Marketing Exam 2 – Services Marketing Class Notes

intangible item that an organization provies to consumers in exchange for money
service
4 elements that differentiate services from goods
intangiblity, inconsistency, inseperability, inventory
industrialize service
mcdonalds and t-bell do this to try to make these services as uniform as possible
co-creation
allows customers to be actively involed in the production of the service
benefits from the interaction between customer and service provider
participative benefits
Brand Value =
functional benefits+emotional benefits+participative benefits/price
service continuum
some services more intangible than others
yield management techniques
used by comapneis to match supply with demand. groupon, living social
American Consumer Satisfaction Institute
measures customer satisfaction. services lower than goods. people dont recomend disastisfying places
3 levels of services
core, expected, augmented, potential
core service
having the right product at the right place at the right time at the right price
potential sercie
pool of ideas for providing better service that have not been implemented yet
How does consumers asses service quality
RATER. Reliability, Assurance, Tangibles, Empathy, Responsiveness
Most important aspect of service quality
reliability
What is used to increase assurance
trade characters and slogans, frontline employee lack of knowledge decreases it
Low company responsibility, low problem severity
empathy
low company responsiblity, high severity
hero
high company responsibility, low severity
fix it
high company responsiblity, high severity
red carpet
how are expectations gaines
word of mouth, past experiences, promotional activites, personal needs
exists when customer perceptions fall short of customer expectations
quality gap
4 components of a quality gap
knowledge gap, standards gap, delivery gap, communications gap
difference between what customers expect and what management thinks they expect
knowledge gap
exists when management accurately perceives expectations but sets up a service inappropriately
standards gap
managers know what they want to do but do not deliver it correctly, most commonly because of employees. largest gap
delivery gap
internal marketing
treating employees like they want employees to treat customers
difference between what company really does and what it tells customers it is going to do, promises more than delivery
communications gap
customer retention
having a customer come back, increasingly important especially in service industries
relational approach v transactional approach
views customer value as more than one time purchase
Ways to earn profits from repeat customers
larger/more purchases, reduced operation costs, more referrals, price premium
WHy is CLV over-simplified and over-estimated
considers revenue, not profits, fails to account for continuous defection (stop buying product), fail to account for time value of moeny
effort by a company to develop a long-term, cost-effective link with individual customers for the mutual benefit of the customer and the organization
relationship marketing
frequency marketing (loyalty programs)
attempts to reward people for their business. gain a greater share of their wallet, and “lock in” so they become dependent on company
database marketing
involves using large collections of data to make marketing decisions
two types of relationship marketing
frequency marketing and database marketing
Customer relationship Managment
CRM. uses software to manage relations by calculating RFM. recently, frequently, monetary value of purchases
Customer pyramid
Platinum, Gold, Iron, Lead. focus on higher ups, give benefits to platinum and gold, nothing to iron, and get lead out or to iron