Service Module 1

8/6/2019 Service Module 1

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Introduction to Services

MODULE - 1


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Definition of ServiceService is an activity that has an element of intangibility

associated with it and which involves the service

providers interaction either with customers or with theproperty belonging to the customer.

- Adrian Payne


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WHATAR

E SERV

ICES?

Services are deeds, processes and performances.

Services includes all economic activities whose outputis not physical product or construction, is generallyconsumed at the time it is produced, and providesadded value in form (such as convenience,amusement, timeliness, comfort or health) that areessentially intangible.


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ServicesVs Customer Service

Services as we have broadlydefined encompasses a wide range ofindustries.

Customer Service is the serviceprovided in support of a companys

core product


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Why services Marketing

1. Service based economy

2. Service as Business Imperative in

Manufacturing and IT.3. Deregulated Industries and

Professional Service Needs.

4. Services Marketing is different

5. Service Equals Profits


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Examples of Service IndustriesExamples of Service Industries

Health Care hospital, medical practice, eye care

Professional Services accounting, legal, architectural

Financial Services banking, investment advising, insurance

Hospitality restaurant, hotel, bed & breakfast, resort, rafting

Travel airlines, travel agencies, theme park

Others: hair styling, pest control, counseling services,

health club


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Goods Services Resulting Implications

Tangible Intangible ervicescannot beinventoried.ervicescannot be atented.ervicescannot bereadilydisplayedorcommunicated.ricingisdifficult.

tandardized Heterogeneous ervicedeliveryandcustomersatisfactiondependonemployeeactions.ervice qualitydependsonmanyuncontrollable factors.

Thereisnosure knowledge that theservicedeliveredmatcheswhat wasplannedandpromoted.

roductionseparate fromconsumption

imultaneousproductionandconsumption

Customersparticipateinandaffect the transaction.Customersaffect eachother.Employeesaffect theserviceoutcome.

ecentralizationmaybeessential.Massproductionisdifficult.

Nonperishable erishable It isdifficult tosynchronizesupplyanddemandwithservices.ervicescannot bereturnedorresold.


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Characteristics of Services

1. Intangibility (health care service)1. Services cannot be inventoried.

2. Services cannot be patented.

3. Services cannot be readily displayed orcommunicated.

4. Pricing is different

2. Heterogeneous1. Service delivery and customer satisfaction depend on

employee action.

2. Service quality depends on many uncontrollablefactors.

3. There is no sure knowledge that the service deliveredmatches what was planned and promoted.


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3. Simultaneous Production andConsumption

1. Customers participate in and affect thetransaction.

2. Customers affect each other.

3. Employees affect the service outcome.

4. Decentralization may be essential.

5. Mass production is difficult.


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4. Perishable

1. It is difficult to synchronize supply and

demand with services.2. Services cannot be returned or resold


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Services Marketing mix


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1. Product

1. Physical good features

2. Quality level3. Accessories

4. Packaging

5. Warranties

6. Product lines

7. Branding


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2. Place

1. Channel type

2. Exposure3. Intermediaries

4. Outlet locations

5. Transportation

6. Storage7. Managing Channels


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3. Promotion

1. Promotion blend

2. Salespeople

Number, selection, training, incentives3. Advertising

T

argets, media types, types of ads, copythrust4. Sales promotion

5. Publicity


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4. Price

1. Flexibility

2. Price level

3. Terms4. Differentiation

5. Discounts

6. Allowances


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Expanded Mix for Services5. People

All human actors who play a part in

service delivery and thus influence thebuyers perceptions namely the firmspersonnel, the customer, and the othercustomers in the service environment.


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6. Physical Evidence

The environment in which the service is

delivered and where the firm andcustomer interact and any tangiblecomponents that facilitate performanceor communication of service.


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7. Process

The actual procedures, mechanism and

flow of activities by which the service isdelivered the service delivery andoperating systems.


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Services Marketing Triangle

organization employees

customer

Internal Marketing

InteractiveMarketing

ExternalMarketing


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Myths About Services Services is a necessary evil for

manufacturing firms Service sector is labor-intensive and

less productive

Service firms earn less revenue whencompared to other two sectors

Growth in service economy is lin ed togrowth of the public sector services

Mar eting a service is not different frommar eting a product

Growth in service sector eliminates jobsfrom the manufacturing

G , Motorola

Wal-Mart

ICICI Prudential,

DFC, TATA-AIG

xamples


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GAP Model of Service Quality

Perceivedservice

Expected

service

Service delivery

Customer drivenService designs and

standards

Company perceptions ofConsumer expectations

ExternalCommunicationsTo customers

Gap 4

Gap 2

Gap 3

Customergap

CUSTOMER

COMPANY

Gap 1


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The central focus of the gaps model is theCUSTOMERGAP, the difference between

customer expectations and perceptions

The provider gaps are the underlyingcauses behind the customer gap.

Gap 1 : Not knowing what customers expect.

Gap 2 : Not selecting the right service designsand standards.

Gap 3 : Not delivering to service standards Gap 4 : Not matching performance to

promises

Service Module 1

Documents

Transcript of Service Module 1