SERVICES MARKETING: People, Technology, Strategy 5/e

Transcription

1 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-1 SERVICES MARKETING: People, Technology, Strategy 5/e Christopher Lovelock and Jochen Wirtz PRENTICE HALL, 2004

2 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E Years of s Marketing 1984 Lovelock, 1 st edition 1991 Lovelock, 2 nd edition Lovelock, 3 rd edition Lovelock, 4 th edition Lovelock, Wirtz, and Keh, s Marketing in Asia Lovelock & Wirtz, 5 th edition

3 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-3 What s New? New co-author Jochen Wirtz New streamlined structure slimmed down from 18 chapters to 15, more tightly written Coverage of latest research and developments in management practice (check the references!) New examples New readings 6 of 8 are new New cases 12 of 15 are new, balance all updated

4 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-4 Jochen Wirtz, PhD Associate Professor, National University of Singapore Born in Germany PhD in services marketing, London Business School (chair: John Bateson) Winner of six best paper awards, including (with Patricia Chew) most outstanding article of 2002 in International Journal of Industry, 2002 Co-author, s Marketing in Asia (Prentice Hall 2001) Six awards for outstanding teaching, including university-wide award, 2003

5 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-5 Jochen and family at Awards Banquet for NUS Outstanding Educator Award, 2003 NUS Outstanding Educator Award, (university-wide) 2003 (Only two awards each year among 2,700 NUS faculty) Previous teaching Awards at NUS Business School, 1996, 1998, 1999, 2001, 2002 T

6 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-6 Target Markets for SM5 Primary targets MBA courses in services marketing, service management Upper division undergraduate courses (same) Secondary targets (with supplementary readings and cases) MBA courses in public and nonprofit marketing Courses in tourism, hotel and restaurant marketing Courses in marketing at other professional schools (e.g., architecture, public health) Can also be used in executive education courses that emphasize services marketing/management

7 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-7 s Marketing 5/e: A Simple, Intuitive Structure Students Understand Right Away Part Part I I Understanding Understanding s, Products, s, Consumers Consumers Consumers & Markets & Markets Markets Introduction Introduction to to s s Marketing Marketing Consumer Consumer Behavior Behavior and and Encounters Encounters Positioning Positioning s s in in Competitive Competitive Markets Markets Part Part II II Key Key Elements Elements of of s s Marketing Marketing Creating Creating the the Product Product Designing Designing the the Communications Communications Mix Mix Pricing Pricing and and Revenue Revenue Management Management Distributing Distributing s s Part Part III III Managing Managing the the Delivery Delivery Process Process Designing Designing and and Managing Managing Processes Processes Balancing Balancing Demand Demand and and Capacity Capacity Planning Planning the the Environment Environment Managing Managing People People for for Advantage Advantage Part Part IV IV Implementing Implementing s s Marketing Marketing Managing Managing Relationships Relationships and and Building Building Loyalty Loyalty Customer Customer Feedback Feedback and and Recovery Recovery Improving Improving Quality Quality and and Productivity Productivity Organizing Organizing for for Leadership Leadership

8 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-8 Implementation in a Course SM5 offers an integrative package: 15 chapters of text (with lots of examples) 8 readings 15 cases Not built around a central conceptual framework that must be built through a pre-defined sequence of chapters Instead, offers a toolbox of important concepts and theoretical constructs that have practical application to management Very flexible after Part 1, chapters can be taught in multiple sequences; certain topics can be omitted in short courses Links research findings to good managerial practice End-chapter questions, cases study questions, and suggested student papers/projects get students to work through concepts, come up with detailed analysis and practical solutions

9 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-9 SM5 CONTENT HIGHLIGHTS Chapters, Readings, Cases, Pedagogical Aids

10 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-10 Part 1: Understanding Products, Consumers and Markets 1. Introduction to s Marketing Differences among services are as important as differences between goods and services success requires focus on both customers and competitive markets 2. Consumer Behavior in Encounters 3. Positioning s in Competitive Markets Positioning distinguishes a service brand from its competitors Using positioning maps to plot competitive strategy

11 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-11 Four Categories of s Employing Different Underlying Processes (Fig. 1.5) What is the Nature of the Act? TANGIBLE ACTS Who or What is the Direct Recipient of the? DIRECTED AT PEOPLE People Processing e.g., airlines, hospitals, haircutting, restaurants hotels, fitness centers DIRECTED AT POSSESSIONS Possession Processing e.g., freight, repair, cleaning, landscaping, retailing, recycling INTANGIBLE ACTS Mental Stimulus Processing e.g., broadcasting, consulting, education, psychotherapy Information Processing (directed at intangible assets) e.g., accounting, banking, insurance, legal, research

12 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-12 Positioning after New Hotel Construction: Price vs. Level (Fig. 3.6) Mandarin New Grand Heritage Marriott Continental Expensive High Regency Action? PALACE Shangri-La No action? Atlantic Sheraton Italia Moderate Less Expensive Castle Alexander IV Airport Plaza

13 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-13 Part 2: Key Elements of s Marketing 4. Creating the Product Flower of model of core and supplementary services 5. Designing the Communications Mix for s 6. Pricing and Revenue Management Activity based costing (ABC) Revenue management (+ Kimes & Chase reading + 2 cases) Ethical concerns and perceived fairness in pricing policies 7. Distributing s Place, cyberspace, and time Role of intermediaries, franchising (Aussie Pooch case) International distribution of services

14 The Flower of : Categorizing Supplementary s (Fig. 4-5) Information Payment Consultation Billing Core Order-Taking KEY: Facilitating elements Enhancing elements Exceptions Safekeeping Hospitality Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-14

15 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-15 Splitting Responsibilities for Delivering Supplementary s (Fig. 7.2) As created by originating firm As enhanced by distributor As experienced by customer + Core = Core

16 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-16 Part 3: Managing the Delivery Process 8. Designing and Managing Processes Detailed review and example of blueprinting The customer as productive co-producer vs. the Jaycustomer as abusive threat to profitability, quality, and safety 9. Balancing Demand and Capacity 10.Planning the Environment Designing and managing the servicecape: role of music, scents, and colors (+ Haeckel, Carbone, and Berry reading) Role of architecture and other visual design elements, illustrated by photos 11.Managing People for Advantage

17 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-17 Simplified Example: Blueprinting a Hotel Visit (extract only) Physical Evidence Front Stage Line of Interaction Customer Actions Employee Actions Face-to-face Make reservation Hotel exterior, lobby, employees, key Arrive, valet park Doorman greets, valet takes car Check-in at reception Receptionist verifies, gives key to room Elevator, corridor, room, bellhop Go to room Backstage Line of Visibility Phone Contact Rep. records, confirms Enter data Valet Parks Car Register guest data Make up Room

18 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-18 Comparison of Hotel Lobbies (Figure 10.1) The servicescape is part of the value proposition! Orbit Hotel and Hostel, Los Angeles Four Seasons Hotel, New York

19 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-19 Part 4: Implementing s Marketing 12.Managing Relationships and Building Loyalty How to calculate customer lifetime value (+ Mass Audubon case) Customer relationship management systems 13.Customer Feedback and Recovery 14.Improving Quality and Productivity 15.Organizing for Leadership Integrating marketing, operations, and human resources Moving up the service leadership ladder losers, nonentities, professionals, leaders Individual leadership qualities, culture and climate

20 The Wheel of Loyalty (Fig. 12.7) Enabled through: Frontline staff Account managers Membership programs CRM Systems 3. Reduce Churn Drivers Conduct churn diagnostic Address key churn drivers Implement complaint handling & service recovery Increase switching costs Build higher level bonds Customer Loyalty 1. Build a Foundation for Loyalty 2. Create Loyalty Bonds Give loyalty rewards Segment the market Be selective in acquisition Use effective tiering of service. Deliver quality service. Deepen the relationship Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-20

21 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-21 Courses of Action Open to a Dissatisfied Customer (Figure 13.1) Encounter Encounter is is Dissatisfactory Dissatisfactory Take Take some some form form of of public public action action Take Take some some form form of of private private action action Take Take no no action action Complain Complain to to the the service service firm firm Complain Complain to to a third third party party Take Take legal legal action action to to seek seek redress redress Defect Defect (switch (switch provider) provider) Negative Negative word-ofmouth word-ofmouth Any Any one one or or a combination combination of of these these responses responses is is possible possible

22 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-22 Cause and Effect Chart for Airline Departure Delays (Fig. 14.3) Facilities, Equipment Frontstage Front-Stage Personnel Procedure Procedures Arrive late Oversized bags Customers Customers Other Causes Weather Air traffic Aircraft late to gate Mechanical Failures Late fuel Late pushback Late food service Late baggage Gate agents cannot process fast enough Late/unavailable airline crew Late cabin cleaners Delayed check-in procedure Acceptance of late passengers Poor announcement of departures Weight and balance sheet late Delayed Departures Materials, Supplies Supplies Backstage Personnel Information

23 Eight Readings Important Insights from Thoughtful Practitioners and Leading Researchers Selected for readability and potential to stimulate classroom discussion On average, shorter than those in previous edition Two carried over from 4 th edition, six new Academic authors featured are: Len Berry, Dick Chase, Marc Epstein, Ray Fisk, Steve Grove, Sherri Kimes, Kay Lemon, Roland Rust, Tony Simons, Robert Westbrook, Valarie Zeithaml Topics: service theater, competing in a weak industry, service brand equity, yield management, leading the customer experience, investing to build customer equity, why service stinks, action-profit linkage model Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-23

24 15 Terrific Classroom-Tested Cases, Offering Instructors Lots of Choice and Flexibility Number of cases has been increased to 15 (including a 3-part case series) up from 10 in 4 th edition 12 cases are new to this edition, 3 carried over from 4 th edition and updated Students will appreciate an exceptionally up-to-date selection all 2000 or later, most 2003 or 2004 A mix of lengths and levels of difficulty Cases drawn from Harvard, Yale, and INSEAD collections, as well as new cases from Lovelock and Wirtz A broad cross-section of service industries and situations Teaching notes provide detailed analysis and teaching suggestions to help instructors do a great job in class Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-24

25 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-25 Most Cases Can Be Used for Class or Written Assignments; Depict a Wide Array of Situations Fast food High tech Car insurance e- Restaurant Environmental organization Car sales and repair Telecommunications Retail banking Apparel retailing Hotels Franchised dog washing

26 Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-26 Aussie Pooch Mobile: When the Client is a Dog, CB means Canine Behavior APM franchisee Elaine Beal washes Zak the Rottweiler outside his owner s home in suburban Brisbane

27 Pedagogical Aids in the Book Introduction to each chapter highlights key issues and questions Four types of boxed inserts Best Practice in Action (application of best practices) Research Insights (summaries of research findings) Perspectives (in-depth examples illustrating key concepts) Management Memo (reviews of key concepts) Review questions and application exercises Suggested study questions for all cases Good selection of graphics (many also as PowerPoints) Occasional cartoons use humor to make a point Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-27

28 Instructor s Resource Material Detailed instructors manual on course website Summaries of chapters with teaching hints Answers to study questions Sample course outlines Summaries of readings with teaching hints 16 student exercises and 5 comprehensive projects Advice on how to succeed in case teaching Outstanding teaching notes for cases More than 280 PowerPoint slides, organized into 15 chapter-specific files Slide 2004 by Christopher Lovelock and Jochen Wirtz s Marketing 5/E 1-28