Kotler • KellerPhillip Kevin Lane

Marketing Management • 14e

Designing and Managing Services

Chapter 13

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Discussion Questions1. How do we define and classify services,

and how do they differ from goods?

2. What are the new services realities?

3. How can we achieve excellence in services marketing?

4. How can we improve service quality?

5. How can goods marketers improve customer-support services?

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The Nature of Services

2008 – 2018Loss of 1.2 million jobs

2008 – 2018Gain of 14.6 million jobs

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Service Sectors

Business

Government

Private nonprofit

Defined

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An act or performance one party can offer to another that essentially intangible and does not result in the ownership of anything.

Service

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Categories of Service Mix

Pure Tangible Good

Pure Service

Tangible Good minor service

Hybrid

Major service, minor good

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13.1 Continuum of Evaluation for Products

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Service Characteristics

Empty seatsPerishability

Intangibility

Inseparability

Variability

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Intangibility

• Place• People• Equipment• Communication material• Symbols• Price

Physical Evidence & Presentation

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Inseparability

Work with Larger GroupsAdd More Service Providers

Work Faster

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Variability

Good Hiring and Training

Monitor Satisfaction

Offer Guarantees

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13.2 Overnight Hotel Stay Blueprint

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Perishability

Empty seats

Differential Pricing

Nonpeak Demand

Complementary Services Reservation

Systems

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New Services RealitiesCustomer Empowerment

United Breaks G

uitar

Customer Coproduction

Satisfying Employees

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13.3 Root Cause of Customer Failure

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Achieving Excellence in Services

Differentiating Services

Marketing Excellence

Best Practices

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Marketing Excellence

Preparing, pricing, distributing, promoting the service

Training/motivating employees

External

Internal

Interactive Serving the client

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13.4 Marketing in Service Industries

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Best Practices of Top Service Companies

Management Commitment

Strategic Concept

High Standards

Profit Tiers

Monitoring Systems

Satisfy Customer

complaints

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13.5 Importance-Performance Analysis

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Differentiating Services

Innovation with services

Primary and secondary service options

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Managing Service Quality

Bored Employees

Unresponsive Employees

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Why Customers Switch Services

Pricing

Response to Failure

Ethical Issues

Competition

Service Failure

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What Customers Want from Providers

Knowledgeable employees

Address needs on first contact

Treat me like a valued customer

Demonstrates desire to meet my needs

Can quickly access information

Good value for the money

Courteous employees

Is a company/brand I can trust

Treats me fairly

Provides relevant/personalized service0% 10% 20% 30% 40% 50% 60% 70%

65%

64%

62%

54%

49%

49%

45%

43%

38%

31%

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Managing Customer Expectations

Experience

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13.6

Service-Quality Model

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Determinants of Service Quality

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Managing Product-Support Services

Customer Worries• Failure frequency• Downtime• Out-of-pocket costs

Manufacturer Strategies• Guarantees• Service contracts• Extended warranties