1 POSITIONING AND MARKETING SERVICES - CHAPTER 6 Interaction between operations and marketing (and human resources) Operations objectives: output, operational efficiency, costs p. 126 Marketing objectives: sales, customer satisfaction p. 126 See Exhibit 6-1 p. 128 In services, these measures are inter related

2 POSITIONING AND MARKETING SERVICES Appeal to intangible aspects 127- Functional v. service interface marketing 129- –Depends on nature of service encounter: product- service proportion; technical-human proportion Ownership (products) v. use/experience (services) 130 Marketing mix: 4 Ps v. 7 Ps (participants, physical attributes, process) Also pp Marketing search, experience and credence qualities 131

3 POSITIONING AND MARKETING SERVICES Market segmentation 135 –Recall “focus” in porter’s generic business level strategies in mgt. 339 –Remember that it goes together with either “cost leadership” or “differentiation” –Taken together, these three define your “positioning” –Characteristics of effective segmentation p. 136 Measurable, accessible, substantial, actionable Marketing for customer retention 139 Customer loyalty and the “service profit chain” 139 Service customer switching p. 141 Area for research

4 ROLE OF TECHNOLOGY IN SERVICES Chapter 7 Process technology and information technology (Recall that in Mgt. 339, you had product technology too) Examples of technology in services p. 158 exhibit 7-1 Identification of technology needs p –Customer relations area 159- Also customer participation –Internal service processing area 160- Also materials management, MIS, ERP 165- –Knowledge management area 163- –Supplier relations/SCM area Sources of technology: development, buy/lease, sharing/alliances Justification of technology use in services Implementation issues

5 SERVICE DESIGN Chapter 8 Information sources –QFD 184- Customer requirements, evaluating competition –Benchmarking 187- Competitive strategy leads to process choice 190 Cross functional teams in design 183- Elements of design –Contact level 191 –Employee selection 190 –Equipment-people balance –Reliability 191 –Customer participation level 191 –Tangibles 190 –Service standards –Measurement systems 191 Design process p Documentation. Process charts/blueprints 201; Failure Mode Analysis 185