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Kotler • Keller

Marketing Management • 14e

Phillip

Kevin Lane

Designing and Managing Services

Publishing as Prentice Hall Slide 3 of 29 . Inc. How can we achieve excellence in services marketing? 4. How do we define and classify services. How can goods marketers improve customer-support services? Copyright © 2012 Pearson Education. and how do they differ from goods? 2. How can we improve service quality? 5.Discussion Questions 1. What are the new services realities? 3.

Inc.6 million jobs Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 4 of 29 .2 million jobs 2008 – 2018 Gain of 14.The Nature of Services 2008 – 2018 Loss of 1.

Publishing as Prentice Hall Slide 5 of 29 . Inc.Service Sectors Private nonprofit Business Government Copyright © 2012 Pearson Education.

Service An act or performance one party can offer to another that essentially intangible and does not result in the ownership of anything. Publishing as Prentice Hall Slide 6 of 29 . Copyright © 2012 Pearson Education. Inc.

Categories of Service Mix Major service. Inc. minor good Pure Tangible Good Pure Service Hybrid Tangible Good minor service Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 7 of 29 .

Publishing as Prentice Hall Slide 8 of 29 .Continuum of Evaluation for Products Copyright © 2012 Pearson Education. Inc.

Service Characteristics Intangibility Variability Perishability Empty seats Inseparability Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 9 of 29 . Inc.

Publishing as Prentice Hall Slide 10 of 29 .Intangibility Physical Evidence & Presentation • Place • People • Equipment • Communication material • Symbols • Price Copyright © 2012 Pearson Education. Inc.

Inc. Publishing as Prentice Hall Slide 11 of 29 .Inseparability Work Faster Add More Service Providers Work with Larger Groups Copyright © 2012 Pearson Education.

Inc. Publishing as Prentice Hall Slide 12 of 29 .Variability Offer Guarantees Monitor Satisfaction Good Hiring and Training Copyright © 2012 Pearson Education.

Overnight Hotel Stay Blueprint Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 13 of 29 . Inc.

Inc. Publishing as Prentice Hall .Perishability Empty seats Nonpeak Demand Complementary Services Reservation Systems Differential Pricing Slide 14 of 29 Copyright © 2012 Pearson Education.

Inc. Publishing as Prentice Hall Slide 15 of 29 .New Services Realities Customer Coproduction Customer Empowerment United Breaks Guitar Satisfying Employees Copyright © 2012 Pearson Education.

Inc.Root Cause of Customer Failure Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 16 of 29 .

Achieving Excellence in Services Differentiating Services Marketing Excellence Best Practices Copyright © 2012 Pearson Education. Inc. Publishing as Prentice Hall Slide 17 of 29 .

Publishing as Prentice Hall Serving the client Slide 18 of 29 . promoting the service Internal Training/motivating employees Interactive Copyright © 2012 Pearson Education. pricing. Inc. distributing.Marketing Excellence External Preparing.

Publishing as Prentice Hall Slide 19 of 29 . Inc.Marketing in Service Industries Copyright © 2012 Pearson Education.

Inc. Publishing as Prentice Hall .Best Practices of Top Service Companies Management Commitment Strategic Concept Profit Tiers Satisfy Customer complaints High Standards Monitoring Systems Slide 20 of 29 Copyright © 2012 Pearson Education.

Importance-Performance Analysis Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 21 of 29 . Inc.

Publishing as Prentice Hall Slide 22 of 29 .Differentiating Services Primary and secondary service options Innovation with services Copyright © 2012 Pearson Education. Inc.

Managing Service Quality Bored Employees Unresponsive Employees Copyright © 2012 Pearson Education. Publishing as Prentice Hall Slide 23 of 29 . Inc.

Publishing as Prentice Hall Response to Failure Slide 24 of 29 . Inc.Why Customers Switch Services Ethical Issues Pricing Service Failure Competition Copyright © 2012 Pearson Education.

Inc.What Customers Want from Providers Knowledgeable employees 65% 64% Address needs on first contact Treat me like a valued customer Demonstrates desire to meet my needs Can quickly access information Good value for the money Courteous employees Is a company/brand I can trust Treats me fairly Provides relevant/personalized service 0% Copyright © 2012 Pearson Education. Publishing as Prentice Hall 62% 54% 49% 49% 45% 43% 38% 31% 10% 20% 30% 40% 50% 60% 70% Slide 25 of 29 .

Publishing as Prentice Hall Slide 26 of 29 .Managing Customer Expectations Experience Copyright © 2012 Pearson Education. Inc.

Service-Quality Model Copyright © 2012 Pearson Education. Inc. Publishing as Prentice Hall Slide 27 of 29 .

Publishing as Prentice Hall Assurance Slide 28 of 29 . Inc.Determinants of Service Quality Reliability Tangibles Responsive Empathy Copyright © 2012 Pearson Education.

Publishing as Prentice Hall Slide 29 of 29 .Managing Product-Support Services Customer Worries • Failure frequency • Downtime • Out-of-pocket costs Manufacturer Strategies • Guarantees • Service contracts • Extended warranties Copyright © 2012 Pearson Education. Inc.