BMK 201 Lecture Notes - Lecture 17: Customer Relationship Management, Product Differentiation, Tunxis Community College
6 Jan 2021
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Document Summary
Appreciate the major challenges in the marketing of services. There are three key issues which, arguably, make the marketing of intangible services more challenging than the marketing of tangible goods. These are: achieving a sustainable differential advantage in the marketing services, managing profitable customer relationships, delivering consistently high levels of customer service. Because services are produced by people and not machines, and because it is difficult to protect service innovation from immediate copying by competitors, it is difficult to achieve lasting product differentiation in service industries. Recall that a product can be viewed as a collection, bundle or package of attributes comprising a core" service, expected service, augmented service and potential service. The core service is the want or need the product satisfies. The expected service is those attributes that deliver the benefit. For example, in a hotel, a range of augmented services such as use of the swimming pool and gymnasium.
