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Chapter 13 - Designing and managing services. In this chapter, we will address the following questions: How do we define and classify services, and how do they differ from goods? What are the new services realities? How can we achieve excellence in services marketing? How can we improve service quality? How can goods marketers improve customer-support services?
Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Ch r e t p a Designing and Managing Discussion Questions How we define and classify services, and how they differ from goods? What are the new services realities? How can we achieve excellence in services marketing? How can we improve service quality? How can goods marketers improve Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 29 The Nature of Services 2008 – 2018 Loss of 1.2 million jobs Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 2008 – 2018 Gain of 14.6 million jobs Slide of 29 Service Sectors Private nonprofit Business Governme Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 29 d e in f e D Service An act or performance one party can offer to another that essentially intangible and does not result in the ownership of anything Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 29 Categories of Service Mix Major service, minor good Pure Tangible Good Hybrid Pure Service Tangible Good minor service Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 29 e r u g Fi 3.1 Continuum of Evaluation for Products Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 29 Service Characteristics Intangibilit y Variabilit y Perishabilit y Empty seats Inseparabilit Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 29 Intangibility Physical Evidence & Presentation • Place • People • Equipment • Communication material • Symbols ã Price Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 10 of 29 New Services Realities Customer Coproduction Satisfying Employees United Breaks Guitar Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Customer Empowerment Slide 15 of 29 e r u g Fi 3.3 Root Cause of Customer Failure Copyright © 2012 Pearson Education, Inc 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 Marketing Excellence External Preparing, pricing, distributing, promoting the service Internal Training/motivating employees Interactive Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Serving the client Slide 18 of 29 e r u g Fi 3.4 Marketing in Service Industries Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 19 of 29 Best Practices of Top Service Companies Manageme nt Commitmen t Strategic Concept Profit Tiers Satisfy Customer complaints Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall High Standards Monitoring Systems Slide 20 of 29 e r u g Fi 3.5 Importance-Performance Analysis Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 21 of 29 Differentiating Services Primary and secondary service options Innovation with services Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 22 of 29 Managing Service Quality Bored Employees Unresponsive Employees Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 23 of 29 Why Customers Switch Services Ethical Issues Pricing Service Failure Competition Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Response to Failure Slide 24 of 29 What Customers Want from Providers 65% Knowledgeable employees 64% Address needs on first contact 62% Treat me like a valued customer Demonstrates desire to meet my needs 54 % 49% Can quickly access information 49% Good value for the money 45% 43% Courteous employees Is a company/brand I can trust 38% 31% Treats me fairly Provides relevant/personalized Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 0% 10% 20% 30% 40% 50% 60% 70% Slide 25 of 29 Managing Customer Expectations Experienc e Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 26 of 29 e r u g Fi 3.6 Service-Quality Model Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 27 of 29 Determinants of Service Quality Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 28 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 Publishing as Prentice Hall Slide 29 of 29 ... Publishing as Prentice Hall Slide 28 of 29 Managing Product-Support Services Customer Worries • Failure frequency • Downtime • Out-of-pocket costs Manufacturer Strategies • Guarantees • Service... in Services Differentiating Services Marketing Excellence Best Practices Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 17 of 29 Marketing Excellence External Preparing,... differ from goods? What are the new services realities? How can we achieve excellence in services marketing? How can we improve service quality? How can goods marketers improve Copyright © 2012