MARKETING MANAGEMENT Chapter Questions filecan they be classified? • How can companies...
Transcript of MARKETING MANAGEMENT Chapter Questions filecan they be classified? • How can companies...
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MARKETING MANAGEMENT12th edition
13 Designing and
ManagingServices
Kotler Keller 13-2
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?
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IBM has moved from a goods business to a service business
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Service
Any act of performance that oneparty can offer another that is
essentially intangible and does notresult in the ownership of anything;
its production may or may notbe tied to a physical product.
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Service Sectors
GovernmentPrivate
nonprofit
ManufacturingBusiness Retail
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General Motors’ OnStar Service
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Categories of Service Mix
Pure tangible good
Good w/ accompanying services
Hybrid
Service w/ accompanying goods
Pure service
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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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Figure 13.1 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
Price13-12
Mayo Clinic’s Tangible Cues
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Blue Man Group includes 33 different performers
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How to Increase Quality Control
Invest in good hiring and training procedures
Monitor customer satisfaction
Standardize the service-performance process
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Matching Demand and SupplyDemand 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 13.2 A Service-Performance Process Map
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Consumer-Friendly Services
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Figure 13.3 Holistic Marketing for Services
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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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Figure 13.4 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 service13-22
Determinants of Service Quality
Reliability
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
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Figure 13.5 Tracking Customer Service Performance
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Table 13.3 Customer Importance and Performance Ratings for an Auto Dealership
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Figure 13.6 Importance-Performance Analysis
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Developing Brand Strategies for Services
Choosing Brand Elements
Establishing ImageDimensions
Devising BrandingStrategy
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Customer Worries
Failure frequency
Downtime
Out-of-pocket costs
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Marketing Debate
Is Service Marketing Different From Product Marketing?
Take a position:1. Product and service marketing are fundamentally different.2. Product and service marketing are highlyrelated.
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Marketing Discussion
Colleges and universities can be classified as service organizations.How can you apply the marketing
principles developed in this chapterto your school? Do you have anyadvice as to how it could become
a better service marketer?