BY V.SUGANYA ND YEAR) (M.B.

A 2

INTRODUCTION DEFINITION OF SERVICES

THE AMERICAN MARKETING ASSOCIATIONDEFINES SERVICES AS |ACTIVITIES, BENEFITS AND SATISFACTIONS WHICH ARE OFFERED FOR SALE OR ARE PROVIDED IN CONNECTION WITH THE SALE OF GOODS.}

INTANGIBILITY
Cannot be seen, tasted, felt, heard, or smelled before purchase

INSEPARABILITY
Cannot be separated, from their suppliers

SERVICES

VARIABILITY Quality depends on who provides, when, where or how

PERISHABILITY
Cannot be stored for later sale or use

 Health

Care Services

hospital, medical practice, dentistry, eye care accounting, legal, architectural

Professional Financial

Services

banking, investment advising, insurance restaurant, hotel/motel, bed & breakfast ski resort, rafting airline, travel agency, theme park hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design

Hospitality

Travel Others

GOODS A PHYSICAL COMMODITY TANGIBLE HOMOGENOUS PRODUCTION AND DISTRIBUTION ARE SEPARATION FROM THEIR CONSUMPTION CAN BE STORED TRANSFER OF OWNERSHIP IS POSSIBLE

SERVICES A PROCESS OR ACTIVITY INTANGIBLE HETEROGENEOUS PRODUCTION, DISTRIBUTION AND CONSUMPTION ARE SIMULTANEOUS PROCESSES CANNOT BE STORED TRANSFER OF OWNERSHIP IS NOT POSSIBLE

THEFIRST ERA:SERVICESMARKETING

Classification based on Degree of Involvement of the Customer:People Processing:- The customer is highly involved in the services process & needs to be physically present in order to experience the service. Ex. School or training centers. Possession Processing:-the customer doesn't require to be present but has to submit his property to the service provider. Ex car Mental Stimulus Processing:-the attention of the customer must be directed on the service in order to experience the service. Ex advertising Information Processing this type of service requires services personnel to collect information, analyze it, interpret & appropriate advice to the client. Ex. market research

 Classification based

on the Service

Tangibility  Highly Tangible:- the customer obtains a tangible Product in hand. As cell phone on rent.  Service Linked to tangible goods:- some organization offer on warranty period to customer who purchase products from them. As photocopying machine.  Tangible goods linked to Services:- some service offer a tangible product along with the service requested by the customer. As Airlines services offer food & magazines to passengers.  Highly intangible:- the services which do not provide customers with any tangible product. As massage parlor

Classification based on Skills & Expertise Required  Professional Services:- the service provider to be formally trained to deliver the service. Ex Doctor, Pilot. Non Professional services:- these Service do not require the service provider to undergo any training to deliver the service. Classification based on Business Orientation of Service Provider  Not-for-profit organization:- the main objectives of the service providers is to serve society & not to make profits. Ex. Government schools, Social service organizations.  Commercial organization:- the main objectives of the service provider is to earn revenues & make profits. Ex Airlines Insurance firms.

Consumer services:- purchased by individuals customer for their own consumption. Ex Beauty Care, Hair Cutting. Business to Business:- These service are purchased by the organization. Ex Market research, Advertising. Industrial services:- Based on a contract between organization & service providers. Ex Machine installation, plant maintances.

Basic components of Service Blueprint are:

Customer

actions contact employee actions contact employee actions

Onstage

Backstage

Support

processes

Step 1
Identify the process to be blueprinted.

Step 2
Identify the customer or customer segment.

Step 3
Map the process from the customers point of view.

Step 4
Map contact employee actions, onstage and backstage.

Step 5
Link customer and contact person activities to needed support functions.

Step 6
Add evidence of service at each customer action step.

COMPANY

(ii) Internal
marketing

(i) External marketing

FRONT-LINE EMPLOYEES Interactive Marketing (iii)

 Business Strategy Development or Review  New Service Strategy Development

Front End Planning

 Idea Generation Screen ideas against new service strategy  Concept Development and Evaluation Test concept with customers and employees  Business Analysis Test for profitability and feasibility  Service Development and Testing Conduct service prototype test

Implementation

 Market Testing Test service and other marketing-mix elements  Commercialization  Postintroduction Evaluation

CUSTOMER

Expected

Service
Customer Gap

Perceived Service
External Communications to Customers

COMPANY

Service Delivery
GAP 3
Customer-Driven Service Designs and Standards

GAP 4

GAP 1

GAP 2
Company Perceptions of Consumer Expectations

 Clients

can't see or touch services before they purchase them Services are often produced and consumed simultaneously Trust is necessary Competition is often not who you think Brand extends beyond marketing Proactive lead generation is difficult Service deliverers often do the selling Marketing and sales lose momentum Passion is necessary, yet elusive

 Reliability

Responsiveness

Assurance;

Empathy,

and

Tangible

(e.g. appearance of physical facilities, equipment, etc.

A service business is one where the perceived value of the offering to the buyer is determined more by the service rendered than the product offered. In this way the nature and scope of services pose different challenges for managers in service businesses. Such businesses include those that provide an almost entirely intangible offering,such as legal services, healthcare, and cleaning services and businesses that offer both services and products such as restaurants and retail outlets

CASE STUDY