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C1-Introduction To Services Marketing
C1-Introduction To Services Marketing
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Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 2
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 3
CHAPTER 1
Introduction to
Services Marketing
( page 6- Figure 1.3 An introduction to services marketing.
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 4
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 5
Overview of Chapter 1
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 6
Why Study Services?
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 7
Why Study Services?
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 8
Contribution of Services Industries to
Global GDP
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 9
Estimated Size of Service Sector in
Selected Countries
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 10
Powerful Forces Are
Transforming Service
Markets
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 11
Forces Transforming the Service Economy
Government
Globalization
Policies
● New markets and product categories
● Increase in demand for services
● More intense/ furious competition
Government
Globalization
Policies
● Changes in regulations
● Privatization
● New rules to protect customers,
employees, and the environment
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 13
Forces Transforming the Service Economy (2)
Government
Globalization
Policies
● Rising consumer expectations
● More affluence
● Personal Outsourcing
● Increased desire for buying experiences vs.
things
● Rising consumer ownership of high tech
equipment
● Easier access to more information
● Immigration
● Growing but aging population
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 14
Forces Transforming the Service Economy (3)
Government
Globalization
Policies
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 15
Forces Transforming the Service Economy (4)
Government
Globalization
Policies
● Growth of Internet
● Greater bandwidth
● Compact mobile equipment
● Wireless networking
● Faster, more powerful software
● Digitization of text, graphics, audio, video
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 16
Forces Transforming the Service Economy (5)
Government
Globalization
Policies
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 17
What Are Services?
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 18
What are Services? (1)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 19
What are Services? (2)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 20
What are Services? (3)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 21
Four Broad Categories
of Services
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 22
Four Broad Categories of Services
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 23
Four Categories Of Services (Fig 1.10)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 24
Four Categories Of Services
People Processing
Customers must:
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 25
Possession Processing
Possession Processing
Involvement is limited
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 26
Mental Stimulus Processing
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 27
Information Processing
Information Processing
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 28
Value Added by Physical, Intangible Elements
Helps Distinguish Goods and Services (Fig 1.16)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 29
Defining Services
Services
Are economic activities offered by one party to another
Most commonly employ time-based performances to bring about
desired results in:
- Recipients themselves
- Objects or other assets for which purchasers have responsibility
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 30
Challenges Posed by
Services
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 31
Services Pose Distinctive Marketing Challenges
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 32
Differences, Implications, and
Marketing-Related Tasks (1) (Table 1.1)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 33
Differences, Implications, and
Marketing-Related Tasks (2) (Table 1.1)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 34
Expanded Marketing
Mix for Services
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 35
Services Require An Expanded Marketing Mix
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 36
The 7 Ps of Services Marketing
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 37
Traditional 4 Ps Applied to Services (1)
Product elements
Service products are at the heart of services marketing strategy
Marketing mix begins with creating service concept that offers
value
Service product consists of core and supplementary elements
-Core products meet primary needs
-Supplementary elements are value-added enhancements
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 38
Traditional 4 Ps Applied to Services (2)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 39
Traditional 4 Ps Applied to Services (3)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 40
Traditional 4 Ps Applied to Services (4)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 41
Extended Mix for Managing the Customer
Interface (1)
Process
How firm does things may be as important as what it does
Customers often actively involved in processes, especially when acting as co-
producers of service
Operational inputs and outputs vary more widely
-Quality and content varies among employees, between employees
-Variations can be with different customers
-Variations from time of the day
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 42
Extended Mix for Managing the Customer
Interface (2)
Physical environment
Design servicescape and provide tangible evidence of service
performances
Create and maintain physical appearances
-Buildings/landscaping
-Interior design/furnishings
-Vehicles/equipment
-Staff grooming/clothing
-Sounds and smells
-Other tangibles
Manage physical cues carefully— can have profound impact on customer
impressions
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 43
Extended Mix for Managing the Customer
Interface (3)
People
Interactions between customers and contact personnel strongly
influence customer perceptions of service quality
Well-managed firms devote special care to selecting, training and
motivating service employees
Other customers can also affect one’s satisfaction with a service
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 44
Framework for
Effective Service
Marketing Strategies
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 45
Framework For Developing Effective Service
Marketing Strategies - Overview
Part I: Chapters 1 - 3
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 46
Framework for Developing Effective Service
Marketing Strategies- Part I
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 47
Framework for Developing Effective Service
Marketing Strategies – Part II
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 48
Framework for Developing Effective Service
Marketing Strategies – Part III
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 49
Framework for Developing Effective Service
Marketing Strategies – Part IV
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 50
Chapter 1 Summary: Introduction to Services
Marketing (1)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 51
Chapter 1 Summary: Introduction to Services
Marketing (2)