MARKETING OF SERVICES

Flower of Service
 PLANNING AND CREATING SERVICES

The service concept is

A service product comprises
all elements of service
performance, both tangible
and intangible, that create
value for customers
represented by:
• A core product
• Accompanied by supplementary
services – facilitate and enhance use
of the core product and add value
and differentiation
 In mature industries, core products often become
commodities

CORE PRODUCTS
AND
SUPPLEMENTARY
SERVICES
Supplementary services help to differentiate core products
and create competitive advantage by:

Facilitating use of core

Enhancing the value and
product (a service or a
appeal of the core product
good)
 DESIGNING A SERVICE CONCEPT

Core Product Supplementary Services Delivery Processes

Central component that supplies Augment the core product, Used to deliver both the core
the principal, problem-solving facilitating its use and product and each of the
benefits customers seek enhancing its value and appeal supplementary services
FLOWCHARTING • Helps management visualize the customer’s total
SERVICE service experience
DELIVERY • Useful for distinguishing between core product itself
HELPS TO and service elements that supplement core
CLARIFY
PRODUCT • Restaurants: Food and beverage (core)
ELEMENTS • Reservations (supplementary services)
 SIMPLE FLOWCHART FOR DELIVERY OF A
PEOPLE-PROCESSING SERVICE

People Processing – Stay at Motel

Spend
Night in Check Out
Park Car Check In Breakfast
Room

Maid Makes
up Room Breakfast
Prepared
 Reservation
Cashier Valet
Parking

Business
CORE AND
Centre
Reception
SUPPLEMENTARY
A Bed for the Night in
an Elegant Private SERVICES AT
Room
Service
Room with a Bathroom
Baggage LUXURY HOTEL
Service (OFFERING MUCH
Wake-up Cocktail
MORE THAN
Bar
Call
Entertainment/
CHEAP MOTEL!)
Internet Restaurant
Sports/ Exercise
 THE FLOWER OF SERVICE

Information

Payment Consultation

Billing Core Order Taking

Exceptions Hospitality

Safekeeping
KEY:
Facilitating elements
Enhancing elements
 • Not every core product is surrounded by all eight supplementary
elements
• Nature of product helps to determine:
• Which supplementary services must be offered
HOW TO
DETERMINE • Which might usefully be added to enhance value and ease of
WHAT use
SUPPLEMENTAR
Y SERVICES • People-processing and high-contact services have more
SHOULD BE supplementary services
OFFERED
• Market positioning strategy determines which supplementary
services should be included
• Firms with different levels of service often add extra
supplementary services for each upgrade in service level
 THE FLOWER OF SERVICE:
FACILITATING SERVICES—INFORMATION
Customers often require
information about how to obtain
and use a product or service.

Examples of elements:
Core
 Directions to service site
 Schedule/service hours
 Prices
 Conditions of sale
 Usage instructions
 THE FLOWER OF SERVICE:
FACILITATING SERVICES—ORDER TAKING
Customers need to know what
is available and may want to
secure commitment to
delivery. The process should
be fast and smooth.
Core
Examples of elements:

 Applications
 Order entry
 Reservations and check-in
 THE FLOWER OF SERVICE:
FACILITATING SERVICES—BILLING
“How much do I owe you?”
Bills should be clear,
Accurate, and intelligible.

Core Examples of elements:

 Periodic statements of
account activity
 Machine display of amount
due
 THE FLOWER OF SERVICE:
FACILITATING SERVICES—PAYMENT
Customers may pay faster
and more cheerfully if you
make transactions simple
and convenient for them.
Core
Examples of elements:

 Self service payment

 Direct to payee or intermediary
 Automatic deduction
 THE FLOWER OF SERVICE:
ENHANCING SERVICES—CONSULTATION
Value can be added to goods
and services by offering advice
and consultation tailored to
each customer’s needs and
situation.
Core
Examples of elements:

 Customized advice
 Personal counseling
 Management consulting
 THE FLOWER OF SERVICE:
ENHANCING SERVICES—HOSPITALITY
Customers who invest time and
effort in visiting a business and
using its services deserve to be
treated as welcome guests—
after all, marketing invited them!

Core Examples of elements:

 Greeting
 Waiting facilities and amenities
 Food and beverages
 Toilets and washrooms
 Security
 THE FLOWER OF SERVICE:
ENHANCING SERVICES—SAFEKEEPING
Customers prefer not to worry
about looking after the personal
possessions that they bring
with them to a service site.

Core Examples of elements:

 Looking after possessions

customers bring with them
 Caring for goods purchased
(or rented) by customers
 THE FLOWER OF SERVICE:
ENHANCING SERVICES—EXCEPTIONS
Customers appreciate some
flexibility when they make
special requests and expect
responsiveness when things
don’t go according to plan.
Core
Examples of elements:

 Special requests in advance

 Complaints or compliments
 Problem solving
 Restitution
 • To develop product policy and pricing strategy,
managers need to determine:
• Which supplementary services should be offered as
a standard package or as fee based options
MANAGERIAL
IMPLICATIONS • Firms that compete on a low-cost, no-frills
basis needs fewer supplementary elements than
those marketing expensive, high-value-added
services
• Each flower petal must receive consistent care
and concern to remain fresh and appealing