Object]

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