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Three Thoughts

Marketing Colleges and Universities from a Services Perspective CASE VI Presented by Tom Hayes Ph.D. Three Thoughts. You can fight change, invest in change or create change We are in the business of “recruiting successful alumni” We are providing a “total educational experience”.

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Three Thoughts

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  1. Marketing Colleges and Universities from a Services PerspectiveCASE VIPresented byTom Hayes Ph.D.

  2. Three Thoughts • You can fight change, invest in change or create change • We are in the business of “recruiting successful alumni” • We are providing a “total educational experience”

  3. Changes in the Service Sector 1) Shift in the Base of World Economies 2) Your customer's Expectations Are Shifted by Forces Outside Your Industry 3) Technology, Technology, Technology!

  4. Product Quality Features Options Style Brand Packaging Services Warranties Seven P’s of Service Traditional four P’s of Marketing • Price • List Price • Discounts • Payment Period • Value Proposition

  5. Seven P’s of Service • Place • Channels • Coverage • Location • Promotion • Advertising • Personal Selling • Sales Promotion • Publicity • Direct Marketing

  6. Seven P’s of Service 3 more P’s • Color • Temperature • Noise • Physical Evidence • Arrangements of objects • Materials used • Shapes/lines • Lighting/shadows • Process Design • Policies & Procedures • Delivery cycle time • Training and rewarding systems • Participant • Service Provider • Customer being serviced • Other employees and customers

  7. “There are no such things as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service.”Theodore Leavitt “If you are not servicing the customer, you had better be servicing someone who is.” Albrecht & Zemke

  8. Differences Between Services and Packaged Goods • Intangibility • Inseparability • Variability • Perishability • Trust is a key component • The customer participates in the process

  9. In the next decade customer satisfaction will surpass profits as the key performance measures. (Study by Korn/Ferry International)

  10. Performance–Attitude–Behavior Model Much better than expected “Delighted” Loyal Existing customer attitudes Service or product contact As expected Satisfied Vulnerable Worse than expected Dissatisfied Exit

  11. It is all about expectations! Desired Service Zone of Tolerance Adequate Service Source: Zeithaml & Bihner, 1996

  12. What Creates Expectations • What you tell them • What you imply • Personal needs • A sense of urgency • What others demand of them • Word of mouth • Options • Past experience

  13. Other’s Definition Quality = Zero Defects – Deming Conformance to specifications – Crosby “Attention to detail and exceeding customer expectations” – Disney

  14. The Customer’s Definition– Berry et al • Reliability • Consistency • Dependability • Honor your promises • Responsiveness • Willingness/readiness of employees to provide service • Timeliness of service

  15. Competence • Possession required skills and knowledge • Of contact personnel • Of operational support personnel • Research capability of firm • Access • Approachability and ease of contact

  16. Courtesy • Politeness • Respect • Consideration • Friendliness • Communication • Keeping customers informed in language they understand • Listening to customers

  17. Credibility • Trustworthiness • Believability • Honesty • Security • Freedom from danger, risk or doubt • Physical safety • Financial • Confidentiality

  18. Understanding the Customer • The marketing concept • Specific customer requirements • Individualized attention • Recognizing the regular customer • Tangibles • Physical evidence of service • Facilities • Personnel • Other customers • Tools or equipment

  19. Key Factors:Lack of market segmentation Insufficient marketing research Inadequate use of marketing research Lack of interaction between management and customers Insufficient communication between contact employees and managers Breakdown in Service Quality Service Gaps Customer Expectations GAP 1 Perceptions of Customer Expectations Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.

  20. Breakdown in Service Quality • Key Factors:Lack of customer-defined standards and • process management • Absence of formal process for setting service quality goals • Perception of infeasibility — that customer expectations • cannot be met • Inadequate management commitment to service quality Service Gaps Perceptions of Customer Expectations GAP 2 Service Quality Standards Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.

  21. Breakdown in Service Quality Key Factors:Role ambiguity among employees Role conflict among employees Poor employee - technology - job fit Inappropriate evaluation / compensation system lack of perceived control (contact personnel!) Lack of teamwork Service Gaps Service Quality Standards GAP 3 Service Delivery Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.

  22. Breakdown in Service Quality Service Gaps Key Factors:Inadequate management of expectations Overpromising in advertising Overpromising in personal selling Inadequate communication among departments/functions Differences in policies and procedures across branches or units Service Delivery GAP 4 External Communications to Customers Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.

  23. Thank you! th@simpsonscarborough.com

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