1. Designing and Managing Services13
Designing and Managing Services
Marketing Management
A South Asian Perspective, 13th ed

2. Chapter Questions
How do we define and classify services and how do they differ from goods?
How do we market services?
How can we improve service quality?
How do service marketers create strong brands?
How can goods marketers improve customer support services?
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3. Aravind Eye Hospital provides comprehensive eye care services
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4. 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.
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5. Service Sectors Government Private nonprofit Business Retail
Manufacturing
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6. General Motors’ OnStar Service
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7. Categories of Service Mix
Pure tangible good
Good w/ accompanying services
Hybrid
Service w/ accompanying goods
Pure service
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8. 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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9. Figure 13.2 Continuum of Evaluation for Different Types of Products
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10. Distinctive Characteristics of Services
Intangibility
Inseparability
Variability
Perishability
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11. Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
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12. Palace on Wheels provides the ultimate royal experience due to careful design and execution of various service elements
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13. How to Increase Quality Control
Invest in good hiring and
training procedures
Standardize the
service-performance process
Monitor customer satisfaction
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14. 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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15. Figure 13.3 A Blueprint for Overnight Hotel Stay
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16. Improving Service Quality
Listening
Reliability
Basic service
Service design
Recovery
Surprising customers
Fair play
Teamwork
Employee research
Servant leadership
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17. Figure 13.4 Root Causes of Customer Failure
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18. Solutions to Customer Failures
Redesign processes and redefine customer roles to simplify service encounters
Incorporate the right technology to aid employees and customers
Create high-performance customers by enhancing their role clarity, motivation, and ability
Encourage customer citizenship where customers help customers
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19. Figure 13.5 Three Types of Marketing in Service Industries
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20. 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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21. Figure 13.6 Service-Quality Model
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22. 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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23. Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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24. Best Practices Strategic Concept Top-Management Commitment
High Standards
Self-Service Technologies
Monitoring Systems
Satisfying Customer Complaints
Satisfying Employees
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25. Figure 13.7 Importance-Performance Analysis
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26. Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership
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27. Developing Brand Strategies for Services
Choosing
Brand Elements
Establishing Image
Dimensions
Devising Branding
Strategy
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28. Customer Worries Failure frequency Downtime Out-of-pocket costs
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29. Table 13.4 Top Customer Service Providers
USAA
Four Seasons Hotels
Cadillac
Nordstrom
Wegman Food Markets
Edward Jones
Lexus
UPS
Enterprise Rent-A-Car
Starbucks
Ritz-Carlton
Amica Insurance
Southwest Airlines
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30. Marketing Debate Is service marketing different from
product marketing?
Take a position:
Product and service marketing are
fundamentally different. or
2. Product and service marketing are highly
related.
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31. 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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