Copyright © 2003 Prentice-Hall, Inc Chapter 15 Designing and Managing Services by PowerPoint by Milton M. Pressley University of New Orleans

Copyright © 2003 Prentice-Hall, Inc Every business is a service business. Does your service put a smile on the customer’s face? Kotler on Marketing

Copyright © 2003 Prentice-Hall, Inc Keen.com is a virtual advice marketplace The Nature of Services  Government sector  Private non-profit sector  Business sector  Manufacturing sector  Service

Copyright © 2003 Prentice-Hall, Inc  Categories of Service Mix – the Continuum 0% %  Pure tangible good  Tangible good with accompanying services  Hybrid  Major service with accompanying minor goods and services  Pure service The Nature of Services

Copyright © 2003 Prentice-Hall, Inc  Characteristics of Services and Their Marketing Implications  Intangibility  Service positioning strategy can be made tangible through:  Place  People  Equipment  Communication material  Symbols  Price The Nature of Services

Copyright © 2003 Prentice-Hall, Inc The Nature of Services  Inseparability  Variability  Quality control by:  Good hiring and training procedures  Service blueprint  Monitoring customer satisfaction

Copyright © 2003 Prentice-Hall, Inc  Perishability  Strategies for better matching between demand and supply in a service business  Differential pricing  Nonpeak demand  Complementary services  Reservation systems  Part-time employees  Peak-time efficiency  Increased consumer participation  Shared services  Facilities for future expansion The Nature of Services

Copyright © 2003 Prentice-Hall, Inc The Nature of Services  Carbone and Haeckel purpose the following for customer experience engineering  Performance and context clues  Humanics  Mechanics  Experience blueprint

Copyright © 2003 Prentice-Hall, Inc Figure 15.1: A Service-Performance-Process Map: Nationwide Floral Delivery

Copyright © 2003 Prentice-Hall, Inc Marketing Strategies for Service Firms  Three Additional Ps  People  Physical evidence  presentation  Process

Copyright © 2003 Prentice-Hall, Inc Figure 15.2: Elements in a Service Encounter

Copyright © 2003 Prentice-Hall, Inc Figure 15.3: Three Types of Marketing in Service Industries

Copyright © 2003 Prentice-Hall, Inc Figure 15.4: Continuum of Evaluation for Different Types of Products

Copyright © 2003 Prentice-Hall, Inc Marketing Strategies for Service Firms  Service Companies face three tasks:  Competitive differentiation  Service quality  Productivity  Managing differentiation  Offering  Primary service package  Secondary service features

Copyright © 2003 Prentice-Hall, Inc Marketing Strategies for Service Firms  Faster and Better Delivery  Reliability  Resilience  Innovativeness  Image  Managing Service Quality  Perceived service  Expected service

Copyright © 2003 Prentice-Hall, Inc Marketing Strategies for Service Firms  Five gaps that cause unsuccessful delivery  Gap between consumer expectation and management perception  Gap between management perception and service-quality specification  Gap between service-quality specification and service delivery  Gap between service delivery and external communications  Gap between perceived service and expected service

Copyright © 2003 Prentice-Hall, Inc Figure 15.5: Service-Quality Model

Copyright © 2003 Prentice-Hall, Inc  Five determinants of service quality  Reliability  Responsiveness  Assurance  Empathy  Tangibles  Strategic Concept  Top-Management Commitment  High Standards  Self-Service Technologies (SSTS) Marketing Strategies for Service Firms

Copyright © 2003 Prentice-Hall, Inc Marketing Strategies for Service Firms  Monitoring Systems  Voice of the Customer (VOC) measurements  Customer importance and company performance  Importance-performance analysis Figure 15.6: Tracking Customer Service Performance