1. Copyright © 2003 Prentice-Hall, Inc. 15-1 Chapter 15 Designing and Managing Services by PowerPoint by Milton M. Pressley University of New Orleans

2. Copyright © 2003 Prentice-Hall, Inc. 15-2 Every business is a service business. Does your service put a smile on the customer’s face? Kotler on Marketing

3. Copyright © 2003 Prentice-Hall, Inc. 15-3 Keen.com is a virtual advice marketplace The Nature of Services  Government sector  Private non-profit sector  Business sector  Manufacturing sector  Service

4. Copyright © 2003 Prentice-Hall, Inc. 15-4  Categories of Service Mix – the Continuum 0% ---100%  Pure tangible good  Tangible good with accompanying services  Hybrid  Major service with accompanying minor goods and services  Pure service The Nature of Services

5. Copyright © 2003 Prentice-Hall, Inc. 15-5  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

6. Copyright © 2003 Prentice-Hall, Inc. 15-6 The Nature of Services  Inseparability  Variability  Quality control by:  Good hiring and training procedures  Service blueprint  Monitoring customer satisfaction

7. Copyright © 2003 Prentice-Hall, Inc. 15-7  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

8. Copyright © 2003 Prentice-Hall, Inc. 15-8 The Nature of Services  Carbone and Haeckel purpose the following for customer experience engineering  Performance and context clues  Humanics  Mechanics  Experience blueprint

9. Copyright © 2003 Prentice-Hall, Inc. 15-9 Figure 15.1: A Service-Performance-Process Map: Nationwide Floral Delivery

10. Copyright © 2003 Prentice-Hall, Inc. 15-10 Marketing Strategies for Service Firms  Three Additional Ps  People  Physical evidence  presentation  Process

11. Copyright © 2003 Prentice-Hall, Inc. 15-11 Figure 15.2: Elements in a Service Encounter

12. Copyright © 2003 Prentice-Hall, Inc. 15-12 Figure 15.3: Three Types of Marketing in Service Industries

13. Copyright © 2003 Prentice-Hall, Inc. 15-13 Figure 15.4: Continuum of Evaluation for Different Types of Products

14. Copyright © 2003 Prentice-Hall, Inc. 15-14 Marketing Strategies for Service Firms  Service Companies face three tasks:  Competitive differentiation  Service quality  Productivity  Managing differentiation  Offering  Primary service package  Secondary service features

15. Copyright © 2003 Prentice-Hall, Inc. 15-15 Marketing Strategies for Service Firms  Faster and Better Delivery  Reliability  Resilience  Innovativeness  Image  Managing Service Quality  Perceived service  Expected service

16. Copyright © 2003 Prentice-Hall, Inc. 15-16 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

17. Copyright © 2003 Prentice-Hall, Inc. 15-17 Figure 15.5: Service-Quality Model

18. Copyright © 2003 Prentice-Hall, Inc. 15-18  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

19. Copyright © 2003 Prentice-Hall, Inc. 15-19 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