Interactive marketing means that service quality depends heavily on the quality of the buyer- seller interaction during the service encounter.
Service companies face three major marketing tasks: They want to increase their service differentiation, service quality, and service productivity. A- Managing Service Differentiation Service companies develop a differentiated offer, delivery and image: • Offer can include distinctive features. • Delivery can include more able and reliable customer contact people, environment, or process. • Image can include symbols and branding.
B- Managing Service Quality Service quality is harder to define and judge than product quality. It will always vary depending on the interactions between employees and customers. Managing the service quality provides a competitive advantage by delivering consistently higher quality than the competitors. Customer retention is perhaps the best measure for quality. A good service recovery can turn angry customers into loyal ones.
C- Managing Service Productivity It involves the cost side of marketing strategies for service firms. Service firms are under great pressure to increase service productivity. They can do this in several ways: • They can train current employees better or hire new ones who will work harder or more skillfully. • They can increase the quantity of their service by giving up some quality. • They can harness the power of technology.
Branding Strategy: Building Strong Brands Brands are powerful assets that must be carefully developed and managed. Brands are more than just names and symbols. They represent consumers’ perceptions and feelings about a product and its performance; brands exist in the heads of the consumers. A powerful brand has a high brand equity. Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing.
Positive brand equity derives from consumer feelings about and connections with a brand.
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