TAILIEUCHUNG - Trends in Marketing Services BY LINDAM. GORCHELS

SERVICE DIFFERS FROM product marketing due to the fact MARKETING that services are intangible and typically require personal interaction with the customer. Yet an understanding of this type of marketing is important since service jobs generate 74 percent of gross domestic product. Even though many of the tactics of product marketing (., advertising) require only minor adaptation to be applied to services, the role of interpersonal relationships distinguishes service and product marketing in strategic vision and organizational considerations. This article explores some of the trends in service marketing as they relate to strategic vision, operational and organizational changes, and marketing tactics. In terms. | Trends in Marketing Services Linda M. Gorchels Abstract Service marketing differs from product marketing due to the fact that services are intangible and typically require personal interaction with the customer. Yet an understanding of this type of marketing is important since service jobs generate 74 percent of gross domestic product. Even though many of the tactics of product marketing . advertising require only minor adaptation to be applied to services the role of interpersonal relationships distinguishes service and product marketing in strategic vision and organizational considerations. This article explores some of the trends in service marketing as they relate to strategic vision operational and organizational changes and marketing tactics. In terms of strategic vision examples are provided of companies that have successfully redefined their businesses as broader systems of services built on competitive core competencies. It then goes on to describe the need for a market-driven culture the use of training and incentives in making the transition the role of product management in enabling a crossfunctional perspective necessary for quality service to become a reality and the significance of mood or climate. Finally it presents comments on new service development segmentation database marketing channels and advertising as these relate to marketing in the service sector. Linda M. Gorchels Executive Marketing Management Programs University of Wisconsin Madison Management Institute 975 University Avenue Grainger Hall Madison WI 53706 LIBRARY TRENDS Vol. 43 No. 3 Winter 1995 pp. 494-509 1995 The Board of Trustees University of Illinois GORCHELS TRENDS IN MARKETING SERVICES 495 Introduction Marketing as the term is commonly understood today developed initially in connection with the selling of consumer packaged goods and later with the selling of industrial goods. Yet one of the major megatrends in America has been the phenomenal growth of services. Service jobs

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