MKT607 – lectureaid_7

MKT607 – lectureaid_7 - MKT607 Marketing...

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MKT607 – Marketing Management Study aid: Lecture 7 Introduction The U.S. economy has experienced tremendous growth in the service sector over the past years. "Over the course of the past 40 years, the fastest-growing segment of the American economy has not been the production of tangibles but the performance of services" (Peter & Donnelly, 2007, p.174). For the most part, the marketing of services has been synonymous with the marketing of products. Basically, this assertion is true. However, there are certain distinct characteristics that services possess which make the task of determining a marketing mix for services a bit more difficult than for products. Characteristics of Services There are two categories under which services can be classified: service products and marketing services , sometimes called customer services. Service products tend to be intangible, "are exchanged directly from producer to user, cannot be transported or stored, and are almost instantly perishable" (Peter & Donnelly, 2007, p.175). Examples include entertainment, health care, banking, and insurance. Services are activities that are delivered as part of a transaction and include functions needed to service end customers, such as installing a product, maintenance and repair, free gift wrapping that accompanies a purchase, and answering customer inquiries. Providing Quality Services Providing quality service is imperative for any successful company. There is sometimes a gap between what customers expect and what the customer perceives the company to provide. Retaining customers is critical to the success of any business; therefore, companies need to understand the dimensions of service: Tangibles – physical proof that a service was performed. Reliability – consistent, dependable service. Do what you say you will do.
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MKT607 – lectureaid_7 - MKT607 Marketing...

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