Chapter 13 Designing And Managing Services


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Chapter 13 Designing And Managing Services

  1. 1. Part 5 : Shaping the Market Offerings Chapter 13 – Designing and Managing services
  2. 2. Managing Service Brands <ul><li>A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It may or may not be tied to a physical product </li></ul><ul><li>To brand a service organization effectively, the company must </li></ul><ul><li>Differentiate its brand through: </li></ul><ul><li>Primary service features e.g. the bankers mention its low loan-interest rates, excellent services, financial counselor </li></ul><ul><li>Secondary service features as e.g. the client is using a package of bank offerings – credit card, car leasing plans, auto insurance etc </li></ul>
  3. 3. Managing Service Brands <ul><li>Develop appropriate brand strategies through: </li></ul><ul><li>Choosing brand element: such as logo, symbol, slogan and characters to build brand awareness or an easy to remember brand name ex: “One night service” for Tiki (Titipan Kilat) </li></ul><ul><li>Establishing image dimensions: such as the expertise, trustworthiness, and likeability from the workers who provide the service (service associations) may affect evaluation of service quality. Thus, service firms must design marketing communication so that consumers learn more about the brand than the information they get alone. </li></ul><ul><li>Devising branding strategy: finally services also must consider developing a brand portfolios that permits positioning and targeting of different market segments. In other words, classes of services can be branded vertically on the basis of price and quality. For example, Delta Airlines brands its business-class service as BusinessElite, its frequent-flier program as Sky Miles, its in flight magazine as Sky magazine, its airport lounges as Crown Room Clubs </li></ul>
  4. 4. Managing Product Support Services <ul><li>How products can be augmented with key service differentiators such as ordering ease, delivery, installation, customer training, customer consulting, and maintenance and repair  as Product Support Service for competitive advantage. </li></ul><ul><li>To provide the best support, a manufacturer must identify the services customer value most and their relative importance. There are three specific worries for customers: </li></ul><ul><li>They worry about reliability  failure frequency or break down (for machine) </li></ul><ul><li>They worry about downtime (the longer the downtime, the higher the cost). Thus they count on the seller’s service dependability to fix the machine quickly </li></ul><ul><li>They worry about out of pocket costs. How much does the customer have to spend on regular maintenance and repair cost ? </li></ul>
  5. 5. Managing Product Support Services <ul><li>Thus the service mix include both </li></ul><ul><li>Presale services by facilitating service (such as installation, staff training, maintenance and repair service) and adding value augmenting services (such as warranty, free quality inspection for certain times, trade in allowance) </li></ul><ul><li>Post sale services by providing customer service departments such as receive customer requests, suggestions, and even complaints so that these departments need to handle them carefully </li></ul>