Service Marketing

Marketing Basics

What is Marketing???
Think about organizations/companies (Google, Trader Joes, The San Jose Chamber of Commerce, World Wildlife Fund, ) as well as individuals (politicians, professional athletes, )

They all do marketing! How and why?

Marketing Basics

Marketing consists of activities designed to generate and facilitate exchanges intended to satisfy human or organizational needs or wants.

Marketing Basics Importance of Marketing:

Personally - in daily life, in career aspirations, in better informed consumer purchases
Organizationally - only marketing directly produces revenue; marketing success depends on customer satisfaction Domestically - employment and costs, creation of utility Globally - closed, national markets no longer exist and companies compete in markets worldwide

Marketing Basics Evolution of Marketing: Product-orientation Stage

make all you can

1. Demand exceeds available supply. 2. All that is made can be sold. 3. Focus is on engineering and generating output, not the customer. 4. Epitomized between late 1800s and early 1930s.
The American public can have any color car it wants so long as its black. Henry Ford, referring to the Model T.

Sales-orientation Stage

sell all you make

1. Supply frequently exceeds demand. 2. Focus is on promotion and pricing; objective is to sell all the inventory. 3. Hard-sell techniques create stereotype of pushy, annoying salesperson. 4. Epitomized between early 1930s and 1950s.

Marketing Basics Evolution of Marketing: Market-orientation Stage

make what you can sell

1. Variety in markets, variety in products. 2. Employs full marketing mix. 3. Focus is on customer needs and satisfaction; profitability over volume. 4. Most typical current orientation.

make it together with the customer

Service Dominant Logic

1. Service industries gain more and more importance 2. Ideas generated in the service field spread to other sectors (like industrial marketing, marketing for consumer goods, ) 3. Intangible product features

Marketing Goals There are three main objectives that are followed by the marketing discipline:

1. Customer satisfaction and (service) quality

2. Stimulation of market exchanges and customer retention 3. Branding of services, products, and companies

Marketing Goals 1. Customer satisfaction and (service) quality delivered (perceived) service/product expected service/product*

customer satisfaction

delivered (perceived) service/product

<

expected service/product*

customer dissatisfaction
* requires a positive expectation

Marketing Goals 2. Stimulation of market exchanges and customer retention

- Customer satisfaction is a main determinant for stable and voluntary buying relationships
- Compliance management plays an important role in retaining customers

- Stimulation of market exchanges and customer retention is supported by a strong service/product/company brand

Marketing Goals 3. Branding of services, products, and companies

Brand contacts by Gronroos (2000), p.288

The GAP Model

Causes of Gaps Promoted Expectation Managements Perceived Customer Expectation Service Design Spec. G3 Service Delivered Inflated Expectation G4 G1 Communication Real Expectation Marketing

Service Quality

G2

Design

Conformance Service Received

Service Providers Assessment

Customers Assessment

Case Study Questions

1. Evaluate the Zipcar venture. What are the strengths, opportunities, weaknesses, and threats of the business model? 2. How does the Zipcar idea fit the Integrated Service Marketing Model? Please apply the case to the several marketing instruments that are discussed in the model. 3. What are the main drivers of customer satisfaction at Zipcar? 4. Describe the process of co-creation at Zipcar! 5. What are the success factors of Zipcars promotional strategy? Please consider also the impact of environmental issues on the marketing success of Zipcar. 6. Imagine that Zipcar aims on entering the Chinese market. What factors have to be covered in an according market research study? Would you recommend China as target market?
Please search for additional information to answer the case study questions!