‎Services dominate the global economy

‎Why ‎Most new jobs are generated by services

‎Understanding services offers personal competitive advantage

‎Services provide benefits without ownership

‎Definition ‎ ervices are economic activities performed by one party to

S
‎another. Often time-based, these performances bring
‎about desired results to recipients, objects, or other assets.
‎In exchange for money, time, and effort, service customers
‎expect value from access to labor, skills, expertise, goods,
‎facilities, networks, and systems.

‎People processing (e.g., passenger transport, hairstyling)

‎Possession processing (e.g., freight transport, repair services)

‎ ategories of Services
C
‎by Type of Processing
‎Mental stimulus processing (e.g., education)

‎Information processing (e.g., accounting)

‎Intangibility
‎Introduction to Services MKT
‎Heterogeneity (variability of quality),
‎IHIP
‎Inseparability of production and consumption

‎Perishability of output

‎Leadership

‎Internal quality and IT

‎Service-Profit Chain ‎Shows the tight links between ‎Employee engagement

‎Customer value satisfaction, and loyalty

‎Profitability and growth

‎Understanding Service Products, Consumers and Markets

‎Applying the 4 Ps of Marketing to Services

‎ eveloping Effective
D ‎ esigning and Managing the Customer Interface using the additional 3 Ps of
D
‎Service Marketing Strategies ‎Services Marketing (Process, People, and Physical Environment)

‎Developing Customer Relationships

‎Striving for Service Excellence

‎Information search

‎Clarify needs
-‎ Need arousal
‎Awareness of need
‎- Evoked set
‎Explore solutions

‎Identify alternative service products and suppliers

‎ eview supplier information (e.g. advertising,

R ‎
‎brochures, websites) ‎Consideration set
‎ nderstanding
U ‎
‎Multi-attribute model
‎ eview information from third parties (e.g.
R
‎Service Market, ‎1. Pre-purchase Stage ‎published reviews, ratings, comments on the ‎
‎Search, experience, and credence
‎ valuation of alternatives
E ‎web, blogs, complaints to public agencies,
‎Products, ‎(solutions and suppliers) ‎satisfaction ratings, awards) ‎attributes
‎
‎& Customer ‎Discuss options with service personnel
‎Perceived risk
‎
‎Formation of expectations
‎ et advice and feedback from third-party
G
‎- desired service level
‎advisors and other customers
‎- predicted service level
‎- adequate service level
‎Make decisions on service purchase and often make reservations ‎- zone of tolerance
‎ onsumer Behavior
C ‎ he Three-Stage Model of
T
‎in a Services Context ‎Service Consumption ‎ equest service from a chosen supplier or
R
‎initiate self-service (payment may be -‎ Servuction system
‎upfront or billed later) ‎- Theater as a metaphor
‎2. Service Encounter Stage ‎- Role and script theories
‎- Perceived control theory
‎Service delivery by personnel or self-service

‎Evalution of
-‎ Confirmation/ disconfirmation of expectations
‎service
‎- Dissatisfaction, satisfaction, delight, and service quality
‎performance
‎3. Post-encounter Stage
‎Future
-‎ Word-of-mouth
‎intentions
‎- Repurchase
‎and
‎- Loyalty
‎behaviors

‎ arket attractiveness
M
‎- Market size and growth
‎- Profitability ‎ eeds-based segmentation followed by demographic,
N
‎- Market trends ‎psychographic, and behavioral segmentation
‎Customer Analysis ‎Define and Analyze Market Segments

‎ ustomer needs
C ‎Identify attributes and service levels valued by each segment
‎- Under- or unserved needs
‎- More valued benefits

‎Current positioning

‎Positioning strategy
‎Competitor Analysis ‎Strengths
‎Determine customers the firm can serve best
‎ etermine
D
‎Weaknesses
‎Services Marketing ‎7 Ps of services marketing

‎Identify and analyze possibilities for differentiation

‎Positioning Services in Competitive Markets ‎Strategy and ‎Customer relationship management strategy
‎ urrent positioning and
C
‎brand image
‎Select Target Segments to Serve ‎Decide on focus strategy (i.e., service.market, or fully focused) ‎Action plan ‎Service quality and productivity strategy

‎ enefits must be
B
‎Strengths
‎meaningful to customers
‎Company Analysis ‎ elect benefits to emphasize
S
‎to customers
‎Weaknesses ‎ enefits must not be well
B
‎met by competitors
‎Values

‎Positioning must address an attractive market

‎ ‎Articulate Desired Position in the market
‎Positioning must give a sustainable competitive