Service marketing

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------presented by------

Rishikesh Palekar 08-042Ram Pimplapure 08-209Saurabh Pandey 08-217Chinmaya Jangid 08-235

Designing and Managing Services by Ram, Saurabh, Rishikesh and Chinmaya

DESIGNING AND MANAGING SERVICES

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SERVICES

DEF: services are intangible elements which satisfy the needs of the consumer

Services marketing: process of identifying needs and wants of customers then designing the service along with the strategies to deliver satisfaction to the consumers profitably


Special Characteristics of Services

Services are said to have four key characteristics

The 4 I’s: Intangibility-no physical attributes Inseparability-cannot be separated

from the provider Inconsistency –tend to vary Inventory- (simultaneous production /consumption)


IMPLICATIONS OF TANGIBILIY

Services cannot be inventoried.

Services cannot be patented.

Services cannot be readily displayed or communicated.

Pricing is difficult.


IMPLICATIONS OF HETEROGENITY / INCONSISTENCY

1 •Service delivery and customer satisfaction depend on employee actions.

2 •Service quality depends on many uncontrollable factors.

3 •There is no sure knowledge that the service delivered matches with what is planned and promoted.


IMPLICATIONS OF SIMULTANEOUS PRODUCTION AND CONSUMPTION

1 •Customers participate in and affect the transaction.

2 •Customers affect each other

3 •Employees affect the service outcome.

4 •Decentralization may be essential.

5 •Mass production is difficult.


INSEPARABILITY/ PERISHABILITY

1 •It is difficult to synchronize supply and demand with services

2 •Services cannot be returned or resold


PRODUCTS vs SERVICES

Goods Services Resulting Implications Tangible Intangible Services cannot be inventoried.

Services cannot be patented. Services cannot be readily displayed or communicated. Pricing is difficult.

Standardized Heterogeneous Service delivery and customer satisfaction depend on employee actions. Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted.

Production separate from consumption

Simultaneous production and consumption

Customers participate in and affect the transaction. Customers affect each other. Employees affect the service outcome. Decentralization may be essential. Mass production is difficult.

Nonperishable Perishable It is difficult to synchronize supply and demand with services. Services cannot be returned or resold.


SERVICE MARKETING TRIANGLE

Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“setting thepromise”


7 P’s OF SERVICES MARKETING MIX

Product Price

Place Promotion

People Process


7 P’s

PRODUCT PLACE PROMOTION PRICE

Physical goodfeatures

Channel type Promotionblend

Flexibility

Quality level Exposure Salespeople Price level

Accessories Intermediaries Advertising Terms

Packaging Outlet location Salespromotion

Differentiation

Warranties Transportation Publicity Allowances

Product lines Storage

Branding


7P’s

PEOPLE PHYSICALEVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles


GAP MODEL FOR SERVICES

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

GAP 1

GAP 2

GAP 3

External Communicatio

ns to Customers

GAP 4Service Delivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Monday, April 10, 2023

Types of Services :- Services are of different types

address towards different types of customers depending upon the type of benefit

desired.Classified as:-

1.By market –segmentation 2.By Skills 3.By Goal of Services 4.By Labour intensiveness 5.By Customer Contact

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Classification :-By Goal of Services:-

1.Profit MakingE.g.. Commercial

Co.,Export-Import

oprns.2.Non-Profit

MakingE.g.. NGO,

Redcross

By Market Segmentation:-

1.Consumer Services

E.g.. Healthcare,Travel -Related

2.Business Services

E.g.. Consultancy,Market-Research

By Skills:-

1.Professional Services

E.g.. Engineering,Medical,

Management2.Non-ProfessionalE.g.. Domestic

Services

By Labour Intensiveness:-

1.Labour Based Services

2.Equipment Based Services

By Customer –Contact:-

1.High-ContactE.g.. Hospitals2.Low-Contact

E.g.. After-Sales


Measurement of service qualityQualitativ

e(psychological)

Relates to the way in which service is provided and perceived.

Models in this aspect are empirical in nature and originate from social sciences and marketing

Quantitative

(operational)

Relates more to service accessibility.

Models in this aspect are analytical and typically originate in operations research (queuing theory)


QUEUING THEORY IN SERVICES

Process-wise, queues play in services much the same role as inventories in manufacturing. But in addition, “human queues” express preferences, complain, abandon and even spread around negative impressions.


QUEUING MODELS: CALL CENTERS

The simplest and most-widely used such model is the M/M/s queue

the simplest queuing model of a call center requires the estimation of calling rate and

mean service (holding) times.

Moreover, the performance of call centers in peak hours is extremely sensitive to changes

in its underlying parameters.

It follows that an extremely accurate estimation/forecasting of parameters is a

prerequisite for a consistent service level and efficient operation.


MODEL

M/M/s:FCFS/∞/∞

Multi-channel queuing model

Several service stations(s)

Random arrival and service rates

Customers are served on first come first served basis

Any no of customers can be accommodated in the queue

Customer population is also infinite

Service marketing

Business

Transcript of Service marketing