1. Designing and
Managing
Services
“How to market them
most effectively.”
ROSALINA C. MANANSALA
05 February 2014
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2. The 4 “HOWs” . . .
• How do we define and classify
services, and how do they differ from
goods?
• What are the new services realities?
• How can we achieve excellence in
services marketing?
• How can we improve service quality?
• How can goods marketers improve
customer support services?
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3. What is a Service?
1. It is any act or performance one
party can offer to another;
2. It is essentially intangible and does
not result in the ownership of
anything;
3. Its production may or may not be
tied to a physical product.
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4. 5 Categories of Service Offerings
Pure tangible good
• consists primarily of a tangible good such as soap, toothpaste, or salt
with no accompanying services.t
Tangible good w/ accompanying services
• consists of a tangible good accompanied by one or more services
Hybrid
• consists of equal parts goods and services
Service with accompanying goods
• consists of a major service along with additional services or
supporting goods
Pure service
• consists primarily of a service
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

5. 5 Ranges of Services Offered
●
●
Equipment-based or people-based
Equipment-basedor people-based
●
●
Service processes
Service processes
●
●
Client’s presence required or not
Client’s presence required or not
●
●
Personal needs or business needs
Personal needs or business needs
●
●
Objectives and ownership
Objectives and ownership
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

6. 4 Basic Characteristics of Services
INTANGIBILITY
• services cannot be seen, tasted, felt, heard, or smelled before they
are bought
INSEPARABILITY
• services are typically produced and consumed simultaneously
VARIABILITY
• the quality of services depends on who provides them, when and
where, and to whom, services are highly variable
PERISHABILITY
• services cannot be stored
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7. 5 Best Practices of Service-Quality Management
1. Strategic Concept
• "customer obsessed“
• a clear sense of their target customers and their needs
2. Top Management Commitment
• their managements look not only at financial performance on a
monthly basis, but also at service performance
3. High Standards
• best service providers set high service-quality standards
4. Self·Service Technologies (SSTs)
• consumers value convenience in services
• not all SSTs improve service quality, but they can make service
transactions more accurate, convenient, and faster
5. Monitoring Systems - collect voice of the customers
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8. 10 “KEYS” To Improve Service Quality
1. Listening
- understand what customers really want
2. Reliability
- must be a service priority
3. Basic Service
- must deliver the basics & do what are they
supposed to do
4. Service Design
- take a holistic view of the service
5. Recovery
- respond quickly to customer satisfaction
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9. 6. Surprising Customers
- process dimensions such as assurance, responsiveness, and
empathy are most important in exceeding customer
expectations.
7. Fair Play
- demonstrate fairness to customers & employees
8. Teamwork
- deliver service with care and attentiveness by improving employee
motivation & capabilities
9. Employee Research
- conduct research with employees to reveal service problems &
what companies must do
10. Servant Leadership
- quality service comes from inspired leadership throughout the
organization
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10. IN SUMMARY:
1. A service is any act or performance that one party can offer to
another that is essentially intangible , inseparable, variable
and perishable which does not result in the ownership of
anything.
2. Marketing of services faces new realities in the 21st century.
It calls not only for external but also for internal marketing
as well as interactive marketing.
3. Top service companies excel at a strategic concept, a history of
top management commitment to quality, high standards,
profit tiers, and systems for monitoring service
performance and customer complaints.
4. Superior service delivery requires managing customer
expectations and incorporating self-service technologies.
Even product-based companies must provide postpurchase service.
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11. POSITION:
Product Marketing is different from Service
Marketing but still we say:
“good marketing is good marketing”.
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12. END OF PRESENTATION
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