Kotler MM 13e Overheads 13

13
Designing and
Managing Services

Marketing Management, 13th ed

Chapter Questions
• 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 services marketers create
strong brands?
• How can goods marketers improve
customer support services?
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Service Sectors

Government

Private
nonprofit

Business

Retail
Manufacturing

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Categories of Service Mix
Pure
Pure tangible
tangible good
good
Good
Good w/
w/ accompanying
accompanying services
services

Hybrid
Hybrid
Service
Service w/
w/ accompanying
accompanying goods
goods
Pure
Pure service
service
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Figure 13.2 Continuum of Evaluation
for Different Types of Products

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Distinctive Characteristics
of Services
Intangibility

Inseparability
Variability
Perishability
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Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
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How to Increase Quality Control
Invest in good hiring and
training procedures
Standardize the
service-performance process
Monitor customer satisfaction

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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

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Figure 13.3 A Blueprint for
Overnight Hotel Stay

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Improving Service Quality
•
•
•
•
•

Listening
Reliability
Basic service
Service design

Recovery

• Surprising
customers
• Fair play
• Teamwork
• Employee research
• Servant leadership

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Figure 13.4 Root Causes
of Customer Failure

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Solutions to Customer Failures
• 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
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Figure 13.5 Three Types of Marketing
in Service Industries

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Figure 13.6 Service-Quality Model

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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
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Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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Figure 13.7 Importance-Performance

Analysis

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Developing Brand Strategies
for Services

Choosing
Brand Elements
Establishing Image
Dimensions
Devising Branding
Strategy
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Customer Worries
Failure frequency
Downtime
Out-of-pocket costs

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