Download Service Marketing Introduction

SERVICES
MARKETING
- RALSTON
Services Marketing
“ Managers do not control the
quality of the product when
the product is a service . . . .
The quality of the service is
in a precarious state – it is in
the hands of the service
workers who ‘produce’ and
deliver it.”
-Karl Albrecht
Why Companies Migrate To Services?
• The basic product will be the service e.g. Titan Watches
• Consumers are seeking more services e.g. Multiplexes
Cinepolis
• Services is the new status e.g Virgin Galactic
Nature & Characteristics Of Services
INTANGIBILITY
INSEPARABILITY
SERVICES
HETEROGENEITY
PERISHABILITY
Nature & Characteristics Of Services
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Intangibility
Inseparability
Heterogeneity
Perishability
Maintaining Quality
Nature Of Demand
No Ownership
Consumers As Co-producers
Nature & Characteristics Of Services
Manufacturing & Services Linkage
Classification of Services
• Transport & Public Utilities
• Communication
• Electric, Gas & Sanitary services
• Wholesale & Retail Trade
• Finance, Insurance and Real Estate
• Personal Service
• Business Services
Classification of Services
• Repair & Maintenance Contract Services
• Motion Pictures
• Amusement & Recreation Services
• Health Services
• Legal Services
• Educational Services
• Other Professional and Private Household Services
Classification of Services
• Social Organizations Offering Services
• Government Services: All Included
• Government Enterprises
• State and Local Government Services
• Tourism Services
The Service Business
Marketing
Management
SERVICES
TO
CUSTOMERS
Operations
Management
Human Resource
Management
Service Business
• Service Operations (Front Stage & Backstage)
• Where inputs are processed and service elements created.
• Includes facilities, equipment, and personnel
• Service Delivery (Front Stage)
• Where “final assembly” of service elements takes place and
service is delivered to customers
• Includes customer interactions with operations and other
customers
• Service Marketing (Front Stage)
• Includes service delivery (as above) and all other contacts
between service firm and customers
Service Triangle
MANAGEMENT
Internal
Marketing
External
Marketing
Enabling
Promises
Setting
Promises
EMPLOYEES
Interactive
Marketing
Keeping Promises
CUSTOMERS
Services Marketing Mix
Service Encounter
The Moment of Truth
• Richard Norman first invented the conceptual framework of
“MOMENT OF TRUTH”.
• Subsequently Scandinavian Airlines adopted it as a part, of
their everyday language, particularly after Jan Carizon of SAS
published book titled “Moment of Truth”.
• Moments of Magic
• Moment of Misery
The Moment of Truth
Begin Service Encounter
End Service Encounter
Service Encounter Triad
Service
Organization
Efficiency
Versus
Autonomy
Contact
Personnel
Efficiency
Versus
Satisfaction
Perceived
Control
Customer
Managing Service Encounter
• Service Encounter
• Moments Of Truth
• Critical Incidents
Good People = Good Service = Good Profits
The Flower of Services
Roles of Supplementary Services
Facilitating
Services
Enhancing
Services
Information
Consultation
Order taking
Hospitality
Billing
Safekeeping
Payment
Exceptions
The Flower Of Services in a Restaurant
Information
-reservation
- menu prices
Payment
-reminders
- Credit card
- Check
Consultation
- Customized
advice
- Menu
suggestions
- Cash handling
Core
Order taking
Billing
- Self billing
- Mail billing
Food and
beverages
Exceptions
- Table reservation
- Ordering menu
Hospitality
- Complaints
- Suggestions
- Waiting areas
- Compensation
for unsatisfactory
service
- Free beverage
Safekeeping
- Coat room
- Valet parking
- Toilets
The Service – Profit Chain
THANK YOU