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kotler_mm13e_im_13 - C H MANAGING SERVICES ANDA P T E R 13...

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G AND MANAGING SERVICES 13 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know how services are defined and how they differ from goods Know how services are marketed Know how service quality can be improved Know how service marketers create strong brands Know how goods marketers improve customer-support services CHAPTER SUMMARY A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It may or may not be tied to a physical product. Services are intangible, inseparable, variable, and perishable. Each characteristic poses challenges and requires certain strategies. Marketers must find ways to give tangibility to intangibles; to increase the productivity of service providers; to increase and standardize the quality of the service provided; and to match the supply of services with market demand. In the past service industries lagged behind manufacturing firms in adopting and using marketing concepts and tools, but this situation has now changed. Service marketing must be done holistically: It calls not only for external marketing but also for internal marketing to motivate employees, and interactive marketing to emphasize the importance of both “high-tech” and “high-touch.” Customers’ expectations play a critical role in their service experiences and evaluations. Companies must manage service quality by understanding the effects of each service encounter. Top service companies excel at the following practices: a strategic concept, a history of top-management commitment to quality, high standards, self-service technologies, systems for monitoring service performance and customer complaints, and an emphasis on employee satisfaction. To brand a service organization effectively, the company must differentiate its brand through primary and secondary service features and 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. 1
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Chapter-by-Chapter Instructional Material 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 post sale services (customer service departments, repair and maintenance services). DETAILED CHAPTER OUTLINE As product companies find it harder and harder to differentiate their physical products, they turn to service differentiation. Many find significant profitability in delivering superior service, whether that means on-time delivery, better and faster answering of inquiries, or quicker resolution of complaints. Service providers know these advantages well.
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