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DESIGNING AND
MANAGING SERVICES

DESIGNING AND MANAGING


SERVICES

How do we define and classify services


and how do they differ from goods?

How do we market services?


How can we improve service
quality?
How do service marketers create
strong brands?
How can goods marketers improve
customer support services?

1. THE NATURE OF
SERVICES
2. THE NEW SERVICES
REALITIES
3. ACHIEVING EXCELLENCE
IN SERVICES MARKETING

4. MANAGING SERVICE
QUALITY
5. MANAGING PRODUCT
SUPPORT SERVICES

WHAT IS A SERVICE?
1. NATURE OF
SERVICES

A SERVICE IS ANY ACT OF


PERFORMANCE THAT ONE PARTY
CAN OFFER ANOTHER THAT IS
ESSENTIALLY INTANGIBLE AND
DOES NOT RESULT IN THE
OWNERSHIP OF ANYTHING; ITS
PRODUCTION MAY OR MAY NOT
BE TIED TO A PHYSICAL
PRODUCT.

1. THE NATURE OF SERVICES

1. THE NATURE OF SERVICES


1. NATURE OF
SERVICES

Distinctive Characteristics
of Services

Service Industries

Government Sector
Private Non-profit Sector
Business Sector
Manufacturing Sector
Retail Sector

Categories of Service Mix

Pure Tangible Goods


Goods with Accompanying Services
Hybrid
Service with Accompanying Goods
Pure Service

Equipment-based or people-based
Processes based
Clients presence required or not
Personal needs or business needs
Objectives and ownership

DISTINCTIVE CHARACTERISTICS
OF SERVICES
1. NATURE OF
SERVICES

Intangibility

Place
People
Equipment
Communication
Symbol
Price

Inseparability

Variability

How to Increase Quality Control


Invest in good hiring and training procedures
Standardize the service-performance
process
Monitor customer satisfaction

Perishability
Demand side
Differential pricing
Nonpeak demand
Complementary services
Reservation systems

2. THE NEW SERVICES


REALITIES

A SHIFTING CUSTOMER
RELATIONSHIP
2. THE
NEW
SERVICES
REALITIE
S

Customer Empowerment

Respond to customer concerns within 24 hours


Ensure subject line contains company name
Make the message easy to scan for relevant
information
Give cutomers an easy way to respond Customer

Satisfying employees
as well as customers
Pamper customers

Customer CoProduction

Redesign processes and redefine customer


roles to simplify service encounters
Incorporate the right technology to aid
employees and customers
Create high-performance customers by
enhancing their role clarity, motivation, and
ability
Encourage customer citizenship where
customers help customers

Accurately read customer needs


Develop a personal relationship with
customers
Deliver quality service to solve customer
problems

3. ACHIEVING EXCELLENCE IN
SERVICES MARKETING

ACHIEVING EXCELLENCE IN
SERVICES MARKETING
3.
ACHIEVING
EXCELLENC
E IN
SERVICES
MARKETIN
G

Marketing Excellence
External marketing
Internal marketing
Interactive marketing

Best Practices of Top


Service
Companies
Strategic Concept

Top-Management Commitment
High Standards
Self-Service Technologies
Monitoring Systems
Satisfying Customer Complaints
Satisfying Employees

Differentiating Services

Primary, secondary service options


Innovation with Services

4. MANAGING SERVICE
QUALITY

MANAGING SERVICE QUALITY


4.
MANAGIN
G
SERVICE
QUALITY

Factors Leading to Customer


Switching Behavior
Pricing
Inconvenience
Core Service Failure
Service Encounter Failures
Response to Service Failure
Competition
Ethical Problems
Involuntary Switching

Improving Service Quality


Listening
Reliability
Basic service
Service design
Recovery
Surprising customers
Fair play
Teamwork
Employee research
Servant leadership

MANAGING SERVICE QUALITY


4.
MANAGIN
G
SERVICE
QUALITY

Managing Customer
Expectation
Gaps That Cause Unsuccessful Service
Delivery
Gap between consumer expectation and
management perception
Gap between management perception and
service-quality specifications
Gap between service-quality specifications
and service delivery
Gap between service delivery and external
communications
Gap between perceived service and
expected service

Incorporating Self-service
Technologies

Determinants of Service
Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles

5. MANAGING PRODUCT
SUPPORT SERVICES

MANAGING PRODUCT SUPPORT


SERVICES
5.
MANAGIN
G
PRODUCT
SUPPORT
SERVICES

Identifying and Satisfying


Customer Needs

Post Sale Service Strategy


Customer Service
Evolution
The Customer Service
Imperative