Lec one

1. Chapter 1 Introduction to Services Marketing

3. Services dominate the United States Economy: GDP by Industry, 2001 (Fig. 1.1) Source: Bureau of Economic Analysis, November 2002 Finance, Insurance, Real Estate 20% Wholesale and Retail Trade 16% Transport, Utilities, Communications 8% Health 6% Business Services 5% Other Services 11% Government (mostly services) 13% Manufacturing 14% Agriculture, Forestry, Mining, Construction 8% SERVICES

4. Changing Structure of Employment as Economic Development Evolves (Fig. 1.2) Time, per Capita Income Share of Employment Industry Services Agriculture Source: IMF, 1997

9. Marketing Relevant Differences Between Goods and Services

14. Value Added by Tangible vs Intangible Elements in Goods and Services (Fig. 1.4) Fast food restaurant Plumbing repair Office cleaning Health club Airline flight Retail banking Insurance Weather forecast Salt Soft drinks CD Player Golf clubs New car Tailored clothing Furniture rental Lo Hi Hi Tangible Elements Intangible Elements

17. Important Differences Exist among Services

18. Four Categories of Services Employing Different Underlying Processes (Fig. 1.5) People Processing Possession Processing Mental Stimulus Processing Information Processing (directed at intangible assets) e.g., airlines, hospitals, haircutting, restaurants hotels, fitness centers e.g., freight, repair, cleaning, landscaping, retailing, recycling e.g., broadcasting, consulting, education, psychotherapy e.g., accounting, banking, insurance, legal, research TANGIBLE ACTS INTANGIBLE ACTS DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS What is the Nature of the Service Act? Who or What is the Direct Recipient of the Service?

25. The Services Marketing Mix

34. Managing the 7Ps Requires Collaboration between Marketing, Operations, and HR Functions (Fig. 1.7) Customers Operations Management Marketing Management Human Resources Management