©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensChapter2ServiceCharacteristicsofHospitalityandTourismMarketing©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens“Managersdonotcontrolthequalityoftheproductwhentheproductisaservice....Thequalityoftheserviceisinaprecariousstate–itisinthehandsoftheserviceworkerswho‘produce’anddeliverit.”-KarlAlbrecht©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensChapterObjectives•Describeaserviceculture•Identifyfourservicecharacteristicsthataffectthemarketingofahospitalityortravelproduct.•Explainmarketingstrategiesthatareusefulinthehospitalityandtravelindustries©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensTheServiceCulture•Theserviceculturefocusesonservingandsatisfyingthecustomer•Empowersemployeestosolvecustomerproblems•Majorityofmanycountries’GDPisservicebased©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensCharacteristicsofServiceMarketing©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensManagementStrategiesforServiceBusinesses•Servicecompaniesmustincreasetheircompetitivedifferentiation,servicequality,andproductivity–Increaseincompetitionandcosts–Decreaseinproductivityandquality©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensService-ProfitChainFiveLinks:•Healthyserviceprofitsandgrowth•Satisfiedandloyalcustomers•Greaterservicevalues•Satisfiedandproductiveserviceemployees•Internalservicequality©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensThreeTypesofMarketinginServiceIndustries©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensInternalandInteractiveMarketing•Internalmarketingmeanstheservicefirmmusteffectivelytrainandmotivatecustomercontactemployees•Interactivemarketingmeanstheperceivedservicequalitydependsheavilyuponthebuyer-sellerinteractionduringtheserviceencounter©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensManagingDifferentiation•Solutiontopricecompetition•Differentiationthroughpeople,physicalenvironment,andprocesses•Differentiationthroughbranding©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensManagingServiceQuality•Exceedcustomers’service-qualityexpectations•Expectationsbasedonpastexperiences,word-of-mouth,andservicefirmadvertising©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensCommonVirtuesRegardingServiceQuality1.“Customerobsessed”2.Historyoftopmanagementcommitmenttoquality3.Highservicequalitystandardsset4.Monitorperformanceclosely©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensTangibilizingtheProduct•Providing“evidence”oftheservice–PromotionalMaterial–PhysicalEnvironment–Employeeappearance–WhyisTradeDressProtectionimportant?©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakens©2006PearsonEducation,Inc.MarketingforHospitalityandTourism,4theditionUpperSaddleRiver,NJ07458Kotler,Bowen,andMakensManagingthePhysicalSurroundings•Improperlymanagedphysicalevidencecanhurtabusiness•Surroundingsshouldre