kotler framework 5e_11_sppt

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Framework for Marketing Management 11 Designing and Managing Services 1

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Page 1: Kotler framework 5e_11_sppt

Framework for Marketing Management

11Designing and

Managing Services

1

Page 2: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-2

Chapter Questions

How do we define and classify services and how do they differ from goods?

What are the new services realities? How can we improve service quality? How can goods marketers improve customer

support services?

Page 3: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-3

What is a Service?

A service is 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.

Page 4: Kotler framework 5e_11_sppt

Services are Everywhere

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-4

Page 5: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-5

Categories of Service Mix

Pure tangible good Good with accompanying services Hybrid Service with accompany goods Pure service

Page 6: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-6

Service Distinctions

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

Page 7: Kotler framework 5e_11_sppt

Figure 11.1 Continuum of Evaluation for Different Types of Products

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-7

Page 8: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-8

Distinctive Characteristics of Services

Intangibility

Inseparability

Variability

Perishability

Page 9: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-9

Physical Evidence and Presentation Place People Equipment Communication material Symbols Price

Page 10: Kotler framework 5e_11_sppt

Inseparability

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-10

Page 11: Kotler framework 5e_11_sppt

Variability

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-11

Page 12: Kotler framework 5e_11_sppt

Perishability

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-12

Page 13: Kotler framework 5e_11_sppt

Matching 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

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-13

Page 14: Kotler framework 5e_11_sppt

New Service Realities

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-14

Page 15: Kotler framework 5e_11_sppt

Figure 11.2 Root Causes of Customer Failure

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-15

Page 16: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-16

Solutions to Customer Failures

Redesign processes and redefine customer roles to simplify service encounters

Incorporate the right technology to aid employees and customers

Create high-performance customers by enhancing their role clarity, motivation, and ability

Encourage customer citizenship where customers help customers

Page 17: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-17

Best Practices

Strategic Concept Top-Management Commitment High Standards Self-Service Technologies Monitoring Systems Satisfying Customer Complaints Satisfying Employees

Page 18: Kotler framework 5e_11_sppt

Figure 11.3 Service-Quality Model

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-18

Page 19: Kotler framework 5e_11_sppt

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-19

Determinants of Service Quality

Reliability Responsiveness Assurance Empathy Tangibles

Page 20: Kotler framework 5e_11_sppt

For Review

How do we define and classify services and how do they differ from goods?

What are the new services realities? How can we improve service quality? How can goods marketers improve customer

support services?

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 11-20