Notes Services Marketing – Lieke Neijens
Services
Marketing,
notes
+
slides
Lecture
1
Two
things
to
keep
in
mind:
1. What
market
am
I
operating
in?
2. Who
is
my
customer?
Ø Segmentation
There
is
no
clear-‐cut
answer
that
holds
for
every
industry,
just
tools
that
you
can
adapt.
It
depends
on
the
situation;
industry,
market,
customer,
etc.
Five
gaps
to
perceived
service
quality
Main
gap
(5)
is
the
gap
between
what
people
expect
and
what
people
perceive.
This
gap
might
be
positive,
but
it
usually
is
the
way
around.
Key
factors
leading
to
gap
5
Provider
gap
1:
not
knowing
what
customers
expect
Provider
gap
2:
not
selecting
the
right
service
designs
and
standards
Provider
gap
3:
not
delivering
to
service
standards
(personnel)
Provider
gap
4:
not
matching
performance
to
promises
(communication)
Key
factors
leading
to
gap
1
§ Inadequate
marketing
research
o Insufficient
marketing
research
o Research
not
focused
on
service
quality
o Inadequate
use
of
market
research
§ Lack
of
upward
communication
o Lack
of
interaction
between
management
and
customers
o Insufficient
communication
between
contact
employees
and
managers
o Too
many
layers
between
contact
personal
and
top
management
§ Insufficient
relationship
focus
o Lack
of
market
segmentation
o Focus
on
transactions
rather
than
relationships
, Notes Services Marketing – Lieke Neijens
o Focus
on
new
customers
rather
than
relationship
with
customers
§ Inadequate
service
recovery
Key
factors
leading
to
gap
2
§ Poor
service
design
o Unsystematic
new
service
development
process
o Vague,
undefined
service
designs
o Failure
to
connect
service
designs
to
service
positioning
§ Absence
of
customer-‐driven
standards
o Lack
of
customer-‐driven
service
standards
o Absence
of
process
management
to
focus
on
customer
requirements
o Absence
of
formal
process
for
setting
service
quality
goals
§ Inappropriate
physical
evidence
and
service
scape
Key
factors
leading
to
gap
3
§ Deficiencies
in
human
resource
policies
o Ineffective
recruitment
o Role
ambiguity
and
role
conflict
o Poor
employee-‐technology
job
fit
o Inappropriate
evaluation
and
compensation
systems
o Lack
of
empowerment,
perceived
control
and
teamwork
§ Failure
to
match
supply
and
demand
o Failure
to
smooth
peaks
and
valleys
of
demand
o Inappropriate
customer
mix
o Over-‐reliance
on
price
to
smooth
demand
§ Customers
not
fulfilling
roles
o Customers
lack
knowledge
of
their
roles
and
responsibilities
o Customers
negatively
impact
each
other
§ Problems
with
service
intermediaries
o Channel
conflict
over
objectives
and
performance
o Channel
conflict
over
costs
and
rewards
o Difficulty
controlling
quality
and
consistency
o Tension
between
empowerment
and
control
Key
factors
leading
to
gap
4
§ Lack
of
integrated
services
marketing
communications
o Tendency
to
view
each
external
communication
as
independent
o Not
including
interactive
marketing
in
communications
plan
o Absence
of
strong
internal
marketing
program
§ Ineffective
management
of
customer
expectations
o Not
managing
customer
expectations
through
all
forms
of
communication
o Not
adequately
educating
customers
§ Overpromising
o Overpromising
in
advertising,
personal
selling
and
through
physical
evidence
cues
§ Inadequate
horizontal
communications
o Insufficient
communication
between
sales
and
operations
o Insufficient
communication
between
advertising
and
operations
o Differences
in
policies
and
procedures
across
branches
or
units
A
service
is
‘’a
change
in
the
condition
of
a
person
a
good
belonging
to
some
economic
unit
which
is
brought
as
a
result
of
the
activity
of
some
other
economic
unit,
with
the
prior
agreement
of
the
former
person
or
economic
unit.’’
Services
Marketing,
notes
+
slides
Lecture
1
Two
things
to
keep
in
mind:
1. What
market
am
I
operating
in?
2. Who
is
my
customer?
Ø Segmentation
There
is
no
clear-‐cut
answer
that
holds
for
every
industry,
just
tools
that
you
can
adapt.
It
depends
on
the
situation;
industry,
market,
customer,
etc.
Five
gaps
to
perceived
service
quality
Main
gap
(5)
is
the
gap
between
what
people
expect
and
what
people
perceive.
This
gap
might
be
positive,
but
it
usually
is
the
way
around.
Key
factors
leading
to
gap
5
Provider
gap
1:
not
knowing
what
customers
expect
Provider
gap
2:
not
selecting
the
right
service
designs
and
standards
Provider
gap
3:
not
delivering
to
service
standards
(personnel)
Provider
gap
4:
not
matching
performance
to
promises
(communication)
Key
factors
leading
to
gap
1
§ Inadequate
marketing
research
o Insufficient
marketing
research
o Research
not
focused
on
service
quality
o Inadequate
use
of
market
research
§ Lack
of
upward
communication
o Lack
of
interaction
between
management
and
customers
o Insufficient
communication
between
contact
employees
and
managers
o Too
many
layers
between
contact
personal
and
top
management
§ Insufficient
relationship
focus
o Lack
of
market
segmentation
o Focus
on
transactions
rather
than
relationships
, Notes Services Marketing – Lieke Neijens
o Focus
on
new
customers
rather
than
relationship
with
customers
§ Inadequate
service
recovery
Key
factors
leading
to
gap
2
§ Poor
service
design
o Unsystematic
new
service
development
process
o Vague,
undefined
service
designs
o Failure
to
connect
service
designs
to
service
positioning
§ Absence
of
customer-‐driven
standards
o Lack
of
customer-‐driven
service
standards
o Absence
of
process
management
to
focus
on
customer
requirements
o Absence
of
formal
process
for
setting
service
quality
goals
§ Inappropriate
physical
evidence
and
service
scape
Key
factors
leading
to
gap
3
§ Deficiencies
in
human
resource
policies
o Ineffective
recruitment
o Role
ambiguity
and
role
conflict
o Poor
employee-‐technology
job
fit
o Inappropriate
evaluation
and
compensation
systems
o Lack
of
empowerment,
perceived
control
and
teamwork
§ Failure
to
match
supply
and
demand
o Failure
to
smooth
peaks
and
valleys
of
demand
o Inappropriate
customer
mix
o Over-‐reliance
on
price
to
smooth
demand
§ Customers
not
fulfilling
roles
o Customers
lack
knowledge
of
their
roles
and
responsibilities
o Customers
negatively
impact
each
other
§ Problems
with
service
intermediaries
o Channel
conflict
over
objectives
and
performance
o Channel
conflict
over
costs
and
rewards
o Difficulty
controlling
quality
and
consistency
o Tension
between
empowerment
and
control
Key
factors
leading
to
gap
4
§ Lack
of
integrated
services
marketing
communications
o Tendency
to
view
each
external
communication
as
independent
o Not
including
interactive
marketing
in
communications
plan
o Absence
of
strong
internal
marketing
program
§ Ineffective
management
of
customer
expectations
o Not
managing
customer
expectations
through
all
forms
of
communication
o Not
adequately
educating
customers
§ Overpromising
o Overpromising
in
advertising,
personal
selling
and
through
physical
evidence
cues
§ Inadequate
horizontal
communications
o Insufficient
communication
between
sales
and
operations
o Insufficient
communication
between
advertising
and
operations
o Differences
in
policies
and
procedures
across
branches
or
units
A
service
is
‘’a
change
in
the
condition
of
a
person
a
good
belonging
to
some
economic
unit
which
is
brought
as
a
result
of
the
activity
of
some
other
economic
unit,
with
the
prior
agreement
of
the
former
person
or
economic
unit.’’
