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Ch22[1]

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Information about Ch22[1]

Published on January 29, 2009

Author: bhagchand

Source: slideshare.net

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Services and non-profit marketing

Classifying services The product - service spectrum Figure 22.1

Means of classifying service products Tangibility. How the service is delivered. The extent the service is constrained or the demand fluctuates. Degree of involvement of people and facilities in the service. Level of customisation. Service benefit duration.

Means of classifying service products

Tangibility.

How the service is delivered.

The extent the service is constrained or the demand fluctuates.

Degree of involvement of people and facilities in the service.

Level of customisation.

Service benefit duration.

Characteristics of service markets Figure 22.2

Generic differences between services and physical goods Lovelock et al 1999 Table 22.1 Source : Lovelock et al . (1999).

The services marketing mix Figure 22.3

Service experience Quality of outcome Access. Reliability. Credibility. Security. Understanding the customer. Quality of inputs Responsiveness. Courtesy. Competence. Communication. Tangibles.

Quality of outcome

Access.

Reliability.

Credibility.

Security.

Understanding the customer.

Quality of inputs

Responsiveness.

Courtesy.

Competence.

Communication.

Tangibles.

Barriers to service quality (Parasuraman, 1985) Misconceptions. Inadequate resources. Inadequate delivery. Exaggerated promises.

Barriers to service quality

(Parasuraman, 1985)

Misconceptions.

Inadequate resources.

Inadequate delivery.

Exaggerated promises.

Factors affecting consumers’ service expectations Figure 22.4

Ensuring a productive service workforce Positivity - the ‘satisfaction mirror’. Careful recruitment. Retaining service staff - higher capability levels. Training both visible and invisible service staff. Fair and flexible measures of service productivity. Efficient systems and technology. Reduction in service levels. Changing customer interaction. Reduce mismatch between supply and demand.

Ensuring a productive service workforce

Positivity - the ‘satisfaction mirror’.

Careful recruitment.

Retaining service staff - higher capability levels.

Training both visible and invisible service staff.

Fair and flexible measures of service productivity.

Efficient systems and technology.

Reduction in service levels.

Changing customer interaction.

Reduce mismatch between supply and demand.

Franchising Type of vertical marketing system. Contractual relationship between a franchisor and franchisee. The owner of a product licenses another to use, buy, sell or operate it in exchange for some form of payment. Can offer small business with route to achieving more rapid growth.

Franchising

Type of vertical marketing system.

Contractual relationship between a franchisor and franchisee.

The owner of a product licenses another to use, buy, sell or operate it in exchange for some form of payment.

Can offer small business with route to achieving more rapid growth.

Types of franchise relationship Distributorships. Licenses to manufacture. Celebrity endorsements. Trade marks. Business format franchising (e.g. McDonald’s).

Types of franchise relationship

Distributorships.

Licenses to manufacture.

Celebrity endorsements.

Trade marks.

Business format franchising (e.g. McDonald’s).

Types of business format franchise Executive. Retail. Distribution. Job.

Types of business format franchise

Executive.

Retail.

Distribution.

Job.

Variations in franchise independence Table 22.3 Source : Felstead (1991).

The franchisor’s perspective Benefits Financial - rapid growth in market coverage and penetration. Committed managerial resource. Economies of scale. Problems Handling ineffective or remote franchises. Grouping of franchisees for negotiation.

Benefits

Financial - rapid growth in market coverage and penetration.

Committed managerial resource.

Economies of scale.

Problems

Handling ineffective or remote franchises.

Grouping of franchisees for negotiation.

The franchisee’s perspective Benefits Participation in system of established image, etc. Access to organised systems. National or regional advertising. Guidance on purchases. Problems Contract compliance. Tension in relationship. Negative effects from poor decision making by franchisor.

Benefits

Participation in system of established image, etc.

Access to organised systems.

National or regional advertising.

Guidance on purchases.

Problems

Contract compliance.

Tension in relationship.

Negative effects from poor decision making by franchisor.

Launching new franchise systems Figure 22.5

Non-profit organisations Table 22.6

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