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Services and Nonprofit Organization Marketing

Learn about the importance of services in the economy, the differences between services and goods, service quality components, marketing mixes for services, relationship marketing, internal marketing, global issues in services marketing, and nonprofit organization marketing.

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Services and Nonprofit Organization Marketing

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  1. 10 MarketingLamb, Hair, McDaniel Designed by Eric Brengle B-books, Ltd. Prepared by Amit Shah Frostburg State University Services and Nonprofit Organization Marketing CHAPTER 12

  2. Learning Outcomes Discuss the importance of services to the economy Discuss the differences between services and goods Describe the components of service quality and the gap model of service quality LOI LO2 LO3

  3. Learning Outcomes LO4 Develop marketing mixes for services Discuss relationship marketing in services Explain internal marketing in services Discuss global issues in services marketing Describe nonprofit organization marketing LO5 LO6 LO7 LO8

  4. The Importance of Services LOI Discuss the importance of services to the economy

  5. Service The result of applying human or mechanical efforts to people or objects. Service LOI

  6. LOI REVIEW LEARNING OUTCOMEThe Importance of Services Deed Performance Effort Services Services as a percentage of GDP 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81% Services as a percentage of employment 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81%

  7. How Services Differ from Goods LO2 Discuss the differences between services and goods

  8. Intangible Inseparable Heterogeneous Perishable How Services Differ from Goods LO2

  9. http://www.webmd.com Online How Services Differ from Goods LO2 Intangibility • Search Qualities • Experience Qualities • Credence Qualities

  10. Service Quality LO3 Describe the components of service quality and the gap model of service quality

  11. Reliability The ability to perform the service right the first time. Responsiveness The ability to provide prompt service. Assurance The knowledge and courtesy of employees. Empathy Caring, individualized attention to customers. Tangibles The physical evidence of a service. LO3 Components of Service Quality

  12. The Gap Model of Service Quality LO3

  13. LO3 REVIEW LEARNING OUTCOMEService Quality

  14. Marketing Mixes for Services LO4 Develop marketing mixes for services

  15. Process Core andSupplementary StandardizationorCustomization Service Mix Product Strategies for Services LO4

  16. People Processing PossessionProcessing Mental StimulusProcessing InformationProcessing LO4 Service as a Process

  17. LO4 The Service Factory Possession processing Mental-stimulus processing

  18. CoreService The most basic benefit the consumer is buying. Supplementary Service A group of services that support or enhance the core service. The Service Offering LO4

  19. Core and Supplementary Services for a Luxury Hotel LO4

  20. MassCustomization A strategy that uses technology to deliver customized services on a mass basis. Customization/Standardization LO4

  21. The Service Mix LO4 • Determine what new services to introduce • Determine target market • Decide what existing services to maintain and to eliminate

  22. Convenience Number of outlets Direct or indirect distribution Location Scheduling LO4 Place (Distribution) Strategy

  23. Stress tangible cues Use personal information sources Create a strong organizational image Engage in postpurchase communication LO4 Promotion Strategy

  24. LO4 Price Strategy Pricing Challenges for Services • Define the unit of service consumption • Determine if multiple elements are “bundled”or priced separately

  25. LO4 Revenue-OrientedPricing Maximize the surplus of income over costs Operations-OrientedPricing Match supply and demand by varying price Patronage-OrientedPricing Maximize the number of customers by varying price http://www.etrade.com http://www.tdameritrade.com http://www.schwab.com Pricing Objectives Online

  26. LO4 REVIEW LEARNING OUTCOME PRODUCT = SERVICE PLACE PROMOTION PRICE Process Number ofoutlets Tangiblecues Revenueoriented Core and Supplementary Direct Personalinformation Operations oriented Mass Customization Indirect Strong image Patronageoriented Standardization Location Post-purchasecommunication Marketing Mixes for Services

  27. Relationship Marketing LO5 Discuss relationship marketing in services

  28. LO5 REVIEW LEARNING OUTCOME Creating value-added services not available elsewhere 3 Structural Social Financial 2 Social Financial Design services to meet customer needs 1 Financial Pricing incentives Relationship Marketing in Services

  29. Internal Marketing in Service Firms LO6 Explain internal marketing in services

  30. Internal Marketing Treating employees as customers and developing systems and benefits that satisfy their needs. Internal Marketing LO6

  31. LO6 REVIEW LEARNING OUTCOME Internal Marketing in Services

  32. Global Issues in Services Marketing LO7 Discuss global issues in services marketing

  33. LO7 REVIEW LEARNING OUTCOME U.S.A. United States is world’s largest exporter of services. Global Issues in Services Marketing

  34. Nonprofit Organization Marketing LO8 Describe nonprofit organization marketing

  35. NonprofitOrganization Marketing An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. Nonprofit Organization Marketing LO8

  36. Nonprofit Organization Marketing LO8 • Government • Museums • Theaters • Schools • Churches

  37. Market intangible products Shared Characteristics with Service Organizations Production requires customer’s presence Services vary greatly Services can not be stored Nonprofit Organization Marketing LO8

  38. Identify desired customers Specify objectives Develop, manage, eliminate programs and services Decide on prices Schedule events or programs Communicate their availability Nonprofit Organization Marketing LO8

  39. LO8 Unique Aspects of Nonprofit Organization Marketing Strategies • Setting of marketing objectives • Selection of target markets • Development of marketing mixes

  40. Provide services that respond to the wants of : • Users • Payers • Donors • Politicians • Appointed officials • Media • General Public Objectives LO8

  41. Apathetic or strongly opposed targets Pressure to adopt undifferentiated segmentation Complementary positioning Target Markets LO8 Unique Issues of Nonprofit Organizations

  42. LO8 Distinctions between Business and Nonprofit Organizations Product Decisions Benefit complexity Benefit strength Low involvement

  43. Professional volunteers Sales promotion activities Public service advertising http://www.adcouncil.com Online Promotion Decisions LO8 Peer-to peer-communications

  44. Pricing objectives Nonfinancial prices Characteristics Distinguishing Pricing Decisionsof Nonprofit Organizations Indirect payment Separation betweenpayers and users Below-cost pricing Pricing Decisions LO8

  45. LO8 REVIEW LEARNING OUTCOMENonprofit Organization Marketing Benefitcomplexity PRODUCT PLACE Special facilities Benefitstrength • TARGET • Apathetic or strongly opposed • Undifferentiated segmentation • Complementary positioning Involvement Nonfinancial Professional volunteers Indirect payment PROMOTION PRICE Sales Separation Public Service Advertising Below costpricing

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