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Marketing Services
Learning Objectives
 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?
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.
3 Additional Ps
 People
 Physical Evidence
 Process
Categories of Service Mix
Pure tangible good
Good w/ accompanying services
Hybrid
Service w/ accompanying goods
Pure service
Continuum of Evaluation for Different
Types of Products
Distinctive Characteristics
of Services
Intangibility
Inseparability
Variability
Perishability
Tackling Intangibility through Physical
Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
Palace on Wheels provides the ultimate royal
experience due to careful design and execution
of various service elements
Perishability: 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
Handling Variability through standardized
service performance process: A Blueprint for
Overnight Hotel Stay
Three Types of Marketing in Service
Industries
Service-Quality Model
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
Determinants of Service
Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Improving Service Quality
 Listening
 Reliability
 Basic service
 Service design
 Recovery
 Surprising
customers
 Fair play
 Teamwork
 Employee research
 Servant leadership
Best Practices
 Strategic Concept
 Top-Management
Commitment
 High Standards
 Self-Service
Technologies
 Monitoring Systems
 Satisfying Customer
Complaints
 Satisfying Employees
Importance-Performance Analysis
Customer Importance and Performance
Ratings
for an Auto Dealership
Let’s recap

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