Introduction to the 7Ps

Product the first P

Service Product Concept

Core Benefit Basic Service Product Expected Service Augmented Service Potential Service

Service Product Concept

Core Benefit
Is was the buyer is really buying Use, benefit or solution E.g. Movie ticket Entertainment, Airline Travel, Cosmetic Hope, Mobile service Connectivity

Basic Service Product

The intangible service through which the core benefit is received Consists of all those factors which consumers assume to be present in the offering. E.g. Air travel Aircraft & basic infrastructure to implement the service

Service Product Concept

Expected Service
Customers expect to get certain service quality or features when they purchase service. They are the unwritten features in given context. E.g. : Expecting a good in-flight food, pleasant service from crew

Augmented Service
Consists of measures taken to differentiate the service from competitors and provide service quality beyond expectations Customer delight is an objective of augmentation E.g.: Providing business centre in the airline lounge or discounted snacks at airport lounge (Jet Airways to its frequent Flyers)

Service Product Concept

Potential Service
Includes all the augmentations and the futuristic product development Finding out better ways of delighting the customer E.g.: Providing added services like sight seeing & cultural activities apart from normal lodging & boarding by hotels

Another way of segregating service is

Core Service Minimum expectation Supplementary Services Providing an edge that helps in differentiating the service provider

Classification of supplementary services

Facilitating Services
Information Order taking Billing Payment

Enhancing Services
Consultations Hospitality Safe keeping Exceptions

Facilitating Services
Information
Timely and accurate information regarding service hours, prices, reminders, warnings, documentations, confirmation of reservation etc by means of brochures, instruction books, video tapes, touch-screen video displays etc

Order taking
Politeness, speed and accuracy to save consumers time and prevent unnecessary mental or physical effort Order taking elements include applications, order entry, reservations & check-ins

Facilitating Services
Billing
Bills should be clear, informative and itemized without any ambiguity. Inaccurate, illegible or incomplete bills lead to dissatisfied customers

Payment
Customers expect ease and convenience of payment including credit increased used of debit and credit cards

Enhancing Services
Consultations
Involves a dialogue to probe customer requirement and then to develop a tailored solution Consultation elements include advice, personal counseling, training in product use

Hospitality
Reflects pleasure at meeting new customers and greeting old ones when they return, that is treating customers as guests Courtesy and consideration are the two key elements Recruiting employees who are naturally warm and welcoming for customer contact jobs

Enhancing Services
Safe keeping
Elements Caring for possessions customers bring with them parking facility, valet parking, storage space, child care, per care, etc Caring for goods purchased by customers packaging, transportation, delivery, installation, inspection, repairs, etc

Exceptions
Include services that fall outside the routine of normal service delivery Elements Special requests, problem solving, handling complains and suggestions, restitution compensation for serious performance failures

Technology & Services

Inspite of the arrival of new technology broad service or category or need remain constant over a long period of time Technology changes have altered product form but basic need category is same
VHS cassette rental DVD rental Home entertainment Traditional cinema halls Multiplexes Entertainment Traditional banking services ATM, Debit & Credit cards

Though some technology has drastically alltered or deleted certain pattern/category of services
Mobile versus pagers Internet surpassing traditional postal services

DEVELOPING NEW SERVICE OFFERING

Stage I CONSUMER BENEFIT CONCEPT

Assess the consumer benefit Consumers dont buy products because of their attributes rather they buy the benefits Problems encountered
In articulate consumers Benefit sought change overtime Wrong interpretation of hierarchy of benefits

Proper market research and appropriate information search should be undertaken

Stage II SERVICE CONCEPT

Consumer benefits have to be translated into core, facilitating and support services Aim being defining what general benefits the service organization would offer to its customers

Stage III & IV - SERVICE OFFER & DELIVERY

Service Elements Tangible & intangible Service Form In what way/how Service Levels Quality (Image, Technology & Function) Service Quantity Volume, timing Careful planning is essential to deliver the right service in the right form in the right quality and quantity

Stage V MANAGING IMAGE & COMMUNICATION

Appropriate market communication strategies should be prepared and implemented to not only inform and persuade the customers but to also enhance the companys image

Developing new service offering

Stage I Stage II Stage III CONSUMER BENEFIT CONCEPT SERVICE CONCEPT SERVICE OFFER What benefits consumer seeks What benefits the services organization should offer Sr. Elements Tangible & intangible Sr. Form In what way/how Sr. Levels Quality (Image, Technology & Function) Sr. Quantity Volume, timing Using benchmarks Developing process, people and facilities

Stage IV

Stage V

SERVICE DELIVERY SYSTEM MANAGING IMAGE To support an enhance perceptions on service &COMMUNICATIO offers N