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8/9/2019 Managing and Designing Services
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Presented by,
Ashok V.
Catherine Ujean
Paul Palathingal
Purrnima S.
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Companies find it harder and harder to differentiate their products
Hence, they try to differentiate in the services offered
Service like on-time delivery and quicker resolution of complaints
Service becomes the mantra
A service is any act or performance that one party can offer to another
that is essentially intangible and does not result in ownership of anything.
Thegovt. sector(courts, hospital, police and fire depts.)
Theprivate non-profit sector(museums, college and foundations)
A good part of the business sector(banks, hotels, airlines)
Manufacturers, distributors and retailers can provide value added services
or simply excellent customer service to differentiate themselves.
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A service can be a part of the total offering.
Five categories of offerings are:
Pure tangible good no services accompany the product
Tangible good with accompanying services
technologically advanced generic product; dependent on its sales on
the quality of its customer services. e.g. automobile industry
Hybrid both goods and services e.g. restaurants
Major service with accompanying minor goods and services
e.g. airlines
Pure service baby sitting, psychotherapy
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Intangibility
Services that cannot be seen, tasted or felt
To reduce uncertainty, customers look for evidence of quality
Service industry try to showcase their service quality through physical
evidence and presentation
Inseparability
Services are produced and consumed simultaneously
During a purchase, the provider and customer involves
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Variability
Since services depend on who provides them and when and where they
are provided, it is highly variable.
Invest in good hiring and training procedures
Standardize the service performance process throughout the
organisation
Monitor customer satisfaction
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On the demand side:
Differential pricing
Nonpeak demand
Complementary services
Reservation systems
On the supply side:
Part time employees
Peak time efficiency
Increased consumer
participation
Shared services
Facilities for future
expansion
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A shifting customer relationship
On the phone
80 percent of the companies havent figured out how to get
customers the assistance they need
Online
35 percent of all email inquiries dont get a response within 7 days
IVR
Though most of the companies have installed IVRS, more than 90
percent of customers dont like them
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HolisticMarketing for Services
The service outcome and whether people will remain loyal to a service
provider, is influenced by a host of variables
External marketing work of preparing, pricing, distribution and promoting
the service to customers
Internal marketing training and motivating employees to serve customers
well
Interactive marketing describes the employees skill in serving the client
Clients judge both the technical quality andfunctional quality
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Factors Leading To Customer Switching Behaviour
Pricing
Inconvenience
Core service failure
Service encounter failure
Response to service failure
Competition
Ethical problems
Involuntary switching
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Cleaning/Maintenance
services
Cleaning/Maintenance
services
Financial/bankingservices
Financial/bankingservices
Restaurantindustry
Restaurantindustry
External
marketing
Internal
Marketing
Company
Interactive Marketing
Employees Customers
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Customer expectations:
Consumer expectation
Management Perception
Service quality specification
Service delivery
External communications
Perceived service
Expected service
Five determinants of service quality:
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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Service brands must be skillful at differentiating themselves and
developing themselves and also developing appropriate brand
strategies
- Financial service leaders:
American Express, JP Morgan, HSBC, and Goldman Sachs
- Hospitals:
Mayo Clinic, Massachusetts Generaland Sloan- Kettering
Differentiating Services
Developing brand strategies for services
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Choosing brand elements :
- Brand recall is critically important
- Brand elements (logos, symbols, characters and slogans) complement thebrand name to build brand awareness and brand image
Establishing image decisions:
- Perceptions about people, company credibility, trustworthiness and
likability are important brand associations that affect the service quality
directly or indirectly.
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Devising Branding strategy:
- Services must consider developing a brand hierarchy and brand portfolio
- Vertical Branding can be done on the basis of price and quality thatrequires sub-branding strategies
- Branding strategies like combining the corporate name with an individual
brand name or modifier
E.g. State Farm Financial Services
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The buyer takes the following into consideration while choosing a vendor
- reliability and failure frequency
- downtime
- out-of-pocket costs
To provide the best support , a manufacturer must identify the services
customers value most and their relative importance.
The service mix includes
- the presale services (facilitating and value-augmenting services)
- the postsale services (Customer service departments, repair and
maintenance services)
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