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Service Product
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 1
Key Steps in Service Planning:
Matching Opportunities to Resources
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 2
Service Design Involves Matching Marketing
Concept with Operations Concept (Fig. 4.1)
Corporate Objectives
and Resources
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 3
Understanding the
Components of the
Augmented Service Product
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 4
Shostack’s Molecular Model of a Total Market
Entity - Passenger Airline Service (Fig. 4-2)
Distribution
Price
Vehicle
Service
frequency
Transport In-flight
service
Pre- and
post-flight Food
service and
drink
KEY
Tangible elements
Intangible elements
Marketing Positioning
(Weighted toward evidence) Source: Shostack
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 5
Core Products and Supplementary Services
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 6
Core and Supplementary Product Design:
What Do We Offer and How Do We Create and Deliver
It?
Core
Service Customer
Level Role
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 7
What Should Be the Core and Supplementary
Elements of Our Service Product?
How is our core product defined and what supplementary
elements currently augment this core?
R e s e r v a t io n
C a s h ie r V a le t
P a r k in g
B u s in e s s
C e n te r R e c e p t io n
A B e d fo r th e
Ro o m N ig h t in a n Ba gga g e
S e r v ic e E le g a n t P r iv a t e S e r v ic e
R o o m w it h a
B a th ro o m
W a ke -u p C o c k t a il
C a ll Ba r
Te le p h o n e R e s ta u ra n t
E n te r ta in m e n t /
S p o r t s / E x e r c is e
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4- 9
What Happens, When, and in What Sequence?
The Time Dimension in the Augmented Service Product
Reservation
Parking Get car
Porter
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 10
The Flower of Service:
Categorizing Supplementary Services (Fig. 4-5)
Information
Payment Consultation
Exceptions Hospitality
KEY:
Facilitating elements Safekeeping
Enhancing elements
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 11
Facilitating Services - Information
(Table 4.1)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 12
Facilitating Services - Order-Taking
(Table 4.2)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 13
Facilitating Services - Billing
(Table 4.3)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 14
Facilitating Services - Payment
(Table 4.4)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 15
Enhancing Services - Consultation
(Table 4.5)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 16
Enhancing Services - Hospitality
(Table 4.6)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 17
Enhancing Services - Safekeeping
(Table 4.7)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 18
Enhancing Services - Exceptions
(Table 4.8)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 19
Branding
Service Products
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 20
Service Branding:
Clarifying Distinctive Service Offerings
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 21
Branding a High-Tech, B2B Product Line:
A Family of Brands at Sun Microsystems
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 22
Sun Spectrum Support:
Sub-branding Highlights Four Service Levels
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 24
New Service Development:
A Hierarchy of New Service Categories
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 25
New Service Development:
Physical Goods as Source of Service Ideas
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 26
Creating Services as Substitutes for
Owning and/or Using Goods (Fig. 4-7)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 27
Service Development through Delivery Options:
Alternative Meal Service Formats (Fig. 4-8)
Fast-Food
Restaurant See sign Park and Order meal, Pick up Find table Clear table
(Eat In) enter and pay meal and eat and leave
Drive-In See sign Stop car at Order via Get meal at Drive away,
Restaurant order point microphone pickup, pay eat later
(Take Out)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 28
Elements of a Hotel Offering:
Trading off Room Price vs. Features/Services
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 29
Success Factors in New Service Development
Market synergy
Good fit between new product and firm’s image/resources
Advantage vs. competition in meeting customers’ needs
Strong support from firm during/after launch
Firm understands customer purchase decision behavior
Organizational factors
Strong interfunctional cooperation and coordination
Internal marketing to educate staff on new product and its
competition
Employees understand importance of new services to firm
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 4 - 30