Designing and managing services 13


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Designing and managing services 13

  1. 1. Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha logo copy.tif SUMMARY by Chapter 13 3 Designing and Managing Services Today as product companies find it harder and harder to distinguish their physical products, they turn to service differentiation. Service providers find significant profitability in deliveringService superior services. How do we define and classify services and how domarketing is they differ from goodsdifferent from goods • A service is any act or performance one party can offer to another that is essentiallymarketing as service intangible and does not result in the ownership of anything .Its production may or mayconsumer relies on not be tied to physical product Categories of services mix.word of mouth, they • Services can be equipment based or people based & they differ in their objectives andrely heavily on price, ownership. • Service companies can choose among different processes to deliver their service.personnel & physical • Services needs client presence & may meet a personal or business need.cues to judgequality. They arehighly loyal to Categories of services mix • No services accompany the product. E.gservice providers Pure Tangible Goods Soap,toothpastewho satisfy them &because switching Tangible Goods with •The offering accompanied by one or more services E.g The accompanying services Computers, Cell Phones & carscosts are high,consumer inertia •The offering contains equal parts goods and services. E.g The Hybrid restaurantscan make it Major service with •The offering consists of major service along with Thechallenging to entice accompanying minor additional services or supporting goods. E.g Airplane goods and services travel alog with its servicesa customer awayfrom a competitor. Pure Service •The Offering consists of only a service.E.g psycotherapy The
  2. 2. Chapter 13 - Designing and Managing Services Holistic Marketing for Services External Marketing Internal Marketing Interactive Marketing•It describes the normal It •It describes the training •It describes the employee work of and motivating skills in serving the client preparing,pricing,distribut employees to serve the ion,and promoting the customers well.Engage service to customers. every employee in the organization to practise marketing Distinctive Characteristics of Services • Services are intangible Service marketers must be able to transform Intangibility intangible services into concrete benefits. • Services are typically produced and consumed simultaneously .ThusInseparability service providers must learn to work in larger groups to provide services to customers •Services are variable and buyers are aware of this variability and often Services talk to others about quality before selecting a services. Variability •Invest In Good Hiring •Standardize the service-performance process performance •MonitorCustomer Satisfaction process •Services cannot be stored hence there is always a mismatch between Services demand & supply.Stratgies that marketers must use : •Demand Side - Differential Pricing,Nonpeak Demand,Complementary Perishability Services,Reservation Systems •Supply Side - Part-Time employees ,Peak Time efficiency,Increased Time consumer participation,shared services,Facilities for future expansion Developing Brand Strategies for services Chosing Brand Elements Focus on logos,symbols,slogans to build brand awareness Establishing Image Dimensions desgin marketing communication, information programs and building brand personality Devising Branding Stratgey Create a brand hierarchy and brand portfolio that permits positioning, targeting of different market segments Provide Post-Sales support Sales Identify what is most valuable to customer and include repair & maintainence services
  3. 3. Chapter 13 - Designing and Managing Services TrendsBest Practices of Service Quality ManagementSTRATEGIC TOP HIGH SELF- MONITORIN SATISFYINGCOMPONE MANAGEM STANDARDS SERVICE G SYSTEMS EMPLOYEESNT ENT TEHNOLOGI •Auditing & •Setting COMMITME ES service CUSTOMERS•Top high companies NT service •replacing performanc •Instilling a are •Thorough standards person to e of own & possitive customer commitme •developing person competitor attitude obsessed nt to reliable,resi interaction s about•They have service e.g lient & s with self customer clear sense Marriot,Xer innovative service satisfaction of target ox customer technologie in customer •Both Intefrace s e.g ATMs employees and their financial & systems •Helping need service customers performanc to use e these monitored facilities by top manageme nt