MARKETING MANAGEMENT 12 th edition

1. MARKETING MANAGEMENT12th edition 13 Designing and Managing Services Kotler Keller

2. Chapter Questions • 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?

3. IBM has moved from a goods business to a service business

4. 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.

5. Service Sectors Government Private nonprofit Business Retail Manufacturing

6. General Motors’ OnStar Service

7. Categories of Service Mix Pure tangible good Good w/ accompanying services Hybrid Service w/ accompanying goods Pure service

8. Service Distinctions • Equipment-based or people-based • Service processes • Client’s presence required or not • Personal needs or business needs • Objectives and ownership

9. Figure 13.1 Continuum of Evaluation for Different Types of Products

10. Distinctive Characteristics of Services Intangibility Inseparability Variability Perishability

11. Physical Evidence and Presentation Place People Equipment Communication material Symbols Price

12. Mayo Clinic’s Tangible Cues

13. Blue Man Group includes 33 different performers

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

15. 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 Matching Demand and Supply

16. Figure 13.2 A Service-Performance Process Map

17. Consumer-Friendly Services

18. Figure 13.3 Holistic Marketing for Services

19. 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

20. Figure 13.4 Service-Quality Model

21. 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

22. Determinants of Service Quality Reliability Responsiveness Assurance Empathy Tangibles

23. Best Practices • Strategic Concept • Top-Management Commitment • High Standards • Self-Service Technologies • Monitoring Systems • Satisfying Customer Complaints • Satisfying Employees

24. Figure 13.5 Tracking Customer Service Performance

25. Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership

26. Figure 13.6 Importance-Performance Analysis

27. Developing Brand Strategies for Services Choosing Brand Elements Establishing Image Dimensions Devising Branding Strategy

28. Customer Worries Failure frequency Downtime Out-of-pocket costs

29. Marketing Debate • Is Service Marketing Different From Product Marketing? Take a position: • Product and service marketing are fundamentally different. 2. Product and service marketing are highly related.

30. Marketing Discussion • Colleges and universities can be classified as service organizations. How can you apply the marketing principles developed in this chapter to your school? Do you have any advice as to how it could become a better service marketer?