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Slide 1 in
Objectives
Learn how services are defined and
classified.
Understand how service firms improve
their competitive differentiation,
service quality, and productivity.
Identify how goods-producing
companies can improve their customer
support services.
2003 Prentice Hall, Inc.
Slide 2 in
Nature of Services
The Service Industry includes the:
Government sector
Private nonprofit sector
Business sector
Manufacturing sector
Slide 3 in
Nature of Services
Service Mix Categories:
Pure tangible good: no services
Tangible good with accompanying
services
Hybrid: equal parts service and goods
Major service with accompanying minor
goods and services
Pure service
2003 Prentice Hall, Inc.
Slide 4 in
Nature of Services
Characteristics
Intangibility
Inseparability
Variability
Perishability
2003 Prentice Hall, Inc.
Cannot be touched,
seen, tasted, heard, or
smelled before purchase
Lack of trial means
higher consumer risk
Consumers rely on cues
to draw quality
inferences
Marketers must try to
tangibilize the
intangible
Slide 5 in
Nature of Services
Characteristics
Intangibility
Inseparability
Variability
Perishability
2003 Prentice Hall, Inc.
Slide 6 in
Nature of Services
Characteristics
Intangibility
Inseparability
Variability
Perishability
2003 Prentice Hall, Inc.
Slide 7 in
Nature of Services
Characteristics
Intangibility
Inseparability
Variability
Perishability
2003 Prentice Hall, Inc.
Slide 8 in
Nature of Services
Demand-side
strategies
Use differential
pricing
Cultivate nonpeak
demand
Develop
complementary
services
Install reservation
systems
2003 Prentice Hall, Inc.
Supply-side
strategies
Hire part-time
employees
Introduce peak-time
efficiency routines
Increase consumer
participation
Plan facilities for
future expansion
Share services
Slide 9 in
Marketing Strategies
People, physical evidence, and
process must be considered in
addition to the 4 Ps when creating
external marketing plans.
Successfully delivering a service
often depends on staff being trained
via internal marketing efforts.
2003 Prentice Hall, Inc.
Slide 10 in
Marketing Strategies
Interactive marketing refers to the
employees skill in serving the client.
Customers judge a service by its:
Technical quality
Functional quality
Slide 11 in
Marketing Strategies
Marketing Tasks
Managing
differentiation
Managing service
quality
Managing
productivity
2003 Prentice Hall, Inc.
Slide 12 in
Marketing Strategies
Marketing Tasks
Managing
differentiation
Managing service
quality
Managing
productivity
2003 Prentice Hall, Inc.
Slide 13 in
Marketing Strategies
Service Delivery Failure Results
from Gaps Between:
Consumer expectations and
management perceptions
Service-quality specifications
and service delivery
Slide 14 in
Marketing Strategies
Well-Managed Service Firms
Share These Characteristics
A strategic concept
High standards
Commitment from
Firm and customer
top-management
monitoring systems
Satisfaction of employees
and customers
2003 Prentice Hall, Inc.
Slide 15 in
Marketing Strategies
Marketing Tasks
Managing
differentiation
Managing service
quality
Managing
productivity
2003 Prentice Hall, Inc.
Slide 16 in
Slide 17 in
Slide 18 in