Kotler13_basic.ppt 103KB Aug 31 2008 08:53:08 PM

MARKETING MANAGEMENT
12th edition
13
Designing and
Managing Services

Kotler

Keller

Chapter Questions
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What are the characteristics of products and how

can they be classified?
How can companies differentiate products?
How can a company build and manage its
product mix and product lines?
How can companies combine products to create
strong co-brands or ingredient brands?
How can companies use packaging, labeling,
warranties, and guarantees as marketing tools?
13-2

Service
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.

13-3

Service Sectors
Government
 Private, nonprofit
 Business
 Manufacturing
 Retail
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13-4

Categories of Service Mix
Pure tangible good
 Good with accompanying service
 Hybrid
 Service with accompanying goods
 Pure service
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13-5

Service Distinctions
Equipment-based or people-based
 Service processes
 Client’s presence required or not
 Personal needs or business needs
 Objectives and ownership
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13-6

Distinctive Characteristics of Services
Intangibility
 Inseparability
 Variability
 Perishability
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13-7

Physical Evidence and

Presentation
Place
 People
 Equipment
 Communication material
 Symbols
 Price
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13-8

How to Increase Quality Control
Invest in good hiring and training
procedures
 Standardize the service-performance
process
 Monitor customer satisfaction
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13-9

Matching Demand and Supply
Demand side
 Differential pricing
 Nonpeak demand
 Complementary
services
 Reservation
systems

Supply side
 Part-time employees
 Peak-time efficiency
 Increased consumer
participation
 Shared services
 Facilities for future
expansion
13-10

Table 13.1 Factors Leading to Customer
Switching Behavior
Pricing
 Inconvenience
 Core Service Failure
 Service Encounter Failures
 Response to Service Failure
 Competition
 Ethical Problems
 Involuntary Switching
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13-11

Gaps that Cause Unsuccessful Service Delivery
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Gap between consumer expectation and management
perception
Gap between management perception and servicequality specifications
Gap between service-quality specifications and
service delivery
Gap between service delivery and external
communications
Gap between perceived service and expected service

13-12

Determinants of Service Quality
Reliability
 Responsiveness
 Assurance

 Empathy
 Tangibles
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13-13

Best Practices
Strategic concept
 Top-Management commitment
 High standards
 Self-Service technologies
 Monitoring systems
 Satisfying customer complaints
 Satisfying employees
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13-14

Developing Brand Strategies for
Services

Choosing brand elements
 Establishing image dimensions
 Devising branding strategy
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13-15

Customer Worries
Failure frequency
 Downtime
 Out-of-pocket costs
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13-16