MARKETING MANAGEMENT
12th edition
13
Designing and
Managing
Services
13-2
Chapter Questions
• What are the characteristics of products and how can they be classified?
• How can companies differentiate products? • How can a company build and manage its
product mix and product lines?
• How can companies combine products to create strong co-brands or ingredient brands?
13-3
IBM has moved
from a goods
business to a
13-4
Service
Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything;
13-5
Service Sectors
Government
Private
nonprofit
Manufacturing
13-6
13-7
Categories of Service Mix
Pure tangible good Pure tangible good
Good w/ accompanying services Good w/ accompanying services
Hybrid Hybrid
Service w/ accompanying goods Service w/ accompanying goods
13-8
Service Distinctions
• Equipment-based or people-based
• Service processes
13-9
13-10
Distinctive Characteristics of Services
Intangibility
Inseparability
Variability
13-11
Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
13-12
13-13
13-14
How to Increase Quality Control
Invest in good hiring and training procedures
Monitor customer satisfaction
13-15
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
13-16
Figure 13.2 A
13-17
13-18
13-19
Table 13.1 Factors Leading to
Customer Switching Behavior
• Pricing
• Inconvenience
• Core Service Failure
• Service Encounter Failures
• Response to Service Failure
• Competition
• Ethical Problems
13-20
13-21
Gaps that Cause Unsuccessful
Service Delivery
• Gap between consumer expectation and
management perception
• Gap between management perception and
service-quality specifications
• Gap between service-quality specifications
and service delivery
• Gap between service delivery and external
communications
13-22
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
13-23
Best Practices
• Strategic Concept • Top-Management
Commitment
• High Standards • Self-Service
Technologies
• Monitoring Systems • Satisfying Customer
Complaints
13-24
13-25
Table 13.3 Customer Importance and
13-26
Figure 13.6
13-27
Developing Brand Strategies for
Services
Choosing
Brand Elements
Establishing Image Dimensions
13-28
Customer Worries
Failure frequency
Downtime
13-29
Marketing Debate
Is Service Marketing Different
From Product Marketing?
Take a position:
1. Product and service marketing are fundamentally different.
13-30
Marketing Discussion
Colleges and universities can be
classified as service organizations.
How can you apply the marketing
principles developed in this chapter
to your school? Do you have any
advice as to how it could become
