NOT LECTURE Services Marketing

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Konstantinos Lionakis, PhD

Adjunct Lecturer of Marketing, AUEB

Jan, 2015

ICBS, MBA


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Konstantinos Lionakis, PhD2 / 122

ICBS, MBA

Marketing Services

( 2014)

Dr. Konstantinos Lionakis

Email: [email protected]

- Mathematics (University of the Aegean)- MSc in Marketing & Communication (Athens University of Economics & Business)

- PhD in Marketing-Sales Organization (Athens University of Economics & Business), sup: Prof. G.J. Avlonitis


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Marketing Services

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(value) USP

&

Agenda


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,

!

, , :

,

,

,

, , .

.

.

,

,

,


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Expectation

Perceived

Performance

/

The extent to which a products perceived

Performance matches a buyers expectations.


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R

S

T

P

MM

I

C

What is Marketing all about?The aim of marketing is to know and understand the customer so

well, that the product or service fits him and sells itselfPeter Drucker

Research

Segmentation

Targeting

Positioning

Marketing Mix (product, place, price, promotion)

Implementation

ControlGeorge Avlonitis


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?


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:

/


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(.):

:

:

.. , , , , ,

, , , .

:.. , , , , ,

.


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:

:

:

users vs. potential users vs. non users

heavy users vs. light users

(brand loyalty)


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Positioning()

()

() /

()

()

()


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& USP:


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:

(differentiation)

(importance)

:

(distinctiveness)

(superiority)

(non-imitable)

(affordability)

(profitability)


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:

:


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(.):

:

/


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(.):

:

(service)


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(.):

:


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Station Break

Video Case: Giv em the pickle

http://www.youtube.com/watch?v=ISJ1V8vBiiI

??


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A true marketer:

gives answers to marketing problems which start with

????? It depends

?????


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Play the game you can win!!

Manchester United Vs Chicago Bulls


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The quality of marketing planning decision

depends on the quality of the information they are based

Garbage IN - Garbage OUT


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Station Break

-


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&


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..


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Marketing Services

( 2014)

..

Intangibility

Perishability

SimultaneousProduction

and

Consumption

Heterogeneity


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Implications of

Intangibility Services cannot be inventoried

Services cannot be easily patented

Services cannot be readily displayed or communicated

Pricing is difficult


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Implications of

Heterogeneity

Service delivery and customer satisfaction depend on employee

and customer actions

Service quality depends on many uncontrollable factors

There is no sure knowledge that the service delivered matches

what was planned and promoted


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Implications of Simultaneous

Production and Consumption

Customers participate in and affect the transaction

Customers affect each other

Employees affect the service outcome

Decentralization may be essential

Mass production is difficult


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Implications of

Perishability

It is difficult to synchronize supply and demand with services

Services cannot be returned or resold


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Challenges for Services

Defining and improving quality

Ensuring the delivery of consistent quality

Designing and testing new services

Communicating and maintaining a consistent image

Accommodating fluctuating demand

Motivating and sustaining employee commitment

Coordinating marketing, operations, and human resource efforts

Setting prices

Finding a balance between standardization versus customization


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Expanded Mix for

Services the 7 Ps

Product Price

Place

Promotion

People All human actors who play a part in service delivery and thus influence the buyers

perceptions: namely, the firms personnel, the customer, and other customers in the serviceenvironment.

Physical Evidence The environment in which the service is delivered and where the firm and customer interact,

and any tangible components that facilitate performance or communication of the service.

Process The actual procedures, mechanisms, and flow of activities by which the service is delivered

the service delivery and operating systems.


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Expanded Marketing

Mix for Services


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ICBS MBA


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ICBS MBA


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blueprint

ICBS MBA


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Designing and Managing Service Processes

Processes are the architecture of service, describing the method and sequence inwhich the service operating system links together to create the service experience.

Service processes have a largely intangible structure hard to conceptualise andvisualise.

Service blueprinting helps to clarify the interactions between customers and the

service organisation, and how these are supported by additional activities andsystems backstage.

Also enables us to develop roles and scripts for service delivery.

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Service Blueprinting

A tool for simultaneously depicting the service process, the

points of customer contact, and the evidence of service from

the customers point of view.

Service

Blueprint

Process

Points of contact

Evidence

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Building a Service

Blueprint

Step 1 - Identify the process to be blueprinted.

Step 2 - Identify the customer or customer segment.

Step 3 - Map the process from the customers point of view.

Step 4 - Map the contact employees actions, on-stage and backstage, and/orany technological actions.

Step 5 - Link contact activities to needed support functions. Step 6 - Add evidence of service at each customer action step.

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Developing a Blueprint

Identify key activities in creating and delivering the service.

Distinguish between front stage (what customers experience) and back stage.

Chart activities in sequence.

Show how interactions between customers and employees are supported by

backstage activities and systems. Establish service standards for each step

Identify potential fail points.

Focus initially on big picture (later, can drill down for more detail in specificareas).

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,

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Blueprints Can Be Used By:

Service Marketers

creating realistic customerexpectations:

service system design

promotion

Operations Management

rendering the service as promised:

managing fail points

training systems

quality control

Human Resources Management

empowering the human element:

job descriptions

selection criteria

appraisal systems

System Technology

providing necessary tools:

system specifications

personal preference

databases

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Benefits of Service Blueprinting

Provides a platform for innovation. Recognizes roles and interdependencies among functions, people, and organizations.

Facilitates both strategic and tactical innovations.

Transfers and stores innovation and service knowledge.

Designs moments of truth from the customers point of view.

Suggests critical points for measurement and feedback in the service process.

Clarifies competitive positioning. Provides understanding of the ideal customer experience.

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Levels..

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, . . ,

.

.

.

, .

, , , ,

. ,

, , ,

. FIAT Mercedes.

,

, . , , ,

, .

,

service , .

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The flower model

( & )

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The Flower of Service(Fig 3.6)

Core

Information

Consultation

Order Taking

Hospitality

Payment

Billing

Exceptions

SafekeepingFacilitating elements

Enhancing elements

KEY:

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How to Determine What Supplementary

Services Should Be Offered

Not every core product is surrounded by all eight supplementary elements

Nature of product helps to determine: Which supplementary services must be offered

Which might usefully be added to enhance value and ease of use

People-processing and high-contact services have more supplementaryservices

Market positioning strategy determines which supplementary servicesshould be included

Firms with different levels of service often add extra supplementaryservices for each upgrade in service level

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The Flower of Service:

Facilitating Services

Information

Core

Customers often require informationabout how to obtain and use a

product or service.

Examples of elements:

Directions to service site

Schedule/service hours

Prices

Conditions of sale

Usage instructions

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Order Taking

Core

Customers need to know what is

available and may want to secure

commitment to delivery. Theprocess should be fast and

smooth.


Applications

Order entry

Reservations and check-in

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Billing

Core

How much do I owe you?

Bills should be clear,

Accurate, and intelligible.


Periodic statements ofaccount activity

Machine display of amount

due

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Payment

Core

Customers may pay fasterand more cheerfully if you

make transactions simple

and convenient for them.


Self service payment

Direct to payee or intermediary

Automatic deduction

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Core


Enhancing Services

ConsultationValue can be added to goods andservices by offering advice andconsultation tailored to

each customers needs and situation.


Customized advice

Personal counseling

Management consulting

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Enhancing Services

HospitalityCustomers who invest time and effort invisiting a business and using its servicesdeserve to be

treated as welcome guests

after all, marketing invited them!


Greeting

Waiting facilities and amenities

Food and beverages

Toilets and washrooms

Security

Core

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Core


Enhancing Services

SafekeepingCustomers prefer not to worry aboutlooking after the personal

possessions that they bring withthem to a service site.


Looking after possessionscustomers bring with them

Caring for goods purchased(or rented) by customers

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Core


Enhancing Services

ExceptionsCustomers appreciate some

flexibility when they make special

requests and expect responsiveness

when things dont go according toplan.


Special requests in advance Complaints or compliments Problem solving Restitution

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Managerial Implications

To develop product policy and pricing strategy, managers need todetermine:

Which supplementary services should be offered as a standard package or

as fee based options

Firms that compete on a low-cost, no-frills basis needs fewer

supplementary elements than those marketing expensive, high-value-added services

Each flower petal must receive consistent care and concern to

remain fresh and appealing

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.

.

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research in customer satisfaction

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Station Break

..

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..

-

-

-

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Communication Process

Station Break

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(1)

-

-

- /

()

- (users)

- (buyers)

- (influencers)

- (deciders)

-

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Station break

Who has the power? (Video Case)http://www.youtube.com/watch?v=XyR0nON_8vM&featu

re=youtu.be

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The transactional Sale ( )

/

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The consultative Sale ( )

/

,

(customization)

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Transactional Sale

(Add Value)?

/

(Rackham and DeVincentis 2000)

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Consultative Sale

After sales

(Delivery,

installation,

set-up,

maintenance

Issues)

(Rackham and DeVincentis 2000)

/

(Add Value)?

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(2) / /

..

..

: / / / / /

/

..

FAB (features / advantage / benefit)

.. air-condition (feature)

(advantage), 10% (benefit)

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(3) /

..

-

-

-

-

-

-

- Boomerang /

-

-

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(4)

Negotiation involves two or more parties with competing or conflNegotiation involves two or more parties with competing or conflictingictinginterests or needs, working towards an agreement on how they wilinterests or needs, working towards an agreement on how they willl

cooperatecooperate((TillettTillett, 1991), 1991)

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Station break..

1.

2. ,

3. ,

4.

5.

6.

7.

8.

9.

10.

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- -

:

:

-

-

-

-

-

-

- A-

-

-

-

-

-

-

-

-

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(5) /

..

-

-

-

-

-

..

..

-

-

-

- / ( )

-

- / ( )

3-5

(wom)

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Konstantinos Lionakis, PhD100 /

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Station Break

The fish story (video case)

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.

, ,

.

.

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,

.. 3

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PARETO

20% 80%

20% 80%

20% 80% .

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=

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.

,

.

.

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.

.

40( ) / 60( )

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Micheal LeBoeuf

How to win Customers and keep them for Life

:

3%

5%

9% 14%

( 4%. . . .)

68%

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7

( . . .)

:

. . .

. . .

. . .

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/ = (

)

= .

=

( ) =

=

= Full

= ( .. )

= ( .. )

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1.

.

2. (sos )

3. .

4. , ..

5. ,

.

6. .

7. --

--.

8. .

9. , . ! ! !

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1 :

2 :

, . . .

1

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CUSTOMER LOYALTY LADDER

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Remember

if you want loyalty get a dog

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Station Break

Video case.. Dealing with angry customershttp://www.youtube.com/watch?v=ybCxN86n61k&feature

=related

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:

[email protected]

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Appendix 1

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ICBS, MBA !

* * *


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* * *

* * *

* * *

* * *

* * *

* * *

* * *

* * *

* * *

* * *

* * *

* * *

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* *

* *

* *

* *

* *

* *

* *

* *

* *

* *

* *

* *

*

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Appendix 2

10 (. )

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Appendix 3

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1. (Unfaithful) . .

, , . .

2. - (Talkative). , . , .

, ,

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3. (Silent). .. .

, . .

4. -.

. , . . .

. . - . . ( )

. - .

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5. (Complaining). ,, , .

.

6. - (Persistent)

. .

7. (Enthusiastic)

.

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8. (Nonchalant)

. . . .

9. , .

, . ().

10. - (Kind-Neighborly). , . , .

. . .

. .

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11. (Rationalist) . .

. .

12. (Analytic). . . . . , . . , .

. . . . . .

. , , .

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13. (Authoritative). . . . . .

. , .

14. (Dynamic). . . . , . . . .

. .

. .

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NOT LECTURE Services Marketing