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Chapter 14

Chapter 14. Designing and Managing Services. FOR… ORGANIZATIONAL CONSUMERS CHAPTER 13 BA 303 LPC. Objectives. Business Services Definitions & Classifications How Business Services Differ From Goods Improving Service Differentiation, Quality, & Productivity

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Chapter 14

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  1. Chapter 14 Designing and Managing Services FOR… ORGANIZATIONAL CONSUMERS CHAPTER 13 BA 303 LPC

  2. Objectives • Business Services Definitions & Classifications • How Business Services Differ From Goods • Improving Service Differentiation, Quality, & Productivity • Improving Customer Support Services • Marketing Mix for Business Services • CONSULTATIVE SELLING, relationship servicing

  3. FACTORS AFFECTING THE GROWTH OF B2B SERVICES • E BUSINESS • OUTSOURCING • INNOVATIONS • MANUFACTURING GROWTH

  4. DIMENSIONS OF SERVICE QUALITY • FUNCTIONAL VS • TECHNICAL SERVICE

  5. Pure Tangible Good Pure Service Categories of Service Mix Tangible Good w/ Services Hybrid Major Service w/ Goods

  6. Four Service Characteristics Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Inseparability Services cannot be separated from their providers Perishability Services cannot be stored for later sale or use Variability Quality of services depends on who provides them and when, where, and how Services (non ownership)

  7. Overcoming Service Challenges Intangibility Use cues to make it tangible Inseparability Increase productivity of providers Perishability Match supply and demand Variability Standardize service production & delivery Services (simultaneously produced & consumed)

  8. Company Internal marketing External marketing Cleaning/ maintenance services Financial/ banking services Restaurant industry Employees Customers Interactive marketing Three Types of Marketingin Service Industries

  9. Offer Delivery Image Marketing Mix for Service Differentiation

  10. Word-of-mouth communications Personal needs Past experience Expected service Consumer Gap 5 Perceived service Gap 1 Service delivery (including pre- and post-contacts) External communi- cations to consumers Gap 4 Gap 3 Marketer Translation of perceptions to service-quality specifications Gap 2 Management perceptions of consumer expectations Service-Quality Model

  11. Determinants of Service Quality • Reliability • Responsiveness • Assurance • Empathy • Tangibles • Functional • Technical

  12. ServiceExcellence • Strategic Concept • Top-Management Commitment • High Standards • Monitoring Systems • Satisfying Customer Complaints • Satisfying Both Employees & Customers • Managing Productivity

  13. ServiceSegmentation • Narrower Than Product Segmentation • Focus on What the Buyer Expects Rather than What the Buyer Needs • Adjust Service Capacity For each segment • PIP Value Added Benefits

  14. Extremely important A. Concentrate here B. Keep up the good work 1 2 3 4 5 6 7 8 9 10 Fair performance Excellent performance 11 12 13 C. Low priority D. Possible overkill # = Attributes Slightly important Importance-Performance Analysis 14

  15. Complaint Resolution • Hiring Criteria & Training for Employees • Develop Guidelines for Fairness • Remove Complaint Barriers • Analyze Types & Sources of Complaints

  16. LPC Reviews • B2B Service Definitions & Classifications • How Services Differ Goods • Improving B2B Service Differentiation, Quality, & Productivity • Improving Customer Support Services

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