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?
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The Nature of Services
2008 – 2018 Loss of 1.2 million jobs
2008 – 2018 Gain of 14.6 million jobs
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Service
An act or performance one party can offer to another that is mostly intangible and does not result in the ownership of anything.
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Categories of Service Mix
Mix of goods & services
Pure Tangible Good
Hybrid
Pure Service
Soap
Cell phone
Babysitting
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Service Characteristics
Intangibility
Variability
Perishability
Empty seats
Inseparability
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Intangibility
Create tangible elements • Place • People • Equipment • Communication material • Symbols • Price
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Inseparability
Work Faster
Add More Service Providers
Work with Larger Groups
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Variability
Offer Guarantees
Monitor Satisfaction
Good Hiring and Training
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Overnight Hotel Stay Blueprint
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Perishability
Empty seats
Nonpeak Demand
Complementary Services
Reservation Systems
Differential Pricing
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New Services Realities
Customer Empowerment Satisfying Employees
Customer Co-production
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Root Cause of Customer Failure
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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%
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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