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MARKETING MANAGEMENT 12th edition
13 Designing and Managing Services Kotler Keller
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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?
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IBM has moved from a goods business to a service business
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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.
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Service Sectors Private Government nonprofit Business Retail
Manufacturing
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General Motors’ OnStar Service
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Categories of Service Mix
Pure tangible good Good w/ accompanying services Hybrid Service w/ accompanying goods Pure service
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Service Distinctions Equipment-based or people-based Service processes
Client’s presence required or not Personal needs or business needs Objectives and ownership
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Figure 13.1 Continuum of Evaluation for Different Types of Products
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Distinctive Characteristics of Services
Intangibility Inseparability Variability Perishability
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Physical Evidence and Presentation
Place People Equipment Communication material Symbols Price
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Mayo Clinic’s Tangible Cues
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Blue Man Group includes 33 different performers
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How to Increase Quality Control
Invest in good hiring and training procedures Standardize the service-performance process Monitor customer satisfaction
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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
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Figure 13.2 A Service-Performance Process Map
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Consumer-Friendly Services
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Figure 13.3 Holistic Marketing for Services
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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
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Figure 13.4 Service-Quality Model
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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
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Determinants of Service Quality
Reliability Responsiveness Assurance Empathy Tangibles
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Best Practices Strategic Concept Top-Management Commitment
High Standards Self-Service Technologies Monitoring Systems Satisfying Customer Complaints Satisfying Employees
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Figure 13.5 Tracking Customer Service Performance
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Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership
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Figure 13.6 Importance-Performance Analysis
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Developing Brand Strategies for Services
Choosing Brand Elements Establishing Image Dimensions Devising Branding Strategy
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Customer Worries Failure frequency Downtime Out-of-pocket costs
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Marketing Debate Is Service Marketing Different
From Product Marketing? Take a position: Product and service marketing are fundamentally different. 2. Product and service marketing are highly related.
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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 a better service marketer?
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