Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 1 SERVICES MARKETING: People, Technology, Strategy 5/e Christopher Lovelock and Jochen Wirtz PRENTICE HALL, 2004 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 2 20 Years of “Services Marketing” 1984 – Lovelock, 1 st edition 1991 – Lovelock, 2 nd edition 1996 - Lovelock, 3 rd edition 2001 - Lovelock, 4 th edition 2002 - Lovelock, Wirtz, and Keh, Services Marketing in Asia 2004 - Lovelock & Wirtz, 5 th edition Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services 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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services 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 Service Industry, 2002  Co-author, Services Marketing in Asia (Prentice Hall 2001)  Six awards for outstanding teaching, including university-wide award, 2003 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 5 Jochen and family at Awards Banquet for NUS Outstanding Educator Award, 2003 T 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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 6 Target Markets for SM5  Primary targets ¾ MBA courses in services marketing, service management ¾ Upper division undergraduate courses (same)  Secondary targets (with supplementary readings and cases) ¾ MBA courses in public and nonprofit marketing ¾ Courses in tourism, hotel and restaurant marketing ¾ 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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 7 Services Marketing 5/e: A Simple, Intuitive Structure Students Understand Right Away Part II Key Elements of Services Marketing Creating the Service Product Designing the Service Communications Mix Pricing and Revenue Management Distributing Services Part II Key Elements of Services Marketing Creating the Service Product Designing the Service Communications Mix Pricing and Revenue Management Distributing Services Part I Understanding Services, Consumers & Markets Introduction to Services Marketing Consumer Behavior and Service Encounters Positioning Services in Competitive Markets Part I Understanding Services, Consumers & Markets Introduction to Services Marketing Consumer Behavior and Service Encounters Positioning Services in Competitive Markets Part III Managing the Service Delivery Process Designing and Managing Service Processes Balancing Demand and Capacity Planning the Service Environment Managing People for Service Advantage Part III Managing the Service Delivery Process Designing and Managing Service Processes Balancing Demand and Capacity Planning the Service Environment Managing People for Service Advantage Part IV Implementing Services Marketing Managing Relationships and Building Loyalty Customer Feedback and Service Recovery Improving Service Quality and Productivity Organizing for Service Leadership Part IV Implementing Services Marketing Managing Relationships and Building Loyalty Customer Feedback and Service Recovery Improving Service Quality and Productivity Organizing for Service Leadership Part I Understanding Service Products, Consumers & Markets Part II Key Elements of Services Marketing Part III Managing the Service Delivery Process Part IV Implementing Services Marketing Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 8 Implementation in a Course  SM5 offers an integrative package: ¾ 15 chapters of text (with lots of examples) ¾ 8 readings ¾ 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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 9 SM5 CONTENT HIGHLIGHTS Chapters, Readings, Cases, Pedagogical Aids Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 10 Part 1: Understanding Service Products, Consumers and Markets 1. Introduction to Services Marketing ¾ Differences among services are as important as differences between goods and services ¾ Service success requires focus on both customers and competitive markets 2. Consumer Behavior in Service Encounters 3. Positioning Services in Competitive Markets ¾ Positioning distinguishes a service brand from its competitors ¾ Using positioning maps to plot competitive strategy [...]... by Christopher Lovelock and Jochen Wirtz Register guest data Services Marketing 5/E 1 - 17 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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 18 Part 4: Implementing Services Marketing 12 Managing Relationships and. .. ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 14 Splitting Responsibilities for Delivering Supplementary Services (Fig 7.2) As created by originating firm Core As enhanced by distributor + Slide ©2004 by Christopher Lovelock and Jochen Wirtz As experienced by customer = Services Marketing 5/E Core 1 - 15 Part 3: Managing the Service Delivery Process 8 Designing and Managing... organization Franchised dog washing Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 25 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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 26 Pedagogical Aids in the Book Introduction... 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 Services Marketing 5/E 1 - 24 Most Cases Can Be Used for Class or Written Assignments; Depict a Wide Array of Situations Fast food Car sales and repair... Atlantic Sheraton Italia Less Expensive Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E Castle Alexander IV Airport Plaza 1 - 12 Part 2: Key Elements of Services Marketing 4 Creating the Service Product Flower of Service model of core and supplementary services 5 Designing the Communications Mix for Services 6 Pricing and Revenue Management Activity based costing (ABC) Revenue... Chase reading + 2 cases) Ethical concerns and perceived fairness in pricing policies 7 Distributing Services Place, cyberspace, and time Role of intermediaries, franchising (Aussie Pooch case) International distribution of services Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 13 The Flower of Service: Categorizing Supplementary Services (Fig 4-5) Information Consultation... Customer Feedback and Service Recovery 14 Improving Service Quality and Productivity 15 Organizing for Service Leadership Integrating marketing, operations, and human resources Moving up the service leadership ladder – losers, nonentities, professionals, leaders Individual leadership qualities, culture and climate Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 19 The Wheel... cabin cleaners Late baggage Weight and balance sheet late Late fuel Materials, Materials, Supplies Supplies Poor announcement of departures Backstage Personnel Slide ©2004 by Christopher Lovelock and Jochen Wirtz Information Services Marketing 5/E 1 - 22 Eight Readings – Important Insights from Thoughtful Practitioners and Leading Researchers Selected for readability and potential to stimulate classroom... e.g., broadcasting, consulting, education, psychotherapy Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E Information Processing (directed at intangible assets) e.g., accounting, banking, insurance, legal, research 1 - 11 Positioning after New Hotel Construction: Price vs Service Level (Fig 3.6) Mandarin New Grand Heritage Marriott Continental Expensive Action? Regency High Service... 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 Services Marketing 5/E 1 - 23 15 Terrific Classroom-Tested . by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 1 SERVICES MARKETING: People, Technology, Strategy 5/e Christopher Lovelock and Jochen. Jochen Wirtz PRENTICE HALL, 2004 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 2 20 Years of Services Marketing” 1984 – Lovelock,