Marketing
Class overview
Professor Walter Vizarreta
Table of Contents
Definition of services
2 key concepts
Four categories of services
The 8 Ps of services marketing
Integrated marketing
Developing a services marketing strategy
Definition of services
Services are economic activities offered by
one party to another, most commonly
employing time-based performances to
bring about desired results in recipients
themselves or in objects or other assets for
which purchasers have responsibility.
Definition of services
In exchange for their money, time, and
effort, service customers expect to obtain
value from access to goods, labor,
professional skills, facilities, networks, and
systems; but they do not normally take
ownership of any of the physical elements
involved.
2 key concepts
Service product
The main product is the
service.
Customer service
Services that assist the
customer. These are
complementary services.
The 8 Ps of services
marketing
Product elements
Place and time
Price and other user outlay
Promotion and education
Process
Physical environment
People
Productivity and quality
Product elements
Facilitating elements
Information
Order taking
Billing
Payment
Enhancing elements
Consultation
Hospitality
Safekeeping
Exceptions
Consultation
Payment
Billing
Core
product
Order
taking
Hospitality
Exceptions
Safekeeping
Billing
Common element to all services. Inaccurate,
illegible, or incomplete bills risk disappointing
customers.
Payment
Increasingly, customers expect ease and
convenience of payment, including credit,
when they make purchases.
Revenue management
Revenue management
Price elasticity
Percentage change in demand
Price elasticity
Price per
unit of
service
D1
Week 7
(low season)
Week 36
(high season)
100%
Loyalty program members
Loyalty program
members
Transient guests
Weekend
package
50%
Weekend
package
Transient guests
Groups and conventions
Groups (no conventions)
Airline contracts
Nights:
Tu
Airline contracts
Th
Sn
M
Time
Tu
Th
Sn
Process
Blueprinting a restaurant
experience
Blueprinting a restaurant
experience
thief
The rule breaker
The belligerent
The family feuders
The vandal
The deadbeat
Consequences of
dysfunctional behavior
Physical environment
People
Human
Resources
Management
Marketing
Management
Frame of reference:
Developing a services
marketing strategy
Understanding the customer
Building a service model
Managing the inter-relationship with the
customer
Implementing a profitable services strategy
Value exchange
Set prices with reference to cost, competition, and
value