1. Marketing Management
By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha
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SUMMARY by
Chapter 13
3
Designing and Managing
Services
Today as product companies find it harder and harder to distinguish their physical products,
they turn to service differentiation. Service providers find significant profitability in delivering
Service superior services.
How do we define and classify services and how do
marketing is
they differ from goods
different from goods
• A service is any act or performance one party can offer to another that is essentially
marketing as service
intangible and does not result in the ownership of anything .Its production may or may
consumer relies on not be tied to physical product Categories of services mix.
word of mouth, they • Services can be equipment based or people based & they differ in their objectives and
rely heavily on price, ownership.
• Service companies can choose among different processes to deliver their service.
personnel & physical
• Services needs client presence & may meet a personal or business need.
cues to judge
quality. They are
highly loyal to
Categories of services mix
• No services accompany the product. E.g
service providers Pure Tangible Goods
Soap,toothpaste
who satisfy them &
because switching Tangible Goods with •The offering accompanied by one or more services E.g
The
accompanying services Computers, Cell Phones & cars
costs are high,
consumer inertia •The offering contains equal parts goods and services. E.g
The
Hybrid
restaurants
can make it
Major service with •The offering consists of major service along with
The
challenging to entice accompanying minor additional services or supporting goods. E.g Airplane
goods and services travel alog with its services
a customer away
from a competitor. Pure Service •The Offering consists of only a service.E.g psycotherapy
The

2. Chapter 13 - Designing and Managing Services
Holistic Marketing for Services
External Marketing Internal Marketing Interactive Marketing
•It describes the normal
It •It describes the training •It describes the employee
work of and motivating skills in serving the client
preparing,pricing,distribut employees to serve the
ion,and promoting the customers well.Engage
service to customers. every employee in the
organization to practise
marketing
Distinctive Characteristics of Services
• Services are intangible Service marketers must be able to transform
Intangibility intangible services into concrete benefits.
• Services are typically produced and consumed simultaneously .Thus
Inseparability service providers must learn to work in larger groups to provide
services to customers
•Services are variable and buyers are aware of this variability and often
Services
talk to others about quality before selecting a services.
Variability •Invest In Good Hiring
•Standardize the service-performance process
performance
•MonitorCustomer Satisfaction process
•Services cannot be stored hence there is always a mismatch between
Services
demand & supply.Stratgies that marketers must use :
•Demand Side - Differential Pricing,Nonpeak Demand,Complementary
Perishability Services,Reservation Systems
•Supply Side - Part-Time employees ,Peak Time efficiency,Increased
Time
consumer participation,shared services,Facilities for future expansion
Developing Brand Strategies for services
Chosing Brand Elements
Focus on logos,symbols,slogans to build brand awareness
Establishing Image Dimensions
desgin marketing communication, information programs and building brand personality
Devising Branding Stratgey
Create a brand hierarchy and brand portfolio that permits positioning, targeting of
different market segments
Provide Post-Sales support
Sales
Identify what is most valuable to customer and include repair & maintainence services

3. Chapter 13 - Designing and Managing Services
Trends
Best Practices of Service Quality Management
STRATEGIC TOP HIGH SELF- MONITORIN SATISFYING
COMPONE MANAGEM STANDARDS SERVICE G SYSTEMS EMPLOYEES
NT ENT TEHNOLOGI •Auditing &
•Setting
COMMITME ES service CUSTOMERS
•Top high
companies NT service •replacing performanc •Instilling a
are •Thorough standards person to e of own & possitive
customer commitme •developing person competitor attitude
obsessed nt to reliable,resi interaction s about
•They have service e.g lient & s with self customer
clear sense Marriot,Xer innovative service satisfaction
of target ox customer technologie in
customer •Both Intefrace s e.g ATMs employees
and their financial & systems •Helping
need service customers
performanc to use
e these
monitored facilities
by top
manageme
nt