Week 1: Chapter 1 Flashcards
What are the 5 powerful forces transforming services marketing?
- Government Policies
- Social Changes
- Business Trends
- Advances in IT
- Globalisation
What do the 5 powerful forces transforming services marketing do?
- New markets and product categories
- Increase demand for services
- More intense competition
Which leads to; - Innovation in service products and delivery systems, stimulated by improve technology
What does success hinge on?
- Understanding customers and competitiors
- Viable business models
- Creation of value for customers and firms
- Increased focus on services marketing and management
Transforming Force 1: Government Policies consists of?
- Changes in regulations
- New rules to protect customers, employees and the environment
- Privatization
- New agreement on trade in services
Transforming Force 2: Social Changes consists of?
- Rising consumer expectation
- Greater affluence
- Personal outsourcing
- Increased desire for buying experiences vs. things
- Rising consumer ownership of high tech equipment
- Easier access to more information
- Migration
- Growing but aging population
Transforming Force 3: Business Trends consists of?
- Push to increase shareholder value
- Emphasis on productivity and cost savings
- Manufacturers add value through service and sell services
- More strategic alliances
- Focus on quality and customer satisfaction
- Growth of franchising
- Marketing emphasis by nonprofits
Transforming Force 4: Advances in IT consists of?
- Growth of Internet
- Greater bandwidth
- Compact mobile equipment
- Wireless networking
- Faster, more powerful software
- Digitization of text, graphics, audio, video
Transforming Force 5: Globalisation consists of?
- More companies operating on transnational basis
- Increased international travel
- International mergers and alliances
- “Offshoring” of customer service
- Foreign competitors invade domestic markets
Does the service sector dominate the global economy?
Yes
Are most new jobs generated by services?
Yes
Define Services?
- Services are economic activities offered by one party to another
- Most commonly employ time-based performances to bring about desired results
Service customers expect to obtain value from ?
- Access to goods labor, facilities, environment, professional skills, networks and systems… However, they do not normally take ownership of any of the physical elements involved
Name 9 types of services?
- Personal skill services (hairdressing)
- Health Services (Doctor)
- Professional services (Solicitor)
- Social services (kids help line)
- Communication Services (social media)
- Utilities (electricity)
- Simple convenience Services (cleaning)
- Transport Services (Trains)
- Leisure Services (online games)
What are the four broad categories of services based on?
- Differences in nature of service act (tangible or intangible); and
- Who or what is direct recipient of service (people or possessions)
What are the four broad categories of services? (PIMPS)
- People Processing
- Information Processing
- Mental Stimulus Processing
- Possession Processing
People Processing? Customers Must? Managers should?
Customers must:
- Physically enter the service factory
- Co-operate actively with the service operation
Managers should think about process and output from customer perspective to identify benefits created and non-financial costs such as time, mental effort and physical effort
Possession Processing?
- customers are less involved compared to people processing services
- Involvement may be limited to just dropping off the possession
- Product and consumption are separable
People processing is services directed at? example (Tangible)
Services directed at people’s bodies.
Example; Hairstylist, Passage transportation, health care…
Possession Processing is services directed at? examples (Tangible)
Services directed at physical possession.
Example; Freight transportation, laundry and dry cleaning, repair and maintenance.
Mental Stimulus Processing
- Physical presence of recipients not required
- Core content of services is information based that can be “inventoried”
- Ethical standards are important
Information Processing
- Information is the most intangible form of service output
- May be transformed into enduring forms of service output
- Line between information processing and mental stimulus processing may be blurred
Mental Stimulus Processing is services directed at? intangible examples
Services directed at peoples mind.
Example; Education, Psychology, Advertising PR
Information Processing is services directed at? intangible examples
Services directed at intangible assets.
Example; Accounting, Banking, Legal services
Goods Vs Services
Goods are items that are tangible, such as pens, salt etc. and services are activities provided by other people, such as airline flights etc.
