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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
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 11
Four Categories of Services
Employing Different Underlying Processes
(Fig. 1.5)
People Processing
Possession Processing
Mental Stimulus
Processing
Information Processing
(directed at intangible assets)
e.g., airlines, hospitals,
haircutting, restaurants
hotels, fitness centers
e.g., freight, repair,
cleaning, landscaping,
retailing, recycling
e.g., broadcasting, consulting,
education, psychotherapy
e.g., accounting, banking,
insurance, legal, research
TANGIBLE
ACTS
INTANGIBLE
ACTS
DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS
What is the
Nature of the
Service Act?
Who or What is the Direct Recipient of the Service?
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 12
Positioning after New Hotel Construction:
Price vs. Service Level
(Fig. 3.6)
Expensive
Shangri-La
High
Service
Moderate
Service
Heritage
Mandarin
New Grand
Marriott
Continental
Regency
Sheraton
Italia
Alexander IV
Airport Plaza
PALACE
Atlantic
No action?
Action?
Less Expensive
Castle
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 13
Part 2: Key Elements of Services Marketing
4. Creating the Service Product
¾ Flower of Service model of core and supplementary services
5. Designing the Communications Mix for Services
6. Pricing and Revenue Management
¾ Activity based costing (ABC)
¾ Revenue management (+ Kimes & Chase reading + 2 cases)
¾ Ethical concerns and perceived fairness in pricing policies
7. Distributing Services
¾ Place, cyberspace, and time
¾ Role of intermediaries, franchising (Aussie Pooch case)
¾ International distribution of services
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 1 - 14
The Flower of Service:
Categorizing Supplementary Services
(Fig. 4-5)
Core
Information
Consultation
Order-Taking
Hospitality
Payment
Billing
Exceptions
Safekeeping
Facilitating elements
Enhancing elements
KEY:
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