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Marketing Management, 12/e

A South Asian Perspective
13
Designing and
Managing Services

Kotler

Koshy

Keller

Jha

labeling.Chapter Questions      What are the characteristics of products and how can they be classified? How can companies differentiate products? How can a company build and manage its product mix and product lines? How can companies combine products to create strong co-brands or ingredient brands? How can companies use packaging. and guarantees as marketing tools? 13-2 . warranties.

13-3 .Service 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.

nonprofit  Business  Manufacturing  Retail  13-4 .Service Sectors Government  Private.

Categories of Service Mix Pure tangible good  Good with accompanying service  Hybrid  Service with accompanying goods  Pure service  13-5 .

Service Distinctions Equipment-based or people-based  Service processes  Client’s presence required or not  Personal needs or business needs  Objectives and ownership  13-6 .

Distinctive Characteristics of Services Intangibility  Inseparability  Variability  Perishability  13-7 .

Physical Evidence and Presentation Place  People  Equipment  Communication material  Symbols  Price  13-8 .

How to Increase Quality Control Invest in good hiring and training procedures  Standardize the service-performance process  Monitor customer satisfaction  13-9 .

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 13-10 .

Table 13.1 Factors Leading to Customer Switching Behavior Pricing  Inconvenience  Core Service Failure  Service Encounter Failures  Response to Service Failure  Competition  Ethical Problems  Involuntary Switching  13-11 .

Gaps that Cause Unsuccessful Service Delivery      Gap between consumer expectation and management perception Gap between management perception and servicequality specifications Gap between service-quality specifications and service delivery Gap between service delivery and external communications Gap between perceived service and expected service 13-12 .

Determinants of Service Quality Reliability  Responsiveness  Assurance  Empathy  Tangibles  13-13 .

Best Practices Strategic concept  Top-Management commitment  High standards  Self-Service technologies  Monitoring systems  Satisfying customer complaints  Satisfying employees  13-14 .

Developing Brand Strategies for Services Choosing brand elements  Establishing image dimensions  Devising branding strategy  13-15 .

Customer Worries Failure frequency  Downtime  Out-of-pocket costs  13-16 .