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Gilbert A. Churchill, Jr. J. Paul PeterGilbert A. Churchill, Jr. J. Paul Peter

Chapter 11

Marketing Services

Marketing

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CharacteristicCharacteristic

Clientrelationship

Perishability

ServicesServices

Services often involve an ongoing personal relationship.

Intangibility

Characteristics that Distinguish Characteristics that Distinguish Services from GoodsServices from Goods

Slide11-1a

Table11.1

GoodsGoods

Goods often involve an impersonal, short-term relationship, although relationship strength and duration are increasing.

Goods can be placed in inventory for use at another time.

Services can be used only at the time they are offered.

The customer owns only memories or outcomes, such as greater knowledge or styled hair.

The customer owns objects that can be used, resold, or given to others.

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CharacteristicCharacteristic

Inseparability

Customereffort

ServicesServices

Services often cannot be separated from the person providing them.

Uniformity

Slide11-1b

Table11.1

GoodsGoods

Goods typically are produced and sold by different people.

Customer’s involvement may be limited to buying completed product and using it.

Customer can be more involved in production of services.

Because of inseparability and high involvement, each service may be unique, with the quality likely to vary.

Variations in quality and variance from standards can be corrected before customers purchase products.

Characteristics that Distinguish Characteristics that Distinguish Services from GoodsServices from Goods

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Goods/Service ContinuumGoods/Service ContinuumSlide11-2

LumberLumber

Computer withComputer withService ContractService Contract

RestaurantRestaurantDinnerDinner

Oil ChangeOil Change

Maid ServiceMaid Service

Mostly IntangibleServices

MostlyTangible Goods

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Categorizing ServicesCategorizing ServicesSlide11-3

Unskilled O

perato

rs

Skilled O

perato

rs

Unskilled L

abor

Skilled L

abor

Profe

ssionals

America Online

KellyServices

EquipmentBased

PeopleBased

Autom

ated

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The Marketing Mix for The Marketing Mix for Services: ProductServices: Product

Slide11-4

Camping Equipment

Camping Trips

Identical for each Customer

Varies by Customer

StandardizedGoods

CustomizedServices

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Slide11-5

Tools – Massachusetts Highway Department Road Use

Fees – Yellowstone Park Entrance

Rent – Koger Center Office Space

Fare – Taxi Ride

Rate – Marriott Hotel Room

Tuition – Harvard Degree

The Marketing Mix for The Marketing Mix for Services: PricingServices: Pricing

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Slide11-6

Table11.3

The Marketing Mix for The Marketing Mix for Services: PlacementServices: Placement

TYPETYPE DESCRIPTIONDESCRIPTION EXAMPLEEXAMPLE

Product

Nature of Interaction Nature of Interaction between Customer and between Customer and Service OrganizationService Organization Single SiteSingle Site Multiple SitesMultiple Sites

Theater Barbershop

Customer goes to service organization

Service organization comes to customer

Customer and service organization transact at arm’s length (by mail or electronic communications

Lawn care servicePest Control serviceTaxi service

Credit card company Local TV station

Broadcast TV networkTelephone company

Mail DeliveryEmergency repair service

Bus serviceFast-food chain

Availability of Service OutletsAvailability of Service Outlets

Sources: Reprinted from Christopher H. Lovelock, Services Marketing, 2nd ed. (Englewood Cliffs, N.J.: Prentice Hall, 1991), p. 33. An earlier version of this figure appeared in Christopher H. Lovelock, “Classifying Services to Gain Strategic Marketing Insights,” Journal of Marketing (Summer 1983), p. 18.

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Slide11-7

Table11.3

The Marketing Mix for The Marketing Mix for Services: PromotionServices: Promotion

AdvertizingAdvertizing Personal SellingPersonal Selling

Intangibles require promotion to explain what theservice is and how it will benefit the buyer.

PromotionPromotion