PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e
What are Services?
Separately identifiable activities that satisfy customer wants through mainly intangible benefits.
1. Tangibility
can of tuna
Restaurant
Pure good
2. Capital Investment
international airline
bar staff training
Pure service
interstate bus service
High investment
Low investment
3. Extent of customer involvement
online travel bookings
travel agent
High involvement
4. People or equipment based
security alarm
back to base security
security guard
People based
mini bus service
Standardised
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
pilot flies plane
Low involvement
Equipment based
5. Extent of customisation
rail service
bicycle courier
taxi service
Customised
Next: The Scope of Services Market
Learn more on pages 315 -316
Recreation &
entertainment
Health care
Accommodation
The scope of
the services
market
Personal care
Plus a huge
range of B2B
services
Education
Professional
Travel and
transport
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Household
Communication
Next: The Special Characteristics of Services
Learn more on page 317
The Special Characteristics of Services
Services marketing requires some different strategies because of:
• Intangibility
o customer cannot experience prior to
purchase
o need to add physical evidence
• Variability
o customer receives a different product
each time
o need to either standardise or customise
service
o allows for market segmentation by
customising service
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
• Inseparability
o hard to separate service from service
provider
o customer is involved in service delivery
o need to manage ‘moments of truth’
• Perishability and fluctuating demand
o ‘real time’ services are lost if not used
o demand has peaks and troughs
o need to use marketing mix to manage
supply and demand
o allows for segmentation through pricing
and promotion
Next: Distinctive Colour Adds Tangibility to a Service
Learn more on pages 317 - 322
Distinctive Colour Adds Tangibility to a Service
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Next: Managing Inseparability & Fluctuating Demand
A Clever Way of Overcoming
Inseparability and Fluctuating Demand
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Next: Developing a Marketing Mix for Services
Developing a Marketing Mix for Services
Many of the mix strategies are the same as for physical goods. Some differences are:
• Product
o to add tangibility, a services
brand should highlight the service
benefit
o must manage quality ‘service
gaps’
• Pricing
o customers are often unaware of
service provision costs
o pricing is often based on inputs
such as ‘hours spent’
o changing prices in response to
demand levels is common
• Distribution
o making the service ‘accessible’ is
the key task
o convenient location
o short channel length
o technology (Net) is critical
• Promotion
o adding tangibility is the main
task
o show the service encounter
o avoid over-promising
o build relationships
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Next: Another way of Promoting to Add Tangibility
Learn more on pages 322 - 332
Another way of promoting to add tangibility
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Next: Additional Mix Elements for Services
Learn more on pages 317 - 322
Additional Mix Elements for Services
• People strategies
o identify boundary spanning roles
o recruit ‘service-oriented’ people
o empower front-line staff
o reward and motivate
• Physical evidence strategies
o used to add tangibility
o use visuals, aromas, sounds,
textures
o exterior/interior of premises
o ads, brochures, uniforms
o map servicescapes
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
• Process strategies
o manage service activities
o identify ‘moments of truth’
o construct service blueprints
Next: NFP Marketers
Learn more on pages 332 - 339
The Not-for-Profit Market
• Consists of charities, religions, causes, schools and
colleges, sporting teams, clubs, governments
• Many are quite recent converts to the ideas behind
marketing
• NFP marketers need strategies for three target markets
o government funding providers
o corporate funding providers
o individual donors/volunteers
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Next: NFP advertisement
Learn more on pages 339 - 341
NFP marketers have to appeal to several target markets
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies
Next: Five Minute Quiz
Learn more on pages 317 - 322
Five Minute Quiz
1. Define services
2. List five ways of classifying services
3. List four characteristics of services that
differentiate them from physical goods
4. List the three additional elements of the
marketing mix (Ps) for services
5. List three target markets that NFP
organisations need to appeal to
Rix Marketing: A Practical Approach 7e
Chapter Nine: Services Marketing Strategies