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7/31/2019 Unit IV 2.Service Marketing
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Designing andDesigning and
Managing ServicesManaging Services
Designing andDesigning and
Managing ServicesManaging Services
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What is a Service?A service is any act of performance
that one party can offer another that
is essentially intangible and does notresult in the ownership of anything;its production may or may not be tied
to a physical product.
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Service Sectors
GovernmentPrivate
nonprofit
ManufacturingBusiness Retail
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Categories of Service Mix
Pure tangible good
Pure tangible good
Good w/ accompanying services
Good w/ accompanying services
Hybrid
Hybrid
Service w/ accompanying goods
Service w/ accompanying goods
Pure service
Pure service
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Service Distinctions Equipment-based or people-based
Service processes
Clients presence required or not Personal needs or business needs
Objectives and ownership
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Continuum of Evaluation forDifferent Types of Products
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Distinctive Characteristics
of Services1. Intangibility Strategies
Physical Evidence andPresentation
Place
People
Equipment Communicationmaterial
Symbols
Price
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2. Inseparability
3. Variability Strategies
Invest in good hiring and training
procedures
Standardize the service-
performance process
Monitor customer satisfaction
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4.PherishabilityMatching 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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Strategies for service
marketing In Addition to the stategies that
corresponds to different
characteristics, marketers can adoptthe holistic marketing strategy forservice marketing (see the figure)
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Three Types of Marketing
in Service Industries
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Service-Quality Model
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Gaps That Cause
Unsuccessful Service Delivery1. Gap between consumer expectation and
management perception2. Gap between management perception and
service-quality specifications3. Gap between service-quality
specifications and service delivery
4. Gap between service delivery andexternal communications5. Gap between perceived service and
expected service
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Service Companies should identifythese gaps and should try to remove
or at least minimize the gaps toimprove the quality of services.
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Determinants of Service
QualityReliability
Responsiveness
Assurance
Empathy
Tangibles
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Best Practices Strategic Concept Top-Management Commitment
High Standards Self-Service Technologies Monitoring Systems
Satisfying Customer Complaints Satisfying Employees