introduction to SERVICES MARKETING

LEARNING OBJECTIVES $($LOs$)$

By the end of this chapter, the reader should be able to:

L$01$ Understand how services contribute to a country's economy

$102$ Know the principal industries of the service sector.

L$03$ Identify the powerful farces that are transforming service markets.

LO $4$ Understand how B$2$B services improve the productivity of individual firms and drive economic development.

L$05$ Define services using the nonownership framework.

Lo $6$ Identify the four broad "processing" categories of services.

L$07$

Be familiar with the characteristics of services and the distinctive marketing challenges they pose.

LO $8$

Understand the components of the traditional marketing mix applied to services.

$109$

Describe the components of the extended marketing mix for managing the customer interface.

L$010$ Appreciate that marketing, operations, human resource management, and IT functions need to be closely integrated in service businesses.

Lo $11$ Understand the implications of the service$-$profit chain for service management.

L$.12$ Know the five$-$part framework for developing effective services marketing strategies.

Figure $1\mathrm{.}1$ Tertiary education may be one of the biggest service purchases in life.

OPENING VIGNETTE

INTRODUCTIONTOTHE WORLD OF SERVICES MARKETING

Like every reader of this book, you're an experienced service consumer. You use an array of services every day, although some$-$like talking on the phone, using a credit card, riding a bus, streaming music, or withdrawing money from an ATM $-$ may be so routine that you hardly notice them unless something goes wrong. Other service purchases may involve more thought and be more memorable $-$ for instance, booking a cruise vacation, getting financial advice, or having a medical examination.

Enrolling in college may be one of the

companies that know how to please their customers while also running productive and profitable operations.

You probably have a few favorite firms whose services you like purchasing. Have you ever stopped to think about the way they succeed in delivering services that meet and sometimes even exceed your expectations? This book will show you how service businesses can be managed to satisfy customers and generate profits at the same time. In addition to studying key concepts, organizing frameworks, and tools of services marketing, you will also be introduced to many examples from firms across the United States and around the world. From the experiences of these firms, you can draw important lessons on how to succeed in increasingly competitive service markets.