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Services Defined The benefits provided by an organization that satisfy a buyer’s needs without conferring ownership of tangible goods. 18-1 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Growth in Services The service sector is growing due to: 18-2 Technology and online business models Customer service orientations Time-pressed consumers Outsourcing Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Characteristics of Services Intangibility Variability of Quality Services Inseparability Perishability of Demand 18-3 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Consumer Behaviour Attitudes 18-4 An impression is a strong influencer. People seek advice from current users. Needs and Motives Convenience, expertise, and personal attention helps sell a service. Purchase Behaviour People pay more attention to marketing information when they are ready to buy Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Services Marketing Mix • Consistency Product 18-5 Attitude • Completeness • Environment • Availability and Timing • Supplementary Services • Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Services Marketing Mix Price 18-6 • Regulated Pricing • Traditional Pricing • Negotiated Pricing Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Services Marketing Mix Distribution • Direct • Personal Contact Delivery of services is becoming more automated. There is much less personal contact online. 18-7 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Services Marketing Mix Marketing Communications • Mass advertising for awareness • Personal selling and direct response techniques • Web site for detailed information 18-8 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Not-for-Profit Marketing •Goods & Services •People •Places •Ideas •Organizations 18-9 NFP Marketing embraces a variety of situations. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Objectives of Not-for-Profit Marketing The goal is to promote social consciousness. Social Marketing 18-10 Using marketing to increase the acceptability of social ideas. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Characteristics of Not-for-Profit Marketing Not-for-Profit Profit Philosophy Emphasis on people, causes and ideas. Emphasis on goods and services Targets Donors and clients Clients Exchange Money, time, and expertise Money 18-11 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Characteristics of Not-for-Profit Marketing Not-for-Profit Profit Objectives Financial and nonfinancial (attitudes) Financial: sales, profit, ROI. Benefits Many contribute but few benefit directly Buyers benefit directly 18-12 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Types of Not-for-Profit Marketing 18-13 Organization Strives to gain acceptance of an organization’s objectives and services. People Creates a favourable impression of an individual or group. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Types of Not-for-Profit Marketing 18-14 Place Fosters a favourable attitude toward a destination. Ideas To win public acceptance of a viewpoint. Corporations employ advocacy advertising. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Marketing Strategy Product NFP organizations believe they provide what the public needs. The public simply needs to be made aware of a certain viewpoint. Price Money may change hands (donation) but time and expertise are volunteered. 18-15 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. Marketing Strategy Distribution Channels are direct (organization to donor). Intermediaries such as professional fund raisers may be used. Marketing Communications Mass advertising for awareness and direct response techniques for action are crucial. 18-16 Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.