1. Chapter 15
Designing and Managing
Services
by
PowerPoint by
Milton M. Pressley
University of New Orleans
15-1
Copyright © 2003 Prentice-Hall, Inc.

2. Kotler on
Marketing
Every business is a
service business.
Does your service
put a smile on the
customer’s face?
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3. Chapter Objectives
 In this chapter, we focus on the following
questions:
 How are services defined and classified?
 How do services differ from goods?
 How can service firms improve their
differentiation, quality, and productivity?
 How can goods-producing companies
improve their customer support services?
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4. The Nature of Services
 Government sector
 Private non-profit
sector Keen.com is a virtual
 Business advice marketplace
sector
 Manufacturing
sector
 Service
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5. The Nature of Services
 Categories of Service Mix
 Pure tangible good
 Tangible good with
accompanying services
 Hybrid
 Major service with accompanying
minor goods and services
 Pure service
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6. Products, Services, and
Experiences
Tangible Service
Pure Good With Hybrid With Pure
Tangible Accompanyin Offer Accompanyin Service
Good g Services g Minor
Goods
Auto With Airline Trip
Soap Accompanyin Restaurant With Doctor’s
g Repair Accompanyin Exam
Services g Snacks
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7. The Nature of Services
 Characteristics of Services and Their
Marketing Implications
 Intangibility
 Service positioning strategy can be
made tangible through:
 Place
 People
 Equipment
 Communication material
 Symbols
 Price
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8. The Nature of Services*
 Carbone and Haeckel purpose the
following for customer experience
engineering
 Performance and context clues
 Humanics
 Mechanics
 Experience blueprint
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9. The Nature of Services
 Inseparability
 Variability
 Quality control by:
 Good hiring and training procedures
 Service blueprint
 Monitoring
customer
satisfaction
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10. The Nature of Services
 Perishability
 Strategies for better matching between demand and
supply in a service business
 Differential pricing
 Nonpeak demand
 Complementary services
 Reservation systems
 Part-time employees
 Peak-time efficiency
 Increased consumer participation
 Shared services
 Facilities for future expansion
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11. Marketing Strategies
for Service Firms
 Three Additional Ps
 People
 Physical
evidence
 presentation
 Process
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12. Figure 15.3: Three Types of Marketing in Service Industries
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Copyright © 2003 Prentice-Hall, Inc.