Services Marketing Chapter 1 Understanding Services Marketing

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 1

Chapter 1Understanding

Services Marketing


Objectives

1. To examine the nature of services2. To differentiate the marketing of services from

the marketing of physical goods and their facilitating services

3. To explain the characteristics of all services4. To classify various services


Outline

I. IntroductionII. Definition of ServicesIII. How Does Services Marketing Differ from

Physical Goods Marketing?IV. Characteristics of ServicesV. Classifications of ServicesVI. Overview of BookVII.Summary and Conclusion


Definition of Services

• A service is "a deed, a performance, an effort" (Rathmell 1966).


How Does Services Marketing Differ From Physical Goods Marketing?


Characteristics of Services

• Intangibility – Most services cannot be seen, touched, held, or put on a shelf.

• Inseparability – For most services, the production and consumption of the service occur simultaneously.

• Variability – It is hard for a service organization to standardize the quality of its service performance.

• Perishability – Most services cannot be produced or stored before consumption. They exist only at the time of their production.

• Rental/Access – Services provide temporary possession or access instead of ownership.


Classifications Basedon Services Fields

• Health Care Services• Financial Services• Professional Services• Knowledge Services• Travel and Hospitality Services

Source: Fisk & Tansuhaj (1985)


Classifications Based on Services Fields (cont’d)

• Entertainment Services• Information Services• Supply Services• Personal and Maintenance Services• Governmental, Quasi-Governmental, and

Nonprofit Services


Classifications Based on Services Customers

• Consumer services – provided to customers who are purchasing for their own personal needs.– Prominently visible in any community: banks,

schools, restaurants, etc.

• Business-to-business services – provided to customers who are purchasing on behalf of their organizations. – Rarely seen by the general public: professional

service firms, transportation firms, etc.


Lovelock’s Classification

• Tangible acts on a person’s body – Services such as health care, hotels, airlines, beauty salons and fitness centers.

• Intangible acts on a person’s mind – Services such as education, advertising, entertainment and broadcasting.

• Tangible acts on physical possessions – Services such as laundry, landscaping, repair and maintenance, and freight transportation.

• Intangible acts directed at intangible assets – Services such as accounting, banking, insurance and legal services.


Lovelock’s Classification (cont’d)


The ServicesMarketing Triangle

• Based on three key components: organizations, providers, and customers.

• Linking these components: internal marketing, external marketing, and interactive marketing.


The ServicesMarketing Triangle (cont’d)

Services Marketing Chapter 1 Understanding Services Marketing

Business

Transcript of Services Marketing Chapter 1 Understanding Services Marketing