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MRKT355 > Developing Service Products & Brands Distributing Services + TB Chapters 4 & 5 > Flashcards

Developing Service Products & Brands Distributing Services + TB Chapters 4 & 5 Flashcards

1
Q

The components of a service product

A

Core product
Supplementary services
Delivery processes

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2
Q

Example core + supplementary services of a lux hotel

A

Core: Bed for the night in a suite
Supplementary: reception, valet, bar, internet, reservation, room service

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3
Q

Core product

A

Is “what” the customer is fundamentally buying

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4
Q

Supplementary services

A

Accompanies the core product, a variety of other service-related activities

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5
Q

Delivery processes

A

concerns the processes used to deliver the core product and supplementary services

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6
Q

What are the 4 issues the design of the service offering must address?

A

How the different service components are delivered to the customer
The nature of the customers’ role in those processes
How long delivery lasts
The prescribed level and style of service to be offered

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7
Q

Two types of supplementary services

A

Facilitating services
Enhancing services

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8
Q

Facilitating services

A

Information
Order taking/reservations/applications
Billing/invoices/statements
Payment

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9
Q

Enhancing services

A

Consultation/personalized advice
Hospitality/amenities
Safekeeping/baggage handling/security/parking
Exceptions/special requests/feedback handling

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10
Q

The flower of service

A

Depicts the core service and a range of supp services, each of these supps identifiable as either facilitating or enhancing

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11
Q

Example flower of service in a restaurant

A

Core: food & beverages
Information (menu prices)
Consultation (menu suggestions)
Order taking (table reservation, ordering menu)
Hospitality (waiting areas, toilets)
Safekeeping (coat room, valet)
Exceptions (complains/compliments)
Billing (self-billing/mail billing)
Payment (credit card/cash)

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12
Q

Implications of service products

A

Not every core product is surrounded by supp elements from all 8 clusters
People-processing and high contact services tend to have more supp services

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13
Q

What brand names do

A

Allows the firm to communicate the distinctive experiences and benefits associated with a specific service concept
eg: speedo

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14
Q

Branded house

A

Company that applies its brand name to multiple offerings in unrelated fields

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15
Q

Sub-brands

A

Corporate or masterbrand is the main reference point, but each product has a distinctive name as well
eg: FedEx Ground

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16
Q

Endorsed brands

A

Product brand dominates, but the corporate name is still featured
eg: AMG as Mercedes-AMG

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17
Q

House of brands

A

Each brand owned by the corporation is promoted under its own name
eg: unilever brands (axe, dove)

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18
Q

Service tiering (how they’re ranked)

A

Branding is used to differentiate core services as well as service levels. Tiering varies between industries
eg: 1-5 star rating for hotels, business/first/economy class for airlines, sports/suv/sedan for car rentals

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19
Q

Brand equity

A

The value premium that comes with a brand

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20
Q

The 6 key components of building brand equity

A

(I) Company’s presented brand
(I) External brand communications (word-of-mouth, etc)
(I) Customer experience with the company
(II) Brand awareness (customer’s recog and recall)
(II) Brand meaning (customer’s perception)
(III) Brand equity (over competitors)

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21
Q

Defining your brand as the choice instead of an alternative

A

Distance your brand from competitors
Have a different opinions
A brand should make enemies to compete on their own terms

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22
Q

Alignment of brand

A

1 - Understand your service brand (beliefs & comms)
2 - Understand your best potential audience(s)
3 - Understand and differentiate from competition

23
Q

Hierarchy of new service categories (7 categories)

A

Style changes
Service improvements
Supplementary service innovations
Process line extensions
Product line extensions
Major process innovations
Major service innovations

24
Q

Style changes

A

Visible changes in service design or scripts

25
Q

Service improvements

A

Modest changes in the performance of current products

26
Q

Supplementary service innovations

A

Addition of new or significantly improved facilitating or enhancing elements

27
Q

Process line extension

A

Alternative delivery procedures

28
Q

Product line extensions

A

Additions to current product lines

29
Q

Major process innovations

A

Using new processes to deliver existing products with added benefits

30
Q

3 success factors in new service development

A

Market synergy (good fit, advantage vs., strong firm support)
Organizational factors (internal marketing)
Market research factors (scientific studies, product concept)

31
Q

Five principles of service design thinking

A

User-centered
Cocreative
Sequencing
Evidencing
Holistic

32
Q

Four ways to achieve market development

A

Retaining or increasing product market share by focusing on areas in marketing
Securing dominance of growth market by identifying viable new segment
Driving out your competitors through aggressive promotion and pricing policies
Increasing existing customer usage through loyalty schemes, adding value to the current

33
Q

Foundation questions for designing an effective service distribution strategy

A

What flows through the channel
How should the service reach the customer
Where should the service be delivered
When should the service be delivered

34
Q

What is being distributed (5 flows)

A

Information flow
Negotiation flow
Product flow
Ownership flow
Promotion flow

35
Q

How should a service be distributed

A

Customers visiting the service site (car repair)
Service providers going to the customer (tree removal)
Conducted remotely (credit card call)

36
Q

Channel preferences vary

A

Complex and high risk services = personal channels
Individuals with confidence = self-service channels
Tech-savvy = online channels

Convenience is a key driver of channel choice

37
Q

Importance of channel integration

A

Service delivered through multiple channels require a seamless and consistent UX
New delivery channels are prone to inconsistent and disjointed experiences for customers
Service providers need effective pricing strategies to deliver value and capture it through appropriate channels

38
Q

Strategic & tactical locations considerations

A

Population size and characteristics
Pedestrian and vehicular traffic
Convenience of access for customers
Competitors in this area
Availability of labor
Availability of site locations, rental costs and contractual conditions, and regulations

Locational constraints: operational requirements (airports), geographic factors (ski resorts), need for economies of scale (hospital)

39
Q

Innovative location strategies

A

Ministores (offer multi-site service businesses creating numerous small service factories to maximize geograpahic coverage

40
Q

When should a service be delivered

A

Traditionally limited to daytime (40-50 hours) a week
Modern-day very flexible, responsive service operations

41
Q

Intermediary challenges for the supplier

A

Act as a guardian of overall processes
Ensure that each element offered by intermediaries fits overall service concept (fits in the flower of service)

42
Q

Franchising

A

Expand delivery of effective service concept, without a high level of monetary investments compared to rapid expansion of COCO sites

43
Q

Alternatives to franchising

A

License another supplier to act on original supplier’s behalf to deliver core product
eg: travel agencies to book cruise trips

43
Q

Alternatives to franchising

A

License another supplier to act on original supplier’s behalf to deliver core product
eg: travel agencies to book cruise trips

44
Q

Challenges of distribution in large domestic markets

A

Distances involved and the existence of multiple time zones
Multiculturalism is also an issue, leading to segmenting issues
There are differences between the laws and tax rates of the various states or provinces and those of the respective federal governments

45
Q

5 drivers favouring adoption of transnational strategies

A

Market drivers (common customer needs)
Competition drivers (competitors from different countries)
Technology drivers
Cost drivers
Government drivers

46
Q

Challenges of distributing services internationally

A

Regulated markets
Possession processing involves services to customer’s physical possessions
People processing requires direct contact with customers

47
Q

Determinants of international market entry strategies

A

Control of intellectual property and sources of value creation
Degree of required customer interaction in the creation of service (high vs low)

48
Q

User-centered principle

A

Services should be viewed from customer’s POV

49
Q

Cocreative

A

All key stakeholders should be involved in the design process

50
Q

Sequencing

A

A service is visualized as a sequence of interrelated steps, activities, and touchpoints

51
Q

Evidencing

A

Intangible aspects of the service should be made tangible through physical evidence, something customers can see and touch

52
Q

Holistic

A

The entire service experience along all five senses needs to be considered

MRKT355 (13 decks)

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