marketing my slides 02

8/6/2019 Marketing My Slides 02

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Chapter 2

Service Characteristics of

Hospitality and Tourism Marketing

Marketing services are different from

marketing goods.


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Chapter Objectives

Describe a service culture

Identify four service characteristics that affectthe marketing of a hospitality or travel product

Explain marketing strategies that are useful inthe hospitality and travel industries


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Key Concepts

Service Culture

Intangibility

Inseparability

Variability

Perishability

Internal marketing

Interactive marketing

Managing differentiation

Managing service quality

Tangibilizing the service

product

Trade dress

Physical evidence

Point of encounter

Managing perceived risk

Managing capacity and

demand

Managing consistency


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The Service Culture

Service Culture: A culture that supports customerservice through policies, procedures, reward systems,

and actions.

Service culture can be implemented:

Through employee communicationThrough company policies

Through personal actions

Empowers employees to solve customer problems.

Has to start with top management and flow down.

Organizations culture must support and reward

customer need attention.

Ritz Carltons Gold Standards


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Intangibility

Inseparability

Variability

Perishability

Cant be seen, tasted, felt, heard,

or smelled before purchase.

Cant be separated from service

providers.

Quality depends on who provides

them and when, where and how.

Cant be stored for later sale or use.

Characteristics of Service Marketing


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Intangibility

Services can not be seen, tasted, felt, heard, or smelled.

Tangible evidences reduce uncertainty

High risk associated with services.

Lack of tangibility after the experience

Companies should create memorable guest experiences

Tangibles provide signals as to the quality of the intangible

service.

Exterior and Interior design

Uniforms of employees

Someone who purchase a service may go away empty-handed,but do not go away empty-headed - Robert Lewis


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Tangible and Intangible

Products/Services

PurePure

tangibletangiblegood; nogood; noserviceservice

TangibleTangiblegoods withgoods with

somesomeservicesservices

Hybrid:Hybrid:equal partequal partgoods andgoods and

serviceservice

MajorMajorserviceservice

withwithminorminorgoodgood

PurePureservice;service;

no tangibleno tangiblegoodgood

Milk Computer

& Warranty

Meal at

Restaurant

Legal

Advice

Hair

Styling


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Inseparability

Customer-contact employees are part of the product

Other customers become part of service

The employee becomes part of service

The customer and the employee interact with the

service delivery system.

Customers and employees must understand the

service delivery system.Select, hire and train customers.

Select and train contact employees

Empower employees


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Variability

Services are highly variable Services are produced and consumed

simultaneously.

Service consistency depends on the service

providers skill. Fluctuating demand makes it difficult to deliver

consistent quality.

Lack of consistency a major source of customerdisappointment.

Guest expectations are different.

Train contact and non-contact employee

Quality can not be controlled; must be produced


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PerishabilityLack of ability to inventory

Lack of ability to inventory services can not be stored

Capacity and demand must be successfully managed

If services are to maximize revenue, they must manage

capacity and demand.

Change customer use pattern (Hourly, daily, seasonally)

Cross-train employees

Involve customer in the service delivery system


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Service firms use marketing to position themselves

strongly in chosen target markets.

In a service business the customer and frontlineservice employee interact to create service

Service providers must work to interact effectively

with customers to create superior value.

Successful service companies focus their attention on

both their employees and customers.

Management Strategies for

Service Business


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External marketing = company and customers

Internal marketing = company and employees

Interactive marketing = employees and customers


Service Business


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Internal Marketing

Internal Marketing:

The task oftrainingtrainingand motivatingmotivatingemployees to

provide good customer service.

* Customer contact employees* Supportive employees

Employees are a critical part of the product and

marketing mix

There is a need for internal and as well asexternal marketing.


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Interactive Marketing

Interactive Marketing:

Perceived service quality depends heavily on the quality

of the buyerbuyer--seller interactionseller interaction during the service

encounter. Service quality depends on both the service deliverer

and the quality of the delivery

The customer judges service quality not just on

technical qualitytechnical quality (the quality of the food) but also its

functional qualityfunctional quality (the service provided in the

restaurant).


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Management Strategies for Service

Business

1. Managing differentiation

Need to develop a differentiated offer, delivery

and image.

Offer innovative features

Airlines offer in-flight movie, advance seating,

frequent flyer award programs

QSR offers fast delivery services

Differentiate service delivery through: People Physical environment Process


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Service Business

3. Tangibilizing the service product

Promotional material,

Employees appearance, and

uniforms.

Physical environment

Building exteriors

Equipment Furniture and fixture

Signs


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Service Business

4. Managing the Physical Surroundings

Physicalevidence that is not managed

properly can hurt a business.

Poorly managed physical evidence sends

negative messages to customers.

Physical surroundings should be designed to

reinforce the products position (organization

image) in the customers mind.


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A Fishy Sign Story

NOW HIRING CLOSERS


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A Fishy Sign Story

NOW HIRING CLOSERS

Oops!! The C dropped off.

NOW HIRING LOSERS


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Service Business

5. Managing Employees as Part of the Product

In H&T employees are critical part of the

product and marketing mix

Human resources and marketing departments

must work together

The management should formulate policies

that support positive relations betweenemployees and guests.

Must manage service at the points of

encounter (R.Nykiel)


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Service Business

6. Managing Perceived Risk

Customers experience some anxiety before they

purchase hospitality and tourism services

A salesperson must reduce client fear and gain the

clients confidence.

FAM trips and sampling help alleviate anxiety

Hotels provide, rooms, food, beverage, andentertainment at no cost to the prospective client.

Customer loyalty increases for companies that have

provided a consistent product in the past.


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Service Business

7. Managing Capacity and Demand

Hospitality and tourism companies must adjust

their operating systems to enable them to operateat maximum capacity.

Complaints tend to increase when companies are

operating at full or near to full capacity;companies must remember that their goal is to

create satisfied customers.


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Service Business

8. Managing Consistency

Consistency is one of the key

factor in the success of a service

business. Basically, this means that

customers receive the service

they expect without unwanted

surprises.

Many factors work against

consistency

% 100 satisfaction guarantee

Product consistency

Price consistency

Procedure consistency

Service consistency

Taste consistency

Time consistency

Brand consistency


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Service Business

9. Managing the CustomerRelationship (CRM)

CRM is a managerial philosophy and practice

It combines marketing, business strategy, and

information technology to better understand the

customers, to custom-developed products for key

customers

CRM focuses on managing revenue opportunities fromcustomers, retaining customers, and enjoying a stream

of income from them over their lifetime.

Managing Switching Costs


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Next Chapter

The Role of Marketing

in Strategic Planning

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