By Venkatesh.N

ByVenkatesh.N

Koshys college

1st Chapter SERVICE MANAGEMENT

Service

>A service is an action of doing something to some one which is essentially (purely) intangible…

>“Service is an act or performance offered

by one party to another that is essentially

intangible and does not result in the

ownership of anything.”

What is Management Management is an individual or a group of individuals that

accept responsibilities to run an organisation. They Plan, Organise, Direct and Control all the essential activities of the organisation. Management does not do the work themselves. They motivate others to do the work and co-ordinate (i.e. bring together) all the work for achieving the objectives of the organization.

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for achieving the objectives of the organisation such as high sales, maximum profits, business expansion, etc.

What is service management

A system integral of supply chain management that connects actual company sales and the customer. The goal of service management is to maximize service supply chains as they are typically more complex that the supply chain of finished goods. The purposes of service management is to reduce high costs by integrating products and services and keep inventory levels smaller.

Supply chain management

Supply chain management is a total system approach to managing the entire flow of information, materials, and services from

raw -materials suppliers through factories warehouses to the end customer

Contd…..

A supply chain is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer.

Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer.

Supply chain

Supplier Manufacturer Distributor Retailer Customers

Supply chain management

Classification of service It is required to design & apply marketing techniques to

completely satisfy the customer & increase profit & identify new emerging services

Classification can be done on the following basis Classification by industry Classification by target effect Skill level of service provider (professional/Non

professional) Labour intensiveness(people-based/ equipment-based) Degree of customer involment

Classification by industry Entertainment industry Education Telecommunication Finance & insurance Transportation Public utilities Government services Health Hospitality industry Business services

Classification by target effect

Based on degree of customer involment People processing:- service aimed at physical

care Ex:-health care, clinics, restaurants, hospital, hair stylist, fitness centers.

Mental Stimulus processing:- services aimed at mind of customer Ex:-education, information, entertainment, consulting, psychotherapy.

Possession processing:- Service aimed at physical possession & tangible assets Ex:- repair & maintance, Laundry, repair Services, House cleaning services

Contd….

Information processing:- service for tangible assets Ex:- banking legal consultation, brokerage , financial service.

Skill level of service provider:- Teacher Doctor Engineer Accountant

Lobour Intensiveness

Mechanic Electrician Labour Plumber Artisan

Degree of customer contact

High degree (every day)-TV channels, Mobile etc…..

Moderate Degree(regular)- teacher, barber, washer man etc…

Low degree(occasional)-priest, doctor etc…

Characteristics of services

Characteristics Intangibility: It cannot be taste, feel & smell before they are bought

unlike physical product. The intangibility creates a feeling of uncertainty about the outcome of service.

Inseparatebility: Services cannot be separated from the services provided

(we cannot separate the service from the product) in fact the product delivers consumption of a service.

Variability: Services of highly variable. It is almost impossible to have

the same service from the same seller the second time.

Contd….Customer participation: Service product is not a one side activity customer

are core product of services. The product quality of services greatly depends upon the ability, skills and performance of the employees as well as the activity and performance of the customer.

No ownership here we cannot transfer ownership from one

person to other person that particular service belongs to particular person because its purely intangible

Pershability They cannot be stored

Differences B/W Goods and Services

Goods / Services

Service encounter

A service encounter is a period of time during which customer interact directly with a service. It is also called as "Moment of Truth“

Service encounters are transactional interactions in which one person (e.g., a vendor, office clerk, travel agent) provides a service or good (e.g., a product, an appointment, airline tickets) to another person.

Service blueprint

The blueprint is an operational tool that describes the nature and the characteristics of the service interaction in enough detail to verify, implement and maintain it.

Steps in Building a Blueprint

1.Identify the service process to be blueprinted 2.Map the service process from the customers

point of view 3.Map Contact Employee Actions –Onstage -Line of External Interaction Backstage –Line of Visibility – what customers should see and which employees

are in contact with the customers.

Steps in Building a Blueprint

Map Internal Support activities Line of Internal Interaction –clarify interfaces across departmental

lines, their interdependencies 3.Add Evidence of Service at each

Customer Action Step

Benefits of Blue printing

Provides a customer direction summary – employees can communicate to–customer about his needs.

Identifies Fail points- weak links in the chain of service activities

Basis for identifying costs, revenues , capital investment required

Facilitates top-down, bottom-up approach to quality improvements

GAP Model

The GAP Model The Service Quality Model, also known as the

GAP Model, was developed in 1985. It highlights the main requirements for delivering a high level of service quality by identifying five ‘gaps’ that can lead to unsuccessful delivery of service.

o GAP 1: Gap between consumer expectation and management perception: arises when the management or service provider does not correctly identify what the customers wants or needs.

o GAP 2 : Gap between management perception and service quality requirement: this is when the management or service provider might correctly perceive what the customer wants, but may not set a performance standard.

o GAP 3: Gap between service quality requirement and service delivery: may arise pertaining to the service personnel. This could arise due to there being poor training, incapability or unwillingness to meet the set service standard

GAP 4 : Gap between service delivery and external communication: consumer expectations are highly influenced by statements made by company representatives and advertisements. The gap arises when these assumed expectations are not fulfilled at the time of service delivery.

GAP 5: Gap between expected service and experienced service: this gap arises when the consumer misinterprets the service quality.

Product And Service Marketing Mix