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(10)Differentiation New Services
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(10)Differentiation New Services

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Marketing

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  • 1. Service Differentiation
  • 2. Service Differentiation
    • The act of designing a set of meaningful differences to distinguish the company’s offering from competitors’ offerings.
            • Kotler (1997)
    • Differentiation is closely related to the concepts of positioning and branding.
  • 3. Bases for Differentiation
    • Cost *
    • Service product
    • Personnel
    • Channel
    * Probably not ideal, unless you’re the biggest player in a volume industry
  • 4. Cost Differentiation
  • 5. Service Product Differentiation
  • 6.
    • In product industries, services differentiation can be extremely effective.
  • 7. Personnel Differentiation
  • 8. Channel Differentiation
  • 9. How Can We Discover New Points of Differentiation?
    • Map the consumer’s CONSUMPTION CHAIN :
    • “… the first step toward strategic differentiation is to map your customer’s entire experience with your product or service.”
    • (MacMillan and McGrath (1997, pg. 144)
  • 10. Mapping the Consumption Chain
    • How do people know they need your service?
    • How do consumers find your offering?
    • How do consumers make their final selections?
    • How do customers order and purchase your service?
    • How is your service delivered?
    • What happens when your service is delivered?
    • How is your service paid for?
    • What is the customer really using your service for?
    • What do customers need help with when they use your service?
    • How are service failures handled?
    Source: Adapted from MacMillan and McGrath (1997)
  • 11. Developing New Services
  • 12. Why Do New Services Fail?
    • Lack of clear advantage over existing competition
    • Lack of well-developed PROTOCOL : “a statement that identifies a well-defined target market before product development begins; specifies customers’ needs, wants, and preferences; and carefully sates what the product would be and do.”
            • - Berkowitz et al.
  • 13. Developing New Services
    • Should involve customers
    • Should involve service workers
    • Should be objective, rigorous process
  • 14. New Service Continuum RISK REWARD Style Changes New Services for Existing Markets Major Innovations
  • 15. NEW SERVICE DEVELOPMENT PROCESS Concept Development and Evaluation Service Development and Testing Idea Generation and Screening Business Analysis Market Testing Commercialization
  • 16. Developing New Services
    • “ Our biggest competitor, by the way, isn’t IBM or Sony. It’s the way in which people currently do things.”
          • Mil Ovan, marketing executive with Motorola

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