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  1. Services marketing and franchising in the service sector Rozenn Perrigot

  2. Introduction

  3. Introduction • More and more chains in the service sectors • Specificities

  4. Nature of services

  5. Nature of the services • Classification • Continuum

  6. Characteristics of services

  7. Service characteristics (1/2)

  8. Service characteristics (2/2) Contacts with the customers Customer-basedrelationships

  9. Exercise • How do franchisors deal with these four characteristics? • Highlight some key elements as displayed on their website • Hotel sector • Restaurant sector • Home care sector • Hairdressing sector

  10. Marketing in the services

  11. Marketing in the services Company Internal Marketing External Marketing Employees Customers Interactive Marketing

  12. Mix-Marketing in the services • Traditional 4Ps • Product • Promotion • Price • Place/Distribution • Services-based 3Ps • Process • Physicalevidence (ambience) • People

  13. Managingcustomerrelationships

  14. Managingcustomerrelationship (1/4) • Relationship marketing

  15. Managingcustomerrelationship (2/4) • Benefits for the organization • Increasedpurchases • Lowercost • Lifetime value of customer • Sustainablecompetitiveadvantage • Word of mouth • Employee satisfaction and retention

  16. Managingcustomerrelationship (3/4) • Benefits for the customer • Risk and stress reduction • Higher-quality service • Avoidance of switching costs • Social and status benefits

  17. Managingcustomerrelationship (4/4) • Developing customer retention strategies • Targeting customers for retention • Bonding • Internal marketing • Promise fulfillment • Building trust • Service recovery

  18. Managing service quality

  19. Managing service quality (1/4) • Barriers to the matching of expected and perceived service levels • Misconception barrier • Inadequate resources barrier • Inadequate delivery barrier • Exaggerated promised barrier

  20. Managing service quality (2/4) • Meeting customer expectations • Access • Reliability • Credibility • Security • Understanding the customer • Responsiveness • Courtesy • Competence • Communication • Tangibles

  21. Managing service quality (3/4) • “Philosophy” • Customer obsession • Top management commitment • High service quality standards • Monitoring systems • Good service recovery

  22. Managing service quality (4/4) • Measuring service quality with Servqual scale

  23. Managing service productivity

  24. Managing service productivity • Technology • Customer involvement in production • Supply and demand balance

  25. Managing service staff

  26. Managing service staff • Satisfied employees -> Satisfied customers • Selection • Training • Socialization • Empowerment • Motivation • Service assessment

  27. Services marketing and franchising in the service sector Rozenn Perrigot