Chapter 11 Services and Nonprofit Organization Marketing

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Chapter 11 Services andNonprofit Organization
Marketing
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Product Essentials
TOTAL MARKETING EFFORTS
Product (tangible)
Product Planning
The Offering
Idea (ambiguous)
Service (intangible)
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The Goods/Services Continuum
Computer diskette
Computer software
Computer
Computer program
Systems design
Exercise equipment
In-home rental of equipment
Use of equipment in hotel
Health and fitness clubs
Personal trainer
Off-the- rack furniture
Custom- made furniture
Cleaning furniture
Interior decorator
Reuphol- stering furniture
Self-service gasoline
Full-service gasoline
Driver ed. (firms car)
Driver ed. (consumers car)
Trans- mission overhaul
Pure goods
Pure services
Please note The above continuum should be viewed
left to right. Within each row, a consistent
pattern moves from pure good to pure service.
When comparing different rows, less consistency
exists due to the diversity of examples shown.
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Character of Services
Products
Services
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Character of Services
Products
Services
Invisible
Visible
Costs Seen
Costs not Seen
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Purchase Behavior for Services
Products
Services
Experience Attributes
Search Attributes
(restaurant)
(color)
Credence Attributes
(healthcare)
Difficult to Judge Quality
Easier to Judge Quality
Price More as a Surrogate of Quality
Price Less as a Surrogate of Quality
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Characteristics of Services
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Components of Service Quality
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Which Components are Most Important to Customers?

• 1. Reliability - 32
• 2. Responsiveness - 22
• 3. Assurance - 19
• 4. Empathy - 16
• 5. Tangibles - 11

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Importance of Service Quality

• Businesses with high Service Quality have
• 1. 10 higher prices
• 2. Grow 6 faster
• 3. 12 high return on sales

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Hard Customer-Defined Service Standards

• Federal Express missed pickups
• Dun Bradstreet 36 hour turnaround
• U.S. Healthcare 20-second call answering
• Lenscrafters glasses in an hour

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Soft Customer-Defined Service Standards

• Lands End personal attention
• General Electric summarize actions
• Nationwide Insurance responsiveness
• American Express open and honest

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Bottom Line for Service Quality

• 1. Clear and reasonable promises
• 2. Build staff skills
• 3. Emphasize Do-It-Right-First performance
• 4. Be great at problem resolution
• 5. Make it easy for customers to complain

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The Importance of Services
1
15
Gap Model of Service Quality
Expected Service
Gap 5
Perceived Service
Consumer
Provider
Service delivery
Communication with Customers
Gap 1
Gap 4
Gap 3
Service Quality Specifications

• Gap Legend
• Knowledge gap
• Standards gap
• Delivery gap
• Communications gap
• Service gap

Gap 2
Mgt. Perceptions of Con. Expectations

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Core and Supplementary Services
Advice and information
Problem solving
Order taking
Overnight transportation and delivery of packages
Billing statements
Supplies
Tracing
Pickup
Documentation
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Promotion Strategy Issues
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Price Strategy
Define unit of service consumption
Pricing Challenges
Determine if multiple elements are bundled
Trends have made pricing an active component
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Internal Marketing Activities
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Global Issues in Services Marketing
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Differences Between Nonprofit andProfit-Oriented
Marketing
Differences

• Scope
• Forms of exchange
• Complexity of objectives
• Distribution of benefits
• Market segments served
• Constituencies

Nonprofit Marketing
Profit-oriented Marketing
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Illustrations of Nonprofit Marketing

• Examples of Social Marketing
• Choose to Save - Am Savings Ed Campaign
• (see http//www.choosetosave.org
• Also see www.financenter.com)
• Road Rage
• Take folic acid
• Designated driver
• International Womens Rights
• 164 Fº beef

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For-Profit Support of Nonprofits

• Social Marketing
• Strategic Philanthropy
• Charity
• AMEXs Charge Against Hunger
• Walkers Corporate Citizenship
• TOP Nonprofits, Computer Food
• BOTTOM Government, Insurance,
• Chemicals Tobacco

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Importance of Social Marketing
http//www.social-marketing.org/
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Nonprofit Organizations
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Nonprofit Organization Marketing
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Nonprofit Organization Marketing Activities
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Market Objectives
Provide Services to

• Users
• Payers
• Donors
• Politicians

• Appointed officials
• Media
• General Public

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Target Markets
Unique Issues of Nonprofit Organizations
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Product Decisions
Distinctions betweenBusiness and
NonprofitOrganizations
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Promotion Decisions
Nonprofit Organization Promotion Decisions
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Pricing Decisions
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Boyne USA

• How do the characteristics of services apply to
  Boynes offerings?
• Explain the core and supplementary services for
  Boyne.
• What about distribution?
• How does Boyne match supply and demand for
  their services?

http//www.boyne.com/