Kotler Mkting Management Chapter 13

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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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