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Chapter 12 MKT120 Services

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Chapter 12 MKT120 Services

  1. 1. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  2. 2. Learning Objectives LEARNING OBJECTIVES How does the marketing of services differ from the marketing of products? Why is it important that service marketers know what customers expect? What can firms do to help employees provide better service? What should firms do when a service fails? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-2
  3. 3. Enterprise Rent-A-Car“Meeting customer expectations is not sufficient; you need to exceed them, or 70% of customers will not buy from you again” © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-3
  4. 4. Service Lands’ End Website© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-4
  5. 5. The Service Product Continuum Most offerings lie somewhere in the middle Most offerings lie somewhere in the middle© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-5
  6. 6. Offering a service with your products© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-6
  7. 7. Economic Importance of Service Developed economies are increasingly service oriented economies© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-7
  8. 8. Services Marketing Differs from Product Marketing© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-8
  9. 9. Intangible  Requires using cues to aid customers  Atmosphere is important to convey value  Images are used to convey benefit of value© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-9
  10. 10. Inseparable Production and Consumption Production and consumption are simultaneous Little opportunity to test a service before use Lower risk by offering guarantees or warranties FedEx Commercial © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-10
  11. 11. Variable© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-11
  12. 12. Perishable How are each of these perishable services? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-12
  13. 13. Providing Great Service: The Gaps Model© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-13
  14. 14. The Knowledge Gap:Knowing What Customers Want The Knowledge Gap© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-14
  15. 15. Filling the Knowledge Gap© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-15
  16. 16. Understanding Customer Expectations versus© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-16
  17. 17. Evaluating Service Quality© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-17
  18. 18. Marketing Research: Understanding Customers Voice-of-customer program Voice-of-customer program YouTube Commercial© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-18
  19. 19. Zone of Tolerance© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-19
  20. 20. Check Yourself 1. What are the four marketing elements that distinguish services from products? 2. Why can’t we separate firms into just service or just product sellers? 3. What are some of the ethical issues associated with marketing professional services?© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-20
  21. 21. Customer Evaluation of Service Quality© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-21
  22. 22. The Standards Gap: Setting Service Standards Setting standards for quality Setting standards for qualityDeveloping systems to ensure high-quality serviceDeveloping systems to ensure high-quality service © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-22
  23. 23. The Delivery Gap: Delivering Service Quality© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-23
  24. 24. Empowering Service Providers© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-24
  25. 25. Providing Support and Incentives © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-25
  26. 26. Use of Technology RFID (radio frequency identification device) Retail store assistant (RSA) © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-26
  27. 27. The Communications Gap:Communicating the Service Promise J.D. Power and Associates Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-27
  28. 28. Service Recovery© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-28
  29. 29. Listening to the Customer© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-29
  30. 30. Finding a Fair Solution© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-30
  31. 31. Resolving Problems Quickly The longer it takes to resolve service failure the more irritated the customers It is in the firms best interest to solve problems quickly © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-31
  32. 32. The CREST Method of Resolving Service Failures C: “Calm the Customer” R: “Repeat the Problem” E: Use “Empathy Statements” S: “Solve the Problem” T: Make a “Timely Response”© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-32
  33. 33. Check Yourself 1. Explain the four service gaps identified by the Gaps Model. 2. List at least two ways to overcome each of the four service gaps.© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-33
  34. 34. Check Yourself 1. Why must companies worry about service recovery? 2. Name the two types of fairness that consumers might demand from a service recovery. 3. What does CREST stand for in the model of the same name?© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-34
  35. 35. GlossaryThe communications gap refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-35
  36. 36. GlossaryThe delivery gap is the difference between the firm’s service standards and the actual service it provides to customers. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-36
  37. 37. GlossaryThe knowledge gap reflects the difference between customers’ expectations and the firm’s perception of those customer expectations. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-37
  38. 38. GlossaryA service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-38
  39. 39. GlossaryService quality is the customers’ perceptions of how well a service meets or exceeds their expectations. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-39
  40. 40. GlossaryThe standards gap is the difference between the firm’s service standards and the actual service it provides to customers. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-40
  41. 41. GlossaryA voice-of-customer (VOC) program collects customer inputs and integrates them into managerial decisions. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-41
  42. 42. GlossaryA zone of tolerance is the area between customers’ expectations regarding their desired service and the minimum level of acceptable service. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 12-42

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