designing and managing services marketing management, 13 th ed 13
TRANSCRIPT
Designing and Managing Services
Marketing Management, 13th ed
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-2
Chapter Questions
• How do we define and classify services and how do they differ from goods?
• How do we market services?
• How can we improve service quality?
• How do service marketers create strong brands?
• How can goods marketers improve customer support services?
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The Mayo Clinic Considers All Aspects of a Patient’s Experience
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What is a Service?
A service is any act of performance that one party can offer another that is
essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a
physical product.
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Service Sectors
GovernmentPrivate
nonprofit
Manufacturing
Business Retail
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General Motors’ OnStar Service
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Categories of Service Mix
Pure tangible goodPure tangible good
Good w/ accompanying servicesGood w/ accompanying services
HybridHybrid
Service w/ accompanying goodsService w/ accompanying goods
Pure servicePure service
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Service Distinctions
• Equipment-based or people-based
• Service processes
• Client’s presence required or not
• Personal needs or business needs
• Objectives and ownership
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Figure 13.2 Continuum of Evaluation for Different Types of Products
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Distinctive Characteristics of Services
Intangibility
Inseparability
Variability
Perishability
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Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
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Disney Relies Upon Tangible Cues
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Blue Man Group Exhibits Inseparability
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How to Increase Quality Control
Invest in good hiring and
training procedures
Monitor customer satisfaction
Standardize the
service-performance process
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Matching Demand and Supply
Demand side• Differential pricing• Nonpeak demand• Complementary
services• Reservation
systems
Supply side• Part-time
employees• Peak-time efficiency• Increased consumer
participation• Shared services• Facilities for future
expansion
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Figure 13.3 A Blueprint for Overnight Hotel Stay
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Consumer-Friendly Services
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Improving Service Quality
• Listening• Reliability• Basic service• Service design• Recovery
• Surprising customers
• Fair play• Teamwork• Employee research• Servant leadership
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Figure 13.4 Root Causes of Customer Failure
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Solutions to Customer Failures
• Redesign processes and redefine customer roles to simplify service encounters
• Incorporate the right technology to aid employees and customers
• Create high-performance customers by enhancing their role clarity, motivation, and ability
• Encourage customer citizenship where customers help customers
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Figure 13.5 Three Types of Marketing in Service Industries
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Table 13.1 Factors Leading to Customer Switching Behavior
• Pricing
• Inconvenience
• Core Service Failure
• Service Encounter Failures
• Response to Service Failure
• Competition
• Ethical Problems
• Involuntary Switching
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Figure 13.6 Service-Quality Model
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Gaps That Cause Unsuccessful Service Delivery
• Gap between consumer expectation and management perception
• Gap between management perception and service-quality specifications
• Gap between service-quality specifications and service delivery
• Gap between service delivery and external communications
• Gap between perceived service and expected service
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Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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Best Practices• Strategic Concept• Top-Management
Commitment• High Standards• Self-Service
Technologies• Monitoring Systems• Satisfying Customer
Complaints• Satisfying
Employees
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Figure 13.7 Importance-Performance Analysis
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Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership
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Developing Brand Strategies for Services
Choosing
Brand Elements
Establishing Image
Dimensions
Devising Branding
Strategy
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Customer Worries
Failure frequency
Downtime
Out-of-pocket costs
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Table 13.4 Top Customer Service Providers
• USAA• Four Seasons
Hotels• Cadillac• Nordstrom• Wegman Food
Markets• Edward Jones
• Lexus• UPS• Enterprise Rent-A-
Car• Starbucks• Ritz-Carlton• Amica Insurance• Southwest Airlines
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Marketing Debate
Is service marketing different fromproduct marketing?
Take a position:1. Product and service marketing are fundamentally different.
or
2. Product and service marketing are highlyrelated.
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Marketing Discussion
Colleges and universities can be classified as service organizations.
How can you apply the marketingprinciples developed in this chapter to your school?
Do you have any advice as to how it could become a better service marketer?