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Service Marketing Wk 4 Notes

by: Megan Angelo

Service Marketing Wk 4 Notes MKTG - 45082 - 001

Marketplace > Kent State University > Marketing > MKTG - 45082 - 001 > Service Marketing Wk 4 Notes
Megan Angelo

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About this Document

Chapter 4
Services Marketing
Eileen Bridges
Class Notes
services, Marketing
25 ?




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This 8 page Class Notes was uploaded by Megan Angelo on Friday September 23, 2016. The Class Notes belongs to MKTG - 45082 - 001 at Kent State University taught by Eileen Bridges in Fall 2016. Since its upload, it has received 3 views. For similar materials see Services Marketing in Marketing at Kent State University.


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Date Created: 09/23/16
Chapter 4 Developing Service Products: Core and Supplementary Elements 4.1 The Flower of Service 4.2 Facilitating Supplementary Services 4.3 Enhancing Supplementary Services 4.4 Branding Service Products and Experiences 4.5 New Service Development 4.1 What is a “core product” or “core service”?  It meets the need identified by the consumer, which begins the consumer decision process discussed in chapter 2.  On page 20 in the text, it is defined as meeting “the customer’s primary need.”  In other words, it is the reason that a customer purchases a service; for example, the core service offered by a hotel is a place to sleep for the night. A service product comprises all elements of service performance, both tangible and intangible, that create value for customers. The service concept is represented by:  A core service  Accompanied by supplementary services Figure 4.2 • There are two kinds of supplementary services: – Facilitating supplementary services, which are either needed for service delivery, or help in the use of the core product – Enhancing supplementary services add extra value for the customer • Positioning strategy helps to determine which supplementary services should be included • Facilitating – Information ― customers often require information about how to obtain and use a product or service – Order-Taking ― Customers need to know what is available and may want to secure commitment to delivery. The process should be fast and smooth – Billing ― Bills should be clear, accurate and intelligible – Payment ― Customers may pay faster and more cheerfully if you make it simple and convenient for them • Enhancing – Consultation ― Value is added by offering consultation tailored to each customer’s needs and situation – Hospitality ― Customers (who invest time and effort) deserve to be treated as welcome guests – Safekeeping ― Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site – Exceptions ― Customers appreciate flexibility when they make special requests and expect responsiveness when things don’t go according to plan 4.2 Examples of Information: Examples of Order Taking: Examples of Billing: Examples of Payment Methods: 4.3 Examples of Consultation: Examples of Hospitality: Examples of Safekeeping: Examples of Exceptions: Managerial Implications • Not every core product is surrounded by supplementary elements from all eight clusters • Nature of product helps to determine: – Which supplementary services must be offered – Which might usefully be added to enhance value and ease of doing business • People-processing and high contact services tend to have more supplementary elements • Firms that offer different levels of service often add extra supplementary services for each upgrade in service level 4.4 • A service product offers a defined and consistent “bundle of output” • Each firm must differentiate its bundle of output from those of competitors • Providers of more intangible services may also offer a “menu” of products – These represent an assembly of elements that are built around the core product – May include certain enhancing supplementary services • Most service organizations offer a line of products rather than just a single service. • For branding, they may choose among three alternatives: – A single brand to cover all products – A separate, stand-alone brand for each offering – Some combination of these two extremes • Branding can be used at both company and product levels • Company level -- corporate brand: – Easily recognized – Holds meaning to customers – Stands for a particular way of doing business • Product level brand name: – Helps firm establish mental picture of service in consumers’ minds – Helps clarify value proposition • Four key ways to build strong brands – Dare to be different – Determine your own fame – Make an emotional connection – Internalize the brand 4.5 1. Style changes – Visible changes in service design or scripts 2. Service improvements – Modest changes in the performance of current products 3. Supplementary service innovations – Addition of new or improved facilitating or enhancing elements 4. Process-line extensions – Alternative delivery procedures 5. Product-line extensions – Additions to current product lines 6. Major process innovations – Using new processes to deliver existing products with added benefits 7. Major service innovations – New core products for previously undefined markets 8. In developing new services, – Ability to maintain quality of the total service offering is key – The core product is of secondary importance – Accompanying marketing support activities are vital – Market knowledge is of utmost importance 9. Market synergy – Good fit between new product and firm image/resources – Advantage vs. competition in meeting customers’ needs – Strong support from firm during/after launch – Understand customer purchase decision behavior 10.Organizational factors – Strong cross-functional cooperation and coordination – Internal marketing to educate staff on new product – Employees understand importance of new services 11.Market research factors – Scientific studies conducted early in development – Product concept well defined before doing field studies


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