Principles of Business & Marketing BServices Marketing

Principles of Business and Marketing BANNOUNCEMENTS

● Expectations this week:○ Lesson 11 |Services Marketing (Quiz)○ All past due Quizzes

■ Please take quizzes only after LL OR quiz game review■ Do not turn in blank papers - webmail instead.

○ Targeting Portfolio if not complete (See LL 11/5!)● Open office hours: Wednesday 8-9 am (Ms. Adame)

Thursday 9-10 am (Mr. Velarde)● LiveLesson: Thursday 3-4 pm (see your planner)● Final Exam Review: Friday at noon in Ms. Adame’s LL room● FBLA Club Meeting: Wednesday 12/2 at 3 pm● Get extra credit for attending LLs, Reviews, and FBLA

COURSE TIMELINE

Lesson 11 - Services Marketing

LESSON 11 NOTES:SERVICES MARKETING

Lesson 11 - Services Marketing

ObjectivesAt the end of this lesson, you will be able to do the following:

• Compare differences in service marketing and product marketing

• Define key characteristics of services in the market• Identify types of services• Explain the meaning of “services continuum”

TOPICS IN LESSON 11SERVICES MARKETING

LESSON 11 NOTES: SERVICES MARKETING

Interactive Presentation Topic

Corresponding Reading

ReviewActivities

Topic 1: Characteristics of Services

pp. 194–198 and 208–210

Objectives p. 224 (#3) Discussion Questions p. 225 (#6)

Topic 2: Types of Services

pp. 198–201 Objectives p. 224 (#1) Discussion Questions p. 225 (#1)

Unique Challenges in Services vs. Products

● What are some differences in Services vs Products?

**Marketability is not a characteristic of a service, whereas it is a characteristic of a product.**

Characteristics of ServicesService Businesses

● Consumers can easily figure out products by using their senses; taste, touch, sight and so forth. This is not the case with services.

● Examples of services businesses include:○ Hair salons○ Tattoo parlors○ Dry cleaning shops○ Legal agencies○ Insurance agencies○ Medical facilities○ Auto repair shops○ Theatres and more!

Characteristics of ServicesEconomic Impacts

● Many economies are becoming more and more centered on service industries.● Even in the B2B, business to business area, there is a wealth of companies

providing consulting, support and financial services.● Chances are high that at some point in your career, you will be involved in a

services company.

Characteristics of ServicesMarketing the Intangible

There are four primary characteristics of services.

Intangibility - a service cannot be seen, touched or tasted. Consider the cellular phone service, not the phone itself, but the service. The phones are definitely products, whereas the service that allows you to make and complete a call is something you cannot see or touch.

Perishability - Consider when you stay in a hotel room, make an appointment at the hairdresser, purchase a seed on an airplane or train, or make a reservation at a restaurant, the time slots for these services are perishable. When the day or hour has passed, the slot can no longer be used. When appointments go unused, there is no way to recoup the opportunity. It is gone forever.

Characteristics of ServicesMarketing the Intangible

Variability - Service variability means that the same service is variable depending on who delivers it. If Lucy gives you a massage, but Jane does it the next time you visit the spa, it will be done differently. However, it is important to note that even if the same person delivers it, the service can be variable. Recall a time when you got your haircut, you finally found a person who really knows your hair and how to give it a good cut.

Inseparability - Inseparability means that it is impossible to separate the production of a service from the consumption of a service. The service has to be consumed in the moment. You can, for example, stock up on toilet paper because it is on sale and you know that you will use it eventually. And although you can reserve the services in advance, you cannot example stack up on haircuts or massages. So much of a service encounter is based on the people providing the service.

Types of ServicesThe Service Continuum

There is a spectrum that runs from tangible goods to fully intangible services, this range is known as the services continuum. Most products are actually a combination of a tangible good and an intangible service.

Types of ServicesCARA car, for example, requires tangible parts, such as new oil, delivered by intangible services from the person who changes the oil.

LECTUREA lecture is primarily intangible because it is knowledge that is gained. There are some tangible aspects to a lecture, such as the comfort of the seats. The delivery of a lecture, however, is intangible. The result of a successful lecture is that the knowledge remains in your head.

MANICUREA manicure is different in its level of intangibility than a lecture, in that the consumer walks away with something tangible such as polished nails.

Types of ServicesGoods Dominated Services

Consider Quaker oatmeal, this is a tangible good.

You can smell it, taste it and eat it. However, if you examine the label you will discover that the Quaker company provides a website and toll free number for consumers to call with questions or concerns.

The website offers more detailed nutritional information as well as recipes and fun facts. The Quaker company is aware that it needs to offer more than their product alone.

Types of ServicesEquipment-Dominated Services

Some products in the services continuum rely more heavily on the service aspect than the product aspect. Consider your last experience in a restaurant, the experience is based around the food, the atmosphere, and the service. If any of those three are off, chances are your experience was not as good as it could have been. If the food was fabulous but the waiter was rude you might not have had a good time. Likewise, if the restaurant was dull but the waiter was polite and the food was good. This also was not an optimal experience. There are three factors to consider when looking at equipment and location based services.

Types of ServicesFactors to Consider

OPERATIONAL FACTORSThink of the last time you were in a bank. Did you have to wait in a line? For how long? What were the employees doing while you waited? Were they all servicing customers or did they appear as if their work had nothing to do with you? Companies spend a lot of time, effort and money, researching how to make their business run efficiently from an operational perspective.

LOCATION FACTORSA business' location affects how it is perceived by the customer. Fast food companies and other retail stores spend thousands of dollars researching traffic patterns before deciding where to locate their next restaurant.

Types of ServicesFactors to Consider

ENVIRONMENTAL FACTORSThink of the last time you were in an airport. If you are a frequent flyer, perhaps you spend your time waiting in the special lounge area reserved for other frequent flyers. In the lounge there is free internet, drinks and snacks. All in a comfortable and elegant environment. Companies know that their customers like to be in an appealing location. To this end, banks for example, are decorating their branch offices to look like living rooms with appealing art and good lighting. Coffee shops do not simply serve coffee but also offer comfortable seats and soft music. However, the savviest companies know that success is not just about operations, location and lighting. Today, success depends on people.

Types of ServicesFactors to Consider

PEOPLE BASED SERVICESAll the art and lighting at a business location cannot compensate for low levels of service. Not everyone is aware that providing stellar service can help strengthen a business. Special boxes in theaters and sporting events offer consumers a higher level of service. Not only do you get better food, but you also get personal service from waiters. Some hotels even have concierge floors, with personal butlers to make sure that the guests receive special treatment. Companies know that providing personal service to their customers is how to keep them coming back. Consider an example of a personal trainer, if you want a one size fits all training program, you might just take a class or create a workout program on your own. However, if you want someone to look at your individual situation, review areas of strength and weakness and work with you one on one, you might decide that a personal trainer is the way to go.

Lesson 12 - Quality of Services Marketing

LESSON 12 NOTES:QUALITY OF SERVICES MARKETING

Lesson 12 - Quality of Services Marketing

ObjectivesAt the end of this lesson, you will be able to do the following:

• Contrast core and augmented services• Produce examples of Internet services from both

consumer and B2B perspectives• Articulate how the buyer characterizes services in terms of

quality• Explain the process of quality problem identification

•

TOPICS IN LESSON 12QUALITY OF SERVICES MARKETING

LESSON 12 NOTES: QUALITY OF SERVICES MARKETING

Interactive Presentation Topic

Corresponding Reading

ReviewActivities

Topic 3: Core and Augmented Services

None None

Topic 4: Internet Services None None

Topic 5: Aspects of Quality in Services

pp. 213–214 None

Quiz Game ReviewsLesson 1 Quiz Review

Lesson 3 Quiz Review

Lesson 4 Quiz Review

Lesson 5 Quiz Review

Lesson 8 Quiz Review

Lesson 9 Quiz Review

Lesson 11 Quiz Review

Crash Course ReviewLessons 1, 2, 3, 4, 5, 6, 7, 8, 9, 10

Bold Items Require a Quiz.See Gradebook.

Lesson 1 - INTRODUCTION TO MARKETING

LESSON 1 NOTES:INTRODUCTION TO MARKETING

Lesson 2 - STRATEGIC PLANNING

LESSON 2 NOTES:STRATEGIC PLANNING

Lesson 3 - The Planning Process

LESSON 3 NOTES:THE PLANNING PROCESS

Lesson 4 - Analyzing the Business Environment

LESSON 4 NOTES:ANALYZING THE BUSINESS ENVIRONMENT

Lesson 5 - Market Research & Intelligence

LESSON 5 NOTES:MARKET RESEARCH & INTELLIGENCE

Lesson 6 - Market Analysis & Strategy

LESSON 6 NOTES:MARKET ANALYSIS & STRATEGY

Lesson 7 - Market Analysis & Differentiation

LESSON 7 NOTES:MARKET ANALYSIS & DIFFERENTIATION

Lesson 8 - Consumer Behavior

LESSON 8 NOTES:CONSUMER BEHAVIOR

Lesson 9 - B2B MARKETING

LESSON 9 NOTES:B2B MARKETING

Lesson 10 - PRODUCT DEVELOPMENT & MANAGEMENT

LESSON 10 NOTES:PRODUCT DEVELOPMENT & MANAGEMENT

FBLA Club MeetingMs. Adame’s LiveLesson Room

Wednesday 12/2 at 3 pm