4 Developing Service

PRODUCTS AND BRANDS

1
Services Marketing and Management
Dr Eszter Jakopánecz
Assistant Professor
University of Pécs
Faculty of Business and Economics
jakopanecz.eszter@ktk.pte.hu

Lovelock & Wirtz: Services Marketing and Management.

People, Technology, Strategy. Pearson, 2011

Witz & Lovelock: Essentials of Services Marketing.

Pearson, 2018

WIRTZ LOVELOCK



 Learning Objectives
4.1 Understand what constitutes a service product.
4.2 Be familiar with the Flower of Service model.
4.3 Know how facilitating supplementary services relate to the core
product.
4.4 Know how enhancing supplementary services relate to the core
product.
4.5 Understand branding at the corporate and individual service
product levels.
4.6 Examine how service firms use different branding strategies.

Copyright © 2018 Pearson Education Ltd. 2

 Learning Objectives
4.7 Understand how branding can be used to tier service products.
4.8 Discuss how firms can build brand equity.
4.9 Understand what is required to deliver a branded service
experience.
4.10 List the categories of new service development, ranging from
simple style changes to major innovations.
4.11 Describe how firms can achieve success in new service
development.

Copyright © 2018 Pearson Education Ltd. 3

 Developing Service
Products and Brands

4.1 Understand what constitutes a service

product.

WIRTZ LOVELOCK



 Understand what constitutes a service product
DEVELOPING SERVICE PRODUCTS AND
BRANDS

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 Understand what constitutes a service product
• The components of a service product
DEVELOPING SERVICE PRODUCTS AND

o Core Product
o Supplementary Services
o Delivery Processes
BRANDS

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 Developing Service
Products and Brands

4.2 Be familiar with the Flower of Service

model.

WIRTZ LOVELOCK



 The Flower of Service model
• A core product
DEVELOPING SERVICE PRODUCTS AND

surrounded by cluster
of supplementary
services
BRANDS

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 The Flower of Service model
• There are two kinds of supplementary services:
DEVELOPING SERVICE PRODUCTS AND

o Facilitating supplementary services: either needed for service delivery, or

help in the use of the core product
o Enhancing supplementary service: add extra value for the customer
• In a well-designed and well-managed service organization, the
BRANDS

petals and core are fresh and well-formed.

• Market positioning strategy helps to determine which
supplementary services should be included.

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 Developing Service
Products and Brands

4.3
Know how facilitating supplementary
services relate to the core product.

WIRTZ LOVELOCK



 Facilitating supplementary services
• Information:
DEVELOPING SERVICE PRODUCTS AND

o Customers often require information about how to obtain and use a product
or service.
• Order-Taking:
o Customers need to know what is available and may want to secure
BRANDS

commitment to delivery. The process should be fast and smooth.

• Billing:
o Bills should be clear, accurate and intelligible.
• Payment:
o Customers may pay faster and more cheerfully if you make transactions
simple and convenient for them.

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 Developing Service
Products and Brands

4.4
Know how enhancing supplementary
services relate to the core product.

WIRTZ LOVELOCK



 Enhancing supplementary services
• Consultation:
DEVELOPING SERVICE PRODUCTS AND

o Value can be added to goods and services by offering advice and consultation
tailored to each customer’s needs and situation.
• Hospitality:
o Customers who invest time and effort in visiting a business and using its
services deserve to be treated as welcome guests.
BRANDS

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 Enhancing supplementary services

• Safekeeping:
DEVELOPING SERVICE PRODUCTS AND

o Customers prefer not to worry about looking after the personal possessions
that they bring with them to a service site.
• Exceptions:
o Customers appreciate some flexibility when they make special requests and
expect responsiveness when things don’t go according to plan.
BRANDS

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 Developing Service
Products and Brands

4.5
Understand branding at the corporate
and individual service product levels.

WIRTZ LOVELOCK



 Branding: corporate and individual service products
• A product implies a
DEVELOPING SERVICE PRODUCTS AND

defined and consistent

“bundle of output”
• Brand names enables
the firm to communi-
cate the distinctive
BRANDS

experiences and
benefits associated
with a specific service
concept.
• A firms can differentiate its bundle of output from its competitors’.

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 Developing Service
Products and Brands

4.6 Examine how service firms use different

branding strategies.

WIRTZ LOVELOCK



 How service firms use different branding strategies

• Branded House:
DEVELOPING SERVICE PRODUCTS AND

o A company that applies its brand name to multiple offerings in unrelated

fields
• Sub-brands:
o The corporate or the master brand is the main reference point, but each
BRANDS

product has a distinctive name as well

• Endorsed Brands:
o The product brand dominates, but the corporate name is still featured
• House of Brands:
o Each of the brands owned by the corporation is promoted under its own
name

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 How service firms use different branding strategies

DEVELOPING SERVICE PRODUCTS AND
BRANDS

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 Developing Service
Products and Brands

4.7 Understand how branding can be used

to tier service products.

WIRTZ LOVELOCK



 How branding can be used to tier service products
DEVELOPING SERVICE PRODUCTS AND

British Airways offers seven distinct air travel products

• Four intercontinental offerings:
o First (deluxe service)
o Club World (business class)
o World Traveller Plus (premier economy class)
BRANDS

o World Traveller (economy class)

• Two intra-European offerings:
o Club Europe (business class)
o Euro-Traveller (economy class)
o UK Domestic (economy class between London and major British cities)

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 Developing Service
Products and Brands

4.8
Discuss how firms can build brand equity.

WIRTZ LOVELOCK



 Discuss how firms can build brand equity
DEVELOPING SERVICE PRODUCTS AND
BRANDS

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 Developing Service
Products and Brands

4.9 Understand what is required to deliver a

branded service experience

WIRTZ LOVELOCK



 Delivering Branded Service Experiences
• Besides designing great service products and giving
DEVELOPING SERVICE PRODUCTS AND

them a brand name, service marketers must consider:

o Having great processes in place
o The servicescape
o Investing in good employees
BRANDS

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 Delivering Branded Service Experiences

• Besides designing great service
DEVELOPING SERVICE PRODUCTS AND

products and giving them a brand

name, service marketers must
consider:
o Having great processes in place
BRANDS

o The servicescape
o Investing in good employees

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 Developing Service
Products and Brands

4.10 List the categories of new service

development, ranging from simple style
changes to major innovations.

WIRTZ LOVELOCK



 Hierarchy of New Service Categories
• Style changes:
DEVELOPING SERVICE PRODUCTS AND

o Visible changes in service design or scripts

• Service improvements:
o Modest changes in the performance of current products
• Supplementary service innovations:
BRANDS

o Addition of new or improved facilitating or enhancing elements

• Process-line extensions:
o Alternative delivery procedures

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 Hierarchy of New Service Categories

Product-line extensions:
DEVELOPING SERVICE PRODUCTS AND

•
o Additions to current product lines
• Major process innovations:
o Using new processes to deliver
existing products with added
BRANDS

benefits
• Major service innovations
o New core products for
previously undefined markets

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 Developing Service
Products and Brands

4.11
Describe how firms can achieve
success in new service development

WIRTZ LOVELOCK



 Achieving Success in Developing New Services
• In developing new services:
DEVELOPING SERVICE PRODUCTS AND

o Core product is of secondary importance

o Ability to maintain quality of the total service offering is key
o Accompanying marketing support activities are vital
o Market knowledge is of utmost importance
BRANDS

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 How branding can be used to tier service products

• Market synergy
DEVELOPING SERVICE PRODUCTS AND

o Good fit between new product and firm’s image/resources

o Advantage vs. competition in meeting customers’ needs
o Strong support from firm during/after launch
o Firm understands customer purchase decision behavior
BRANDS

• Organizational factors
o Strong interfunctional cooperation and coordination
o Internal marketing to educate staff on new product and its competition
o Employees understand importance of new services to firm
• Market research factors
o Scientific studies conducted early in development process
o Product concept well defined before undertaking field studies
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Thank You.

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