Chapter 13. Designing and Managing Services

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DESIGNING and MANAGING
SERVICES
Genellie Rose “Gen” Antonio
Aggressive Business Developer
Ateneo Graduate School of Business
Understanding Marketing Management
https://www.linkedin.com/in/genellieroseantonio/

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Learning Objectives
1. How do we define and classify services
and how do they differ from goods?
2. What are the new services realities?
3. How can we achieve excellence in
services marketing?

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1.a How do we define services
A service is any act of performance
that one party can offer another
that is essentially intangible
and does not result in the
ownership of anything;
its production may or may not
be tied to a physical product.

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1.b How do we classify services?
Categories of Service Mix
1. Pure tangible good
2. Good with services
3. Hybrid
4. Service with good
5. Pure Service

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1.c How do we they differ from good?
Distinctive Characteristics of Services
i. Intangibility
Unlike physical products, services cannot
be seen, tasted, felt, heard, or smelled
before they are bought.
Buyers look for “evidence” of quality

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ii. Inseparability
Provider-Client interaction
is a special feature;
Provider is part of the service

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iii. Variability
Quality of services depends
on who provides them, making
it highly variable.

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iv. Perishability
Services can’t be stored;
There will be problem when
Demand fluctuates.

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i. Customer Empowerment
Customers are becoming more refined
with their request for proposal (RFP) or
Terms of Reference (TOR) and may require
separate prices for each scope of work.
They dislike having to deal with numerous
service providers.

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ii. Customer Co-production
Customers do not merely purchase a
service and use them as they are actively
involve in the service delivery process.

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iii. Satisfying employees as well as
customers
Excellent service companies know that
positive employee attitude will promote
stronger customer loyalty.

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2. How to achieve excellence in services marketing?
3 Broad Areas of Consideration

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3 Broad Areas of Consideration
i. External marketing - normal work of
preparing, pricing, distributing, and promoting
the service to customers;
ii. Internal marketing - training and motivating
employees to serve customers well; “getting
everyone else in the organization to practice
marketing” ;
iii. Interactive marketing - employees’ skill in
serving the client. Clients judge service not
only by its technical quality but also by its
functional quality.

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Best Practices of Top Service Companies
 Strategic Concept
 Top Management Commitment
 High Standards
 Profit Tiers
 Monitoring System
 Satisfying Customer Complaints

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Service Quality Model
The gaps model
provides a
comprehensive
and integrating
framework for
delivering service
excellence and
customer-driven
service innovation.

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Questions and Objectives
1. How do we define and classify services
and how do they differ from goods?
3. How can we achieve excellence in
services marketing?

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Summary
1. Services are intangible, inseparable, variable
and perishable.
2. New services realities: customer empowerment,
customer co-production and satisfying employee.
3. Excellence in services marketing can be
achieved by following the service triangle model,
considering the best practices from top service
companies and align with the service quality model.

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DESIGNING and MANAGING SERVICES
Excellence in Services Marketing
Genellie Rose “Gen” Antonio
Aggressive Business Developer
Ateneo Graduate School of Business

Chapter 13. Designing and Managing Services

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