Flower concept

of service
marketing
 Understanding the
Components of the
Augmented Service Product
Shostack’s Molecular Model of a Total Market Entity
- Passenger Airline Service
Distribution
Price

Vehicle
Service
frequency

Transport In-flight
service
Pre- and
post-flight Food
service and
drink
KEY
Tangible elements
Intangible elements
Marketing Positioning
 Core Products and
Supplementary Services

• Most firms offer customers a package

of benefits:
–core product (a good or a service)
–supplementary services that add
value to the core
• In mature industries, core products
often become commodities
• Supplementary services help to
differentiate core products and
create competitive advantage by:
–facilitating use of the core service
–enhancing the value and appeal of
the core
 Core and Supplementary Product Design:
What Do We Offer and How Do We Create
and Deliver It?

Supplementary Delivery Concept

services offered For Core Product
and how created Scheduling Process
and delivered

Core

Service Customer
Level Role
 What Should Be the Core and
Supplementary Elements of Our
Service Product?
• How is our core product defined and
what supplementary elements currently
augment this core?
• What product benefits create the most
value for customers?
• Is our service package differentiated
from the competition in ways that are
meaningful to target customers?
• What are current levels of service on the
core product and each of the
supplementary elements?
• Can we charge more for higher service
levels on key attributes (e.g., faster
response, better physical amenities, easier
access, more staff, superior caliber
personnel)?
• Alternatively, should we cut service levels
and charge less?
Core and Supplementary Services in a
Luxury Hotel

R e s e r v a t io n
C a s h ie r V a le t
P a r k in g
B u s in e s s
C e n te r R e c e p t io n

A B e d fo r th e
Ro o m N ig h t in a n Ba gga g e
S e r v ic e E le g a n t P r iv a t e S e r v ic e
R o o m w it h a
B a th ro o m
W a ke -u p C o c k t a il
C a ll Ba r

Te le p h o n e R e s ta u ra n t
E n te r ta in m e n t /
S p o r t s / E x e r c is e
 The Flower of Service:
Categorizing Supplementary Services

Information

Payment Consultation

Billing Core Order-Taking

Exceptions Hospitality
KEY:
Facilitating elements Safekeeping
Enhancing elements
Facilitating Services - Information

Customers often require

information about how to
obtain and use a product or
Core service.
They may also
need reminders and
documentation
Facilitating Services - Order-Taking

Many goods and services

must be ordered or reserved
in advance.

Core Customers need

to know what is available and
may want to secure
commitment to delivery
Facilitating Services - Billing

“How much do I owe you?”

Customers deserve clear,
Core accurate and intelligible
bills and statements
Facilitating Services - Payment

Customers may pay faster

and more cheerfully if you
Core make transactions simple
and convenient for them
Enhancing Services - Consultation

Value can be added to

goods and services by
offering advice and
Core consultation tailored to
each customer’s
needs and situation
Enhancing Services - Hospitality

Customers who invest time

and effort in visiting a
business and using its
Core services deserve to be
treated as welcome guests
Enhancing Services - Safekeeping

Customers prefer not to

worry about looking after the
personal possessions that they
bring with them
to a service site.

They may also want delivery and

after-sales services for
Core goods that they purchase
or rent
Enhancing Services - Exceptions

Customers appreciate some

flexibility in a business
when they make special
requests.
Core
They expect it
when not everything
Goes according to plan
 Flower of service
• core product surrounded by cluster of
supplementary services

• Supplementary services

• Facilitating services :
– Information
– Order taking
– Billing
– Payment
• Enhancing services:
– Consultation
– Hospitality
– Safekeeping
– Exceptions
• a) Examples of information elements

• Directions to service site

• Schedules / service hours
• Prices
• Instructions on using the service
• Reminders
• Warnings
• Condition of sale/service
• Notification of changes
• b) Examples of order taking elements
• Applications
• Membership in clubs
• Subscription services (e.g utilities)
• Prerequisite based services (e.g college
enrollment)
• Order entry
• On –site order fulfillment
• Mail/ telephone order placement
• Email order placement
• Reservations and check in
– Seats
– Tables
– Rooms
– Vehicles or equipment rental
– Admission to restricted facilities (museums)
• Billing :
– Periodic statements of account activity
– Invoices for individual transactions
(stock market)
– Machine display of amount due
• Examples of payment
– cash
– Cheque
– Credit card
– Electronic fund transfer
– Enter credit card number online
– Coupon redemption
– Automated systems : ( e.g Machine-readable
tickets that operate entry gates)
• Consultation
– Advice
– Auditing
– Personal counseling
– Tutoring /training in product use.
– Management or technical consulting
• Hospitality : examples of hospitality elements
– Greetings
– Food and beverages
– Toilets and washrooms
– Waiting facilities and amenities
• Lounges, waiting areas and seating
• Weather protection
• Magazines, entertainment, newspaper
• Transport
• Security
• Safekeeping
• Caring for possessions customers bring
with them
• Child care
• Pet care
• Parking facility for vehicles
• Valet parking
• Luggage handling
• Safe deposit boxes
• Security personnel
• h) Exception elements:

1) special requests in advance of service delivery:

• Children’s needs
• Dietary requirements
• Medical or disability needs
• Religious observances
• Deviations from Standard operating procedures
– Problem solving

• Warranties and guarantees against product

malfunction
• Resolving difficulties caused by accidents ,
service failures and problems with staff or
other customers
• 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.