adapted ch 13 kotler mm 14e 13 ippt
DESCRIPTION
good infoTRANSCRIPT
![Page 1: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/1.jpg)
MBS507 Strategic Marketing Management
Designing & Managing Services
![Page 2: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/2.jpg)
Best & Worst Service Experience?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-2
qutoofrestaurant.com
![Page 3: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/3.jpg)
For discussion today
1. How do we define and classify services and how do they differ from goods?
2. What are the new services realities?
3. How can we achieve excellence in services marketing?
4. How can we improve service quality?
5. How can goods marketers improve customer support services?
![Page 4: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/4.jpg)
What is a Service?
A service is 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.
![Page 5: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/5.jpg)
Services are Everywhere
![Page 6: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/6.jpg)
Figure 13.1 Continuum of Evaluation for Different Types of Products
Most high in experience & credence … riskyRely on WOM, physical cues, loyal due to high switching costs
[can evaluate before purchase]
[can evaluate after purchase]
[hard to evaluate even after consumption]
![Page 7: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/7.jpg)
Pure tangible good Good with accompanying services Hybrid [equal parts – goods & services]
Service with accompany goods Pure service
Categories of Service Mix
![Page 8: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/8.jpg)
waterlesscarwash.com; eisingerbrown.com
Service Distinctions
1. Equipment-based or people-based
2. Service processes
3. Client’s presence required or not
4. Personal needs or business needs5. Objectives [profit or nonprofit] and ownership [private or public]
![Page 9: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/9.jpg)
Distinctive Characteristics of Services
Intangibility
Inseparability
Variability
Perishability
cannot be seen, tasted, felt, heard, or smelled before purchase
cannot be separated from providers
depends on who provide them; when, where & how
cannot be stored for later sale or use
![Page 10: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/10.jpg)
Disneyland Paris
Pic soruce: seafrance.org
• Intangibility• Inseparability• Variability• Perishability
![Page 11: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/11.jpg)
Begins with theme or benefitUse physical evidence & presentation
[Demonstrate service quality through]
Physical Evidence and Presentation
1. Place [traffic flow, waiting line]
2. People [adequately staffed]
3. Equipment [look modern]
4. Communication material [distinct benefit]
5. Symbols [Name & symbol suggest benefit]
6. Price [use incentive]
To demonstrate a “tangible” positioning, e.g. a “fast” bank
![Page 12: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/12.jpg)
Inseparability
―Produced and consumed simultaneously―Provider is part of the service―Provider-client interaction
![Page 13: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/13.jpg)
Variability
Depends on who, when, whereStandardize – use blueprint, flowchart, look out for fail pointsService guarantees reduce perception of risk
![Page 14: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/14.jpg)
Variability: Increase quality control
1. Invest in good hiring and training procedures
2. Standardise the service performance process throughout the company; develop common definitions of what is expected
3. Monitor customer satisfaction using suggestion and complaint systems, customer surveys, and comparison shopping
![Page 15: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/15.jpg)
Increasing Quality Control
Blue print or flow chart … SOP
![Page 16: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/16.jpg)
Perishability
Fluctuating demand Manage demand versus supply… next slide
![Page 17: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/17.jpg)
Matching Demand and Supply
Demand side
1. Differential pricing
2. Nonpeak demand [grow]
3. Complementary services [alternatives for waiting customers]
4. Reservation systems
Supply side
1. Part-time employees
2. Peak-time efficiency [focus on essential tasks]
3. Increased consumer participation
4. Shared services
5. Facilities for future expansion
1. Segmented pricing … non-preak
![Page 18: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/18.jpg)
New Service Realities
CUSTOMER EMPOWERMENT: more sophisticated, demand for self-select elements through unbundled services; want control, communication (Internet), & participationCUSTOMER COPRODUCTION: Joint fulfillment of service; perceives more value & stronger connection
![Page 19: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/19.jpg)
Figure 13.3
Root Causes of Customer Failure
Servicescape - physical environment
![Page 20: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/20.jpg)
1. Netflix 2. Comcast - software 3. Wireless phone – reminders about overseas 4. Golf club behavior
Solutions to Customer Failures
1. Redesign processes and redefine customer roles to simplify service encounters
2. Incorporate the right technology to aid employees and customers
3. Create high-performance customers by enhancing their role clarity, motivation, and ability
4. Encourage customer citizenship where customers help customers
![Page 21: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/21.jpg)
Figure 13.4
Types of Marketing in Service Industries
training and motivating employees to serve
![Page 22: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/22.jpg)
Best Practices
1. Strategic Concept [need-satisfaction, customer obsession]
2. Top-Management Commitment [to service, not just financial]
3. High Standards [quality standards]
4. Self-Service Technologies
5. Monitoring Systems [audit both firm & competitors’ performance]
6. Satisfying Customer Complaints [satisfiers & dissatisfiers]
7. Satisfying Employees
![Page 23: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/23.jpg)
Best practice
Ritz Carlton, Boston
Its unique culture starts with a motto: "We are ladies and gentlemen serving ladies and gentlemen." One of its remarkable policies is to permit every employee to spend up to $2,000 making any single guest satisfied.
– Forbes.com
![Page 24: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/24.jpg)
Figure 13.5
Importance-Performance Analysis
customers rated 14 service elements or attributes of an automobile dealer’s service department
![Page 25: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/25.jpg)
Improving Service Quality
Listening Reliability Basic service Service design Recovery
Surprising customers Fair play Teamwork Employee research Servant leadership
10 key things to do
![Page 26: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/26.jpg)
Figure 13.6 Service-Quality Model [Gaps]
![Page 27: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/27.jpg)
Determinants of Service Quality
Reliability: ability to perform the promised service dependably and accurately
Responsiveness: Willingness to help customers and provide prompt service
Assurance: knowledge and courtesy of employees and their ability to convey trust and confidence
Empathy: provision of caring, individualized attention to customers
Tangibles: appearance of physical facilities, equipment, personnel, and communication materials
![Page 28: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/28.jpg)
Customer Worries
Failure frequency
Downtime
Out-of-Pocket Costs
Example: speed of repair of machinery; provision of a loaner
Example: expenditure on regular maintenance and repair costs
Example: frequency of break down
![Page 29: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/29.jpg)
For Review and reflection…
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?
![Page 30: Adapted Ch 13 Kotler Mm 14e 13 Ippt](https://reader030.vdocuments.us/reader030/viewer/2022033016/563db78d550346aa9a8c23bf/html5/thumbnails/30.jpg)
Malhotra DVD Case 19.1 Marriot
blog.ibs-b.hu