Mnt Sdcard Download Services Marketing
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SERVICES MARKETING
(2nd semester, 2012 -2013)
Lecturer: Nguyen Huyen Minh, [email protected] | http://twitter.com/huyenminh
FOREIGN TRADE UNIVERSITY Faculty of Economics and International Business
mailto:[email protected]://twitter.com/huyenminh -
References
1. Marketing Management (Kotler, Keller), Prentice Hall, 14th
edition, 2012 (Chapter 13).
2. Principles of Marketing (Kotler, Armstrong), Prentice Hall, 14th edition, 2012 (Chapter 8).
3. International Marketing (Cateora, Gilly, Graham), McGraw-Hill | Irwin, 15 th edition, 2011 (Chapter 13, Chapter 14).
4. Services Marketing (Zeithaml, Bitner, Gremler), McGraw-Hill, 5th edition, 2009.
5. Services Marketing (Lovelock, Wirtz), Prentice Hall, 6th
edition, 2007.
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What is a service?
A service is any act or performance one party can offer to 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.
Increasingly, manufacturers, distributors, and retailers are providing value-added services, or simply excellent customer service, to differentiate themselves. Many pure service firms are now using the Internet to reach customers; some are purely online.
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WTO/OMC 4
The GATS Modes of Supply (1/2)
COUNTRY A COUNTRY B
Mode 1 : Cross- border
Mode 2: Consumption abroad
Mode 3: Commercial presence
CompanyCommercialpresence
Direct investment
ConsumerService supplier
The service crosses the border
The consumer is abroad
Servicesupply
Consumerin C
Consumer ConsumerService supplier
Consumer
$ $ $ $ $
Servicesupply
Servicesupply
Establish commercial presence
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WTO/OMC 5
Mode 4: Presence of natural persons
Juridical person
Natural person
An independent goes to country A
COUNTRY A COUNTRY B
An employee is sent by a company of country B
Commercialpresence
intra - corporate transferee
Consumer in C
Consumer
Consumer
The GATS Modes of Supply (2/2)
Servicesupply
Servicesupply
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Service(s), as defined by the American Marketing Association
1. Products, such as a bank loan or home security, that are intangible or at least substantially so . If totally intangible, they are exchanged directly from producer to user, cannot be transported or stored, and are almost intantlyperishable. Service products are often difficult to identify, because they come into existence at the same time they are bought and consumed. They comprise intangible elements that are inseparable; they usually involve customer participation in some important way; they cannot be sold in the sense of ownership transfer; and they have no title. Today, however, most products are partly tangible and partly intangible, and the dominant form is used to classify them as either goods or services (all are products). These common, hybrid forms, whatever they are called, may or may not have the attributes just given for totally intangible services. 2. Services, as a term, is also used to describe activities performed by sellers and others that accompany the sale of a product and aid in its exchange or its utilization (e.g., shoe fitting, financing, an 800 number). Such services are either presale or post-sale and supplement the product, not comprise it. If performed during sale, they are considered to be intangible parts of the product.
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The following definition was approved by the American
Marketing Association Board of Directors:
Marketing is the activity, set of institutions , and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.(Approved October 2007)
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Product/Service, by 3|5 level model analysis
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Categories of Service MixThe service component can be a minor or a major part of the total offering. We distinguish five categories of offerings:
1. Pure tangible good a tangible good such as soap, toothpaste, or salt with no accompanying services.
2. Tangible good with accompanying services a tangible good, like a car, computer, or cell phone, accompanied by one or more services. Typically, the more technologi-cally advanced the product, the greater the need for high-quality supporting services.
3. Hybrid an offering, like a restaurant meal, of equal parts goods and services. People patronize restaurants for both the food and its preparation.
4. Major service with accompanying minor goods and services a major service, like air travel, with additional services or supporting goods such as snacks and drinks. This offering requires a capital-intensive good an airplane for its realization, but the primary item is a service.
5. Pure service primarily an intangible service, such as babysitting, psychotherapy, or massage.
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Basic Focus Strategies for Services
BREADTH OF SERVICE OFFERINGS
NUMBER OF
MARKETS
SERVED
Narrow
Many
Few
Wide
Service
Focused
Unfocused
(Everything
for everyone)
Market
Focused
Fully Focused
(Service and
market
focused)
Reading: Competing Strategically through Service
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THE SERVICE CONTINUUM
(1)
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THE SERVICE CONTINUUM (2)
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MAJOR SERVICE CHARACTERISTICS
(Heterogeneity)
(Simultaneity)
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Resulting Implications (1)
1. Services can not be inventoried nor easily patented
2. Services can not be readily displayed or communicated
3. Pricing is difficult
4. Service delivery and customer satisfaction depend on employee and customer actions
5. Service quality depends on many uncontrollable factors
6. There is no sure knowledge that the service delivered matches what was planned and promoted
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Resulting Implications (2)
7. Customer participate in and affect the transaction
8. Customer affect each other
9. Employees affect the service outcome
10. Decentralization may be essential; mass servuction
11. It is difficult to synchronize supply and demand with services
12. Services cannot be returned or resold.
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Reading: The Expanded Marketing -Mix for Services
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Services Marketing: Three -In -One Story
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Service Quality: The Gaps Model
Reading: How UPS Closes the Gaps with Technology
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Customer Perceptions of Service Quality and Customer Satisfaction
Reading: Culture Influences Marketing Research
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Reading:
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The Tip of the Iceberg Problem
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Customer Complaints Behavior
Why do customers complain?
Restitution and compensation
Vent their anger
Help to improve the service
Altruistic reasons
Will not take the time to write, phone etc.
Do not believe that the company will be willing to resolve it!
Do not know were to go or what to do.
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Customer Complaint ActionsFollowing Service Failure
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SERVICE RECOVERY
Effective recovery from a failure can restore the standing of an organisation
To be effective, recovery should be rapid, appropriate and empathetic
Recovery facilitated by empowerment of staff
Recovery may be facilitated by blueprints
Reading: Service Recovery across Cultures
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Service Recovery Strategies
Service
Recovery
Strategies
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Service Blueprinting
Visual representation of a service process that can show:
Principle functions
Timing and sequencing
Participants involved
Tolerance levels
Feedback loops
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Building a Service Blueprint
Step 1
Identify the
process to
be blue-
printed.
Step 2
Identify the
customer
or
customer
segment.
Step 3
Map the
process
from the
point of
view.
Step 4
Map
contact
employee
actions,
onstage
and back-
stage.
Step 5
Link
customer
and contact
person
activities to
needed
support
functions.
Step 6
Add
evidence
of service
at each
customer
action
step.
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Service Blueprint Components
CUSTOMER ACTIONS
line of interaction
line of visibility
line of internal interaction
SUPPORT PROCESSES
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Service Blueprint Components
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Service Blueprint: an Example for Hotel
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Yield Management: Four Demand States
Excess demand - Demand exceeds capacity constraints of the organisation
Demand exceeds optimum capacity - A rule of thumb is that quality degrades if more than 75% of capacity is used (Heskett, 1986)
Demand and supply balanced
Excess capacity - Productive resources under utilised
34Capacity Management