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ServiceServiceServiceService

Any act of performance that oneAny act of performance that one

party can offer another that isparty can offer another that is

essentially intangible and does notessentially intangible and does notresult in the ownership of anything;result in the ownership of anything;

its production may or may notits production may or may not

be tied to a physical product.be tied to a physical product.

Marketing Management




ServiceService SectorsServiceService Sectors

Private

nonprofit

Business Manufacturing Retail

Government





PurePure

ServiceService

Categories of Service MixCategories of Service MixCategories of Service MixCategories of Service Mix

TangibleTangible

GoodGood

w/w/

ServicesServices

Major Major

ServiceService

w/ Goodsw/ GoodsHybridHybrid

PurePure

TangibleTangible

GoodGood






Figure 13.1 Continuum of EvaluationFigure 13.1 Continuum of Evaluation

for Different Types of Productsfor Different Types of ProductsFigure 13.1 Continuum of EvaluationFigure 13.1 Continuum of Evaluation

for Different Types of Productsfor Different Types of Products


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ServicesServices

InseparabilityServices cannot

be separatedfrom their providers

InseparabilityServices cannot

be separatedfrom their providers

PerishabilityServices cannot

be stored for later sale or use

PerishabilityServices cannot

be stored for later sale or use

Intangibility

Services cannotbe seen, tasted,

felt, heard, or smelled before

purchase

Intangibility

Services cannotbe seen, tasted,

felt, heard, or smelled before

purchase

Variability

Quality of services dependson who providesthem and when,where, and how

Variability

Quality of services dependson who providesthem and when,where, and how




ServicesServices

InseparabilityIncrease

productivity of providers

Inseparability

Increaseproductivity of

providers

PerishabilityMatch supplyand demand

Perishability

Match supplyand demand

Intangibility

Use cues tomake it tangible

Intangibility

Use cues tomake it tangible

VariabilityStandardize

serviceproduction& delivery

VariabilityStandardize

serviceproduction& delivery



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Place

People

Equipment

Communication material

Symbols

Price

Physical Evidence and Presentation



How to Increase Quality Control

Invest in good hiring and training procedures

Monitor customer satisfaction

Standardize the service-performance process




Matching Demand and Supply

Demand side•Differential pricing

•Nonpeak demand

•Complementary

services

•Reservation systems

Supply side

•Part-time employees

•Peak-time efficiency•Increased consumer

participation

•Shared services•Facilities for future

expansion




Three Types of MarketingThree Types of Marketing

in Service Industriesin Service IndustriesThree Types of MarketingThree Types of Marketing

in Service Industriesin Service Industries

Internalmarketing

CompanyCompany

CustomersCustomers

Externalmarketing

EmployeesEmployees Interactivemarketing

Cleaning/maintenance

services

Financial/bankingservices

Restaurantindustry




Service DifferentiationService DifferentiationService DifferentiationService Differentiation

Offer

Delivery

Image




Service-Quality ModelService-Quality ModelService-Quality ModelService-Quality Model

Expected service

Management perceptionsof consumer expectations

Marketer

Marke

ter

Consu

mer

Consumer

Gap 1Service delivery (including

pre- and post-contacts)

Gap 3Translation of perceptions

to service-quality specifications

Gap 2

Gap 5 Perceived service

Externalcommuni-cations to

consumers

Gap 4

Personal needs Past experienceWord-of-mouthcommunications

Marketing



Determinants of ServiceDeterminants of Service

QualityQualityDeterminants of ServiceDeterminants of Service

QualityQuality

®ReliabilityReliability

®ResponsivenessResponsiveness

®AssuranceAssurance

® EmpathyEmpathy

®

TangiblesTangibles




ServiceService

ExcellenceExcellenceServiceService

ExcellenceExcellence

®Strategic ConceptStrategic Concept® Top-Management CommitmentTop-Management Commitment

®High StandardsHigh Standards®Monitoring SystemsMonitoring Systems®Satisfying Customer ComplaintsSatisfying Customer Complaints

®Satisfying Both Employees & CustomersSatisfying Both Employees & Customers®Managing ProductivityManaging Productivity




A. Concentrate here B. Keep up the good work

D. Possible overkillC. Low priority

Importance-PerformanceImportance-Performance

AnalysisAnalysisImportance-PerformanceImportance-Performance

AnalysisAnalysisExtremely important

Slightly important

Excel le

ntperfo

rm

an

ce

Fairperfor m

an

ce

1 2

9

11 13 1214

3

4 5 678

10

# = Attributes




Managing Service BrandsManaging Service BrandsManaging Service BrandsManaging Service Brands

Differentiating Services

Primary service package

Secondary service featuresDeveloping Brand Strategies for Services

Managing Product-Support Services

M k ti M t

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