Designing and managing services 1

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Designing and managing services 1

  1. 1. Chapter 14 Designing and Managing Services Marketing Management Tenth Edition Philip Kotler
  2. 2. Objectives <ul><ul><ul><ul><ul><li>Service Definitions & Classifications </li></ul></ul></ul></ul></ul><ul><li>How Services Differ Goods </li></ul><ul><li>Improving Service Differentiation, Quality, & Productivity </li></ul><ul><li>Improving Customer Support Services </li></ul>
  3. 3. Categories of Service Mix Tangible Good w/ Services Major Service w/ Goods Hybrid Pure Service Pure Tangible Good
  4. 4. Services Four Service Characteristics Inseparability Services cannot be separated from their providers Perishability Services cannot be stored for later sale or use Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Variability Quality of services depends on who provides them and when, where, and how
  5. 5. Services Overcoming Service Challenges Inseparability Increase productivity of providers Perishability Match supply and demand Intangibility Use cues to make it tangible Variability Standardize service production & delivery
  6. 6. Three Types of Marketing in Service Industries Internal marketing Company Customers External marketing Employees Interactive marketing Cleaning/ maintenance services Financial/ banking services Restaurant industry
  7. 7. Service Differentiation Offer Delivery Image
  8. 8. Service-Quality Model Expected service Management perceptions of consumer expectations Marketer Consumer Gap 1 Service delivery (including pre- and post-contacts) Gap 3 Translation of perceptions to service-quality specifications Gap 2 Gap 5 Perceived service External communi- cations to consumers Gap 4 Personal needs Past experience Word-of-mouth communications
  9. 9. Determinants of Service Quality <ul><li>Reliability </li></ul><ul><li>Responsiveness </li></ul><ul><li>Assurance </li></ul><ul><li>Empathy </li></ul><ul><li>Tangibles </li></ul>
  10. 10. Service Excellence <ul><li>Strategic Concept </li></ul><ul><li>Top-Management Commitment </li></ul><ul><li>High Standards </li></ul><ul><li>Monitoring Systems </li></ul><ul><li>Satisfying Customer Complaints </li></ul><ul><li>Satisfying Both Employees & Customers </li></ul><ul><li>Managing Productivity </li></ul>
  11. 11. Importance-Performance Analysis 14 A. Concentrate here B. Keep up the good work D. Possible overkill C. Low priority Extremely important Slightly important Excellent performance Fair performance 1 2 9 11 13 12 3 4 5 6 7 8 10 # = Attributes
  12. 12. Complaint Resolution <ul><li>Hiring Criteria & Training for Employees </li></ul><ul><li>Develop Guidelines for Fairness </li></ul><ul><li>Remove Complaint Barriers </li></ul><ul><li>Analyze Types & Sources of Complaints </li></ul>
  13. 13. Review <ul><li>Service Definitions & Classifications </li></ul><ul><li>How Services Differ Goods </li></ul><ul><li>Improving Service Differentiation, Quality, & Productivity </li></ul><ul><li>Improving Customer Support Services </li></ul>

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