INTRODUCTION TO SERVICES
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INTRODUCTION TO SERVICES PRESENTED BY , NIMMY REJI MATHEW AND SREELEKSHMI . G MCMAT PERUMBAVOOR
Transcript of INTRODUCTION TO SERVICES
INTRODUCTION TO SERVICES
PRESENTED BY ,
NIMMY REJI MATHEW
AND
SREELEKSHMI . G
MCMAT PERUMBAVOOR
SERVICE DEFINITION
“ A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.”
- Philip Kotler
What is Service? Traditional View
• Service is a technical after-sale function that is provided by the service department.
Old: Service = wrench time
Old view of service = Customer Service Center
What is Service? The modern View
Dealers
Salespeople
Receptionists and
Schedulers
Management and
Executives
Service Employees
Billing and Accounting Personnel
Web site and any e-
channel Interaction
Customer
Service Can Mean all of These
• Service as a product
• Customer service
• Services as value add for goods
• Service embedded in a tangible product
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Examples of Service Industries
• Health Care – hospital, medical practice, dentistry, eye care
• Professional Services – accounting, legal, architectural
• Financial Services – banking, investment advising, insurance
• Hospitality – restaurant, hotel/motel, bed & breakfast, – ski resort, rafting
• Travel – airlines, travel agencies, theme park
• Tangibility -- The quality of being perceivable by touch.
• Intangibility--The quality of being intangible and not perceptible by touch
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Tangibility Spectrum
Tangibility Spectrum
Tangible
Dominant
Intangible
Dominant
Salt Soft Drinks
Detergents
Automobiles
Cosmetics
Advertising Agencies
Airlines Investment
Management Consulting
Teaching
Fast-food Outlets
Fast-food Outlets
Differences Between Goods and Services
Intangibility
Perishability
Simultaneous Production
and Consumption
Heterogeneity
1. INTANGIBILITY
2. PERISHABILITY
3. INSEPARABILITY
4. HETEROGENEITY
5. OWNERSHIP
6. SIMULTANEITY
7. QUALITY MEASUREMENT
8. NATURE OF DEMAND
CHARACTERISTICS OF SERVICE MARKETING
Mobile network providers like Vodafone , Airtel , Reliance , etc.
INTANGIBILITY EXAMPLE
2. PERISHABILITY
Taxi operator drives taxi, and the passenger uses it.
The presence of taxi driver is essential to provide the service.
INSEPARABILITY EXAMPLE
Live concerts like singing , dancing and comedy shows , movies , etc.
HETEROGENEITY EXAMPLE
Membership of a gym
OWNERSHIP EXAMPLE
COST & SIMULTANEITY EXAMPLE
When the producers approach the buyer to deliver services the cost of those services is increased. On the other hand it cost time and money for the buyers to come to producers directly.
A doctor’s visit to home.
Electronics service, repair & maintenance centers.
QUALITY MEASUREMENT EXAMPLE
We can quantify the food served in a hotel but the way waiter serves the customer or the behaviour of the staff, timely delivery , hygiene etc. cannot be ignored while rating the total process.
Thus the firm sells good atmosphere, convenience of customers, consistent quality of services, etc.
Service quality level deteriorates during peak hours in hotels, transportation etc.
E-Retailers offering huge discounts on festive occasions
A marketer should effectively utilize the capacity without deteriorating the quality to meet the demand.
NATURE OF DEMAND EXAMPLE
Services are sold exclusively on the basis of benefits they offer.
Services cannot be made available in advance.
Time utility is critical.
Services cannot be transferred.
A service once consumed cannot be returned.
FEW ADDITIONAL CHARECTERISTICS :
Classification of services
High contact services
Medium contact services
Low contact services.
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High C.S.
Medium C.S.
Low C.S.
• Hair dressing
• medical services Banking, purchase of retail goods.
• Management consulting
• Insurance
• Personal financial services.
• Radio services
• Information processing services.
• Remote fixes of software
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Consumer services Classification on the basis of involvement of
customer Possession processing Mental stimulus processing Information processing Classification based on service tangibility Classification on the business orientation Classification on the basis of requirement of skill and
expertise Classification on the basis of end user
Other types and classification of servises includes:
Pure services
Non-good services
Owned-good services
Rented good services
Consumer services
Classification on the basis of involvement of customer
Possession processing
Mental stimulus processing
Information processing
Services linked to tangible goods.
In order to experience the service customers should first purchase the product.
Eg alterations, warranties
Classification based on service tangibility
Service provider offer tangible goods for use along with the services.
Eg. Theaters offer 3d glasses along with movie
Tangible goods linked to services
Non profit organisation: govt schools a social service.
Commercial organization.
Classification on the business orientation
Professional services
Requires a set of qualificaion skills adequate training etc.eg lawyer,pilot
Non professional services
Do not require any set of skills training.
Eg house keeping, babysitting etc
Classification on the basis of requirement of skill and expertise
Consumer services: beauty case hair case
Business to business services: market research and consultancy
Industrial services: maachine installations
Classification on the basis of end user
Examples of Goods Companies that are Expanding into Services
Boeing Kodak
Service marketing -- system
Service marketing triangle
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Service marketing system for high contact service
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Service marketing system for Low contact service
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Service product level
Core product
Actual product
Augmented product
Potential product
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Services Marketing Mix: 7 Ps for Services
• Traditional Marketing Mix
• Expanded Mix for Services: 7 Ps
• Building Customer Relationships Through People, Processes, and Physical Evidence
• Ways to Use the 7 Ps
Traditional Marketing Mix
• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:
Product
Price
Place
Promotion
Expanded Mix for Services -- the 7 Ps
• Product
• Price
• Place
• Promotion
•People
•Process
•Physical Evidence
Expanded Marketing Mix for Services
Challenges for Services
• Defining and improving quality
• Ensuring the delivery of consistent quality
• Designing and testing new services
• Communicating and maintaining a consistent image
• Accommodating fluctuating demand
• Motivating and sustaining employee commitment
• Coordinating marketing, operations, and human resource efforts
• Setting prices
• Finding a balance between standardization versus customization
THANK YOU…………………….
