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Click to edit Master title style ------=_NextPart_01C5DF82.0F2D0B80 Content-Location: file:///C:/264AD5D2/week12-part-2_files/master05.xml Content-Transfer-Encoding: quoted-printable Content-Type: text/xml; charset="utf-8" ------=_NextPart_01C5DF82.0F2D0B80 Content-Location: file:///C:/264AD5D2/week12-part-2_files/pres.xml Content-Transfer-Encoding: quoted-printable Content-Type: text/xml; charset="utf-8" ------=_NextPart_01C5DF82.0F2D0B80 Content-Location: file:///C:/264AD5D2/week12-part-2_files/slide0001.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Chapter 12 Managing the Organization’s Offerings
Chapter 12
Managing the Organization’s Offerings
Chapter 12 – Part II
By Justin Vollmer
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Services Marketing
lA large amount of nonprofit organizations are in the business of provid= ing services. (p.317)
–Service defined – “A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.  Its production may or may = not be tied to a physical product” (p.317)
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Services Marketing (Cont.)
lServices tend to have five important characteristics.
–Intangible
–Inseparable from its producer
–Variable in its characteristics
–Perishable
–Dependent on the involvement of the customer and i= ts production.
–
–(p.317)
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Intangible Services
lServices that cannot be seen, tasted, felt, heard or smelled prior to being rendered or purchased.
lA consumer must make the purchase of the service based on secondary = cues and his/her confidence in the service provider. <= /div>
– <= /div>
–(p.317)
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Inseparable Services
l“A service is inseparable from the source that provides it.” <= /span>
lThis means that the production and the consumption of the service = will usually happen simultaneously.
– <= /div>
– <= /div>
–(p.317)
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Variable Services
lServices vary by the source and time it is being offered.
–Consumers of these services must be aware of this fact and engage in “risk reducing behavior,” by doing research to learn the best provider. (p.318)
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Perishable Service and Customer Invol= vement
lServices can’t be stored and revenue is lost = when there is no demand for services.
–= When demand is up, “…the perishability of services is not a problem.” (p.319)
lCustomer Involvement
–Customers can be partial to producers and consumers. (p. 319) <= /span>
–The quality of a service is relative to the experience of the consum= er.
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Five Major Challenges in the Design of Service Offerings.
<= span class=3DBB style=3D'position:absolute;left:-4.77%;top:.3em'>lMaking= the Intangible Tangible
<= span class=3DBB style=3D'position:absolute;left:-4.77%;top:.3em'>lMaking= a Virtue of Inseparability
<= span class=3DBB style=3D'position:absolute;left:-4.77%;top:.3em'>lManagi= ng Variability
<= span class=3DBB style=3D'position:absolute;left:-4.77%;top:.3em'>lManagi= ng Perishability
<= span class=3DBB style=3D'position:absolute;left:-4.77%;top:.3em'>lHelping Consumers Consume
l
l(p. 319-323)
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Making the Intangible Tangible
lSince services are difficult to evaluate because of a lacking tangible product, consumers must look for s= igns of quality. (p.319)
–Andreasen and Kotler give examples of this on page 319.
lDiplomas can indicate quality of an instuctor <= /span>
lPlaques and awards
lRecognizable Brand Names (Red Cross, Salvation Army)
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Makin= g the Intangible Tangible (cont.)
lBecause evaluating services is more difficult, service providers must concentrate on and be aware of their appearance.  (p. 319)
lService marketers may make parts of their service tangible. (p. 319)
–T-shirts given out for a charity race <= /div>
–Customer service survey
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Making a Virtue of Inseparability
lSince services are typically produced by people, it is important for service marketers to properly train its person= nel with customer service. = (p. 320)
lInternal Marketing – an organization must realize that every encounter with a customer is “the moment of truth” (p. 320).
lUser Friendliness – become increasingly important to customer <= /span>satisfaction. (p.320)
lThe bottom line here is how important customer service and ultimately customer satisfaction is to an organization.  Since <= /span>people generally provide services, these people sh= ould be properly trained d= eal with customers.
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Managing Variability
lAn organization must understand how a bad experience for a consumer= can damage a service provider’s position. (p. 322) =
lControlling variability (p. 322)
–Hire and train good personnel
–Routinize or automate parts of a service
–Develop good customer satisfaction monitoring =
lSurveys, comparison shopping etc.
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Managing Perishability
lImportant for service managers to bring supply and demand into a balance. (p. 322)
lSasser has provided several ways for managing supply and demand= (p. 322)
–Demand
lDifferential pricing- changing prices based on the need = for a service
lNonpeak demand- can change through marketing campaigns by an organizati= on
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Managing Perishability (cont.)
–Demand (cont.)
lComplimentary Services – provides diversions and alternative to= waiting customers
lReservations- preselling services, prevents customer from waiting by = understanding how much service is needed ahead of time.
–Supply&#= 13;
lPart-time employees – help with peak demand <= /div>
lPeak-time efficiency routines- strategies used by an organization to = deal with peak times
lCustomer Participation – can cut down time and resources by hav= ing customers be responsible for some aspect.
lShared Services – create a deal with other organizations to help each other deal with pe= ak time.
lExpandable facilities- planned strategies to expand infrastructure during peak times
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Helping Consumers Consume
<= span style=3D'font-size:86%'>lMust either change marketers or change consumers.
lService Marketing may have to, “adapt his or her own service as much as possible to the individual = customer’s ability to consume and appreciate it.” (p. 323)&= #13;lThis can be done by studying the needs and wants of the consumer or teaching the consumer to be appreciate of a service- i.e. art appreciation classes.
l (p. 323-324)
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