TTEEAACCHHIINNGG SSEERRVVIICCEESS MMAARRKKEETTIINNGG:::::::: CChhaalllleennggiinngg OOuurr OOwwnn aanndd OOtthheerrss’’ AAssssuummppttiioonnss CChhrriissttoopphheerr LLoovveelloocckk YYaallee SScchhooooll ooff MMaannaaggeemmeenntt AAMMAA SSeerrvvSSIIGG DDooccttoorraall CCoonnssoorrttiiuumm WW..PP.. CCaarreeyy SScchhooooll ooff BBuussiinneessss AArriizzoonnaa SSttaattee UUnniivveerrssiittyy,, OOccttoobbeerr 88,, 22000055 OOvveerrvviieeww:: QQuueessttiioonnss ffoorr DDiissccuussssiioonn aanndd DDeebbaattee –– NNoo EEaassyy AAnnsswweerrss ffoorr PPeeddaaggooggyy 1. Is business education in trouble? If so, what does it mean for teaching services marketing (SM)? 2. Intellectual ferment in academic marketing—where is it taking us? 3. How is teaching SM courses constrained by what comes earlier ? 4. How should SM pedagogy be shaped by degree structure and course format? 5. Are we doing enough in SM courses to teach skills in market analysis and competitive strategy? 6. What do you see as SM’s foundation disciplines? SSlliiddee ©©22000055 CChhrriissttoopphheerr LLoovveelloocckk ((11)) IIss BBuussiinneessss EEdduuccaattiioonn iinn TTrroouubbllee?? iiff ssoo,, wwhhaatt ddooeess iitt mmeeaann ffoorr tteeaacchhiinngg sseerrvviicceess mmaarrkkeettiinngg ?? IIss BBuussiinneessss EEdduuccaattiioonn iinn TTrroouubbllee ?? SSoommee EExxtteerrnnaall PPeerrssppeeccttiivveess ffrroomm UU..SS..AA.. • Business school education attacked for lacking relevance • Enrollment falling in many MBA programs in U.S.A. Would-be students can’t justify $ cost (+ time) vs. pay-off • Professors are criticized for: – lacking real-world experience to bring to classroom – Inhabiting overly-specialized departmental silos, – being too focused on publishing narrow, theoretical, quantitatively- based research studies in little-read journals • Part-time/ extension programs are proliferating. Are these: – genuine responses to learning needs of working adults? or – exploitative, low-cost, cash cows where sponsoring institution lends its brand name but exercises minimal quality control? SSlliiddee ©©22000055 CChhrriissttoopphheerr LLoovveelloocckk WWhhaatt DDooeess TThhiiss MMeeaann ffoorr SSeerrvviicceess MMaarrkkeettiinngg ?? AArree WWee PPaarrtt ooff tthhee PPrroobblleemm……oorr tthhee SSoolluuttiioonn ?? • What institutional constraints do we need to challenge? • What goals should we set to improve our teaching? – Up-to-date theoretical structure, concepts, frameworks – Real-world applications – Breadth of examples from different service industries, countries – Student exercises, projects that will boost excitement and learning – Skill development in pedagogies—avoid over-reliance on PPT lectures (cid:1) Case discussions, (cid:1) Student presentations (group or individual) (cid:1) Interactive dialogue (cid:1) Computer–related exercises (cid:1) Guest speakers • What external relationships should we forge outside school? SSlliiddee ©©22000055 CChhrriissttoopphheerr LLoovveelloocckk ((22)) IInntteelllleeccttuuaall ffeerrmmeenntt iinn aaccaaddeemmiicc mmaarrkkeettiinngg——wwhheerree iiss iitt ttaakkiinngg uuss?? IInntteelllleeccttuuaall FFeerrmmeenntt iiss SShhaakkiinngg UUpp AAccaaddeemmiicc MMaarrkkeettiinngg TTooddaayy——TThhaatt’’ss HHeeaalltthhyy !! • Marketing has been redefined to emphasize processes involved in creating, communicating, and delivering value to customers (AMA, 2004) • Will that lead to a change in how introductory marketing courses are taught (e.g., value exchange approach?) • In Services Marketing, old perspectives are being dusted off and new ones advanced to shake up traditional assumptions about goods and services (and whether they are different) • What are implications for teaching? SSlliiddee ©©22000055 CChhrriissttoopphheerr LLoovveelloocckk CChhaalllleennggiinngg LLoonngg--hheelldd AAssssuummppttiioonnss CCaann BBee UUnnccoommffoorrttaabbllee,, IInnccoonnvveenniieenntt,, LLiibbeerraattiinngg.... Are you evolving teaching to move away from “goods are different from services” to include discussion of following perspectives (or even rebuild course around one of them)? – all products create “service”-- goods are simply “service-creating appliances” (Vargo & Lusch, 2004) – “everyone is in service” (Levitt, 1973); we should emphasize “service” not “services” (Rust, 1998) – Distinction between manufacturing and service industries often emotional, no longer relevant (The Economist , 2005-10-01) – Services, unlike goods, do not involve transfer of ownership (Judd 1964, Rathmell 1974) -– a long-ignored perspective – More useful to distinguish marketing exchanges according to whether involve transfers of ownership than whether product is manufactured or not (Lovelock & Gummesson, 2004) SSlliiddee ©©22000055 CChhrriissttoopphheerr LLoovveelloocckk IImmpplliiccaattiioonnss ooff NNoonn--OOwwnneerrsshhiipp ooff SSeerrvviicceess • Renting durable goods can form the basis for a service business • Service may take form of selling temporary use of portions of a larger physical entity • Customers using a supplier’s own goods, facilities, or networks are more closely engaged with the firm than those using things they own themselves • Time plays a central role in most services • Customers may have different choice criteria for rentals than for outright purchases • Services offer potential for resource sharing SSlliiddee ©©22000055 CChhrriissttoopphheerr LLoovveelloocckk ((33)) HHooww iiss tteeaacchhiinngg SSMM ccoouurrsseess ccoonnssttrraaiinneedd bbyy wwhhaatt ccoommeess eeaarrlliieerr ??