07-09-2019

Services Marketing
DESIGNING AND MANAGING SERVICES

www.youtube.com/watch?v=1zYsQSJvbog
Introduction to Services Marketing

www.youtube.com/watch?v=8vzAtjQ90tc
Marketing Mix for Services

Learning Objectives

1. HOW CAN SERVICES BE DEFINED, HOW DO THEY DIFFER

FROM GOODS AND ARE CLASSIFIED?
2. WHAT ARE THE NEW SERVICES REALITIES?
3. HOW CAN COMPANIES ACHIEVE EXCELLENCE IN SERVICES
MARKETING?
4. HOW CAN COMPANIES IMPROVE SERVICE QUALITY?
5. HOW CAN GOODS MARKETERS IMPROVE CUSTOMER-
SUPPORT SERVICES?

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The Nature of Services

• SERVICE
• ANY ACT OR PERFORMANCE ONE PARTY CAN OFFER TO
ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT
RESULT IN THE OWNERSHIP OF ANYTHING

Characteristics
of Services
Intangibility

Inseparability

Variability

Perishability

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Intangibility
• SERVICES CANNOT BE SEEN, TASTED, FELT, HEARD, OR SMELLED

Physical evidence and presentation tools:

 Place
 People
 Equipment
 Communication material
 Symbols
 Price

Intangibility

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Inseparability

• SERVICES ARE TYPICALLY PRODUCED AND CONSUMED

SIMULTANEOUSLY

Variability
• THE QUALITY OF SERVICES
DEPENDS ON WHO PROVIDES
THEM, WHEN AND WHERE, AND
TO WHOM
• AS SUCH, SERVICES ARE
HIGHLY VARIABLE

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Perishability
• SERVICES CANNOT BE STORED
• STRATEGIES TO MATCH DEMAND & SUPPLY

On demand side On supply side

• Differential pricing
• Nonpeak demand
• Complementary services
• Reservation services
• Part-time employees
• Peak-time efficiency routines
• Increased consumer participation
• Shared services
• Facilities for future expansion

Categories of
Service Mix
• A PURE TANGIBLE GOOD
• A TANGIBLE GOOD WITH
ACCOMPANYING SERVICES
• A HYBRID
• A MAJOR SERVICE WITH
ACCOMPANYING MINOR
GOODS/SERVICES
• A PURE SERVICE

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Service distinctions

 Equipment- or people-based
 Different processes of delivery
 Some need client’s presence
 Meets personal or business need
 Differs in objectives and ownership

Evaluation Continuum for Product Types

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CUSTOMERS JOURNEY PATH

Blueprint for Overnight Hotel Stay

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New Services Realities

• A SHIFTING CUSTOMER RELATIONSHIP
• CUSTOMER EMPOWERMENT &
COPRODUCTION
• SATISFYING EMPLOYEES AS
WELL AS CUSTOMERS

Achieving Excellence
In Services Marketing
• MARKETING EXCELLENCE

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Achieving Excellence
•
In Services Marketing
TECHNOLOGY AND SERVICE DELIVERY
• THE INTERNET ALLOWS FOR TRUE
INTERACTIVITY, CUSTOMER-SPECIFIC
AND SITUATIONAL PERSONALIZATION,
AND REAL-TIME ADJUSTMENTS OF THE
FIRM’S OFFERINGS

Best Practices of Top Service Companies

Top-
Strategic
management
concept
commitment

Satisfying High
customer standards
complaints

Monitoring
Profit tiers
systems

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Figure 14.4
Importance-Performance Analysis

Differentiating Services
• PRIMARY AND SECONDARY SERVICE
OPTIONS
• INNOVATION WITH SERVICES

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Managing Service Quality

• CUSTOMER SWITCHING BEHAVIOR FACTORS

 Pricing
 Inconvenience
 Core service failure
 Service encounter failures
 Response to service failure
 Competition
 Ethical problems
 Involuntary switching

FIGURE 14.5
SERVICE-QUALITY MODEL

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Improving
Service Quality
• Listening • Surprising
• Reliability customers
• Basic service • Fair play
• Service design • Teamwork
• Recovery • Employee research
• Servant leadership

SERVQUAL SCALE

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Managing Product-Support Services

• THREE TYPES OF CUSTOMER WORRIES

Failure frequency

Downtime

Out-of-pocket costs

POSTSALE SERVICE STRATEGY

• CUSTOMER-SERVICE EVOLUTION
• THE CUSTOMER-SERVICE IMPERATIVE

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SERVICE DOMINANT LOGIC

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