Service Marketing Notes

Topics: Service system, Service, Marketing Pages: 20 (3648 words) Published: April 26, 2012
Chapter 1: Intro
• Inventories
• Patents
• Displayed or communication
• Pricing challenges
• Dependence on employee and customer actions,
• Uncontrollable factors
• Quality matched to promise/promoted
Production separate from consumption
Simultaneous production and consumption
• Customers participate in and affect the transaction
• Customers affect each other
• Employees affect the service outcome.
• Decentralization may be essential
• Mass production is difficult
Non perishable
• It is difficult to match supply and demand
• services cannot be returned or resold

1) Product - physical good features, quality level, accessories, packaging, warranties, product lines, branding
2) Place - channel type, exposure, intermediaries, outlet locations, transportation, storage, managing channels
3) Promotion - promotion blend, salespeople selection training and incentives, advertising media types and types of ads, sales promotion, publicity, internet/web strategy
4) Price- flexibility, price level, terms, differentiation, discounts, allowances
5) People - employees recruiting training motivation rewards teamwork, customers education and training
6) Physical evidence - facility design, equipment, signage, employee dress, other tangibles like reports business cards statements and guarantees
7) Process - flow of activities standardized and customized, number of steps simple or complex, customer involvement

Chapter 2: Conceptual framework of the book: the gap model of service quality
Customer gap: difference between expected service and perceived service
1) Gap 1 - the listening gap
a. Inadequate marketing research orientation
b. Lack of upward communication
c. Insufficient relationship focus
d. Inadequate service recovery
2) Gap 2 - the service design and standards gap
a. Poor service design
b. Absence of customer-driven standards
c. Inappropriate physical evidence and servicescape
3) Gap 3 - the service performance gap
a. Deficiencies in human resource policies
b. Failure to match supply and demand
c. Customers not fulfilling roles
d. Problems with service intermediaries
4) Gap 4 - the communication gap
a. Lack of integrated services marketing communications
b. Ineffective management of customer expectations
c. Overpromising
d. Inadequate horizontal communications
e. Inappropriate pricing

Chapter 18
Service can affect:
- Offensive marketing -- attract more and better customers
○ Increases market share, reputation, and price premium
○ Leads to sales and more profits
- Defensive marketing -- keeping the customers a firm already has
○ Customer retention leads to lower costs, increased volume of purchases, price premium, and word of mouth
○ This leads to higher margins and increased profits
- Key drivers of service quality, customer retention and profits
○ Service attributes (many many) --> service encounter (multiple) --> service quality --> behavioral intentions --> customer retention --> profits
- Balanced scorecard
○ Financial measures
○ Operation perspecitve
○ Innovation and learning perspective
○ Customer perspective

Chapter 4:
Different service expectations: 1) desired service, 2) adequate service 3) predicted service
- Sources of desired service expectations
○ Personal needs
○ Lasting service intensifiers
§ Derived service expectations (your family depending on you to find a good restaurant for mom' s b-day)
§ Personal service philosophy - how long you think a waiter should take to bring you your meal
- Sources of adequate service expectations
○ Temporary service intensifiers - short term quick need. Car accident and dealing with insurance
○ Perceived service alternatives - other people that customer can get service from
○ Customer self-perceived service role -...
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