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Part 1 FOUNDATIONS FOR SERVICES MARKETING 1 Chapter Introduction to Services What are services? Why services marketing? Service and Technology Characteristics of Services Compared to Goods Services Marketing Mix Staying Focused on the Customer Objectives for Chapter 1:Introduction to Services Explain what services are and identify important trends in services. Explain the need for special services marketing concepts and practices and why the need has developed and is accelerating. Explore the profound impact of technology on service. Outline the basic differences between goods and services and the resulting challenges and opportunities for service businesses. Introduce the expanded marketing mix for services and the philosophy of customer focus, as powerful frameworks and themes that are fundamental to the rest of the text. Examples of Service Industries Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, bed breakfast ski resort, rafting Travel airline, travel agency, theme park Others hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design Figure 1.1Contributions of Service Industries toU.S. Gross Domestic Product Source: Inside Sam’s $100 Billion Growth Machine, by David Kirkpatrick, Fortune, June 14, 2004, p 86. Figure 1.2Tangibility Spectrum Tangible Dominant Intangible Dominant Salt Soft Drinks Detergents Automobiles Cosmetics Advertising Agencies Airlines Investment Management Consulting Teaching Fast-food Outlets Fast-food Outlets ? ? ? ? ? ? ? ? ? ? ? ? 0 10 20 30 40 50 60 70 80 1929 1948 1969 1977 1984 1999 Percent of U.S. Labor Force Source: Survey of Current Business, April 1998, Table B.8, July 1988, Table 6.6B, and July 1992, Table 6.4C; Eli Ginzberg and George J. Vojta, “The Service Sector of the U.S. Economy,” Scientific American, 2
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