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Services are classified on the basis of:
•Degree of involvement of the customer:
•People Processing
•Possession Processing
•Mental Stimulus Processing
•Information Processing
Marketing of Services:
Services classification (Cont.):
Degree of tangibility:
• Highly Tangible
•Service Linked to
tangible goods
• Tangible goods linked to services
•Highly Intangible
(Pure service)
Classification on the basis of skills
& Expertise:
•Professional services
•Non-professional services
Services classification (Cont.):
Services classification (Cont.):
Classification on the basis of business
orientation:
•Non profit Organization.
•Commercial Organization.
Classification on the basis of End-user:
•Consumer Services.
•B2B/Industrial Services.
Characteristics of Services:
Characteristics
of Services
Intangibility Perishability Inseparability
Heterogeneity
/ Variability
Developing marketing strategies for
services:
 Product (Offering).
 Pricing.
 Promotion.
 Place (Distribution).
 People.
 Process.
 Physical Evidence.
Managing Service Differentiation:
 Offer.
 Delivery.
 Image of
organization.
Service gaps:
 Gap between customer expectation & management
perception
 Gap between management perception & service
quality specification
 Gap between service quality specification & service
delivery
 Gap between service delivery & external
communication
 Gap between perceived service & expected service
Determinants of service quality
(SERVQUAL):
 Reliability
 Responsiveness
 Assurance
 Empathy
 Tangibles
13-14
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Best Practices
 Strategic Concept
 Top-Management
Commitment
 High Standards
 Self-Service
Technologies
 Monitoring Systems
 Satisfying Customer
Complaints
 Satisfying Employees
Figure 13.5 Tracking Customer Service
Performance
13-17
Table 13.3 Customer Importance and
Performance Ratings for an Auto Dealership
13-18
Figure 13.6
Importance-Performance Analysis
Developing Brand Strategies for
Services
Choosing
Brand Elements
Establishing Image
Dimensions
Devising Branding
Strategy
Customer Worries
Failure frequency
Downtime
Out-of-pocket costs
13-21
Marketing Debate
 Is Service Marketing Different
From Product Marketing?
Take a position:
1. Product and service marketing are
fundamentally different.
2. Product and service marketing are highly
related.

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