服务营销Lovelock-PPT-Chapter-01.ppt

Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-1Chapter 1:New Perspectives on Marketing in the Service Economy Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-2Overview of Chapter 1Why Study Services?What are Services?The Marketing Challenges Posed by ServicesThe Expanded Marketing Mix Required for Services Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-3Why Study Services?Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-4Why Study Services?(1)Services dominate economy in most nationsUnderstanding services offers you personal competitive advantagesImportance of service sector in economy is growing rapidly:Services account for more than 60 percent of GDP worldwideAlmost all economies have a substantial service sectorMost new employment is provided by services Strongest growth area for marketing Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-5Services Dominate the U.S.Economy(Fig 1.1)Services,68%Agriculture,Forestry,Mining,Fishing,2.3%Manufacturing and Construction,17.3%Government,12.4%(mostly Services)Source:Bureau of Economic Analysis,Survey of Current Business,May 2005,Table 1INSIGHTS Private sector service industries account for over two-thirds of GDP Adding government services,total is almost four-fifths of GDP Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-6Estimated Size of Service Sector in Selected Countries(Fig 1.2updated 10/06)Services as Percent of GDPPoland(66%),South Africa(65%)Japan(74%),France(73%),U.K.(73%),Canada(71%)Saudi Arabia(33%)China(40%)India(48%)Argentina(53%),Brazil(51%)Panama(80%),USA(79%)Luxembourg(83%)Cayman Islands(95%),Jersey(93%)Bahamas(90%),Bermuda(89%)Mexico(69%),Australia(68%),Germany(68%)Israel(60%),Russia(58%),S.Korea (56%)30405060 70 80902010 Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-7Value Added by Service Industry Categories to U.S.GDP in 2004Other(except government)3.6%Accommodation and food services 4.0%Arts,entertainment,and recreation 1.5%Healthcare and social assistance 10.4%Educational services 1.3%Professional and business services 17.3%Wholesale trade 8.9%Retail trade 10.3%Transportation and warehousing 4.4%Information 7.1%Finance and insurance 12.6%Real estate and rental and leasing 18.7%Source:Bureau of Economic Analysis,Survey of Current Business,May 2005,Table 1 Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-8NAICS:A New Way to Classify and Analyze the Service Economy(RI 1.1)NAICSNorth American Industry Classification Systemnow used to compile and record economic data by national statistical agencies of the U.S.,Canada,MexicoNew classification system replaces old SIC codes in U.S.Captures huge array of new service industries,each with its own NAICS codeNAPCSNorth American Product Classification Systemassigns codes to thousands of service products Particularly useful for looking at rented goods servicesU.S.and Canadian data easily accessible on the Web;information includes number of establishments and employment Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-9Some Newer Service Industries Profiled by NAICS Codes But Not SICvCasino HotelsvContinuing Care Retirement CommunitiesvDiagnostic Imaging CentersvDiet and Weight Reducing CentersvEnvironmental ConsultingvGolf Courses,Country ClubsvHazardous Waste CollectionvHMO Medical CentersvIndustrial Design ServicesvInvestment Banking and Securities DealingvManagement Consulting ServicesvSatellite TelecommunicationsvTelemarketing BureausvTemporary Help Services Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-10Why Study Services?(2)Most new jobs are generated by servicesFastest growth expected in knowledge-based industriesSignificant training and educational qualifications required,but employees will be more highly compensatedWill service jobs lost to lower-cost countries?Yes,some service jobs can be exported Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-11Changing Structure of Employment as Economic Development EvolvesIndustryServicesAgricultureTime,per Capita IncomeShare of EmploymentSource:IMF,1997 Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-12Why Study Services?(3)Powerful forces are transforming service marketsGovernment policies,social changes,business trends,advances in IT,internationalizationThese forces are reshapingDemandSupplyThe competitive landscapeCustomers choices,power,and decision making Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-13Transformation of the Service EconomyGovernmentPoliciesBusinessTrendsSocial ChangesAdvances inITGlobalizationInnovation in service products&delivery systems,stimulated by better technologyCustomers have more choices and exercise more powerSuccess hinges on:Understanding customers and competitorsViable business modelsCreation of value for customers and firmNew markets and product categoriesIncrease in demand for servicesMore intense competition Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-14Factors Stimulating Transformation of the Service Economy(1)GovernmentPoliciesBusinessTrendsSocial ChangesAdvances inITGlobalizationChanges in regulationsPrivatizationNew rules to protect customers,employees,and the environment New agreement on trade in services Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-15Factors Stimulating Transformation of the Service Economy(2)GovernmentPoliciesBusinessTrendsSocial ChangesAdvances inITGlobalizationRising consumer expectationsMore affluenceMore people short of timeIncreased desire for buying experiences versus thingsRising consumer ownership of high tech equipmentEasier access to informationImmigrationGrowing but aging population Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-16Factors Stimulating Transformation of the Service Economy(3)GovernmentPoliciesBusinessTrendsSocial ChangesAdvances inITGlobalizationPush to increase shareholder valueEmphasis on productivity and cost savingsManufacturers add value through service and sell servicesMore strategic alliances and outsourcingFocus on quality and customer satisfactionGrowth of franchisingMarketing emphasis by nonprofits Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-17Factors Stimulating Transformation of the Service Economy(4)GovernmentPoliciesBusinessTrendsSocial ChangesAdvances inITGlobalizationGrowth of the InternetGreater bandwidthCompact mobile equipmentWireless networkingFaster,more powerful softwareDigitization of text,graphics,audio,video Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-18Factors Stimulating Transformation of the Service Economy(5)GovernmentPoliciesBusinessTrendsSocial ChangesAdvances inITGlobalizationMore companies operating on transnational basisIncreased international travelInternational mergers and alliances“Offshoring”of customer serviceForeign competitors invade domestic markets Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-19What Are Services?Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-20What Are Services?(1)The historical viewGoes back over 200 years to Adam Smith and Jean-Baptiste SayDifferent from goods because they are perishable(Smith 1776)Consumption cannot be separated from production,services are intangible(Say 1803)A fresh perspective:Services involve a form of rental,offering benefits without transfer of ownershipInclude rental of goodsMarketing tasks for services differ from those involved in selling goods and transferring ownership Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-21What Are Services?(2)Five broad categories within non-ownership framework:1.Rented goods services2.Defined space and place rentals3.Labor and expertise rentals4.Access to shared physical environments5.Systems and networks:access and usage Implications of renting versus owning(Service Perspectives 1.1)Markets exist for renting durable goods rather than selling themRenting portions of larger physical entity(e.g.,office space,apartment)can form basis for serviceCustomers more closely engaged with service suppliers Time plays central role in most servicesCustomer choice criteria may differ between rentals and outright purchasesServices offer opportunities for resource sharing Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-22Defining ServicesServices 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 responsibilityIn exchange for their money,time,and effort,service customers expect to obtain value fromAccess to goods,labor,facilities,environments,professional skills,networks,and systemsBut they do not normally take ownership of any of the physical elements involved Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-23Service Products versus Customer Service and After-Sales ServiceA firms market offerings are divided into core product elements and supplementary service elementsIs everyone in service?Need to distinguish between:Marketing of services Marketing goods through added-value serviceGood service increases the value of a core physical goodAfter-sales service is as important as pre-sales service for many physical goodsManufacturing firms are reformulating and enhancing existing added-value services to market them as stand-alone core products Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-24Challenges Posed by Services Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-25Services Pose Distinctive Marketing Challenges Marketing management tasks in the service sector differ from those in the manufacturing sectorThe eight common differences are:1.Most service products cannot be inventoried2.Intangible elements usually dominate value creation3.Services are often difficult to visualize and understand4.Customers may be involved in co-production5.People may be part of the service experience6.Operational inputs and outputs tend to vary more widely7.The time factor often assumes great importance8.Distribution may take place through nonphysical channelsWhat are marketing implications?Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-26Differences,Implications,and Marketing-Related Tasks(1)(Table 1.1)DifferenceMost service productscannot be inventoriedIntangible elementsusually dominatevalue creationServices are oftendifficult to visualizeand understandCustomers may beinvolved in co-productionImplicationsCustomers may beturned away Harder to evaluateservice and distinguishfrom competitorsGreater risk anduncertainty perceivedInteraction betweencustomer and provider;but poor task execution could affect satisfaction Marketing-Related TasksUse pricing,promotion,andreservations to smooth demand;work with ops to manage capacity Emphasize physical clues,employ metaphors and vivid images in advertisingEducate customers onmaking good choices;offer guaranteesDevelop user-friendlyequipment,facilities,and systems;train customers,provide good support Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-27ImplicationsBehavior of servicepersonnel and customerscan affect satisfactionHard to maintain quality,consistency,reliability Difficult to shield customers from failuresTime is money;customers want serviceat convenient timesElectronic channels or voice telecommunications DifferencePeople may be part of service experienceOperational inputs andoutputs tend to vary more widelyTime factor often assumes great importanceDistribution may take place through nonphysical channelsMarketing-Related TasksRecruit,train employees to reinforce service conceptShape customer behaviorRedesign for simplicity andfailure proofingInstitute good service recovery proceduresFind ways to compete on speed of delivery;offer extended hoursCreate user-friendly,secure websites and freeaccess by telephone Differences,Implications,and Marketing-Related Tasks(2)(Table 1.1)Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-28Value Added by Physical,Intangible Elements Helps Distinguish Goods and Services(Fig 1.6)Physical Elements HighLowIntangible ElementsHighSaltDetergentsCD PlayerWineGolf ClubsNew CarTailored clothingFast-Food RestaurantPlumbing RepairHealth ClubAirline FlightLandscape MaintenanceConsultingLife InsuranceInternet BankingSource;Adapted from Lynn Shostack Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-29Progressive and REI:Two Types of Website Reflecting Core Product(Fig 1.8)REIs camping gear must be delivered through physical channels to customers after they have used the website to make choices,order,and payWebsites can deliver info-based services like Progressives car insurance but Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-30Expanded Marketing Mix for Services Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-31Services Require An Expanded Marketing MixMarketing can be viewed as:A strategic and competitive thrust pursued by top managementA set of functional activities performed by line managersA customer-driven orientation for the entire organizationMarketing is the only function to bring operating revenues into a business;all other functions are cost centersThe“8Ps”of services marketing are needed to create viable strategies for meeting customer needs profitably in a competitive marketplace Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-32The 8Ps of Services MarketingProduct Elements(Chapter 3)Place and Time(Chapter 4)Price and Other User Outlays(Chapter 5)Promotion and Education(Chapter 6)Process(Chapter 8)Physical Environment(Chapter 10)People(Chapter 11)Productivity and Quality(Chapter 14)Fig 1.9 Working in Unison:The 8Ps of Services Marketing Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1-33The 8Ps of Services Marketing:(1)Product ElementsEmbrace all aspects of service performance that create valueCore product responds to customers primary needArray of supplementary service elementsHelp customer use core product effectivelyAdd value through useful enhancementsPlanning marketing mix begins with creating a service concept that:Will offer va