Introduction to Marketing in the Chinese Mainland (MKT003) Lecture 8

Strategies for Service Firms

Categories of Service Mix

Pure tangible goods
Goods w/ accompanying services Hybrid Services w/ accompanying goods Pure services
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Distinctive Characteristics of Services

Intangibility
Inseparability Variability Perishability
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Three Types of Marketing in Service Industries

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11-4

Managing Service Brands

To brand a service organization effectively, the company must differentiate its brand through primary and secondary service features. Develop appropriate brand strategies. Effective branding programs for services often employ multiple brand elements. They also develop brand hierarchies and portfolios, and establish image dimensions to reinforce or complement service offerings.
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Developing Brand Strategies for Services

Choosing Brand Elements Establishing Image Dimensions

Devising Branding Strategy

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Determinants of Service Quality

Reliability Responsiveness

Assurance
Empathy

Tangibles
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Service-Quality Model

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11-8

Gaps that Cause Unsuccessful Service Delivery

Gap between consumer expectation and management perception Gap between management perception and service-quality specifications Gap between service-quality specifications and service delivery Gap between service delivery and external communications Gap between perceived service and expected service
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Improving Service Quality

Listening Reliability Basic service Service design Recovery Surprising customers Fair play Teamwork Employee research Servant leadership

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11-10

How to Increase Quality Control

Invest in good hiring and training procedures
Standardize the service-performance process

Monitor customer satisfaction

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11-11

Root Causes of Customer Failure

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11-12

Solutions to Customer Failures

Redesign processes and redefine customer roles to simplify service encounters Incorporate the right technology to aid employees and customers Create high-performance customers by enhancing their role clarity, motivation, and ability Encourage customer citizenship where customers help customers
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Managing Product Support Services

Even product-based companies must provide postpurchase service. To provide the best support, a manufacturer must identify the services customers value most and their relative importance. The service mix includes both presale services (facilitating and value-augmenting services) and postsale services (customer service departments, repair and maintenance services).
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Top Service Practices

Top service companies excel at the following practices: Strategic concept History of top-management commitment to quality High standards Self-service technologies Systems for monitoring service performance and customer complaints Employee satisfaction
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Cases Discussion
Marketing in China: Customer Service in VANKE Marketing in China: Haiers Five-Star Consumer Service

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11-16

Review Questions
1. How are services defined and classified? 2. How are services marketed, and how can service quality be improved? 3. How do service marketers create strong brands? 4. How can goods-producing firms improve customer support services?
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