chapter 18: services and not-for-profit marketing copyright © 2010 pearson education canada...

Copyright © 2010 Pearson Education Canada

Chapter 18: Services and Not-for-Profit Marketing

Services Defined

The benefits provided by an organization that satisfy a buyers needs without conferring ownership of tangible goods.

An insurance company offers benefits many people don’t want to think about.

1



Growth in Services

The service industry is a growing industry creating more and more jobs each year. Growth is due to:

Technology and online business models

Changing customer characteristics

Marketing and customer service orientations in business

Outsourcing practices by companies.

2



Characteristics of Services

3

Services

Intangibility

Quality Variability

Inseparability

Demand Perishable



Consumer Buying Behaviour

4

Attitudes

Needs andMotives

PurchaseBehaviour

A good impression is a strong influencer. People seek advice from current users.

Convenience, expertise and personal attention help sell a service.

People pay more attention when ready to buy.



Services Marketing Mix

5

Product

Consistency

Attitude

Completeness

Environment

Availability and timing

Supplementary Services




6

Price

Regulated Pricing

Traditional Pricing

Negotiated Pricing




7

Distribution

Direct Channel

Personal Contact

Online Contact




8

MarketingCommunications

Advertising for awareness

Personal selling and direct response for desire and action

Web communications for detailed information and action



Characteristics of N-F-P Marketing

9

There are some differences between not-for-profit marketing and profit-oriented marketing.

Not-for-Profit Profit

Philosophy People, causes and ideas

Goods and services

Target Markets Donors and clients Clients

Exchange Money, time and expertise

Money



Characteristics of N-F-P Marketing

10

Not-for-Profit Profit

Objectives Financial and Non-financial (attitudes)

Financial: sales, profit, ROI

Benefits Many contribute but few benefit

Buyers benefit directly



Goals of Not-for-Profit Marketing

11

The goal is to promote social consciousness.

Effective marketing will increase the acceptability of social ideas.



Types of N-F-P Marketing

12

Not-for-profit marketing embraces a variety of situations:

Organizations

People

Places

Ideas



N-F-P Marketing Strategy

13

Product

Organizations believe they provide what the public needs. The public simply needs to be made aware of a certain viewpoint.

Price

Money may change hands (donation) but time and expertise are volunteered.



N-F-P Marketing Strategy

14

MarketingCommunications

Mass advertising for awareness and direct response and online communications for details and action.

Distribution

Channels are direct (organization to donor).

chapter 18: services and not-for-profit marketing copyright © 2010 pearson education canada...

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