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Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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The Service Transaction Is Conducted Remotely Developments in telecommunications, online technology, and sophisticated logistics solutions have spurred many new approaches to service delivery. A customer may never see the service facilities or meet service personnel face-to-face when dealing with a fi rm through remote transactions. Service encounters with personnel are more likely via a customer contact center, mail, email, chat, or Twitter. If physical products, documents, or other tangibles (e.g., credit cards or membership cards) need to reach a customer, logistics providers off er service fi rms integrated, reliable, and cost-eff ective solutions. Examples of service transactions at arm's length are: > Repair services for small pieces of equipment sometimes require customers to ship the product to a maintenance facility, where it is serviced and then returned by mail (with the option of paying extra for express shipment). Many service providers off er solutions with the help of integrated logistics fi rms such as FedEx, TNT, or UPS. Th ese solutions range from storage and express delivery of spare parts for aircraft (B2B delivery) to pickup of defective cell phones from customers' homes and return of the repaired phones to the customers (B2C pickup and delivery, also called "reverse logistics"). Any information-based product can be delivered instantaneously through the internet to apps on smart devices such as phones and tablets (Figure 5.4). When you look at the eight petals of the Flower of Service, you can see that no fewer than fi ve supplementary services are information based (Figure 5.5). Information, consultation, order-taking, billing, and payment (e.g., via credit card) can all be transmitted using online channels. Service businesses that involve physical core products, such as retailing and repair, are also closing physical branches and shifting delivery of many supplementary services to the internet. Th ey rely on speedy business logistics to enable a strategy of arm's-length transactions with their customers (Figure 5.6). Web and app-delivered services are becoming increasingly sophisticated and more user friendly. They often simulate the services of a well-informed sales assistant by steering customers toward items that are likely to be of interest. Some even provide the opportunity for "live" dialog with helpful customer service personnel via e-mail or chat. Important factors that attract customers to online services are: • Convenience Ease of search (obtaining information and searching for desired items or services) A broader selection Potential for better prices 24/7 service with prompt delivery. This is particularly appealing to customers whose busy lives leave them short of time The distribution of information, consultation, and order taking (or reservations and ticket sales) has reached extremely sophisticated levels in some global service industries (such as the hotel, airline, and car rental industries), requiring a number of carefully integrated channels targeted at key customer segments. For instance, Starwood Hotels & Resorts Worldwide-whose nearly 1,200 hotels include such brands as St. Regis, W Hotel, Westin, Le Méridien, and Sheraton-has more than 33 global sales offices (GSOS) around the world to manage customer relationships with key global accounts (Figure 5.7). Each GSO offers a one-stop solution to corporate travel planners, wholesalers, meeting planners, incentive houses, and major travel organizations.2 The company also operates customer contact centers strategically placed around the globe to cover all time zones and key language requirements. You only need to call one toll-free number to book any Starwood hotel. Alternatively, you can reserve rooms through electronic channels, including www.starwoodhotels. com and its app called SPG, which stands for Starwood Preferred Guest.
Transcribed Image Text:The Service Transaction Is Conducted Remotely Developments in telecommunications, online technology, and sophisticated logistics solutions have spurred many new approaches to service delivery. A customer may never see the service facilities or meet service personnel face-to-face when dealing with a fi rm through remote transactions. Service encounters with personnel are more likely via a customer contact center, mail, email, chat, or Twitter. If physical products, documents, or other tangibles (e.g., credit cards or membership cards) need to reach a customer, logistics providers off er service fi rms integrated, reliable, and cost-eff ective solutions. Examples of service transactions at arm's length are: > Repair services for small pieces of equipment sometimes require customers to ship the product to a maintenance facility, where it is serviced and then returned by mail (with the option of paying extra for express shipment). Many service providers off er solutions with the help of integrated logistics fi rms such as FedEx, TNT, or UPS. Th ese solutions range from storage and express delivery of spare parts for aircraft (B2B delivery) to pickup of defective cell phones from customers' homes and return of the repaired phones to the customers (B2C pickup and delivery, also called "reverse logistics"). Any information-based product can be delivered instantaneously through the internet to apps on smart devices such as phones and tablets (Figure 5.4). When you look at the eight petals of the Flower of Service, you can see that no fewer than fi ve supplementary services are information based (Figure 5.5). Information, consultation, order-taking, billing, and payment (e.g., via credit card) can all be transmitted using online channels. Service businesses that involve physical core products, such as retailing and repair, are also closing physical branches and shifting delivery of many supplementary services to the internet. Th ey rely on speedy business logistics to enable a strategy of arm's-length transactions with their customers (Figure 5.6). Web and app-delivered services are becoming increasingly sophisticated and more user friendly. They often simulate the services of a well-informed sales assistant by steering customers toward items that are likely to be of interest. Some even provide the opportunity for "live" dialog with helpful customer service personnel via e-mail or chat. Important factors that attract customers to online services are: • Convenience Ease of search (obtaining information and searching for desired items or services) A broader selection Potential for better prices 24/7 service with prompt delivery. This is particularly appealing to customers whose busy lives leave them short of time The distribution of information, consultation, and order taking (or reservations and ticket sales) has reached extremely sophisticated levels in some global service industries (such as the hotel, airline, and car rental industries), requiring a number of carefully integrated channels targeted at key customer segments. For instance, Starwood Hotels & Resorts Worldwide-whose nearly 1,200 hotels include such brands as St. Regis, W Hotel, Westin, Le Méridien, and Sheraton-has more than 33 global sales offices (GSOS) around the world to manage customer relationships with key global accounts (Figure 5.7). Each GSO offers a one-stop solution to corporate travel planners, wholesalers, meeting planners, incentive houses, and major travel organizations.2 The company also operates customer contact centers strategically placed around the globe to cover all time zones and key language requirements. You only need to call one toll-free number to book any Starwood hotel. Alternatively, you can reserve rooms through electronic channels, including www.starwoodhotels. com and its app called SPG, which stands for Starwood Preferred Guest.
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