This document defines and discusses the nature and characteristics of services. It explains that a service is any intangible act or performance offered by one party to another that does not result in ownership. Services can be provided by government, non-profits, or businesses. Key characteristics of services include intangibility, inseparability, variability, and perishability. The document then discusses marketing strategies for services, including managing differentiation, quality, and delivery failures through addressing gaps between customer expectations and actual delivery. Well-managed service firms are characterized by a strategic concept, top management commitment, high standards, monitoring systems, and complaint resolution.

1. DESIGNING AND
MANAGING SERVICES

2. What is a
service?

3. A service is any act of performance
that one party can offer another
that is essentially intangible and
does not result in the ownership of
anything; its production may or may
not be tied to a physical product.

4. Nature of Services
 The Service Industry includes the following:
–Government Sector
–Private nonprofit Sector
–Business Sector
–Manufacturing Sector

5. “Government Sectors”

6. “Private nonprofit Sector”

7. “Business sectors”

8. Nature of Services
• Categories of Service Mix
–Pure tangible good
–Good with accompanying services
–Hybrid
–Service with accompany goods
–Pure service

9. Nature of Services
CHARACTERISTICS
• Intangibility
oCannot be seen, touched,
tasted, heard or smelled
before purchase
oLack of trial means higher
consumer needs
oConsumer rely on cues to
draw quality inferences

10. SALON, SPA

11. Nature of Services
CHARACTERISTICS
• Inseparability
oServices are produced and
consume at the same time.
oService providers and
sometimes other customers
become part of the service.

12. Air travel Services
Restaurant Services

13. Nature of Services
CHARACTERISTICS
• Variability oServices providers varies with
respect to attitudes, skills,
moods etc. Even the same
provider may give different
service on a different day.
oQuality control is critical:
Hiring the right people
Standardizing service
Monitoring satisfaction

14. Nature of Services
CHARACTERISTICS
• Perishability oServices cannot be
inventoried or
otherwise stored.

15. Marketing Strategies
• People physical evidence must be considered
in addition to the 4 P’s when creating
external marketing plan.
• Successfully delivering the service often
depends on staff being trained via internal
marketing efforts.

16. Marketing Strategies
• Interactive marketing refers to the employees’
skill in serving the client.
• Customers judge a service by its:
• Technical Quality
• Functional Quality
• Search qualities, experience qualities and
credence qualities are evaluated by
customers.

17. Marketing Strategies
• Marketing Task
Managing
differentiation
oCannot differentiate on
price alone.
oInnovative features.
oDelivery system
Reliability
Resilience
Innovativeness
oImage and Branding

18. Marketing Strategies
• Marketing Task
Managing Service
Quality
oThe service quality
model identifies five gaps
that can cause service
delivery failure
oService companies that
successfully address
these gaps follow
common practices

19. Marketing Strategies
• Service Delivery Failure Results from Gaps
Between:
Consumer expectation and management perception
Management perception and Service-quality
specification
Service-quality specifications and service delivery
Service delivery and external communications
Perceived service and expected service

20. Marketing Strategies
• Well-Managed Service Firms Shared These
Characteristics:
A strategic concept
Commitment from top-management
High standards
Firm and customer monitoring system
Satisfying customer complaints

21. Thank you!! 