Amity Business

Name of Institution

School

Services Marketing

Sonali Banerjee

1
 Amity Business
Name of Institution

School

Importance of Technology in Service

 Service Blueprinting
Amity Business Name of Institution

School

• Differentiate between Customer, Front

Office and Back Office.
• Identify activities involved in the service.
• Identify fail points
• Draw flowchart.
• Identify resource usage.
Amity Business
Name of Institution

School
 Scripting Amity Business
Name of Institution

School
• CALL HELPDESK
• WAIT FOR REPLY
• GIVE NAME
• GIVE LOCATION
• EXPLAIN PROBLEM
• REPLY TO SECONDARY QUESTIONS
• AGREE PRIORITY
• CALL REF
• WAIT
• ENGINEER ARRIVES
• DESCRIBE PROBLEM IN DEPTH
• LEAVE ENGINEER TO RESOLVE PROBLEM
• RESPOND TO SECONDARY ENQUIRY BY ENGINEER
• NOTE WHEN PROBLEM FIXED
• WAIT(LATER)
• RECEIVE CALL FROM HELPDESK
• GIVE SATISFACTION RATING
• END
 Reliability is Critical inAmity
Service
Business
Name of Institution

School

• Service failure: when service

performance falls below a customer’s
expectations to cause customer
dissatisfaction.

• Service recovery: actions taken by a firm

in response to service failure.
 Customer Complaining Amity
Behavior
Business Name of Institution

School

• Only 1-5% complain to management or

company headquarters

• 45% complain to a frontline employee

• 50% of those who encounter a problem,

do not complain
 Service Recovery Paradox
Amity Business Name of Institution

School

• “A good recovery can turn angry, frustrated customers

into loyal ones. ..can, in fact, create more goodwill than if
things had gone smoothly in the first place.” (Hart et al.)
• HOWEVER:
– only a small percent of customers complain
– service recovery must be SUPERLATIVE
• only with responsiveness, redress, and empathy/courtesy
• only with tangible rewards
– even though service recovery can improve satisfaction, it has not
been found to increase purchase intentions or perceptions of the
brand
– service recovery is expensive
 Amity Business
Name of Institution

School

• The service recovery paradox is more likely to occur

when:
– the failure is not considered by the customer to be severe
– the customer has not experienced prior failures with the firm
– the cause of the failure is viewed as unstable by the customer
– the customer perceives that the company had little control over
the cause of the failure

• Conditions must be just right in order for the recovery

paradox to be present!
 Why Customers Switch ServiceAmity
Providers?
Business
Name of Institution

School

• - High/Unfair/Deceptive Pricing
• - Inconvenience (of location, appointment, excessive wait)
• - Core service failure (service mistakes, billing errors,
catastrophe)
• - Service encounter failure
• - Poor response to service failure
• - Competition (customer discovers better alternatives)
• - Ethical problems (cheat, hard sell, unsafe)
• - Involuntary switching (customer moved, provider closed)
 Service Guarantees
Amity Business Name of Institution

School

• guarantee = an assurance of the fulfillment

of a condition (Webster’s Dictionary)

• in a business context, it is a pledge or

assurance that a product offered by a firm
will perform as promised and, if not, then
some form of reparation will be undertaken
by the firm
 Amity Business
Name of Institution

School

• for tangible products, a guarantee is often

done in the form of a warranty

• services are often not guaranteed

– cannot return the service
– service experience is intangible (so what do
you guarantee?)
 Characteristics of an Effective
Amity Business
Name of Institution
Service GuaranteeSchool

• Unconditional
– the guarantee should make its promise
unconditionally – no strings attached
• Meaningful
– the firm should guarantee elements of the
service that are important to the customer
– the payout should cover fully the customer’s
dissatisfaction
 Amity Business
Name of Institution

School

• Easy to Understand and Communicate

– customers need to understand what to expect
– employees need to understand what to do
• Easy to Invoke and Collect
– the firm should eliminate hoops or red tape in
the way of accessing or collecting on the
guarantee
Benefits of Service Guarantees
Amity Business Name of Institution

School

• Force the company to focus on its customers.

• Set clear standards for the organization.
• Generate immediate and relevant feedback from
customers.
• When invoked, they provide an instant
opportunity to recover, thus satisfying the
customer and helping retain loyalty.
• Information generated through the guarantees
can be tracked and integrated into continuous
improvement efforts.
 Amity Business
Name of Institution

School

• Employee morale and loyalty can be

enhanced as a result of having a service
guarantees in place.
• Service guarantees reduce customers’
sense of risk and build confidence in the
organization.
• Force company to understand why it failed
• Build “marketing muscle”
Reasons companies mightAmityNOTBusiness
want
Name of Institution

to offer a service guarantee

School

– existing service quality is poor

– guarantee does not fit the company’s image
– too many uncontrollable external variables
– fears of cheating or abuse by customers
– costs of the guarantee outweigh the benefits
– customers perceive little risk in the service
– customers perceive little variability in service
quality among competitors
 Effective Service Guarantees
Amity Business Name of Institution

School

• work better for companies who are already

customer-focused
• can be BIG deals – they put the company
at risk in the eyes of the customer
• customers should be involved in the
design of service guarantees
• the guarantee should be so stunning that it
comes as a surprise – a WOW!! factor
• “it’s the icing on the cake, not the cake”
 MAREKTING OF FINANCIAL
Amity Business Name of Institution

SERVICES School

• Intangibility, inseparability and

heterogeneity are manifested at both
strategic and tactible levels in services
marketing.
• Marketing strategy provides the
organisation with a sustainable
competitive advantage in the markets it
operates.
 Amity Business
Name of Institution

School

• Organization should understand consumer

needs and identifies how those consumers
should be grouped into different market
segments.
• Product attributes, pricing decisions,
methods of distribution and
communication should all seek to reflect
the chosen position.
 BANK MARKETING
Amity Business Name of Institution

School

– Provides services
– Aimed to satisfy customer’s needs and wants
– Needs and wants may be non financial in
nature
– Competitive element, efficiency and
effectiveness
– Organizational objectives are still the driving
force
– Commercial objective to make profit
– Social Objectives
Essentials for a BanksAmity
Success
Business Name of Institution

School

– Cannot exist without customer

– Create, win and keep customers
– Organizational design should be oriented
to the customer
– Deliver total satisfaction to the customer
– Customer satisfaction is affected by the
performance of all the personnel of the bank.
 Changes Since 1950 Affecting the U.S.
Amity Business
Name of Institution
Hospitality Industry
School

• · Population growth
• ·  Longer life span
• ·  Improved incomes
• ·  Increased leisure time
• ·  Expanded highway system
• · Development of suburbs
• ·  Increased air travel
• · Convention center expansion
 The Hospitality Industry
Amity Business
Name of Institution

Marketing Mix School

• · Product-Service
• · Place-Distribution
• · Promotion-Communication
• · Price-Rate
 The Challenge of Hospitality Sales
Amity Business
Name of Institution

School

• · Intangibility
• · Perishability
• · Inconsistency
• · Inseparability
 Today’s Hospitality Amity
TrendsBusinessName of Institution

School

• · Globalization
• · Consolidation
• · Partnership marketing
• · Niche marketing and branding
• · Technology
• · Environmental awareness
• · Guest preferences
• · Relationship marketing
 Educational Services
Amity Business Name of Institution

School

• Education in its broadest sense is any act

or experience that has a formative effect
on the mind, character, or physical ability
of an individual.
• Education is the process by which society
deliberately transmits its accumulated
knowledge, skills and values from one
generation to another through institutions
.
 Amity Business
Name of Institution
Need for Marketing School
Educational services

• Need to “market” their services has not

really been felt by the educational sector
• This is because there is always
Demand>Supply
• But in the recent years, there is a shift in
trends
 Amity Business
Name of Institution

School

• Large number of institutions for

specialized fields have been set up in the
recent years for fields like Management
and computer education
• This has lead to increase in competition
 Amity Business
Name of Institution

School

• Education as a service can be said to be

providing an intangible benefit
(Increment in knowledge, aptitude,
professional expertise, skill) produced
with the help of a set of tangible
(infrastructure), and intangible
(faculty expertise and learning )
aids
 INTANGIBILITY
Amity Business Name of Institution

School

• Education is an Intangible dominant service—

Impossible to touch, see or feel
:::Standardization is difficult:::
• Lack of Standardization opens up
marketing opportunity of
differentiated need based course
packages
• Education as a service cannot be patented
 Amity Business
Name of Institution

School
Perishability

• No inventories can be made up

Eg:- A lecture scheduled cannot be stored
 InseparabilityAmity BusinessName of Institution

School

• It is impossible to separate a service from

the provider
• There is a need for the service provider to
be present when the service is to be
performed and consumed
• This limits the scale of operations—The
number of providers available would
define the number of simultaneous
performances possible
 Other Characteristics
Amity Business Name of Institution

School

• High Fixed cost, Low Variable Cost

• Specialized and need based
• Competition
• Customer limitations
• Lack of ownership
• Heterogeneity
Criteria that studentsAmity
apply
Business Name of Institution

School

• Reputation of the institute

• Number of applicants keen to enroll in the course
• Past success rate of placement
• Faculty expertise
• Width of specialization offered
• Infrastructural facilities
• Fees
Amity Business
Name of Institution

School
 Remember Amity Business
Name of Institution

School

In services, the last experience

remains uppermost in your mind.
Therefore, it is not enough to be
good, you have to be consistently
good
 Amity Business
Name of Institution

School

Thank You

For any Query Mail me on :

spbanerjee@amity.edu
Cc: sonali15aug@yahoo.in