Creating the service product

SUBMITTED BY
SAJIB KAR
RAJARSHI BANERJEE
ABHISHEK CHATTERJEE
PRATYUSH CHOUDHURY
 Service product

A Service product typically consist of a core product

bundled with a variety of supplementary service
element.
The core element respond to the customer’s basic
benefit.
Supplementary services facilitate & enhance the use
of the core service.
 Key Steps in Service Planning:

Corporate Objectives
and Resources
Marketing Assets Operating Assets
(Customer Base, Mkt. Knowledge, (Facilities/Equipment, IT Systems,
Implementation Skills, Brand Reput.) People, Op. Skills, Cost Structure)

Service Marketing Concept

Service Operations Concept
•Benefits to customer from core/
•Nature of processes
supplementary elements, style, •Geographic scope of ops
service level, accessibility •Scheduling
•User costs/outlays incurred •Facilities design/layout
• Price/other monetary costs •HR (numbers, skills)
• Time •Leverage (partners, self-service)
• Mental and physical effort •Task allocation: front/backstage
• Neg. sensory experiences
Service Delivery staff; customers as co-producers

Process
 Augmented Service Product

Most manufacturing & service industry offer their

customers a package of benefit involving delivery of
not only the core product but also the variety of
service related activities that we refer as
supplementary services.

The combination of core product & supplementary

services is referred to as the augmented product.
 The nature of the service offering

Core product

Supplementary services

Delivery process
 The flower of service

Information

Payment Consultation

Billing Core Order-Taking

Exceptions Hospitality

Safekeeping
 Branding service products

Product lines & brands

Offering a branded experience

 New service development

Major service innovations--new core products for

previously undefined markets
Major process innovations--using new processes to
deliver existing products and offer extra benefits
Product line extensions--additions to current product lines

Process line extensions--alternative delivery procedures

Supplementary service innovations--adding new or

improved facilitating or enhancing elements
Style changes--visible changes in service design or scripts
 New service development

Physical goods as a source of new service ideas.

Reengineering service processes.

Using research to design new services.

Achieving success in new service development.

Success Factors in New Service Development

Market synergy
 Good fit between new product and firm’s image/resources
 Advantage vs. competition in meeting customers’ needs
 Strong support from firm during/after launch
 Firm understands customer purchase decision behavior
Organizational factors
 Strong interfunctional cooperation and coordination
 Internal marketing to educate staff on new product and its
competition
 Employees understand importance of new services to firm
Market research factors
 Scientific studies conducted early in development process
 Product concept well defined before undertaking field studies
 Stages in new service development

Business strategy development.

New service strategy development.
Idea generation.
Service concept development & evaluation.
Business analysis.
Service development & testing.
Market testing.
Commercialization.
Post-introduction evaluation.
 Challenges of service design

Intangible & process oriented.

Oversimplification.
Incompleteness.
Subjectivity.
Biased interpretation.
THANK YOU