Marketing Management

By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

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SUMMARY by

Chapter

13 3

Designing and Managing Services

Today as product companies find it harder and harder to distinguish their physical products,

Service marketing is
different from goods marketing as service consumer relies on word of mouth, they rely heavily on price, personnel & physical cues to judge quality. They are highly loyal to service providers who satisfy them & because switching costs are high, consumer inertia can make it challenging to entice a customer away from a competitor.

they turn to service differentiation. Service providers find significant profitability in delivering superior services.

How do we define and classify services and how do they differ from goods
A service is any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything .Its production may or may not be tied to physical product Categories of services mix. Services can be equipment based or people based & they differ in their objectives and ownership. Service companies can choose among different processes to deliver their service. Services needs client presence & may meet a personal or business need.

Categories of services mix

Pure Tangible Goods No services accompany the product. E.g Soap,toothpaste The offering accompanied by one or more services E.g The Computers, Cell Phones & cars The offering contains equal parts goods and services. E.g The restaurants The offering consists of major service along with The additional services or supporting goods. E.g Airplane travel alog with its services The Offering consists of only a service.E.g psycotherapy The

Tangible Goods with accompanying services

Hybrid Major service with accompanying minor goods and services Pure Service

Chapter 13 - Designing and Managing Services Holistic Marketing for Services

External Marketing
It describes the normal It work of preparing,pricing,distribut ion,and promoting the service to customers.

Internal Marketing
It describes the training and motivating employees to serve the customers well.Engage every employee in the organization to practise marketing

Interactive Marketing
It describes the employee skills in serving the client

Distinctive Characteristics of Services

Intangibility
Services are intangible Service marketers must be able to transform intangible services into concrete benefits.

Inseparability

Services are typically produced and consumed simultaneously .Thus service providers must learn to work in larger groups to provide services to customers Services are variable and buyers are aware of this variability and often Services talk to others about quality before selecting a services. Invest In Good Hiring Standardize the service-performance process performance MonitorCustomer Satisfaction process Services cannot be stored hence there is always a mismatch between Services demand & supply.Stratgies that marketers must use : Demand Side - Differential Pricing,Nonpeak Demand,Complementary Services,Reservation Systems Supply Side - Part-Time employees ,Peak Time efficiency,Increased Time consumer participation,shared services,Facilities for future expansion

Variability

Perishability

Developing Brand Strategies for services

Chosing Brand Elements
Focus on logos,symbols,slogans to build brand awareness

Establishing Image Dimensions

desgin marketing communication, information programs and building brand personality

Devising Branding Stratgey Create a brand hierarchy and brand portfolio that permits positioning, targeting of different market segments Provide Post-Sales support Sales
Identify what is most valuable to customer and include repair & maintainence services

Chapter 13 - Designing and Managing Services Trends Best Practices of Service Quality Management

STRATEGIC COMPONE NT Top companies are customer obsessed They have clear sense of target customer and their need

TOP MANAGEM ENT COMMITME NT Thorough commitme nt to service e.g Marriot,Xer ox Both financial & service performanc e monitored by top manageme nt

HIGH STANDARDS Setting high service standards developing reliable,resi lient & innovative customer Intefrace systems

SELFSERVICE TEHNOLOGI ES replacing person to person interaction s with self service technologie s e.g ATMs Helping customers to use these facilities

MONITORIN G SYSTEMS Auditing service performanc e of own & competitor s

SATISFYING EMPLOYEES & CUSTOMERS Instilling a possitive attitude about customer satisfaction in employees