1. 1 MANAGEMENT 435 SERVICE MANAGEMENT PowerPoint Set 3

2. 2 Topic 7 Service Marketing Need for integration with operations and HRM –Operations strategy (cost v. quality) affects marketing –Location decisions affect marketing –Layout decisions affect marketing –Job design (e.g., empowerment) affects marketing –Waiting time design affects marketing Appealing to intangible aspects –Consumer buying behavior in different services –Brand cues Functional v. service interface marketing Marketing the use/experience rather than ownership

3. Service Marketing Marketing mix: traditional 4Ps; 7 Ps for services –Product, price, place and promotion –Participants (employees, other customers), physical evidence 9tangibles), process Marketing qualities customer seeks in services: –Search qualities – attributes searched prior to service –Experience qualities – attributes during service –Credence qualities – attributes with uncertain qualities Market segmentation. Marketing services to selected groups. –Segments should be measurable, accessible, substantial and actionable 3

4. 4 Service Marketing Market Segmentation Criteria –Geographic –Demographic –Psychographic (social class, lifestyle, personality) –Behavioristic (purchase frequency, loyalty, usage, benefit sought) Marketing for customer retention and loyalty; customer switching; relationship marketing Service advertising External and internal marketing

5. 5 Topic 8 Human Resource Management in Services Importance of employees and their satisfaction in service quality –Service encounter triad Service process matrix characteristics –Employee contact level, customization, discretion –Professional services, service factory, service shop Service profit chain Recruiting/selecting Training and development Compensation and rewarding Participation, teamwork, empowerment Effects of organization structure Effects of corporate culture