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Chapter 13

MARK 3000 Chapter Notes - Chapter 13: Marketing Mix


Department
Marketing
Course Code
MARK 3000
Professor
Grantham
Chapter
13

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Chapter 13 - Services
- Service: any tangible offering that involves a deed, performance, or effort that cannot be
physically possessed intangible customer benefits that cannot be separated from the producer
- Customer Service: human or mechanical activities firms undertake to help satisf ustoes’
needs and wants
- Reasons for dependence and growth of service-oriented economies in developed countries:
1. Less expensive to manufacture their products in less developed countries
2. People place a high value on convenience and leisure
3. As the world becomes more complicates, people are demanding more specialized
services
- Continuum of pure service pure food, most offerings lie in the middle
Services Marketing Differs from Product Marketing
- 4 Differences of Services:
1. Intangible cannot be touched, tasted, or seen like a pure product can; makes
conveying benefits of a service difficult (hard to promote)
Requires cues and imagery to make it more tangible
2. Inseparable Production and Consumption service is produced and consumed at the
same time, RARE to try service before using cannot return once it has been performed
or inspect out flaws
Extended warranties usually provided because of high risk purchase
3. Heterogeneous aiailit i seie’s ualit; poduts a e fied efoe gettig to
the consumer but services cannot be recalled and have greater variability in their
execution.
Using machines instead of people to lower variability (ATMs)
4. Perishable services cannot be stored for use in the future; if not consumed than
revenue potential is lost. Challenges and opportunities to marketers to match supply
and demand.
Ski resorts, airlines, movie theaters will offer lower prices during non-peak
periods of time to simulate demand
Providing Great Service: The Gaps Model
- Service Gap: results when a service fails to meet the expectations that customers have about
how it should be delivered
Knowledge Gap
- eflets diffeee etee ustoes’ epetatios ad fi’s
perception of those expectations
- Close:  deteiig ustoe’s ats through research using
marketing metrics
Standards Gap
- Fi’s peeptio of ustoe epetatios V. “tadads speifig
service to be delivered
- Close: set appropriate service standards and train the employees to
exceed these standards
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find more resources at oneclass.com
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