Service marketing

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Chapter 4

Creating the
Service Product

Prof. Vikram Parekh (mailtovikram@yahoo.com)

Key Steps in Service Planning:
Matching Opportunities to Resources

Must describe marketing opportunities to firm’s money
(physical, financial, technological, human)

Identify, evaluate steady’s marketing assets

Customer portfolio/lifetime precise signification (customer equity)
Market knowledge
Marketing implementation dexterousness
Product line
Competitive positioning strategies
Brand repute (brand equity)

Identify, evaluate firm’s operating assets

Physical facilities, equipment
Technology and systems (especially IT)
Human available means (numbers, skills, productivity)
Leverage through alliances and partnerships
Potential in the place of customer self service
Cost structure

Prof. Vikram Parekh (mailtovikram@yahoo.com)

Service Design Involves Matching Marketing
Concept with Operations Concept (Fig. 4.1)
Corporate Objectives
and Resources
Marketing Assets

Operating Assets

(Customer Base, Mkt. Knowledge,
Implementation Skills, Brand Reput.)

(Facilities/Equipment, IT Systems,
People, Op. Skills, Cost Structure)

Service Marketing Concept

Service Operations Concept

•Benefits to patron from core/
supplementary elements, style,
service level, accessibility

•Nature of processes
•Geographic scope of ops
•Scheduling
•Facilities design/layout
•HR (poetry, skills)
•Leverage (partners, self-service)
•Task allocation: face/backstage
staff; customers as co-producers

•User costs/outlays incurred
•Price/other pecuniary costs
•Time
•Mental and physical straining
•Neg. sensory experiences

Service Delivery
Process
Prof. Vikram Parekh (mailtovikram@yahoo.com)

Understanding the
Components of the
Augmented Service Product

Prof. Vikram Parekh (mailtovikram@yahoo.com)

Shostack’s Molecular Model of a Total Market
Entity - Passenger Airline Service (Fig. 4-2)
Distribution
Price

Vehicle

Service...

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