10. seminar of services marketing (1)

8/18/2019 10. Seminar of Services Marketing (1)

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Seminar of ServicesMarketing

Professor Walter Vizarreta

Class overview


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Table of Contents

Definition of services

2 key concepts

Four categories of services The 8 P’s of services marketing

Integrated marketing

Developing a services marketing strategy


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Services are economic activities offered by

one party to another most commonly

employing time!based performances tobring about desired results in recipients

themselves or in ob"ects or other assets for

#hich purchasers have responsibility$


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In e%change for their money time and

effort service customers e%pect to obtain

value from access to goods laborprofessional skills facilities net#orks and

systems& but they do not normally take

o#nership of any of the physical elementsinvolved$


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2 key concepts

Service product

The main product is the

service$ 'ustomer service

Services that assist the

customer$ These are

complementary services$


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Four categories of services

People processing

Possession processing

(ental stimulus processing

Information processing


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The 8 P’s of services

arketing Product elements

Place and time

Price and other user outlay Promotion and education

Process

Physical environment

People Productivity and )uality


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Pro!uct eleents

It is the creation of a service concept that #ill

offer value to target customers and satisfy their

needs better than competing alternatives$


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Designing the service

conceptCore Pro!uct

'entral component that supplies the principal

problem!solving benefits customers seek$

"uppleentary "ervices

*ugment the core product facilitating its use andenhancing its value and appeal$


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Designing the service

conceptDelivery Process

It must address+

,o# the various service components are delivered to thecustomer$

The nature of the customer-s role in those processes$

,o# long delivery lasts$

The prescribed level and style of service to be offered


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The Flo#er of "ervice

$nforation

'ustomers often re)uire information about ho# to

obtain and use a product or service$

%r!er taking

Process of accepting applications orders and

reservations$ The process should be fast andsmooth$


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The Flo#er of "ervice)illing'ommon element to all services$ Inaccurate

illegible or incomplete bills risk disappointing

customers$

Payent

Increasingly customers e%pect ease and

convenience of payment including credit#hen they make purchases$


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The Flo#er of "erviceConsultation

Involves a dialogue to probe

customer re)uirements and then to develop a

tailored solution$

1ey point in customer relations+ hat do you

suggest3

*dvise the client$


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&ospitality

Should reflect pleasure at meeting ne#

customers and greeting old ones #hen

they return$

'ourtesy and consideration for customers-

needs apply to both face!to!faceencounters and telephone interactions $


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"afekeeping

'ustomers often #ant assistance #ith their

personal possessions$

4nless certain safekeeping services are provided

such as safe and convenient parking for their

cars closets safes luggage storage etc$ somecustomers may never return$


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'(ceptions

Involve supplementary services that fall outside the

routine of normal service delivery$

Special re)uests

Problem solving

,andling complaints compliments and

suggestions 5estitution


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Place an! tie

Implies decisions on ho# and #here the service

should be delivered and channels to be used$

Service delivery can be accomplished throughphysical and electronic means$


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Price an! other user outlays

The value customers pay to obtain the desired

benefits$

It is not "ust about money but also other usercosts primarily concerning time and effort$


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*evenue anageent

5eserving capacity for high!yield customers+ * #ell!designed revenue management system can predict #ith

reasonable accuracy ho# many customers #ill use a given

service at a specific time at each of several different price levels$ *fter#ards block the relevant amount of capacity at each level

6kno#n as a price bucket7$


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*evenue anageent

Price elasticity

Price elasticityPercentage change in !ean!

Percentage change in price

+uantity of units !ean!e!

Price per

unit of

serviceD,

D2


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"etting hotel roo sales targets by segent an! tie perio!

-ights. / Tu W Th F " "n

Capacity

01 roosWeek 3

0lo# season

,441

541

%ut of coission for renovation

6oyalty progra

ebers

Transient guests

Weeken!

package

7roups an! conventions

irline contracts

Tie

/ Tu W Th F " "n

6oyalty progra ebers

Transient guests Weeken!

package

7roups 0no conventions

irline contracts

Week 9:

0high season


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Prootion an! e!ucation

Seeks to provide information and needed

advice to persuade target customers of the

merits of a brand or service product and to spurthem to act at specific times$


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Process

The #ay in #hich a company goes about its "ob$

It is "ust as important as #hat it does$

'ustomers fre)uently take part$


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)lueprinting a restaurant

e(perience


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)lueprinting a restaurant

e(perience


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Dysfunctional custoer behavior

!isrupts service processes

Si% types of "aycustomers+

The thief The rule breaker

The belligerent

The family feuders

The vandal

The deadbeat


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Conse;uences of

!ysfunctional behavior 0mployess are victims of abuse$

'ustomers are e%posed to

unpleasant incidents$ 'an spoiltheir consumption e%perience$

'ompanies may suffer significant

economic losses$


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Physical environent

It may have a strong impact on customers’

impressions$

It offers tangible evidence of the )uality of acompany’s service$


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People

Interactions bet#een customers and contact

personnel strongly influence customer

perceptions of service )uality$ 1ey elements+ recruiting training and

motivating$


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Pro!uctivity an! ;uality

/oth aspects must #ork together

simultaneously$

Productivity reduces costs$ uality perceived by the customer increases

differentiation from the competition 6competitive

advantage7 and loyalty$


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$ntegrating arketing #ith

other key areas

%perations

/anageenet

/arketing

/anageent

&uan

*esources/anageent


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Frae of reference.

Developing a servicesarketing strategy 4nderstanding the customer

/uilding a service model

(anaging the inter!relationship #ith the

customer Implementing a profitable services strategy

$-7 -D )'&V$%* $- "'*V$C'" '-C%


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$-7= -D )'&V$%* $- "'*V$C'" '-C%


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Thank you veryThank you veryuch?uch?

10. seminar of services marketing (1)

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