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Strategies for Service Firms

Introduction to Marketing in theChinese Mainland (MKT003)

Lecture 8

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-2

Categories of Service Mix

Pure tangible goods

Goods w/ accompanying services

Hybrid

Services w/ accompanying goods

Pure services

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Distinctive Characteristicsof Services

Intangibility

Inseparability

Variability

Perishability

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Three Types of Marketingin Service Industries

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Managing Service Brands

• To brand a service organization effectively,the company must differentiate its brandthrough primary and secondary service

features.• Develop appropriate brand strategies.

Effective branding programs for servicesoften employ multiple brand elements.

• They also develop brand hierarchies andportfolios, and establish image dimensions toreinforce or complement service offerings.

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Developing Brand Strategiesfor Services

Choosing

Brand Elements

Establishing

Image Dimensions

Devising

Branding Strategy

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Determinants of Service Quality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

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Service-Quality Model

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Gaps that Cause UnsuccessfulService Delivery

• Gap between consumer expectation andmanagement 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

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Improving Service Quality

• Listening

• Reliability

•

Basic service• Service design

• Recovery

• Surprising customers

• Fair play

•

Teamwork• Employee research

• Servant leadership

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How to Increase Quality Control

Invest in good hiring and

training procedures

Monitor customer satisfaction

Standardize the

service-performance process

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Root Causes of Customer Failure

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Solutions to Customer Failures

• Redesign processes and redefinecustomer roles to simplify serviceencounters

•

Incorporate the right technology to aidemployees and customers

• Create high-performance customers byenhancing their role clarity, motivation,

and ability

• Encourage customer citizenship wherecustomers help customers

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Managing Product Support Services

• Even product-based companies must providepostpurchase service.

• To provide the best support, a manufacturer

must identify the services customers valuemost and their relative importance.

• The service mix includes both presale

services (facilitating and value-augmentingservices) and postsale services (customerservice departments, repair and maintenanceservices).

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Top Service Practices

Top service companies excel at the followingpractices:

•Strategic concept

•

History of top-management commitment toquality

•High standards

•Self-service technologies

•Systems for monitoring service performanceand customer complaints

•Employee satisfaction

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Cases Discussion

• Marketing in China:

Customer Servicein VANKE

• Marketing in China:

Haier’s Five-StarConsumer Service

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Review Questions

1. How are services defined andclassified?

2. How are services marketed, and howcan service quality be improved?

3. How do service marketers create

strong brands?4. How can goods-producing firms

improve customer support services?

mkt003 l8 notes

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