Marketing Managememnt 13Ed. Chapter 13

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Phil Kotler, Kevin Keller

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Marketing Managememnt 13Ed. Chapter 13

  1. 1. Designing and Managing Services 13 Marketing Management A South Asian Perspective, 13th ed
  2. 2. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Chapter Questions • How do we define and classify services and how do they differ from goods? • How do we market services? • How can we improve service quality? • How do service marketers create strong brands? • How can goods marketers improve customer support services?
  3. 3. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Aravind Eye Hospital provides comprehensive eye care services
  4. 4. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. What is a Service? 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.
  5. 5. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Service Sectors Government Private nonprofit Manufacturing Business Retail
  6. 6. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. General Motors’ OnStar Service
  7. 7. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Categories of Service Mix Pure tangible goodPure tangible good Good w/ accompanying servicesGood w/ accompanying services HybridHybrid Service w/ accompanying goodsService w/ accompanying goods Pure servicePure service
  8. 8. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Service Distinctions • Equipment-based or people-based • Service processes • Client’s presence required or not • Personal needs or business needs • Objectives and ownership
  9. 9. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 13.2 Continuum of Evaluation for Different Types of Products
  10. 10. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Distinctive Characteristics of Services Intangibility Inseparability Variability Perishability
  11. 11. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Physical Evidence and Presentation Place People Equipment Communication material Symbols Price
  12. 12. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Palace on Wheels provides the ultimate royal experience due to careful design and execution of various service elements
  13. 13. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. How to Increase Quality Control Invest in good hiring and training procedures Monitor customer satisfaction Standardize the service-performance process
  14. 14. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Matching Demand and Supply Demand side • Differential pricing • Nonpeak demand • Complementary services • Reservation systems Supply side • Part-time employees • Peak-time efficiency • Increased consumer participation • Shared services • Facilities for future expansion
  15. 15. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 13.3 A Blueprint for Overnight Hotel Stay
  16. 16. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Improving Service Quality • Listening • Reliability • Basic service • Service design • Recovery • Surprising customers • Fair play • Teamwork • Employee research • Servant leadership
  17. 17. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 13.4 Root Causes of Customer Failure
  18. 18. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Solutions to Customer Failures • Redesign processes and redefine customer roles to simplify service encounters • Incorporate the right technology to aid employees and customers • Create high-performance customers by enhancing their role clarity, motivation, and ability • Encourage customer citizenship where customers help customers
  19. 19. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 13.5 Three Types of Marketing in Service Industries
  20. 20. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 13.1 Factors Leading to Customer Switching Behavior • Pricing • Inconvenience • Core Service Failure • Service Encounter Failures • Response to Service Failure • Competition • Ethical Problems • Involuntary Switching
  21. 21. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 13.6 Service-Quality Model
  22. 22. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Gaps That Cause Unsuccessful Service Delivery • Gap between consumer expectation and management perception • Gap between management perception and service-quality specifications • Gap between service-quality specifications and service delivery • Gap between service delivery and external communications • Gap between perceived service and expected service
  23. 23. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Determinants of Service Quality Reliability Responsiveness Assurance Empathy Tangibles
  24. 24. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Best Practices • Strategic Concept • Top-Management Commitment • High Standards • Self-Service Technologies • Monitoring Systems • Satisfying Customer Complaints • Satisfying Employees
  25. 25. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 13.7 Importance-Performance Analysis
  26. 26. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership
  27. 27. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Developing Brand Strategies for Services Choosing Brand Elements Establishing Image Dimensions Devising Branding Strategy
  28. 28. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Customer Worries Failure frequency Downtime Out-of-pocket costs
  29. 29. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 13.4 Top Customer Service Providers • USAA • Four Seasons Hotels • Cadillac • Nordstrom • Wegman Food Markets • Edward Jones • Lexus • UPS • Enterprise Rent-A- Car • Starbucks • Ritz-Carlton • Amica Insurance • Southwest Airlines
  30. 30. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Marketing Debate  Is service marketing different from product marketing? Take a position: 1. Product and service marketing are fundamentally different. or 2. Product and service marketing are highly related.
  31. 31. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Marketing Discussion  Colleges and universities can be classified as service organizations.  How can you apply the marketing principles developed in this chapter to your school?  Do you have any advice as to how it could become a better service marketer?

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