A.) Introduction 1.) To understand the growth and importance of service 2.) To identify the characteristics of services that differentiate them from goods 3.) To describe how the characteristics of service influence the development of marketing mixes for services 4.) To understand the importance of service quality and explain how deliver exceptional service quality 5.) To explore the nature of nonprofit marketing
B.) The Growth and Importance of services 1.) All products, whether goods, services, or ideas, are intangible to some extent. Service as an intangible product that involves a deed, a performance, or an effort that cannot be physically possessed. 2.) Services as products should not be confused with the related topic of customer services. Customer service involves any human, mechanical, or electronic activity that adds value to the product 3.) The increasing importance of services in the U.S. economy has led many people to call the United States the world’s first service economy. 4.) One major catalyst in the growth of consumer services has been long-term economic growth (slowed only by few recessions) in the United States, which has led to increased interest in financial services, travel, entertainment, and personal care. 5.) Business services have prospered as well. Business services include support and maintenance, consulting, installing, equipment leasing, marketing research, advertising, temporary office personnel, and janitorial services. 6.) One way to view services is from a theater framework with production elements such as actors, audience, a setting, and performance.
C.) Characteristics of Services 1.) Services has six basic characteristics: intangibility, inseparability of production and consumption, perishability, heterogeneity, client-based relationships, and customer contact 2.) Intangibility means a service is not physical and therefore cannot be perceived by senses. 3.) Services are characterized by perishability in that unused service capacity of one time period cannot be stored for future use. 4.) Services delivered by people are susceptible to heterogeneity, or variation in quality. 5.) The success of many services depends on creating and maintaining client-based relationships interactions that result in satisfied customers who use a service repeatedly over time. 6.) Not all services require high degree of customer contact, but many do. Customer contact refers to the level of interaction between the service provider and the customer necessary to deliver the service. D.) Developing and Managing Marketing Mixes for Services 1.) A service offered by an organization generally is a package, or bundle, of service consisting of a core service and one more supplementary service. 2.) Heterogeneity results in variability in service quality and males it difficult to standardize service delivery. 3.) Customized services can be expensive for both provider and customer, and some service marketers therefore face a dilemma: how to provide service at an acceptable level quality in an efficient and economic manner and still satisfy individual customer needs. 4.) Marketers deliver services in a variety of ways. In some instances, customers got to a service provider’s facility. 5.) The intangibility of services results in several promotion-related challenges to service marketers. 6.) Services should be priced with consumer price sensitivity, the nature of the transaction and its cost in mind. 7.) Some services used demand-based pricing. E.) Service Quality 1.) Delivery of high-quality services is one of the most important and difficult tasks any service organization faces. Because of their