Developing Service Products & Branding

Developing Service
Products
& Branding
All companies are service companies; some also
manufacture products – Peter Drucker
Chapter – 4
Essentials of Service Marketing 3rd Edition
(Jochen Wirtz & Christopher Lovelock) By: Siddharth Tiwari (2018BA_03)

Agenda
• What is a Service Product
• Components Of A Service Product
Service Product Design
01 • Facilitating Supplementary Service
• Enhancing Supplementary Services
Flower of Service
02
• Conclusion.
Managerial Implications
05
• A hierarchy of New Service Categories.
• Achieving Success.
New Service Development
04• Branding Service Products & Experiences.
• Branding Spectrum.
• Tiering Service Products with Branding.
• Building Brand Equity
• Delivering a Brand Service Experience.
Branding
03
2
SIDDHARTH TIWARI 2018BA_03

Service Product
Design
3

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What is a Service Product
• A service product comprises all elements of service performance, both
tangible and intangible, that create value for customers.
• The service concept is represented by:
4
A Core Product
Supplementary services
01
02
Delivery Process03

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Components of a Service
Product
5

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6

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Central component that
supplies the principal,
problem-solving benefits
customers seek
CORE PRODUCT
Augment the core product,
facilitating its use &
enhancing its value & appeal
SUPPLEMENTARY SERVICES
Used to deliver both the
core product & each of
the supplementary services
DELIVERY PROCESS
7

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designed by
Central component that
supplies the principal,
problem-solving benefits
customers seek
CORE PRODUCT
Augment the core product,
facilitating its use &
enhancing its value & appeal
SUPPLEMENTARY SERVICES
Used to deliver both the
core product & each of
the supplementary services
DELIVERY PROCESS
Components Of
A Service
Product
8

Designing a Service Concept
9
Service concept design must address the following issues
The
recommended
level and style
of service to be
offered
04
How the different
service
components are
delivered to the
customer
01
How long
delivery
lasts
03
The nature of
the customer’s
role in those
processes
02

Integration of Product
10
Core Delivery
Process
Nature of
Process
Service
Level
Customer
Role
Scheduling Supplementary
Services
Delivery Process
for Supplementary
Services
Note: In case of Hotel Industry

The Flower
of Service
11

Flower of Service
12
Core
Service
ConsultationPayment
Billing
Order
Taking
Information
HospitalityExceptions
Facilitating Elements
Enhancing Elements Note: In case of Hotel Industry
Safe
Keeping

The Flower of Service
13
There are two kinds of supplementary services:
Facilitating Supplementary Services01
• Its either needed for service delivery, or help in the use of
the core product.
• For Example: Information, Order, Billing & Payment.
Enhancing Supplementary Services02
• Services that add extra value for the customer.
• For Example: Consultation, Hospitality, Safe-Keeping & Exceptions.

Branding
14

• “A brand is a voice and a product is a souvenir.”
– Lisa Gansky
• “When people use your brand name as a verb, that is remarkable.”
– Meg Whitman
• y impress your audience and add a unique zing and appeal to your Presentations. Easy to change colors, photos and Text. Get
a modern PowerPoint Presentation that is beautifully designed. You can simply impress your audience and add a unique zing
and appeal to your Presentations. Easy to change colors, photos and Text. Get a modern PowerPoint Presentation that is
beautifully designed.
What is a Branding
• Brands provide meaning, Services provide utility. Combined, they add up to what
Brand Services, which is a simple service or communication tool offered in
addition to the core product or core service and designed to help promote it
– Martin Jordan & Christian Vatter
15

Branding Service Products & Experiences
16
Branding can be employed at both the corporate and product levels by
almost any service business.
Corporate Level Branding01
• Corporate branding refers to the practice of promoting the brand name of
a corporate entity, as opposed to specific products or services..
• For Example: Apple, Nike, & Coca-Cola.
Product Level Branding02
• Product branding is a strategy that defines a unique set of marketing
elements to differentiate a given product.
• For Example: Bisleri, Thums-up & Nallis.

The Spectrum Of Branding Alternatives
17
BRANDE
D
HOUSE
S P E C T R U M O F
B R A N D
A L T E R N A T I V E S
TATA GROUP
SUBBRAND
S
TATA STEEL
ENDORSE
D
BRANDS
AIR ASIA
HOUSE
OF
BRAND
S TATA BEVERAGES
CORPORATE
BRANDING
PRODUCT
BRANDING

Tiering Service Products with Branding
18
• Branding is not only used for core services, but also to clearly differentiate different
service levels.
• Often based on offering several price-based classes of service concept, each is based on
packaging a distinctive level of service performance across many attributes.
• This phenomenon, known as service tiering, is particularly evident in industries such
as hotels, airlines, car rentals, and computer hardware and software support.

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Tiering Service Examples

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LODGING : STAR
OR DIAMOND
RATINGS
1
20

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• Six key components of Brand Equity
• .
• Company’s presented brand — Mainly through advertising, service facilities, and
personnel.
• External brand communications — From word-of-mouth and publicity. These are
outside of the firm’s control.
• Customer experience with the company — What the customer goes through when
they patronize the company.
• Brand awareness — The ability to recognize and recall a brand when provided with a cue.
• Brand meaning — What comes to the customer’s mind when a brand is mentioned.
• Brand equity — The degree of marketing advantage that a brand has over its competitors.
Building Brand Equity
• It is the value premium that comes with a brand. The additional amount that customers
are willing to pay for a branded service over a similar service that has no brand.
25

Service Brand Model
26
BRAND EQUITY
BRAND AWARENESS
BRAND MEANING
EXTERNAL BRAND
COMMUNICATIONS
CUSTOMER
EXPERIENCE WITH
COMPANY
Strong
Weak

Delivering A Brand Service Experience
• In order to deliver a brand service experience, alignment of the service product and
the brand with the delivery process, and the servicescape is required.
• It is important to have great processes in place.
• The emotional experience of the service can often be created effectively through the
servicescape.
• Its required to invest in good employees who can deliver the brand experience that
creates customer loyalty.
27

New Service
Development
28

• “Customer service is about empathy”
― Chaz Van de Motter
• “Value-added promotes customer retention (they come back) but value-unique
nurtures customer advocacy (they bring their friends).”
―Chip Bell y impress your audience and add a
unique zing and appeal to your Presentations. Easy to change colors, photos and Text. Get a modern PowerPoint Presentation
that is beautifully designed. You can simply impress your audience and add a unique zing and appeal to your Presentations. Easy
to change colors, photos and Text. Get a modern PowerPoint Presentation that is beautifully designed.
New Service Development
• Intense competition and rising consumer expectations are having an impact on
nearly all service industries.
• Great brands do not merely provide existing services well. They also improve
continuously through innovation and create new approaches to service.
29

Hierarchy Of
New Service
Categories
30
Style
Change
Product
Line
Extensions
Major
Process
Innovations
Process
Line
Extensions
Service
Improvements
Supplementary
Service
Innovations
Major Service
Innovations

Achieving Success
In New Service Development
31
ORGANIZATIONAL
FACTORS
MARKET RESEARCH
FACTORS
ACHIEVING SUCCESS
IN NEW SERVICE
DEVELOPMENT
• Good fit between new product & firm’s image
• Advantage in meeting customers’ needs
• Strong support from firm during/after launch
• Firm understands customer purchase
decision behavior
• Strong interfunctional cooperation & coordination
• Internal marketing to educate staff on new product
& its competition
• Employees understand importance of new
services to firm
• Scientific studies conducted early in development
process
• Product concept well defined before undertaking
field studies

Managerial
Implications
32

Managerial Implications
33
• Not every core product is surrounded by supplementary elements from all eight
clusters.
• The nature of the product helps to determine which supplementary services must be
offered & which could be added to enhance value & help the organization to do
business.
• Customer-processing services tend to be the most challenging in terms of
supplementary elements especially hospitality, since they involve close customer
contact.
• The Flower of Service and its petals discussed afore can serve as a checklist in the
ongoing search for new ways to augment existing core products and to design new
offerings.

Conclusion
Designing a service product is a complex task that requires an
understanding of how the core and supplementary services should be
combined, sequenced, delivered, and branded to create a value
proposition that meets the needs of target market segments.
34

Thank You
Siddharth Tiwari
2018BA_03
Developing Service
Products & Branding

Developing Service Products & Branding

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