Chapter 12 Evans Berman

Chapter 12: Goods Versus Services Planning
Joel R. Evans & Barry Berman Marketing, 10e: Marketing in the 21st Century
Copyright Atomic Dog Publishing, 2007
Chapter Objectives
To examine the scope of goods and services, and explain how goods and services may be categorized To discuss the special considerations in the marketing of services To look at the use of marketing by goods versus services firms and provide illustrations of service marketing To distinguish between nonprofit and profit-oriented marketing To describe a classification system for nonprofit marketing, the role of nonprofit marketing in the economy, and applications of nonprofit marketing
Goods and Services (1)

Goods Marketing relates to selling physical products.
Durable goods are physical goods used over an extended period of time.
Nondurable goods are consumable products made from materials other than metal, wood, and hard plastics.
Goods and Services (2)

Services Marketing includes rented-goods services, owned-goods services, and nongoods services.

Rented-Goods Services: leasing auto, hotel room, office space, wedding items Owned Goods Services: auto or computer repairs, lawn care, home care Nongoods Services: personal advice, tutor, legal, accounting
Hidden Service Sector

Includes such areas as:

delivery installation training maintenance repair
Provided by firms emphasizing goods Infrastructure

Goods/Services Continuum
Computer diskette Exercise equipment Off-the-rack office furniture Computer software In-home rental of exercise equipment Custom-made office furniture Computer Use of exercise equip. in hotel Reupholstering of office furniture Computer programming Health-and-fitness club Cleaning of office furniture Systems design Personal trainer
Interior decorator
Self-service gasoline
Full-service gasoline
Transmission overhaul
Driver education (firm provides car)
Driver education (consumer

provides car)
Pure Goods
Pure Services
Unique Attributes of Services

Intangibility
Perishability Inseparability
Variability
A Classification System for Goods

1. By Market Segment 4. By Goal of Organization
2. By Degree of Durability
5. By Degree of Regulation
7. By Degree of Customer Contact
3. By Amount of Value Added
6. By Length of Distribution Channel
A Classification System for Services
1. By Market Segment
4. By Goal of Service Provider
2. By Degree of Tangibility
5. By Degree of Regulation
7. By Degree of Customer Contact
3. By Skill of Service Provider
6. By Degree of Labor Intensiveness
Intangibility of Services
Services often cannot be displayed, transported, stored, packaged, or inspected before buying. Repair services Personal services Advice services
ONLY the benefits derived can be described.
Perishability of Services
Many services cannot be stored for future sale. Idle time is lost. Movies playing to an empty house, or landscape workers lose time due to bad weather, idle time cannot be recaptured.
Service suppliers must try to manage service to consumer usage, and regulate demand
Inseparability of Service
A service provider and his or her services may be inseparable.
This is most likely when: Service is vital. Customer contact is an integral part. The quality of a repair depends on skill.
Variability in Service
There may be differing service performance from one time to another. Problem diagnosis such as repairs may be hard.
There may be a lack of standardization of services
Industrialization of Services
Hard Technologies substitute machinery for people, such as utilizing electronic financial transactions instead of human bank tellers.
Soft Technologies substitute pre-planned systems for individual services. Hybrid Technologies combine both hard and soft technologies.
Nonprofit Marketing
This form of marketing is conducted by
organizations and individuals that operate in the public interest or that foster a cause
and do not seek financial profits.
The Extent of Nonprofit Marketing

It may involve: Organizations (unions, charities, trade associations) People (political candidates) Places (resorts, convention centers, industrial sites) Ideas (stop smoking) Goods and Services (produced or sold)
A Classification System for Nonprofit Marketing
1. By Degree of Tangibility
3. By Overall Objective
2. By Organization Structure
4. By Constituency
Clients Versus Donors

Accountability on the part of the organization Recognition of their contributions Efficient operations
Convenient services
Clients desire
Inexpensive services
Donors desire
Access to services
Tangible benefits
High success rates
Chapter Summary
This chapter reviews the scope of goods and services, and explains how goods and services may be categorized. It discusses the special considerations in the marketing of services. It looks at the use of marketing by goods versus services firms and illustrates service marketing. It distinguishes between nonprofit and profit-oriented marketing. It describes a classification system for nonprofit marketing, the role of nonprofit marketing in the economy, and applications of nonprofit marketing.

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Chapter 12: Goods Versus Services Planning

Copyright Atomic Dog Publishing, 2007

Copyright Atomic Dog Publishing, 2007

Goods and Services (1)

Copyright Atomic Dog Publishing, 2007

Goods and Services (2)

Copyright Atomic Dog Publishing, 2007

Hidden Service Sector

delivery installation training maintenance repair

Provided by firms emphasizing goods Infrastructure

Driver education (firm provides car)

Driver education (consumer

Copyright Atomic Dog Publishing, 2007

Unique Attributes of Services

Copyright Atomic Dog Publishing, 2007

A Classification System for Goods

7. By Degree of Customer Contact

3. By Amount of Value Added

6. By Length of Distribution Channel

Copyright Atomic Dog Publishing, 2007

A Classification System for Services

4. By Goal of Service Provider

7. By Degree of Customer Contact

3. By Skill of Service Provider

6. By Degree of Labor Intensiveness

Copyright Atomic Dog Publishing, 2007

Copyright Atomic Dog Publishing, 2007

Copyright Atomic Dog Publishing, 2007

Copyright Atomic Dog Publishing, 2007

There may be a lack of standardization of services

Copyright Atomic Dog Publishing, 2007

Copyright Atomic Dog Publishing, 2007

and do not seek financial profits.

Copyright Atomic Dog Publishing, 2007

The Extent of Nonprofit Marketing

Copyright Atomic Dog Publishing, 2007

A Classification System for Nonprofit Marketing

Copyright Atomic Dog Publishing, 2007

Clients Versus Donors

High success rates

Copyright Atomic Dog Publishing, 2007

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