Kotler Mkting Management Chapter 13

Designing and Managing Services Discussion Questions 1. How do we define and classify services? 2. How do services differ from goods? 3. How can we achieve excellence in marketing services ? 4. How can we improve service quality? 5. How can goods marketers improve customer service? Slide 2 of 29 The Nature of Services 2008 – 2018 Loss of 1. 2 million jobs 2008 – 2018 Gain of 14. 6 million jobs Slide 3 of 29 Service An act or performance one party can offer to another that is mostly intangible and does not result in the ownership of anything. Slide 4 of 29 Categories of Service Mix Mix of goods & services Pure Tangible Good Hybrid Pure Service

Soap Cell phone Babysitting Slide 5 of 29 Service Characteristics Intangibility Variability Perishability Empty seats Inseparability Slide 6 of 29 Intangibility Create tangible elements • Place • People • Equipment • Communication material • Symbols • Price Slide 7 of 29 Inseparability Work Faster Add More Service Providers Work with Larger Groups Slide 8 of 29 Variability Offer Guarantees Monitor Satisfaction Good Hiring and Training Slide 9 of 29 Overnight Hotel Stay Blueprint Slide 10 of 29 Perishability Empty seats Nonpeak Demand Complementary Services Reservation Systems Differential Pricing Slide 11 of 29 New Services Realities

Customer Empowerment Satisfying Employees Customer Co-production Slide 12 of 29 Root Cause of Customer Failure Slide 13 of 29 What Customers Want from Providers Knowledgeable employees Address needs on first contact Treat me like a valued customer 65% 64% 62% 54% 49% 49% 45% 43% 38% Demonstrates desire to meet my needs Can quickly access information Good value for the money Courteous employees Is a company/brand I can trust Treats me fairly Provides relevant/personalized service 0% 10% 20% 30% 31% 40% 50% 60% 70% Slide 14 of 29 Determinants of Service Quality Reliability Tangibles Responsive Empathy Assurance Slide 15 of 29

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