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Chapter 13 - Designing and managing services. In this chapter, we will address the following questions: 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? | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Designing and Managing Services Chapter 13 As product companies find it harder and harder to differentiate their physical products, they turn to service differentiation. Discussion Questions 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? The Nature of Services 2008 – 2018 Loss of 1.2 million jobs 2008 – 2018 Gain of 14.6 million jobs The goods producing sector accounted for 14.2 of U.S. employment in 2008, down from 17.3% in 1998. This number is expected to fall to 12.9% by 2018, a loss of 1.2 million jobs. At the same time, the services sector is expected to account for almost 88% of U.S. employment by 2018. Service Sectors Business Government Private nonprofit An act or performance one party . | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Designing and Managing Services Chapter 13 As product companies find it harder and harder to differentiate their physical products, they turn to service differentiation. Discussion Questions 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? The Nature of Services 2008 – 2018 Loss of 1.2 million jobs 2008 – 2018 Gain of 14.6 million jobs The goods producing sector accounted for 14.2 of U.S. employment in 2008, down from 17.3% in 1998. This number is expected to fall to 12.9% by 2018, a loss of 1.2 million jobs. At the same time, the services sector is expected to account for almost 88% of U.S. employment by 2018. Service Sectors Business Government Private nonprofit An act or performance one party can offer to another that essentially intangible and does not result in the ownership of anything. Service Categories of Service Mix Pure Tangible Good Pure Service Tangible Good minor service Hybrid Major service, minor good Pure tangible good—a tangible good such as soap, toothpaste, or salt with no accompanying services. Tangible good with accompanying services—a tangible good, like a car, computer, or cell phone, accompanied by one or more services. Hybrid—an offering, like a restaurant meal, of equal parts goods and services. Major service with accompanying minor goods and services—a major service, like air travel, with additional services or supporting goods such as snacks and drinks. Pure service—primarily an intangible service, such as babysitting, psychotherapy, or massage. Figure 13.1 Continuum of Evaluation for Products Figure 13.1 shows various products and services according to difficulty of evaluation. Service Characteristics Empty seats Perishability .
