service marketing (4).ppt

8/19/2019 Service marketing (4).ppt

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Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 1

Chapter 4

Creating the

Service Product


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Key Steps in Service Planning:Matching Opportunities to Resources

Must relate marketing opportunities to firm’s resources(physical, financial, technological, human)

Identify, evaluate firm’s marketing assets Customer portfolio/lifetime value (customer equity ) Market knowledge Marketing implementation skill Product line Competitive positioning strategies rand reputation (brand equity )

Identify, evaluate firm’s operating assets

Physical facilities, e!uipment "echnology and systems (especially I") #uman resources (num$ers, skills, productivity) %everage through alliances and partnerships Potential for customer self service Cost structure


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Operating Assets(Facilities/Equipment, IT Systems,

People, Op. Skills, Cost Structure

Service Design Involves Matching MarketingConcept with Operations Concept (&ig' ')

Corporate Obectivesan! Resources

Service DeliveryProcess

Marketing Assets(Customer !ase, "kt. #no$led%e,

Implementation Skills, !rand &eput.

Service Marketing Concept

*!ene'its to customer 'rom core/ supplementary elements, style,

serice leel, accessibility

*)ser costs/outlays incurred *Price/ot*er monetary costs*Time*"ental and p*ysical e''ort *+e%. sensory eperiences

Service Operations Concept

*+ature o' processes*-eo%rap*ic scope o' ops*Sc*edulin% *Facilities desi%n/layout

*& (numbers, skills*eera%e (partners, sel'0serice*Task allocation1 'ront/backsta%e

sta''2 customers as co0producers


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Understanding theComponents of the

Augmented Service Product


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Shostack"s Molecular Mo!el o# a $otal Market%ntity & Passenger Airline Service (&ig' +)

DistributionPrice

Marketing Positioning(Weighted toward evidence) Source: Shostack

K!

"angib#e e#e$ents %ntangib#e e#e$ents

&ervice

'reuenc

*ehic#e

"rans+ort

Pre- and+ost-'#ight

service

,ood

anddrink

%n-'#ightservice


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Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 -

Core Pro!ucts an! Supple'entary Services

Most firms offer customers a package of $enefits-core product (a good or a service)supplementary services that add value to the core

In mature industries, core products often $ecomecommodities

.upplementary services help to differentiate core products

and create competitive advantage $y-'acilitatin% use of the core serviceen*ancin% the value and appeal of the core


7/30Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - .

Core an! Supple'entary Pro!uct Design:(hat Do (e O##er an! )ow Do (e Create an! Deliver It*

Core

&chedu#ing Process

&ervice

/eve#

0usto$er

o#e

Supplementary

services offered and how created and delivered

Delivery Concept

For Core Product


8/30Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 -

(hat Shoul! +e the Core an! Supple'entary%le'ents o# Our Service Pro!uct*

#ow is our core product defined and what supplementaryelements currently augment this core

0hat product $enefits create the most value for customers

Is our service package differentiated from the competition inways that are meaningful to target customers

0hat are current levels of service on the core product andeach of the supplementary elements

Can we charge more for higher service levels on keyattri$utes (e'g', faster response, $etter physical amenities,easier access, more staff, superior cali$er personnel)

1lternatively, should we cut service levels and charge less


9/30Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 -

Core an! Supple'entary Services in a ,u-ury )otel.O##ering /uests Much More than a Cheap Motel01

R e s e r v a t i o n

V a l e tP a r k i n g

R e c e p t i o n

B a g g a g eS e r v i c e

C o c k t a i lB a r

R e s t a u r a n tE n t e r t a i n m e n t /

S p o r ts / E x e r c i s e

T e l e p h o n e

W a k e - u pC a l l

R o o mS e r v i c e

B u s i n e s s

C e n t e r

C a s h i e r

A B e ! o r t h e" i g h t i n a n

E l e g a n t P r i v a t eR o o m # i t h a

B a t h r o o m


10/30Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 1

(hat )appens2 (hen2 an! in (hat Se3uence*$he $i'e Di'ension in the Aug'ente! Service Pro!uct

Pre*isit

Reservation

4S% /4%S$ROOM O5%R6I/)$

Parking et car

Check in

Porter

4S% ROOM

!eal Pay "# $oom service

Phone

Check out

"i$e ,ra$e o' an vernight 6ote# &ta(real-time service use)



$he 7lower o# Service:Categori8ing Supple'entary Services (&ig' +2)

Core

Information

Consultation

Order-Taking

Hospitality

Payment

Billing

Exceptions

Safekeeping Facilitating elements

nhancing elements

K!!



7acilitating Services & In#or'ation("a$le ')

Core

Customers o'ten requirein'ormation about *o$ toobtain and use a product or serice. T*ey may alsoneed reminders and documentation



7acilitating Services & Or!er&$aking("a$le ')

"any %oods and sericesmust be ordered or resered in adance. Customers needto kno$ $*at is aailable and may $ant to secure

commitment to deliery

Core



7acilitating Services & +illing("a$le '3)

3o$ muc* do I o$e you45 Customers desere clear,accurate and intelli%iblebills and statements

Core



7acilitating Services & Pay'ent("a$le ')

Customers may pay 'asterand more c*eer'ully i' youmake transactions simpleand conenient 'or t*em

Core



%nhancing Services & Consultation("a$le '2)

6alue can be added to%oods and serices by o''erin% adice and consultation tailored toeac* customer7s

needs and situation

Core


17/30Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 1.

%nhancing Services & )ospitality("a$le '4)

Customers $*o inest time

and e''ort in isitin% abusiness and usin% itsserices desere to betreated as $elcome %uests(a'ter all, marketin% inited

t*em t*ere8

Core



%nhancing Services & Sa#ekeeping("a$le '5)

Customers pre'er not to$orry about lookin% a'ter t*e personal possessionst*at t*ey brin% $it* t*emto a serice site.

T*ey may also $ant deliery

and a'ter0sales serices 'or %oods t*at t*ey purc*aseor rent

Core



%nhancing Services & %-ceptions("a$le '6)

Customers appreciate some

'leibility in a business$*en t*ey make specialrequests. T*ey epect it $*en not eeryt*in% %oesaccordin% to plan

Core



%randingService Products



Service +ran!ing:Clari#ying Distinctive Service O##erings

"arriott otel !rands

Marriott #otels

Marriott 7esortsCourtyard $y Marriott

&airfield Inns

7esidence Inns

.pring#ill .uites"ownePlace .uites

Marriott 8acation Clu$sInternational

!ritis* 9ir$ays !rands

&ntercontinental

&irst

Clu$ 0orld0orld "raveller Plus0orld "raveller

'uropean

Clu$ 9urope9uro+"raveller

U( Domestic

.huttle



+ran!ing a )igh&$ech2 +9+ Pro!uct ,ine:A 7a'ily o# +ran!s at Sun Microsyste's

Corporate um$rella $rand Sun !icrosystems

Product line $rand (system support services)

Sun Spectrum Support

.u$+$rands ( levels of support service programs): Platinum: old :

Silver : %ron)e



Sun Spectru' Support:Sub&bran!ing )ighlights 7our Service ,evels

.u$+$randing clarifies service levels offered at different fees

Platinum: Mission Critical;

;n+site service /5, two+hour response<

telephone support /5, onsite parts replacement



*ew ServiceDevelopment



6ew Service Develop'ent:A )ierarchy o# 6ew Service Categories

"a:or serice innoations++new core products for previouslyundefined markets

"a:or process innoations++using new processes todeliver e=isting products and offer e=tra $enefits

Product line etensions++additions to current product lines

Process line etensions++alternative delivery procedures

Supplementary serice innoations++adding new orimproved facilitating or enhancing elements

Style c*an%es++visi$le changes in service design or scripts


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6ew Service Develop'ent:Physical /oo!s as Source o# Service I!eas

Customers can rent goods>use and return for a fee>instead of purchasing them

Customers can hire personnel to operate their own orrented e!uipment

1ny new dura$le product may create need for after+salesservices (possession processing) .hipping Installation

Pro$lem+solving and consulting advice Cleaning Maintenance 7epair ?pgrading @isposal


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Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 2.

Creating Services as Substitutes #orOwning an!


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Service Develop'ent through Delivery Options:Alternative Meal Service 7or'ats (&ig' +6)

)o'e

DeliveryOr!er #oo!2

give a!!ress

Driver rings

!oorbell

Pay !river2

take #oo! %at$elephone

Restaurant

Drive&InRestaurant."ake ,ut 1

See sign Or!er via

'icrophone

/et 'eal at

pickup2 pay

Drive away2

eat later

Stop car at

or!er point

7ast&7oo!Restaurant

.'at &n/

See sign Park an!

enter

Or!er 'eal,

an! pay

Pick up

'eal

7in! table

an! eat

Clear table

an! leave

)o'e

Catering

Arrange to'eet caterer

Plan 'eal2

pay !eposit7oo! an!

sta## arrive

Meal isprepare!an! serve!

%atSta## cleans

up= pay


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%le'ents o# a )otel O##ering:$ra!ing o## Roo' Price vs> 7eaturespeople/systems


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Success 7actors in 6ew Service Develop'ent

"arket syner%y Aood fit $etween new product and firm’s image/resources 1dvantage vs' competition in meeting customers’ needs .trong support from firm during/after launch &irm understands customer purchase decision $ehavior

Or%ani;ational 'actors .trong interfunctional cooperation and coordination Internal marketing to educate staff on new product and its

competition 9mployees understand importance of new services to firm

"arket researc* 'actors .cientific studies conducted early in development process Product concept well defined $efore undertaking field studies

service marketing (4).ppt

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