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Flashcards

SERVICES MARKETING

starry_eyed_ English 84 cards

Cards in this deck (84)

  1. 1DISTRIBUTION- SERVICE IS CONDUCTED REMOTELYE.g. via email, phone or mail.
    May never meet the customer
  2. 2BRANDING STRATEGIES- HOUSE OF BRANDSEach product actively promoted under its own brand name. E.g. Yum brands, (KFC, Pizza hut and Taco Bell)
  3. 3TIERING SERVICE PRODUCTSBranding used to differentiate different service levels
    e.g. offering several price-based classes of a service concept (star ratings, airline classes)
  4. 4SERVICE TIERING- EXAMPLEBA- 7 DISTINCT PRODUCTS OFFERED First, Clubworld, World traveler plus, World traveler, Club Europe, Euro traveler, Shuttle
  5. 5SERVICE TIERING- EXAMPLE CONT.Each is a specific service concept, with specific price and promotion focus.
    Core product is the same, SS vary
  6. 6DISTRIBUTION OF SERVICES- KEY QUESTIONSWhat, How, Where, When
  7. 7DISTRIBUTION- INFORMATION VS PHYSICAL PROCESSESINFORMATION- Info, consultation, Order-taking, Billing, Payment
    PHYSICAL PROCESSES- hospitality, safekeeping, exceptions
  8. 8HOW ARE SERVICES DISTRIBUTED?- categories-CUSTOMER GOES TO THE SERVICE OR
    -SERVICE ORG GOES TO THE CUSTOMER
    -CUSTOMER AND SERVICE ORG TRANSACT REMOTELY
  9. 9DISTRIBUTION- CUSTOMER GOES TO THE SERVICE ORGHotel/restaurant.
    Dependent on location, opening times key, Convenience an important consideration
  10. 10DISTRIBUTING- SERVICE ORG GOES TO THE CUSTOMERLocation specific (pruning a trees), expensive and time consuming, corp customers- larger volume, potential premium niche
  11. 11ENHANCING SS- EXCEPTIONSSPECIAL REQUESTS- dietry
    PROBLEM SOLVING- normal delivery fails HANDLING COMPLAINTS- well defined procedures
    RESTITUTION
  12. 12EXCEPTIONS- BEWARERequire contingency plans from anticipation.
    Too many exceptions imply that standard procedures need revamping
  13. 13SUPPLEMENTARY SERVICES DEPEND ON-Nature of the service- low/high quality? high contact/low contact, info processing vs people processing
    Marketing strategy- differentiation?
    Pricing- what can be charged as extra?
  14. 14BRANDING STRATEGIES FOR SERVICE PRODUCTS?BRANDED HOUSE
    SUB-BRANDS
    ENDORSED BRANDS
    HOUSE OF BRANDS
  15. 15DIFFERENTIATING SERVICE PRODUCTSOne bundle can be packed to differentiate it from another, e.g. Hen weekend packages at spas
    Allows for effective marketing
  16. 16BRANDING STRATEGIES- BRANDED HOUSEE.g Virgin group
    Applies it's brand name to multiple offerings often in unrelated fields. Beware brand name/rep is not damaged
  17. 17BRANDING STRATEGIES- SUB-BRANDSMaster brand is the primary frame of reference, but the product itself also has a distinctive name e.g. fedex ground, fedex express
  18. 18BRANDING STRATEGIES- ENDORSED BRANDSThe product name dominates, but the corp name still features. Each brand must have distinctive value, targeted at a diff customer segment. Brand extension encouraging patronage within the brand family
  19. 19POSITIONING STRATEGIESFULLY FOCUSED
    MARKET FOCUSED
    SERVICE FOCUSED
    UNFOCUSED
  20. 20POSITIONING STRATEGIES-FULLY FOCUSEDNarrow market, narrow range. Niche, premium pricing
    (is the market big enough?)
  21. 21POSITIONING STRATEGIES- MARKET FOCUSEDNarrow market, wide range. Full service package- do you have the capabilities to provide this?
  22. 22POSITIONING STRATEGIES- SERVICE FOCUSEDWide market, Narrow range. e.g. Starbucks, must have expertise in the specific segment
  23. 23POSITIONING STRATEGIES- UNFOCUSEDWide market, Wide range. You don't want to be here- jack of all trades, master of none, resources spread to thinly (trade-offs need to be made)
  24. 24DEVELOPING A SERVICE CONCEPTResearch customers and competitors. Important and determinant service attributes. Decide level of performance on service attributes (price/quality trade off)
  25. 25POSITIONING- KEY COMPONENTS1. establish a position in the minds of target customers 2. position should provide one consistent message 3. must be differentiated from competitors 4. it must be focused
  26. 263 COMPONENTS OF THE SERVICE PRODUCTCORE PRODUCT
    SUPPLEMENTARY SERVICES
    DELIVERY PROCESSES
  27. 27CORE PRODUCTThe central component that solves the core problem
  28. 28SUPPLEMENTARY SERVICESService related activities that AUGMENT the core product, FACILITATING its use and ENHANCING its appeal/value
  29. 29SUPPLEMENTARY SERVICES- WHY?As an industry matures and comp increases, core products become more commoditised, SS can offer a route to competitive advantage.
    Raising perceived value- higher price
  30. 30FLOWER OF SERVICE- SHOWSCORE PRODUCT
    FACILITATING AND ENHANCING SS
    INFORMATION AND PHYSICAL PROCESSES
  31. 312 TYPES OF SUPPLEMENTARY SERVICESFACILITATING- Required for service delivery
    ENHANCING- add extra value for customers
  32. 328 CLUSTERS OF SSFACILITATING- billing, payment, order-taking, information
    ENHANCING- Hospitality, exceptions, consultation, safekeeping
  33. 33THE POINT OF THE FLOWER METAPHORWeakness in one supplementary service will impact the appearance of the entire flower (even if the core is perfect)
  34. 34FACILITATING SS- INFORMATIONSchedules, location, opening times
    -Particularly for new customers and prospects
    -timely and accurate
    - via staff, printed material, websites etc
  35. 35FACILITATING SS- ORDER-TAKINGApplications, order entry (web), reservations
    -minimize time and effort
    -tech increasingly used
  36. 36FACILITATING SS- BILLINGStatements, verbal statements, machine display
    - inaccurate/illegible unacceptable
    -timely (speeds payment)
    -Market research to find out what is wanted/how presented
  37. 37FACILITATING SS- PAYMENTSST, Cash/card handling, automatic deduction from deposits
    -ease and convenience expected
    -SST- rapid troubleshooting and maintenance
  38. 38ENHANCING SS- CONSULTATIONCustomized advice, tutoring/training, consulting
    A dialogue to probe customer requirements then develop a tailored solution
  39. 39ENHANCING SERVICES- HOSPITALITYGreeting, food/beverages, toilets, waiting facilities
    -courtesy and consideration of customers needs
    -important role in customer satisfaction
    -Cultural aspect
  40. 40ENHANCING SS- SAFEKEEPINGCaring for possessions- child/pet, valet parking, transportation and delivery
  41. 41POST-PURCHASE- CREDENCE ATTRIBUTEShard to evaluate even after consumption
    Have to trust in the level of quality they have received
    -quality of maintenance work, counseling services
    Common in professional services
  42. 42CUSTOMER DELIGHTthe unexpected rather than avoiding problems
    continually reaching to exceed customer expectations can backfire and edge towards diminishing returns
  43. 43SERVICE ENCOUNTER- THEATER AS A METAPHOR-more useful for high contact services
    -service- performance
    -service facilities- stage (setting and props)
    -personnel- actors (roles, costumes, backstage production team)
  44. 44SERVICE ENCOUNTER- ROLE THEORY-Both employees and customers
    -behavior patterns learned through experience and communication for maximum effectiveness
    -satisfaction/productivity depends on acting out prescribed roles
  45. 45SERVICE ENCOUNTER- SCRIPT THEORY-Sequences and behavior, employees and customers learn and follow
    -unwillingness to learn a new script, reason to switch
    -tight scripting reduces variability
    -deviations cause dissatisfaction
  46. 46POST-PURCHASE-Compared with previous expectations
    -desired service
    -zone of tolerance
    -adequate service
    -predicted service
    -service promises, exp and WOM
  47. 47POST-PURCHASE- DESIRED SERVICE-Personal needs
    - Beliefs about what is possible
    -influenced by WOM, exp and service promises
  48. 48POST-PURCHASE- ADEQUATE SERVICEMinimum without being dissatisfied
  49. 49POST-PURCHASE- PREDICTED SERVICE-ACTUALLY ANTICIPATE RECEIVING
    -affected by service promises, WOM, exp
    - defines adequate level of service
    - situation specific
  50. 50POST-PURCHASE- ZONE OF TOLERANCE-within which customer accepts service variation
    -differs in size between customers
    -which service elements most sensitive/choice was based on
  51. 51POST-PURCHASE- SATISFACTION-Within the zone of tolerance
    -attitude like judgement
    -positive/negative disconfirmation of expectations
    -confirmation of expectations
  52. 52INSEPARABILITY/SIMULTANEOUS PRODUCTION AND CONSUMPTION-Co-production role of the customer
    -however not always the case, some services are separable (sending something away to be repaired)
  53. 53PERISHABILITY-The service cannot be stored
    -makes synchronizing supply and demand is harder
    -increasingly services can be inventoried e.g. info based services on disks
  54. 54VARIABILITY/HETEROGENITY-Each service performance has the potential to vary
    -moments of truth
    - However increasing standardization, replacing people with tech
    -Products vary too
  55. 55CO-PRODUCTION-Key service difference
    -Poor customer performance may have detrimental impact
    -Develop user friendly systems and train customers
  56. 56PEOPLE-Key service difference
    -people may be involved in the service delivery
    -recruit, train and reward to re-enforce the planned service concept
  57. 57TIME FACTOR-Key service difference
    -Often a key part of the service delivery
    -Increase convenience be reducing wait times, opening longer hours etc
  58. 58DISTRIBUTION-Key service difference
    - Often through non-physical channels
    - User friendly website essential
  59. 59ADDITIONAL 3 SERVICE PsPHYSICAL EVIDENCE
    PEOPLE
    PROCESS
  60. 60PEOPLE (3 Ps)Service only as good as it's people, essentially inseparable
    -skills and attitude
    -integration of HR function
  61. 61PROCESS-Speed/convenience
    -variability
    -process design (blueprint)
    -co-production
  62. 62PHYSICAL EVIDENCE-Service environment (servicescape)
    -Physical flow
  63. 63PURCHASE/CONSUMPTION PROCESSPRE-PURCHASE
    SERVICE ENCOUNTER
    POST-ENCOUNTER
  64. 64PRE-PURCHASE-NEED AROUSAL
    -INFORMATION SEARCH
    - EVALUATION OF ALTERNATIVES
    -PURCHASE DECISION
  65. 65PRE-PURCHASE- NEED AROUSALTriggered by
    - The unconscious mind (identity)
    - Physical need (hunger)
    -External sources (marketing)
  66. 66PRE-PURCHASE- INFORMATION SEARCH-Search for solutions
    -Evoked set
  67. 67PRE-PURCHASE- INFORMATION SEARCH- EVOKED SETProducts/brands that come to mind and are considered, from
    -Past exp
    -Advertising
    -Recommendations
  68. 68PRE-PURCHASE- EVALUATING ALTERNATIVES-Many services difficult to evaluate pre-purchase
    -Search attributes
    -Experience attributes
    -Recommendations/reviews fallible
  69. 69PURCHASE/SERVICE ENCOUNTER-MOMENTS OF TRUTH
    -LOW/HIGH CONTACT
    -PHYSICAL CLUES
    -SERVUCTION
    -THEATER, ROLE AND SCRIPT
  70. 70SERVICE ENCOUNTER- LOW CONTACT-Arms length
    -Electronic (online banking)
    -Machines (SST)
  71. 71SERVICE ENCOUNTER- HIGH CONTACT-More physical clues
    -Interaction throughout the service delivery
    -Entering the service factory
  72. 72SERVICE ENCOUNTER- SERVUCTION-Amalgamation of production and service (ZIZIS)
    -service delivery system (visible)
    -technical core, processing inputs (invisible)
    -describes single service encounter
  73. 73TANGIBLE/INTANGIBLE DYNAMIC MATRICLovelock and Wirtz- RECIPIENT VS TANGIBILITY
    - People processing
    - Mental stimulus processing
    - Information processing
    -Possession processing
  74. 74TANGIBILITY/INTANGIBILITY DYNAMIC- PEOPLE PROCESSINGAirlines, hotels
    - physically enter the service system
    -Customer must be present
  75. 75TANGIBILITY/INTANGIBILITY DYNAMIC- MENTAL STIMULUS PROCESSINGEducation, psychology
    - requires time and mental effort from the customer
    - physical presence in the service factory not always needed
    - Information involved can be inventoried
  76. 76TANGIBILITY/INTANGIBILITY DYNAMIC- POSSESSION PROCESSINGRepair, dry cleaning
    - may not involve simultaneous production/consumption
    - customers less physically involved
  77. 77TANGIBILITY/INTANGIBILITY DYNAMIC- INFORMATION PROCESSINGBanking, legal services
    -Revolutionized by IT
    - may be turned into more tangible forms e.g. reports
    - can be blurred with mental stimulus processing
  78. 78LACK OF OWNERSHIPStill a valid distinction
    -considered as 'rental'
    -valuing desired experiences, solutions, space, labor, expertise
    - Access to facilities unavailable to an individual
  79. 79The four ways in which services differ from physical goods- INTANGIBLE
    - HETEROGENEOUS/VARIED
    - SIMULTANEOUS PRODUCTION AND CONSUMPTION
    - PERISHABILITY
    (LACK OF OWNERSHIP- ALT)
  80. 80MARKETING INTANGIBLESUse tangible cues/evidence- physical environment or human evidence (where marketing usually abstracts to values)
  81. 81SERVICES ARE- TIME BASED
    -ACCESS to goods, labour, skills, facilities, networks and systems
    - No OWNERSHIP of physical elements
  82. 82SERVICES- KOTLER DEFINITIONAct or PERFORMANCE one party offers to another that is essentially INTANGIBLE and does not result in OWNERSHIP. May or may not be tied to a physical product
  83. 83INTANGIBILITY- THEORISTSHOSTACK 1977
  84. 84VERY FEW PRODUCTS/ SERVICES ARE...Purely TANGIBLE OR INTABGIBLE, services are dominated by INTANGIBILITY
    SHOSTACK 177

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Flashcards on SERVICES MARKETING, created by starry_eyed_ on 25/04/2013.
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starry_eyed_
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