MARKETING MANAGEMENT 12th edition

1
MARKETING MANAGEMENT12th edition

• 13
• Designing and Managing Services

Kotler Keller
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?
• How can companies use packaging, labeling,
  warranties, and guarantees as marketing tools?

3
Service
Any act of performance that one party can offer
another that is essentially intangible and does
not result in the ownership of anything. Its
production may or may not be tied to a physical
product.
4
Service Sectors

• Government
• Private, nonprofit
• Business
• Manufacturing
• Retail

5
Categories of Service Mix

• Pure tangible good
• Good with accompanying service
• Hybrid
• Service with accompanying goods
• Pure service

6
Service Distinctions

• Equipment-based or people-based
• Service processes
• Clients presence required or not
• Personal needs or business needs
• Objectives and ownership

7
Distinctive Characteristics of Services

• Intangibility
• Inseparability
• Variability
• Perishability

8
Physical Evidence and Presentation

• Place
• People
• Equipment
• Communication material
• Symbols
• Price

9
How to Increase Quality Control

• Invest in good hiring and training procedures
• Standardize the service-performance process
• Monitor customer satisfaction

10
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

11
Table 13.1 Factors Leading to Customer Switching
Behavior

• Pricing
• Inconvenience
• Core Service Failure
• Service Encounter Failures
• Response to Service Failure
• Competition
• Ethical Problems
• Involuntary Switching

12
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
• Gap between perceived service and expected service

13
Determinants of Service Quality

• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles

14
Best Practices

• Strategic concept
• Top-Management commitment
• High standards
• Self-Service technologies
• Monitoring systems
• Satisfying customer complaints
• Satisfying employees

15
Developing Brand Strategies for Services

• Choosing brand elements
• Establishing image dimensions
• Devising branding strategy

16
Customer Worries

• Failure frequency
• Downtime
• Out-of-pocket costs