Chapter 1: Service Marketing Overview
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Questions and Answers

What is the primary focus of marketing according to Philip Kotler?

  • Fostering customer growth (correct)
  • Enhancing product visibility
  • Generating maximum profit
  • Creating sustainable business models

Which of the following best defines the concept of 'service'?

  • A financial transaction involving goods
  • An intangible benefit offered to consumers (correct)
  • A manufactured product designed for resale
  • A tangible object produced and sold

What distinguishes the marketing of intangible services from the marketing of physical goods?

  • Intangibility and the inability to store services (correct)
  • The fixed pricing models
  • The need for physical inventory management
  • The process of service delivery

Which of the following is NOT a characteristic of services?

<p>Tangibility (A)</p> Signup and view all the answers

What is the relationship between service marketing and information requirements?

<p>Information is critical for understanding customer needs (C)</p> Signup and view all the answers

What is one marketing problem commonly associated with the intangibility of services?

<p>Inaccurate service evaluations (B)</p> Signup and view all the answers

Which statement appropriately describes the service exchange process?

<p>It involves creating customer satisfaction through interaction (C)</p> Signup and view all the answers

Which approach is commonly used to classify services?

<p>Service process and delivery methods (B)</p> Signup and view all the answers

What is the primary focus of the marketing exchange process?

<p>Understanding customer expectations (C)</p> Signup and view all the answers

Which factor can negatively impact the value for money offering?

<p>Higher interest rates (D)</p> Signup and view all the answers

In a SWOT analysis, which of the following represents internal factors?

<p>Strengths (A)</p> Signup and view all the answers

Which environment is primarily concerned with customers, competitors, and suppliers?

<p>Market environment (C)</p> Signup and view all the answers

What is the role of conducting a SWOT analysis in service marketing?

<p>To evaluate internal and external factors (B)</p> Signup and view all the answers

What aspect is crucial for organizations to be successful in competitive markets?

<p>Scanning the environment (C)</p> Signup and view all the answers

Which of the following is NOT part of the micro environment according to marketing principles?

<p>Economic conditions (A)</p> Signup and view all the answers

How does rising petrol prices affect marketing strategies?

<p>It may reduce disposable income. (D)</p> Signup and view all the answers

What is identified as a weakness in the SWOT analysis?

<p>Excessive product range with several low-volume brands (A)</p> Signup and view all the answers

Which of the following is mentioned as an opportunity for the company?

<p>Economic climate (A)</p> Signup and view all the answers

What external factor is listed as a threat to the company's performance?

<p>Demographic changes (C)</p> Signup and view all the answers

In the context of service marketing, which element describes the tangible or intangible offerings to customers?

<p>Product (C)</p> Signup and view all the answers

Which of the following is NOT mentioned as part of the macro environment factors?

<p>Internal management strategies (A)</p> Signup and view all the answers

What issue is related to the physical evidence in service marketing?

<p>Intangible nature of services (C)</p> Signup and view all the answers

What concept encompasses internal limitations affecting a company's goals?

<p>Weaknesses (A)</p> Signup and view all the answers

Which of the following is a service marketing mix component?

<p>People (B)</p> Signup and view all the answers

Which market condition is described as a factor the company should leverage?

<p>Demographic shifts (D)</p> Signup and view all the answers

What may result from shifts in political and legal environments?

<p>PEST analysis implications (D)</p> Signup and view all the answers

Which example represents a pure tangible good?

<p>Toothpaste (B)</p> Signup and view all the answers

What distinguishes people-based services from equipment-based services?

<p>People-based services can be delivered by skilled providers. (B)</p> Signup and view all the answers

In which scenario is customer presence crucial for service delivery?

<p>Medical surgery (B)</p> Signup and view all the answers

Which classification level focuses on whether the service is delivered by equipment or people?

<p>Level 1: Means of delivery (C)</p> Signup and view all the answers

Which of the following is an example of a hybrid service offer?

<p>Meal and services at Newscafe (A)</p> Signup and view all the answers

What is an example of a service that primarily serves business use?

<p>Legal consultancy (C)</p> Signup and view all the answers

What characterizes a core service with accompanying minor goods and services?

<p>Provides a primary service with additional minor offerings. (B)</p> Signup and view all the answers

Which of the following is NOT a characteristic of the Goods-Versus-Service Continuum?

<p>All services are purely intangible. (A)</p> Signup and view all the answers

What is a primary challenge associated with the intangibility of services?

<p>Inability to store the service for later use (A)</p> Signup and view all the answers

Which solution addresses the problem of service inseparability?

<p>Ensuring customer involvement (D)</p> Signup and view all the answers

How can heterogeneity in service delivery be managed effectively?

<p>Implementing quality control measures (B)</p> Signup and view all the answers

What does perishability in services imply?

<p>Services cannot be inventoried (B)</p> Signup and view all the answers

What is a solution to manage demand outpacing supply in service offerings?

<p>Utilizing differential pricing strategies (A)</p> Signup and view all the answers

What is one challenge related to the concept of service heterogeneity?

<p>Difficulty in standardizing service delivery (B)</p> Signup and view all the answers

Which of the following best describes the role of tangible evidence in service quality?

<p>Helps customers evaluate the quality of the service. (D)</p> Signup and view all the answers

Which benefit is associated with the intangibility of services?

<p>Provides opportunities for positive word-of-mouth (D)</p> Signup and view all the answers

What factor influences the quality of the service directly?

<p>The actions of the staff. (A)</p> Signup and view all the answers

Which approach helps mitigate the issues created by service perishability?

<p>Offering early bird pricing for services (B)</p> Signup and view all the answers

What method can improve customer interaction to address inseparability?

<p>Providing comprehensive training for service staff (B)</p> Signup and view all the answers

How is customer experience in service related to the process of service delivery?

<p>It takes place in real-time and addresses customer needs. (A)</p> Signup and view all the answers

What does the 'place' aspect refer to in service delivery?

<p>The various distribution channels utilized to deliver the service. (C)</p> Signup and view all the answers

Why is effective selection of contact staff important in services?

<p>To enhance the overall customer service experience (C)</p> Signup and view all the answers

What terms are commonly used to refer to pricing in services?

<p>Charges, rents, commissions, and premiums. (C)</p> Signup and view all the answers

What role does promotion play in service organizations?

<p>It helps to communicate benefits and influence target audience attitudes. (C)</p> Signup and view all the answers

What is a core characteristic of services as defined in the content?

<p>They are intangible and do not result in ownership. (D)</p> Signup and view all the answers

In the service delivery process, what does the nature of interaction encompass?

<p>Both the service provider's actions and customer interactions. (C)</p> Signup and view all the answers

Flashcards

Service Marketing

The process of creating, communicating, delivering, and exchanging value for customers, clients, partners, and society in the context of intangible services.

Marketing Exchange

A process where individuals or businesses obtain needed/wanted products by creating and exchanging value with others.

Service

Intangible offerings that satisfy customer needs.

Quality

A key feature of good marketing that provides genuine value to the customer.

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Service Marketing vs. Physical Goods Marketing

A comparison of how marketing differences from intangible, non-physical offerings versus tangible product marketing.

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Marketing Classification of Services

The variety of approaches used to categorize and classify different services offered.

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Characteristics of Services

Distinguishing features/characteristics of services in contrast to physical goods.

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Marketing Problems in Services

Challenges linked to marketing services and solutions needed to address them.

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Marketing Exchange Process

A complex process where a company identifies customer needs and finds ways to satisfy them.

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Value for Money Offering

The perceived value of a product or service based on its price compared to its perceived benefit.

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Micro-environment

Internal factors affecting an organization, like capabilities and vision.

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Macro-environment

External factors affecting the organization, like market trends and competitors.

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Market Environment

External factors related to customers, competitors, suppliers, and intermediaries.

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SWOT Analysis

A framework for evaluating internal strengths and weaknesses and external opportunities and threats.

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Strengths (SWOT)

Internal capabilities that help a company achieve its goals.

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Threats (SWOT)

External factors that could hinder a company's success.

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Tangible Evidence

Physical items that represent a service, like brochures.

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Customer Quality

Customers' assessment of the tangible aspects of a service.

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People in Service

Staff involved in delivering the service directly impacting quality.

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Service Process

How a service is delivered, satisfying customer needs.

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Place in Service

Service distribution depending on customer needs and preferences.

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Service Pricing

Methods like charges, fees, and commissions to cover costs and generate profit.

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Service Promotion

Communicating the service benefits to influence customer perception.

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Defining Services

Intangible acts or performances offered, not resulting in product ownership, tied or not to a product.

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SWOT analysis weaknesses

Internal limitations hindering a company's objectives, e.g., excessive product range, low budget, manufacturing skills needed

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SWOT analysis opportunities

External factors for a company's benefit, including economic conditions, demographic changes, and market trends

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SWOT analysis threats

Current and emerging external factors, e.g., competition, market pressure, and policies, challenging a company's success

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Macro environment influences

Changes in the economic, political, social, ecological, legal and technological aspects potentially affecting a company

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Service marketing mix

The seven elements encompassing marketing approach for a service – Product, Physical evidence, People, Process, Place, Pricing and Promotion

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Service product

The tangible and intangible aspects offered to a customer through a service

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Physical evidence

Tangible aspects of a service influencing its evaluation, even though the service itself is intangible

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Service people

The personnel involved in providing a service, playing a crucial role in its delivery

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Service process

A detailed method or system of completing a service

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Service place

Location or channels of delivery for a service

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Goods-versus-Service Continuum

A spectrum that shows how services and goods can be mixed or pure.

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Degrees of Tangibility

How tangible (physical) a product or service is.

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Classification of Services (Level 1)

Categorizing services based on how they're delivered (equipment or people).

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Classification of Services (Level 2)

Categorizing services based on customer presence.

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Classification of Services (Level 3)

Categorizing services based on personal vs. business use.

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Hybrid Service

A service that combines both goods and services.

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Pure tangible good

A product that is completely physical and has no accompanying services.

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Pure Service

A service that has no physical component; it is completely intangible.

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Intangibility of Services

Services cannot be seen, tasted, felt, heard, or smelled before purchase. This makes it harder to evaluate beforehand.

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Inseparability of Services

Services are often produced and consumed at the same time. The provider must be present.

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Heterogeneity of Services

Service delivery can vary greatly from one customer interaction to another. No two experiences are exactly alike.

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Perishability of Services

Services cannot be stored or saved; you lose a service if it isn't used at the moment.

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Service Intangibility Problems

Challenges in communicating the value of an intangible service to customers.

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Inseparability Solution

Strategies for improving the customer experience during service delivery, ensuring consistent quality.

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Heterogeneity Solutions

Methods of achieving more standard service consistency and quality control.

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Service Perishability Problem

Challenges in managing fluctuating demand (supply and demand).

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Service Perishability Solutions

Strategies to better balance supply and demand, including pricing adjustments.

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Service Solutions for communication Problems

Methods to overcome the challenges in communicating a service and making it clear to customers.

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Study Notes

Chapter 1: Service Marketing in Perspective

  • Service marketing is a process of exchange, relating to information needs.
  • Defining "service" is key.
  • Differentiating marketing of physical goods from services is important.
  • Various approaches to classifying services are discussed.
  • Distinguishing characteristics of services are identified.
  • Marketing problems and solutions related to service characteristics are explained.
  • Practical examples illustrate the theoretical concepts.
  • Service management solutions to marketing problems are provided.

Introduction

  • Marketing is about creating customer value and helping customers become better off.
  • Key watchwords are quality, service, and value.

Overview: Basic Concepts of Service Marketing

  • Service marketing is an exchange process.
  • Defining services and providing tangible/intangible classifications.
  • Types of services and their classifications are discussed (means of delivery, customer presence, personal vs business use).
  • Key concepts like tangible/intangible and tangibility are defined.

SWOT Analysis

  • Strengths: Internal capabilities helping a company reach its objectives, e.g., market leadership, technology, distribution, strong market positions.
  • Weaknesses: Internal limitations interfering with objectives, e.g., product range, advertising, manufacturing skills, poor performance.
  • Opportunities: External factors for company advantage, e.g., economic climate, demographics, market trends, technology.
  • Threats: Current and emerging external factors challenging performance, e.g., competitive activity, channel pressure, demographic changes, politics.

Service Marketing Mix (7Ps)

  • Product: The technical outcome of the service, tangible or intangible.
  • Physical Evidence: Tangible cues help customers judge the service before use, e.g., brochures, environment.
  • People: Organisation staff who deliver the service directly impact quality.
  • Process: Customer experience, viewed as how a service satisfies customer needs.
  • Place: Distribution channels related to service delivery.
  • Pricing: Terms used for pricing services (charges, rents, fees, etc.)
  • Promotion: Service communication strategies to target customers and influence their knowledge, attitude, and behaviour

Defining Services

  • An act or performance one party offers another—intangible, not tied to a physical product.

Degrees of Tangibility (Goods-Versus-Service Continuum)

  • Pure goods, hybrid, and pure services on a continuum showcasing levels of tangibility.

Classification of Services

  • Level 1: Means of delivery (equipment-based/people-based).
  • Level 2: Degree of dependence on consumer presence.
  • Level 3: Personal vs. business use.

Distinguishing Features of Services

  • Intangibility: Services cannot be seen, tasted, felt, heard, and/or smelled before use; tangible cues are important.
  • Inseparability: Services are created and consumed simultaneously.
  • Heterogeneity: Services are difficult to standardise across different instances and are affected by the service provider.
  • Perishability: Services cannot be stored for future use.

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Description

Explore the foundational concepts of service marketing in this quiz. Delve into the definition of services, their unique characteristics compared to physical goods, and various classification approaches. Understand the marketing challenges and solutions specific to service management through practical examples.

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