Services Marketing Exam

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Services Marketing Exam
2013-11-28 16:25:31
Services Marketing GBC

Studying for a services marketing exam
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  1. Role of marketing communication in services:
    • Inform
    • Educate
    • Pursuade
    • Remind and motivate action
    • Maintain relationships
  2. Services vs. goods: implications for communication strategy:
    • Intangible performances
    • -focus on process and benefits
    • -emphasize tangible metaphors
    • Customer involvement in production
    • -train customers to use self-service
    • -teach customers about new technologies
    • Help manage demand levels to match capacity
    • Reduce communication role for intermediaries
    • Importance of contact personnel requires internal communication to inform, motivate, and create role models.
  3. Educational and promotional objectives for services:
    • Create tangible, memorable images
    • Build awareness, interest to stimulate trial
    • Teach customers what to expect, how to use service
    • Communicate brand's strengths and benefits
    • Manage demand levels
    • Compare competition and counter their claims
    • Provide reassurance (e.g., promote guarantees)
    • Recognize, reward valued customers
    • Reposition service relative to competition
    • Reduce uncertainty, risk
  4. Service firms as educators:
    • Training employees improves productivity and quality
    • Well-trained customers perform better in their role as co-producers
  5. Why is the educational role important in services marketing:
    • Helps customers make informed decisions
    • Explains customers role in production
    • Enables customers to develop desirable skills
    • Shapes taste and preferences as relationship evolves
    • Explains changes in service process
    • Minimizes Jay Customer behaviour
  6. Marketing communications mix for services:
    • 1. Personal Communications
    • 2. Advertising
    • 3. Sales Promotion
    • 4. Publicity & PR
    • 5. Instructional Materials
    • 6. Corporate Design
  7. Marketing communications mix for services:

    1. Personal communications
    • Selling
    • Customer Service
    • Training
    • WOM
    • Telemarketing
  8. Marketing communications mix for services:

    2. Advertising
    • Broadcast
    • Print
    • Internet
    • Outdoor
    • DM
  9. Marketing communications mix for services:

    3. Sales promotion
    • Sampling
    • Coupons
    • Discounts
    • Sign-up rebates
    • Gifts
    • Prize promotions
  10. Marketing communications mix for services:

    4. Publicity & PR
    • Press release/kits
    • Press conferences
    • Special events
    • Sponsorship
    • Trade shows
    • Exhibitions
  11. Marketing communications mix for services:

    5. Instructional materials
    • Websites
    • Manuals
    • Brochures
    • Video-audio cassettes
    • Software CD-ROM
    • Voice mail
  12. Marketing communications mix for services:

    6. Corporate design
    • Signage
    • Interior decor
    • Vehicles
    • Equipment
    • Stationery
    • Uniforms
  13. What is positioning?
    A position is the place which a product occupies in the mind of consumers
  14. 4 principles of positioning strategy (Jack Trout):
    • 1. Must establish position for firms or prod in minds of consumers
    • 2. Position should be distinctive, providing one simple consistent message
    • 3. Position must set firm/product apart from competition
    • 4. Form cannot be all things to people - must focus
  15. Basic focus strategies:
    • Narrow Breadth and Many Markets Served
    • Narrow Breadth and Few Markets Served 
    • Wide Breadth and Many Markets Served 
    • Wide Breadth and Few Markets Served
  16. Narrow breadth and many markets served examples:
    • Car servicing
    • Taxi's
    • Fuel & Gas Stations
  17. Narrow breadth and few markets served examples:
    • Phsychology
    • Lawyers
    • Limo/Driver
    • Valet
  18. Wide breadth and many markets served:
    • Wagjag
    • Spa services
  19. Wide breadth and few markets served:
    • Expensive hotels
    • Luxury car dealer
    • Luxury home builder
  20. Uses of positioning in marketing management:
    • 1. Understand relationships between products and markets
    • 2. Identify market opportunities 
    • 3. Make marketing mix decisions, respond to competition
  21. Uses of positioning in marketing management:

    1. Understand relationship between products and markets
    • Compare to competition on specific attributes
    • Evaluate prods ability to meet consumer needs/expectations 
    • Predict demand at specific prices/performance levels
  22. Uses of positioning in marketing management:

    2. Identify market opportunities
    • Introduce new products
    • Redesign existing products
    • Eliminate non-performing products
  23. Uses of positioning in marketing management:

    3. Make marketing mix decisions, respond to competition
    • Distribution/service delivery
    • Pricing
    • Communication
  24. Cyberspace:
    The absence of a definable physical location where electronic transactions or communications occur
  25. Marketplace:
    A physical location where suppliers/customers meet for business
  26. Market-space:
    A virtual location in cyberspace where suppliers/customers meet for business
  27. Delivery channel:
    The means by which a firm delivers products to its customers
  28. Planning service delivery process:
    • Nature of contact between customer and provider
    • Sequencing and speed of service delivery steps
    • Where and when the delivery takes place
    • Customer involvement in process (batches, individually or self service)
    • Imagery and atmosphere - scripts and environment
    • Extent of delegation to intermediaries
    • Serving protocol for allocating limited capacity (reservation, queuing)
  29. Managing physical evidence strategically:
    • Attention-creating medium: differentiates service from competition, attracts customers from target segments
    • Message-creating medium: use symbolic cues to communicate distinctive nature and quality of service
    • Effect-creating medium: employ colours, textures, sounds, scents, and spatial design, create/heighten appetite for services/experiences
  30. Physical evidence for service-space:
    • Impressions created on the senses by physical environment of delivery
    • Includes style, appearance (exterior, interior, architecture, furnishings, decor, colour, employee uniforms, lighting, music, smell)
    • Influences buyer behaviors becuase it attracts attention, communicates the message, and creates or heightens interst in the service
  31. Place vs. cyberspace:
    • Place is when a customer must meet in a physical location
    • Cyberspace is when they do business electronically in a virtual environment
  32. Factors encouraging extended operating hours:
    • Economic pressure from consumers
    • Changes in legislation
    • Economic incentives to improve asset utilization
    • Availability of employees to work nights, weekends
    • Automated self-service
  33. Relating demand to capacity: 4 key concepts
    • 1. Excess demand: too much demand relative to capacity at a given time
    • 2. Excess capacity: too much capacity relative to demand at a given time
    • 3. Maximum capacity: upper limit to a firms ability to meet demand at a given limit
    • 4. Optimum capacity: point beyond which service quality declines as more customers are serviced (bad table in the corner)
  34. Measuring productive capacity in services:
    • Physical facilities to contain customers
    • Physical facilities to store or process goods
    • Physical equipment to process people, possessions, or info
    • Labour used for physical or mental work
    • Public/private infastructure
  35. Alternate capacity management strategies:
    • 1. Level Capacity
    • 2. Stretch & Shrink
    • 3. Chase Demand
    • 4. Flexible Capacity
  36. Alternate capacity management strategies:

    1. Level capacity
    Fixed level at all times
  37. Alternate capacity management strategies:

    2. Stretch & shrink
    • Offer inferior extra capacity at all peaks (bus/subway)
    • Vary seated space per customer (elbow room-leg room)
    • Extended/cut hours of service
  38. Alternate capacity management strategies:

    3. Chase demand
    • Schedule downtime in low demand periods
    • Use part time employees
    • Rent or share extra space (facilities and equipment)
    • Cross train employees
  39. Alternate capacity management strategies:

    4. Flexible capacity
    Vary mix by segment, express trains
  40. Analyzing demand by market segment:
    • Diff customers have different demand patterns by day or by season (e.g. business travelers vs. tourists)
    • Some users have little choice in timing of demand, others are flexible (e.g. commuters vs shoppers)
    • Some demand is undesirable and should be discouraged (e.g. inappropriate calls to emergency services)
  41. Alternative demand management strategies
    • 1. Take no action (let customers sort it out)
    • 2. Reduce demand (higher prices, communication promoting alternative times)
    • 3. Increase demand (lower prices, communication - including promotional incentives, vary product features to increase desirability, more convenient delivery times and places)
    • 4. Inventory demand by reservation system
    • 5. Inventory demand by formalized queuing
  42. Avoiding burdensome waits for customers:
    • Add extra capacity (if not too costly)
    • Rethink design of queuing system
    • Redesign process to shorten transaction time
    • Manage customer behavior and perceptions of wait
    • Install a reservations system
  43. Elements of a queuing system:
    • Customer population (what are needs and expectations?)
    • Arrival process (rate of arrivals over time)
    • Balking (decision not to join the line)
    • Queue configuration (number, location, arrangement) 
    • Reneging (decision to leave the line rather than wait longer)
    • Customer selection policies (whom to serve next)
    • Service process (physical design, roles, flexibility)
  44. Alternative queuing configurations:
    • 1. Single line, single server, single stage
    • 2. Single line, single servers at sequential stages (drive through)
    • 3. Parallel lines to multiple servers
    • 4. Designated lines to designated servers (same as parallel but some are reserved for specific - i.e bank, airline, or grocery with express)
    • 5. Single line to multiple servers ("snake" - winners)
    • 6. "Take a number" (single or multiple servers)
  45. Queuing theory:
    Mathematical approach to wait time
  46. Queuing seg & allocation of queuing population:
    • Urgency of job (emergency vs non-emergency)
    • Duration of service transaction (number of items, and complexity of task)
    • Payment of premium price (1st class vs. economy)
    • Importance of customer (frequent users/loyal customers vs. others)
  47. 10 propositions on the psychology of waiting lines:
    • 1. Unoccupied time feels longer
    • 2. Pre-process/post-process waiting feels longer than in-process
    • 3. Anxiety makes waiting seem longer
    • 4. Uncertain waiting is longer than known, finite waiting
    • 5. Unexplained waiting seems longer
    • 6. Unfair waiting is longer than equitable waiting
    • 7. People will wait longer for more valuable services
    • 8. Waiting alone feels longer than in groups
    • 9. Physically uncomfortable waiting feels longer
    • 10. Waiting seems longer to new or occasional users
  48. Benefits of a reservation system:
    • Control and smoothes demand
    • Pre-sells service
    • Informs and educates customers in advance of arrival 
    • Customers avoid waiting in line for service
    • Data capture helps organizations prepare financial projections
  49. Emotional labour:
    "The act of expressing socially desired emotions during service transactions" Hochschild
  50. 3 approaches used by employees:
    • 1. Surface acting
    • 2. Deep acting
    • 3. Spontaneous response
  51. Managing people in service organizations (emotional labour):
    • Performing emotional labour in response to society's or managements display rules can be stressful
    • Good HR practice emphasis's selective recruitment, training, counseling, strategies to alleviate stress.
  52. Recruitment:
    • The right people are a firms most important asset; take a focused, marketing-like approach to recruitment
    • Clarify what must be hired and what can be taught
    • Clarify nature of the working environment, corporate values and styles, in addition to job specs.
    • Ensures candidates have/can obtain needed qualifications
    • Evaluate candidates fit with firms culture and values 
    • Fit personalities, styles, energies, to the appropriate jobs
    • Provide a REALISTIC JOB PREVIEW (RJP) - tell prospects employees the reality of the job not just selling points.
  53. Levels of employee involvement:
    • 1. Suggestion involvement: employee reco
    • 2. Job involvement: jobs redesigned, employees retrained, supervisors facilitate
    • 3. High involvement: Info is shared, employees skilled in teamwork, prob solving, business ops, participate in decisions, profit sharing, stock ownership)
  54. Factors favoring employee empowerment:
    • Firm's strategy is based on competitive differentiation and on personalized, customized service
    • Emphasis on long relationships vs. one-time transactions
    • Use of complex and non-routine technologies
    • Environment is unpredictable, contains surprises
    • Managers are comfortable letting employees work independently for benefit of firms and customers
    • Employees seek to deepen skills, are god at group processes
  55. Cycle of failure:
    • No empowerment
    • Low profit margings
    • Minimization of training
    • Customer dissatisfaction
  56. Cycle of mediocracy:
    • Boring and repetitive jobs
    • Everything is mediocre basically
  57. Cycle of sucess:
    • High profits
    • Employee involvement
    • Low customer turnover
    • Train, empower employees
  58. Technologies with implications for the service sector:
    • Power and energy technology
    • Physical design technology (cars, house, structural)
    • Materials technology
    • Methods technology (service scripts)
    • Bio technology
    • Info technology (IT)
  59. 3 types of networks:
    • 1. Intranet 
    • 2. Extranet
    • 3. Internet
  60. Intranet:
    • Corp
    • - Board
    • - Employees
    • - Management
  61. Extranet:
    • Electronic infrastructure 
    • - Users advocates/groups
    • - Beta users
    • - Research and data sources
    • - Consultants
    • - Distribution partners
    • - Alliance partners
    • - Supplier partners
  62. Internet:
    • Public market information access:
    • - Competitors
    • - Research community
    • - Universities
    • - Financial data
    • - Government records
    • - The media
    • - Potential customers