Chapter 1: Foundations for Services Marketing
Services can be profitable but challenging to manage and market.
What are Services?
Services - Deeds, processes and performances.
Economic activities whose output is not physical
Consumed at the time of produce
Provides added value (Convenience, comfort, etc) that are also intangible
Service Industries, Services as Products, Customer Service, and Derived Service
Service industries and companies – Industries and companies classified within the service sector
whose core product is a service.
Services as Products – Intangible products sold by service and non-service companies.
Customer Service – Service provided in support of a company’s core products. Can occur onsite,
online, or via phone.
Why Services Marketing?
Service marketing concepts have developed due to the growth of service industries.
Service as a Business Imperative in Manufacturing and IT
Developing technologies and increasing competition make it difficult to gain a competitive
advantage though physical products alone. Customers also expect a high level of service along with their
Deregulated Industries and Professional Service Needs
Industries and professional services have gone through major changes in the way the do business
and need service marketing concepts. Because of the increase in competitions, these basic service
providers need to market their services to strengthen their services.
Services Marketing is Different
Marketing manufacturing and packaged goods is very different than marketing services.
Service Equals Profits
Common themes to success in services: Values-driven leadership, commitment to investments in