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PeterPreface14e_PPT_Ch12.pptxChapter 12 The Marketing of Services
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Services
Service products: Products that are intangible, or at least substantially so
Services: Activities performed by sellers and others that accompany the sale of a product and that aid in its exchange or its utilization
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Figure 12.1 - The Goods-Service Continuum
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Figure 12.2 - Unique Characteristics Distinguishing Services From Goods
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Providing Quality Services
Determination of good service quality is difficult because of the gap between:
Consumer expectations and management perceptions of consumer expectations
Management perceptions of consumer expectations and the firm’s service quality specifications
Service quality specifications and actual service quality
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Providing Quality Services
Actual service delivery and external communications about the service
Determinants of service quality
Tangibles - Physical evidence of the service
Reliability - Consistency and dependability of the service performance
Responsiveness - Willingness or readiness of employees or professionals to provide service
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Providing Quality Services
Assurance - Knowledge and competence of service providers and the ability to convey trust and confidence
Empathy - Service provider’s efforts to understand the customer’s needs and then to provide individualized service delivery
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Customer Satisfaction Measurement
Key issues for research on service quality and customer satisfaction
Understanding the expectations and requirements of the customer
Determining how well a company and its major competitors are succeeding in satisfying these expectations and requirements
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Customer Satisfaction Measurement
Common aspects of research on market leaders’ CSMs
Marketing and sales employees were primarily responsible for designing CSM programs and questionnaires
Top management and the marketing function championed the programs
Measurement involved a combination of qualitative and quantitative research methods
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Customer Satisfaction Measurement
Evaluations included both the company’s and competitors’ satisfaction performance
Results of all research were made available to employees, but not necessarily to customers
Research was performed on a continual basis
Customer satisfaction was incorporated into the strategic focus of the company
Commitment to increasing service quality and customer satisfaction was found in employees at all levels within the organization
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Critical Components of Internal Marketing
Careful selection process in hiring frontline employees
Clear, concrete message
Significant modeling by managers
Energetic follow-through process
Emphasis on good attitudes
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Internal Marketing
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Process by which managers actively encourage, stimulate, and support employee commitment to the organization and its customers
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Obstacles in Service Marketing
Lack of innovative marketing on the part of service marketers
Limited view of marketing
Lack of strong competition
Lack of creative management
No obsolescence
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Implications for Service Marketers
Overdependence on one or two elements of the marketing mix should be avoided by service marketers
Services must be made available to prospective users
New services should be developed
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