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15 1 Chapter15DesigningandManagingServicesby PowerPointbyMiltonM PressleyUniversityofNewOrleans 15 2 Everybusinessisaservicebusiness Doesyourserviceputasmileonthecustomer sface KotleronMarketing 15 3 ChapterObjectives Inthischapter wefocusonthefollowingquestions Howareservicesdefinedandclassified Howdoservicesdifferfromgoods Howcanservicefirmsimprovetheirdifferentiation quality andproductivity Howcangoods producingcompaniesimprovetheircustomersupportservices 15 4 Kisavirtualadvicemarketplace TheNatureofServices GovernmentsectorPrivatenon profitsectorBusinesssectorManufacturingsectorService 15 5 CategoriesofServiceMixPuretangiblegoodTangiblegoodwithaccompanyingservicesHybridMajorservicewithaccompanyingminorgoodsandservicesPureservice TheNatureofServices 15 6 CharacteristicsofServicesandTheirMarketingImplicationsIntangibilityServicepositioningstrategycanbemadetangiblethrough PlacePeopleEquipmentCommunicationmaterialSymbolsPrice TheNatureofServices 15 7 Onlinecompaniesthatprovideservicesareoftendirectlyimpactedbythequalityofacustomer scomputerorthecustomer sInternetconnection Canyouthinkofanotherservicesectorthathassolittlecontrolovertheenvironmentinwhichtheirservicesareprovided DiscussionQuestion 15 8 TheNatureofServices CarboneandHaeckelpurposethefollowingforcustomerexperienceengineeringPerformanceandcontextcluesHumanicsMechanicsExperienceblueprint 15 9 TheNatureofServices InseparabilityVariabilityQualitycontrolby GoodhiringandtrainingproceduresServiceblueprintMonitoringcustomersatisfaction 15 10 PerishabilityStrategiesforbettermatchingbetweendemandandsupplyinaservicebusinessDifferentialpricingNonpeakdemandComplementaryservicesReservationsystemsPart timeemployeesPeak timeefficiencyIncreasedconsumerparticipationSharedservicesFacilitiesforfutureexpansion TheNatureofServices 15 11 MarketingStrategiesforServiceFirms ThreeAdditionalPsPeoplePhysicalevidencepresentationProcess 15 12 Figure15 3 ThreeTypesofMarketinginServiceIndustries 15 13 MarketingStrategiesforServiceFirms ServiceCompaniesfacethreetasks CompetitivedifferentiationServicequalityProductivityManagingdifferentiationOfferingPrimaryservicepackageSecondaryservicefeatures 15 14 KaiserPermanenteOnlinehasover30 000registeredusers 15 15 MarketingStrategiesforServiceFirms FasterandBetterDeliveryReliabilityResilienceInnovativenessImageManagingServiceQualityPerceivedserviceExpectedservice 15 16 FedExandUPShavetakenovermuchoftheUSPostalService sbusiness mostlythroughflexibilityandinnovationthattheUSPScan tmatch Canyouthinkofanothergovernmentalservice anywhereintheworld whereaprivatecompanyhasbeenabletotaketheprofitablesegmentofaservice andleavethelessprofitableormoreriskysegmentforagovernmentagency DiscussionQuestion 15 17 MarketingStrategiesforServiceFirms FivegapsthatcauseunsuccessfuldeliveryGapbetweenconsumerexpectationandmanagementperceptionGapbetweenmanagementperceptionandservice qualityspecificationGapbetweenservice qualityspecificationandservicedeliveryGapbetweenservicedeliveryandexternalcommunicationsGapbetweenperceivedserviceandexpectedservice 15 18 FivedeterminantsofservicequalityReliabilityResponsivenessAssuranceEmpathyTangiblesStrategicConceptTop ManagementCommitmentHighStandardsSelf ServiceTechnologies SSTS MarketingStrategiesforServiceFirms 15 19 Mprovidesaccesstoservicesthatuserscanperformthemselves 15 20 Table15 1CustomerImportanceandPerformanceRatingsforanAutoDealership Seetextforcompletetable 15 21 MarketingStrategiesforServiceFirms SatisfyingCustomerComplaintsSatisfyingEmployeesAsWellAsCustomersManagingProductivitySevenapproachestoimprovingserviceproductivity HaveserviceprovidersworkmoreskillfullyIncreasethequantityofservicebysurrenderingsomequality Industrializetheservice byaddingequipmentandstandardizingproductionReduceormakeobsoletetheneedforaservicebyinventingaproductsolutionDesignamoreeffectiveservicePresentcustomerswithincentivestosubstitutetheirownlaborforcompanylaborHarnessthepoweroftechnologytogivecustomersaccesstobetterserviceandmakeserviceworkersmoreproductive 15 22 ManagingProductSupportServices CustomershavethreeworriesReliabilityandfailurefrequencyDowntimedurationOut of pocketcostsofmaintenanceandrepairLife cyclecost 15 23 ManagingProductSupportServices Toprovidethebestsupportforexpensiveequipment firmsoffer FacilitatingservicesValue augmentingservicesHermanMillerOfficeFurnitureCompanyoffers Five yearproductwarrantiesQualityauditsafterinstallationGuaranteedmove indatesTrade inallowancesonsystemsproducts 15 24 ManagingProductSupportServices PostsaleServiceStrategyMajortrendsinproductsupportserviceLelehasnotedthefollowing EquipmentmanufacturersarebuildingmorereliableandmoreeasilyfixableequipmentCustomersarebecomingmoresophisticatedaboutbuyingproductsupportservices Serviceunbundling 15 25 ManagingProductSupportServices CustomersdislikedealingwithmultipleserviceprovidershandlingdifferenttypesofequipmentThi
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