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SERVICES MARKETING EBOOK

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Contemporary Services Marketing concepts and techniques are presented in an Australian and Asia-Pacific context. In this edition, the very latest ideas in the. Services Marketing eBook - Kindle edition by Christopher Lovelock, Paul Patterson, Jochen Wirtz. Download it once and read it on your Kindle device, PC, . "Services Marketing is well known for its authoritative presentation and strong instructor support. The new 6th edition continues to deliver on.

Preview this item Preview this item. Services marketing: New Jersey: Eighth edition View all editions and formats Rating: Subjects Marketing -- Management. Professions -- Marketing.

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Find a copy in the library Finding libraries that hold this item Details Additional Physical Format: Print version: Lovelock, Christopher H. Services marketing.

Document, Internet resource Document Type: Christopher H Lovelock Jochen Wirtz. Reviews User-contributed reviews Add a review and share your thoughts with other readers. Be the first. Add a review and share your thoughts with other readers.

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Primary Entity http: MediaObject , schema: Developing a strategy for competing effectively across different countries is becoming a major marketing priority for many service firms. Franchising offers a way to enable a service concept developed in one nation to be delivered around the world through dis- tribution systems o w n e d by local investors.

For example, FedEx and U P S have expanded into numerous countries by downloading local courier firms. Many w e l l - k n o w n service companies around the world are A m e r i c a n - o w n e d ; examples include Citicorp, McDonalds, and Accenture Andersen Consulting. T h e upscale Four Seasons hotel chain is Canadian. An alternative to mergers and takeovers is strategic alliances, where several firms working in the same or complementary indus- tries in different countries join forces to expand their geographic reach and product scope.

T h e airline and telecommunication industries are good examples. Managing in a Continually Changing Environment It has been said that the only person in the world w h o really appreciates a change is a wet baby.

However, the willingness and ability of managers in service firms to respond to the dramatic changes affecting the service economy will determine whether their own organizations survive and prosper or are defeated by more agile and adaptive c o m - petitors.

On the positive side, these changes are likely to increase the demand for many services, and the opening of the service economy means that there will be greater c o m - petition for that demand.

In turn, more competition will stimulate innovation, notably through the application of new and improved technologies.

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Both singly and in combi- nation, these developments will require managers of service organizations to focus more sharply on marketing strategy. T h e 8Ps of integrated service strategy are tools that service managers can use to develop effective strategies for mar- keting and managing many different types of services. T h e service decision framework reproduced in Figure 1. Your challenge is to learn to ask the right questions and to learn to use the resulting answers to develop a viable strat- egy, employing different elements of the 8Ps as appropriate.

T h e framework begins with a question that lies at the heart of marketing and busi- ness strategy in general: What business are we in? Determining the nature of the busi- ness goes beyond just specifying the industry with which a specific service is usually associated. Astute managers recognize that competition may come from outside that industry as well as within it.

Hence they ask: With what other goods and services do we compete? The need for forward thinking in decision making requires that m a n - agers also ask themselves, " W h a t forces for change do we face?

Only w h e n service marketers understand what problems customers are trying to solve through use of their products can we truly say that they know what business they are in.

Recognizing that most readers of this bookalready have some familiarity with marketing, we try to build on this prior understand-ing rather than repeating the basics of introductory marketing theory and practice.

Hence we leave detailed discussion of customers to Part II of the book and focus thereon what is distinctive about service consumption. O n e of the keys to strategy formulation in services, not normally addressed in goodsmarketing, is the question: What service processes can be used in our operation? As we showin this text, the importance of this question goes beyond operational issues. Marketers mustunderstand how the processes used to create and deliver service affect their customers, Human resource managers must understand how the choice of processes influences skill requirements and j o b descriptions for employees, including the nature of their interac- tions with customers.

We examine the issue of service processes in depth in Chapter 2. Conclusion W h y study services? M o d e r n economies are driven by service businesses, both large and small.

Services are responsible for the creation of a substantial majority of new jobs, both skilled and unskilled, around the world. T h e service sector includes a tremendous vari- ety of different industries, including many activities provided by public and nonprofit organizations. It accounts for over half the economy in most developing countries and for over 70 percent in many highly developed economies.

As weve shown in this chapter, services differ from manufacturing organizations in many important respects and require a distinctive approach to marketing and other management functions. As a result, managers w h o want their enterprises to succeed cannot continue to rely solely on tools and concepts developed in the manufacturing sector. In the remainder of this book, well discuss in more detail the unique challenges and opportunities faced by service businesses. Its our hope that youll use the material from this text to enhance your future experiences not only as a service employee or manager, but also as a customer of many different types of service businesses!

Study Questions and Exercises 1. Business schools have traditionally placed more emphasis on manufacturing industries than on service industries in their courses. W h y do you think this is so? Does it matter? W h y is time so important in services? W h a t are the implications of increased competition in service industries that have been deregulated? Give examples of h o w computer and telecommunications technologies have changed services that you use in your professional or personal life.

Choose a service company you are familiar with and show how each of the eight elements 8Ps of integrated service management applies to the company. Is the risk of unethical business practices greater or lesser in service businesses than in manufacturing firms?

Explain your answer.

W h y do marketing, operations, and human resources have to be more closely linked in services than in manufacturing? Give examples. Answer the four questions associated with " W h a t business are we in? Endnotes 1. The gross domestic product GDP and gross national product GNP are both widely used measures of a nations economic activity. They differ in their treatment of international transactions. For the United States, there is little difference between the two measures, since only a tiny percentage of Americans work abroad and the foreign earnings James C.

Hm Are You a Human?

T h e Free Press, , chap. Leonard L. Earl Sasser, R. Paul Olsen, and D. Daryl Wyckoff, Management of Service Operations: Text, Cases, and Readings Boston: Curtis P. This section is based onValarie A. Donnelly and W. George, Marketing of Services Chicago: American Marketing Association, , T h e 4Ps classification of marketing decision variables was created by E.

J e r o m e McCarthy, Basic Marketing: Richard D. Irwin, Inc. Since the late s, many theorists have tried to go beyond the 4Ps to capture the complexity of service marketing in memorable fashion, emphasizing singly or in combination, such factors as processes, personnel, and peripheral clues. O u r 8Ps model of service management has been derived and expanded from a framework that encompassed seven elements: Booms and Mary J.

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American Marketing Association, , 4 7 - 5 1. Subsequently, Booms created a cartoon diagram showing seven little "pea people," two of t h e m carrying oars, lifting a peapod-shaped boat. This gave us the idea for the metaphor of a racing "eight," comprising eight rowers the eighth being labeled "productivity and quality" plus a coxswain to control the boats speed and direction.

For a review of the literature on this topic, see Michael D. Hartline and O C. Timothy K. Gilmore, The Experience Economy Boston: Harvard Business School Press, See Christopher H. Lovelock and Charles B. Prentice-Hall, SeeValarie A. Zeithaml, A. Parasuraman, and Leonard L.

W h a t Have We Learned? It pre- shop was rather long, so Susan joined her friends at Burger King anddicted rain, so she grabbed an umbrella before leaving the apartment then splurged on a caffe latte from the adjacent Hav-a-Java coffeeand walking to the bus stop for her daily ride to the university.

On the stand. The food court was unusually crowded today, perhaps because ofway, she dropped a letter in a mailbox. The bus arrived on schedule. It the rain now pouring down outside. When they finally found a table, theywas the usual driver, who recognized her and gave a cheerful greeting had to clear off the dirty trays. The bus was quite full, carrying a referring to the previous customers.

After lunch, Susan stopped at the cash machine, inserted her Arriving at her destination, Susan left the bus and walked to the bank card, and withdrew some money. Remembering that she had aCollege of Business. Joining a throng of other students, she took a seat job interview at the end of the week, she telephoned her hairdresserin the large classroom where her finance class was held.

The professor and counted herself lucky to be able to make an appointment for laterlectured in a near monotone for 75 minutes, occasionally projecting in the day because of a cancellation by another client. Leaving thecharts on a large screen to illustrate certain calculations. Susan Student Union, she ran across the rain-soaked plaza to the Languagereflected that it would be just as effective—and far more convenient— Department.

In preparation for her next class, Business Spanish, sheif the course were transmitted over the Web or recorded on videotapes spent an hour in the language lab, watching an engaging videotape ofthat students could watch at their leisure. She much preferred the mar- customers making downloads at different types of stores, then repeat-keting course that followed because this professor was a very dynamic ing key phrases and listening to her own recorded voice.

Susan made several contributions to the discussion and felt that she With Spanish phrases filling her head, Susan headed off to visitlearned a lot from listening to others analyses and opinions. She liked the store, which had a bright, trendy decor She and three friends ate lunch at the recently modernized Student and well-groomed, friendly staff. Unfortunately, the cutter was runningUnion.

The old cafeteria, a gloomy place that served boring food at high late and Susan had to wait 20 minutes, which she used to review aprices, had been replaced by a well-lit and colorfully decorated new food chapter for tomorrows human resources course. Some of the othercourt, featuring a variety of small kiosks. These included both local sup- waiting customers were reading magazines provided by the store. Although she a slightly different cut. Susan agreed, although she drew the line at the She sat very still, watching the process in the mirror and turning her head when requested.

She was Learning Objectives pleased with the result and complimented the cutter on her work. After reading this chapter, you should Including the shampoo, the process had lasted about 40 minutes. She be able totipped the cutter and paid at the reception desk. This store was rather gloomy, smelled of cleaning sol- differences between various types ofvents, and badly needed repainting.

She was annoyed to find that servicesalthough her silk blouse was ready as promised, the suit she wouldneed for her interview was not. The assistant, who had dirty fingernails, define a service processmumbled an apology in an insincere tone without making eye contact.

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Her mail included a bill from her insurance company, which recognize that the nature of arequired no action since payment was deducted automatically from customers contact with a serviceher bank account. There was also a postcard from her optometrist, varies according to the underlyingreminding her to schedule a new eye exam. Susan made a mental processnote to call for an appointment, anticipating that she might need arevised prescription for her contact lenses.

She was about to discardthe junk mail when she noticed a flyer promoting a new dry-cleaningstore and including a coupon for a discount. She decided to try thenew firm and pocketed the coupon.

Since it was her turn to cook dinner, she looked in the kitchen tosee what food was available. Susan sighed—there wasnt much. Maybeshe would make a salad and call for delivery of a large pizza. T h e service sector is amazingly varied, and the variety of transactions made by Susan M u n r o represents only a small sample of all the services directed at individual con- sumers.

As a review of the listings in the Yellow Pages will show, there are also many business services directed at corporate downloadrs. Its surprising h o w many managers in service businesses consider their industries to be unique—or at least distinctively differ- ent. Certainly, there are distinctions to be drawn, but it would be a mistake to assume that any one service used by Susan has nothing in c o m m o n with any of the others she might use.

In Chapter 1, we looked at some of the ways in which services might differ from goods. In this chapter, our focus is on developing useful ways of grouping services into categories that share managerially relevant characteristics, especially as they relate to marketing strategy. In particular, we examine the nature of the processes—a key element among the 8Ps—by which services are created and delivered. We find that important insights can be gained by looking for similarities between "different" service industries.

T h e more service managers can identify meaningful parallels to their own firms situa- tions, the better their chances of beating the competition by borrowing good ideas from other businesses.

O n e hallmark of innovative service firms is that their managers have been willing to look outside their own industries for useful ideas that they can try in their own organizations. We start our search for useful categorization schemes by exam- ining how goods have traditionally been classified. The Value of Classification Schemes Classification schemes are the primary means used by researchers to organize items into different classes or groups for the purpose of systematic investigation and theory devel- opment.

They are as useful in management research as in pure science. Marketing prac- titioners have long recognized the value of developing distinctive strategies for different types of goods. O n e of the most famous classification schemes divides goods into con- venience, shopping, and specialty categories, according to h o w frequently consumers download them and h o w much effort they are prepared to put into comparing alternatives and locating the right product to match their needs.

This same classification can also be applied to retail service institutions, from financial service providers to hair salons. Another major classification is between durable and nondurable goods. Durability is closely associated with download frequency, which has important implications for the development of both distribution and communications strategies. Although service per- formances are intangible, the durability of benefits is relevant to redownload frequency.

For example, you probably download a haircut less often than you download a caffe latte at least if you are a typical student or a coffee connoisseur. Yet another classification is consumer goods those downloadd for personal or household use versus industrial goods those downloadd by companies and other orga- nizations. This classification relates not only to the types of goods downloadd—although there is some overlap—but also to methods for evaluating competing alternatives, pur- chasing procedures, size of download orders, and actual usage.

O n c e again, this classifica- tion is transferable to services. International Strategic Marketing. Business-To-Business Marketing. Professor Daniel Michel.

Cultural and Technological Influences on Global Business. Bryan Christiansen.

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Christopher Moore. Intelligent Businessman's Guide to Japan. Jon P. Boomer Marketing. Ian Chaston. James Rebischung. Great Wall of Numbers. Tim Swanson. Pricing Services and Revenue Management. Jochen Wirtz. Service Quality and Productivity Management. Service Marketing Communications.

Designing Customer Service Processes. Winning in Service Markets. Managing People for Service Advantage. Understanding the Role of Business Analytics. Hardeep Chahal. Balancing Capacity and Demand in Service Operations. Developing Service Products and Brands. Positioning Services in Competitive Markets.

Managing Customer Relationships and Building Loyalty. Understanding Service Consumers. Crafting the Service Environment. How to write a great review.Add a review and share your thoughts with other readers. G o o d s can be either a service or adescribed as physical objects or devices and services are actions or performances. O u r 8Ps model of service management has been derived and expanded from a framework that encompassed seven elements: Christopher H Lovelock ; Jochen Wirtz.

Business Trends Over the past 25 years, significant changes have taken place in h o w business firms oper- ate. Pricing Services and Revenue Management. This c o m p o n e n t plays three vital roles: The professor and counted herself lucky to be able to make an appointment for laterlectured in a near monotone for 75 minutes, occasionally projecting in the day because of a cancellation by another client.