1

Session 8Designing and Managing Services

9th May 2012

- Pooja Bal, Management Consultant

2

Course Design

1. Understanding Marketing Management2. Connecting with Customers3. Building Strong Brands4. Product Development5. Pricing and Promotion Strategies6. Distribution and Channel Management7. Sales Management8. Designing and Managing Services9. Marketing Strategy

3

Course Design

1. Understanding Marketing Management2. Connecting with Customers3. Building Strong Brands4. Product Development5. Pricing and Promotion Strategies6. Distribution and Channel Management7. Sales Management

8. Designing and Managing Services9. Marketing Strategy

4

Agenda

I. Nature of ServicesII. Services Marketing MixIII. Managing Service QualityIV. Customer Relationship Management (CRM)V. Internet based Marketing

5

I. Nature of Services

A service is any act or performance one party can offer to another that is essentially intangible and does not result in ownership of anything. Its production may or may not be tied to a physical product.

Examples of Service Industries

6

I. Nature of Services

Distinctive Characteristics of Services:

7

I. Nature of Services

8

II. Service Marketing Mix

9

II. Service Marketing Mix

10

II. Service Marketing Mix

11

III. Managing Service Quality

Service Quality Model (Parasuraman, Zeithaml,Berry)

• Customer gap: The difference between customer expectations and perceptions – the service quality gap.

• Gap 1: The difference between what customer expected and what management perceived about expectations of customers.

• Gap 2: The difference between management’s perceptions of customer expectations and translation of those perceptions into service quality specifications and designs.

• Gap 3: The difference between specifications or standards of service quality and the actual service delivered to customers.

• Gap 4: The difference between the service delivered to customers and the promise of the firm to customers about its service quality.

12

IV. Customer Relationship Management (CRM)

Customer relationship management (CRM) is a widely implemented model for managing a company’s interactions with customers, clients, and sales prospects.

It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.

13

IV. Customer Relationship Management (CRM)

The overall goals are to:•Find, attract, and win new clients;•Nurture and retain those the company already has; •Entice former clients back into the fold; and •Reduce the costs of marketing and client service.

Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.

Measuring and valuing customer relationships is critical to implementing this strategy.

14

IV. Customer Relationship Management (CRM)

Customer Development Process

15

V. Internet based Marketing

Definition of e-Marketing

Identifying, understanding, collaboratively creating, and meeting a segment of human and social needs, want, desires, wishes digitally.

-Adaptation of Philip Kotler’s original definition of marketing

Advantages:• Democratization of advertising• Reach: Collapsing the barriers of time and space• Lower risk of product/ service innovation• Lower cost/ higher ROI: digitization of all information, virtual supply chains, virtual markets, virtual

real-time interaction with customers and suppliers• Scalability• Streamline business process

16

Thank You!