“Marketing of Services” Getting started

Identify the similarities

Defining ‘Service’An act or performance offered by one

party to another. The performance being transitory and often intangible in nature, does not normally result in ownership of any of the factors of production

An economic activity that creates value and provides benefits for customers at specific times and places by bringing about a desired change in, or behalf, the recipient of the service

Service Sector includes Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Healthcare/ Hospitals Insurance Real Estate Consulting Defence Personal Services Community Services Other Services

Service sector in India

up from 15% in 1950

Drivers of Growth IT and ITES growth (especially India): 20%

growth Healthcare/Hospitals sector growth(15%

growth) Internalization : Internal services are being

spun out as separate service operations Labor Market flexibilityGovernment policies Consumerism & social changesExpansion of Cellular networks (recorded

growth of 115% in 2002-2003)

Services Vs Goods IntangibilityHeterogeneous (dependence on employee

& customer actions) Simultaneous production and consumption Ephemeral and cannot be inventoried OwnershipCustomer involvement in Production

Process Greater variability in operational inputs &

outputs Evaluation is difficult Time factor assumes great importanceDistribution channels take different forms

• Search• Experien

ce• Credence

Marketing Implications & Challenges

Employ physical images and metaphors to demonstrate competencies and illustrate benefits

Provide training to the personal at the delivery end for it to be successful

Plan as per demand projections

Pricing ImplicationTry and train customers , also

the service delivery centers to be efficient functioning places.

Intangibility

Heterogeneity

Ephemeral

Ownership

Customer Involvement

Marketing Implications & Challenges

A service that is consumed and produced at real time, it is a challenging scenario

Reduce perceived expectations by helping customers match needs to specific features and also by educating them on what to expect

Understand customers’ time constraints and priorities

Take advantage of the internet based delivery processes.

Variability in inputs& outputs

Evaluation difficulty

Time factor important

Distribution channels take different forms

Service Examples

‘Religion’ as a service marketing concept.

Categorizing Service ProcessesWhat is Process? A particular method of operation

or series of actions, typically involving multiple steps that often need to take place in a defined sequence.

What is a service process?A simple transformation of an

input to a desirable output

Who or what is the Direct Recipient of the Service?

What is the Nature of the Service Act?

People

Possessions

Tangible Actions

Intangible Actions

People Processing (services directed at people’s bodies):

Passenger TransportationHealthcareLodgingBeauty SalonFitness Centre/Gyms

Possession Processing (services directed at physical possessions):Freight TransportationRepair & maintenance Warehousing/storageCleaning services (Office/home)Laundry / dry cleaning

Mental Stimulus Processing (services directed at people’s minds):Advertising / PRArts & Entertainment Broadcasting/cableManagement consultingEducationPsychotherapy Religion

Information Processing (services directed at intangible assets):AccountingBankingData processingData transmissionInsuranceLegal servicesResearch , Programming

Service Factory

DiscussionGive examples of how during the

past 10 years, Internet & telecom technologies such as Interactive voice response systems (IVRs) and mobile commerce have changed some of the services that we used.

Flower of Service

By Christopher Lovelock

ROLES OF SUPPLEMENTARY SERVICES

Information

Order taking

Billing

Payment

Facilitating

ServicesConsultation

Hospitality

Safekeeping

Exceptions

Enhancing

Services

INFORMATION ELEMENTS Directions to service site Schedules/service hours Prices Instructions on using core product/supplementary services Reminders Warnings Conditions of sale/service Notification of changes Documentation Confirmation of reservations Summaries of account activity Receipts and tickets

ORDER TAKING ELEMENTSAPPLICATIONS Membership in clubs or programs Subscription services Prerequisite-based services

ORDER ENTRY On-site order fulfillment Mail/telephone order placement Email/web site order placement

RESERVATIONS AND CHECK-IN Seats/tables/rooms Vehicles or equipment rentals Professional appointments Admission to restricted facilities

BILLING ELEMENTS Periodic statements of account activity Invoices for individual transactions Verbal statements of amount due Machine display of amount due Self-billing

PAYMENT ELEMENTSSELF SERVICE Insert card, cash, or token in machine Electronic funds transfer Mail a check Enter credit card number online

DIRECT TO PAYEE OR INTERMEDIARY Cash handling and change giving Check handling Credit/charge/debit card handling Coupon redemption Tokens, vouchers, etc.

AUTOMATIC DEDUCTION FROM FINANCIAL DEPOSITS Automated systems Human systems

CONSULTATION ELEMENTS Customized advice Personal counseling Tutoring/training in product use Management or technical consulting

HOSPITALITY ELEMENTS Greetings Food and beverages Toilets and washrooms Waiting facilities and amenities Transport Security

SAFEKEEPING ELEMENTSCARING FOR POSSESSIONS CUSTOMERS BRING WITH THEM Child or pet care Parking facilities, valet parking for vehicles Coat rooms Baggage handling, storage place, safe deposit boxes Security personnel

CARING FOR GOODS PURCHASED OR RENTED BY CUSTOMERS Packaging Pickup Transportation and delivery Installation Inspection and diagnosis Cleaning Refueling Preventive maintenance, repairs and renovation Upgrade

EXCEPTIONS ELEMENTSSPECIAL REQUESTS IN ADVANCE OF SERVICE DELIVERY Children's needs Dietary requirements Medical or disability needs Religious observances Deviation from standard operating procedures

HANDLING SPECIAL COMMUNICATIONS Complaints, compliments, suggestions

PROBLEM SOLVING Warranties and guarantees against product malfunction Resolving difficulties that arise from using the product Resolving difficulties caused by accidents, failures, etc Assisting customers who have suffered an accident or medical emergency

RESTITUTION Refunds Compensation in kind for unsatisfactory goods and services Free repair of defective goods

Applying Flower of Service model

Case

Information

Order takingBooking

through phone, fax and internet

Ticket office, Call centers, company website, travel sites (makemytrip.com and the likes) and agents.

Billing Detailed charges split. Email of bills Hard copy of bills in ticket offices

PaymentPayment through cash, credit or

debit cardsSpecial cards like Jet Airways Citi

Card as well for more flying points

Special payment privileges for frequent flyers

Consultation Regarding

Choices of class, routes to a destination & special menus for frequent flyers

Hospitality From ticket booking to post flight

help Cold towels as soon as you boardMenu options for food

SafekeepingLuggage Children travelling without

assitance

Exceptions Special requests regarding meal

preferences Special amenities for elderly

people or physically handicapped Medical needs etc