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Chapter 12: Services and Nonprofit Organization Marketing (Components of…
Chapter 12: Services and Nonprofit Organization Marketing
The importance of Services
Service
are the result of applying human or mechanical effort to people or subjects (Can't be physically process)
account for around 80% of U.S jobs and GDP
How Service differ from Goods
Intangible
: no physical object makes it hard to communicate benefit
Inseparable
: Production and consumption are simultaneous (đồng thời), meaning the consumer take part in
Heterogeneous
(ko đồng nhất) Service depend on their employees for quality, which makes consistency difficult to achieve
Perishable
(dễ hư, bỏ đi): Services cannot be saved, and it is challenging to synchronize (đồng bộ hoá) supply and demand . ex: airline, hotel at the specific time if customer dont buy the service, company lose that money and it can't be saved and sell it tomorrow like a product.
Components of Service Quality
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 and ability to convey trust
Empathy
: Caring, individualized attention to customers.
Tangible
: The physical evidence of the service
Services Strategy
Process
Mental Stimulus Processing
when service directed at people's minds. Ex: theater performance and education.
People Processing
when the service is directed at a customer. Ex: transportation and health care.
Possession Processing
when service is directed at customer's physical possession. Ex: lawn care, dry cleaning, veterinary services.
Information Processing
service that use technology or brainpower directed at a customer's assets. Ex: insurance and consulting.
Core and Supplymentary
Core service
: Most basic benefit the customer is buying
Supplementary service:
Group of services that support or enhance the core service
Standardization and Customization
*mô hình Customization/Standardization
Service Mix
Same ideas line and mix as product mix
Relationship Marketing in Services
(2)
Social
:
Build social bonds
: using pricing incentive as well as building social bonds with customers. Keeps in touch with customers.
(1)
Financial
:
Provide pricing incentives
: uses pricing incentive to encourage the customer to continue doing business. Least effective because its price-based advantage is easily imitated (copy) by competitive firms.
(3)
Customization
:
Design service to meet customer need
: encourage customer loyalty through intimate (thân mật) knowledge of individual customers.
Many service involves ongoing to interaction between service organization and customers. They can benefit from the relationship marketing: attracting, developing, and retaining customer relationships.
(4)
Structural
:
Offer value - added services
: the firms add structure bonds to the formula. This offer value-added services that are not available by competitive firms.
Internal Marketing in Service Firms
Internal Marketing
: Treating employees as customer and developing system and benefits that satisfy their needs
Non-profit Organization Marketing
Nonprofit Organization
: An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Target Market
Apathetic or strongly opposed targets
Pressure to adopt undifferentiated segmentation
Complementary positioning