Service Marketing Wk 4 Notes
Service Marketing Wk 4 Notes MKTG - 45082 - 001
Popular in Services Marketing
MKTG - 45082 - 001
verified elite notetaker
Popular in Marketing
verified elite notetaker
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.
Reviews for Service Marketing Wk 4 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
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