Designing and Managing Services
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This document defines and discusses the nature and characteristics of services. It explains that a service is any intangible act or performance offered by one party to another that does not result in ownership. Services can be provided by government, non-profits, or businesses. Key characteristics of services include intangibility, inseparability, variability, and perishability. The document then discusses marketing strategies for services, including managing differentiation, quality, and delivery failures through addressing gaps between customer expectations and actual delivery. Well-managed service firms are characterized by a strategic concept, top management commitment, high standards, monitoring systems, and complaint resolution.
Designing and Managing Services
- 3. 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.
- 4. Nature of Services The Service Industry includes the following: –Government Sector –Private nonprofit Sector –Business Sector –Manufacturing Sector
- 8. Nature of Services • Categories of Service Mix –Pure tangible good –Good with accompanying services –Hybrid –Service with accompany goods –Pure service
- 9. Nature of Services CHARACTERISTICS • Intangibility oCannot be seen, touched, tasted, heard or smelled before purchase oLack of trial means higher consumer needs oConsumer rely on cues to draw quality inferences
- 10. SALON, SPA
- 11. Nature of Services CHARACTERISTICS • Inseparability oServices are produced and consume at the same time. oService providers and sometimes other customers become part of the service.
- 12. Air travel Services Restaurant Services
- 13. Nature of Services CHARACTERISTICS • Variability oServices providers varies with respect to attitudes, skills, moods etc. Even the same provider may give different service on a different day. oQuality control is critical: Hiring the right people Standardizing service Monitoring satisfaction
- 14. Nature of Services CHARACTERISTICS • Perishability oServices cannot be inventoried or otherwise stored.
- 15. Marketing Strategies • People physical evidence must be considered in addition to the 4 P’s when creating external marketing plan. • Successfully delivering the service often depends on staff being trained via internal marketing efforts.
- 16. Marketing Strategies • Interactive marketing refers to the employees’ skill in serving the client. • Customers judge a service by its: • Technical Quality • Functional Quality • Search qualities, experience qualities and credence qualities are evaluated by customers.
- 17. Marketing Strategies • Marketing Task Managing differentiation oCannot differentiate on price alone. oInnovative features. oDelivery system Reliability Resilience Innovativeness oImage and Branding
- 18. Marketing Strategies • Marketing Task Managing Service Quality oThe service quality model identifies five gaps that can cause service delivery failure oService companies that successfully address these gaps follow common practices
- 19. Marketing Strategies • Service Delivery Failure Results from Gaps Between: Consumer expectation and management perception Management perception and Service-quality specification Service-quality specifications and service delivery Service delivery and external communications Perceived service and expected service
- 20. Marketing Strategies • Well-Managed Service Firms Shared These Characteristics: A strategic concept Commitment from top-management High standards Firm and customer monitoring system Satisfying customer complaints
- 21. Thank you!!