1Brand ppt

7/30/2019 1Brand ppt

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Servicesare deeds, processes and performance.

Intangible, but may have a tangible component.

Generally produced and consumed at the same time.


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Service is an act or performance offered by one partyto another . Although the process may be tied to a

physical product, the performance is essentially

intangible and does not result to any owner ship ofany factor of production.

Services are economic activities that create value andprovide benefits for customers at specific times, place.


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Serviceis an activity that has an element of

intangibility associated with it and which

involves the service providers interaction

either with customers or with the property

belonging to thecustomer.

- Adrian Payne


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Philip Kotler ---service is any activity of benefit thatone party can offer to another that is essentially

intangible and does not result in the ownership of

anything. Its production may or may not be tied to aphysical product

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regardless of ththere is a services component to theofferings of all firms

in some cases, a service is the principal purpose of the

transaction, as in the rental of a car, a haircut, orlegal services -- we refer to this as thecore service

in others, service is performed in support of the sale of

a tangible product -- these are referred to assupplementary services

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1. There has been an increase in demand for the services of professionally qualifiedtechnicians with establishment of technical institutes.

2. Communication services like entertainment, education and the right to information

by the public is more important.

3. Due to increasing standards in education there is an increasing demand for

educational services. Primary, secondary, higher secondary schools, junior degree

collgese are the institutes which are in great demand. As the number of students goes

up the demand for private classes, tutions, etc. also increases.

4. Banking services have become necessary to meet financial requirements of the public

and the national industrial sector.

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5. Personal care services are essential to develop potentiality of an individual for a

perfect personality and positive image.

6. Electricity services are required for the benefit of society, industry and so on.

7. With the increasing amount of trade and business, done by road there has been a

demand for transport services which benefits various automobile manufacturers. Largesection of population prefer having their own vehicles, proving a good business

propositions for automatic industry.

8. The tourism has geared itself to make the tourists enjoy the holiday seasons in the

places of their choice and take them away from monotonous existence of cities.

9. Adequate hospital services are essential for the well being of the society.

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10. Hospitality services work on the strategies to satisfy the business class through theirservice in terms of comfort and satisfaction. The above activities have left the

management scientists, professionals and socio-economic thinkers analyze and

understand that managing services need attention, to stay in business.

11. As the natural resources are depleting and need for conservation is increasing we seethe coming of service providers like pollution control agencies, etc.

12. The development in information technology has given rise to services like pager service

PCOs, world wide web etc. Professional requirements need a change when technology

develops and evolves.

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Defining and improving quality

Communicating and testing new services

Communicating and maintaining a consistent image Motivating and sustaining employee commitment

Coordinating marketing, operations and human resource

efforts

Setting prices

Standardization versus personalization


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The services sector has been a major and vital force steadily drivinggrowth in the Indian economy for more than a decade.

The services sector has been growing at a rate of 9.4% per

annum in recent years.

More than half of our GDP is accounted for from the services

sector.

This sector dominates with the best jobs, best talent and best

incomes.


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Affluence: - The increase in per capita income indicates the increase in

service like pest-control, personal security, interior designer, etc.

Leisure time: - People do get some time to travel and holiday and

therefore there is a need for travel agencies, resorts, hotels, and

entertainment. There are others who would like to utilize this time toimprove their career prospects and therefore there is a need for adult

education/distance learning/part time courses.

Life expectancy: - The health programmed have significantlycontributed to an increase in life expectancy given rise to services like

old age homes, nursing homes, health care, etc.


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Working wives: - As more and more women have started working, the

need for day care for children has increased, and so is the care withpacked food and home delivery.

Product complexity: - A large no. of products are now being purchased

in households which can be serviced only by specialized products likewater purifies, micro wave ovens, home computers, etc. which give rise

to the need for services like after sales service agents for durables,

maintenance service providers, etc.

Life complexity: - As the daily routine gets busier, individuals find it

difficult to manage things on their own. Their leads to an obvious need

for tax consultants, legal advisors, property advisers, etc.

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Resource shortage and ecology: - As the natural resources are reducingand need for conservation is increasing, we have seen the coming up of

service providers like pollution control agencies, car, pools, water

management, etc.

New products: - the development in information technology has given

rise to services like PCOs, Pager service providers, Web Shoppe, etc

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Factors Influencing the Growth of

Service Sector

Demographic Changes- Insurance, Banking

Social changes- Hotel, Tourism

Economic changes- Retailing

Technological changes- IT services

Political changes and legal changes - NGO Policy changes-Hospitality


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Services can be classified on the basis of tangibility like

following

-A pure tangible good

-A tangible good with accompanying services

-A major service accompanying minor goods and services-A pure service


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Pure tangible goods Wheat ,sugar, soap, cosmeticetc.Tangible good Accompanied

serviceComputer, cars air

conditioners, machinery-after

sales service

Major service accompanyingminor goods & service

Beauty saloon providingcosmetics

Child care centers providing

baby food.

Pure service Surgery, consultancy teaching

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Intangibility

Heterogeneity

Inseparability

Perishability


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A service is generally not able to be recognized by any of thefive senses, that is, it cannot be seen, touched, smelled, heard, or

tasted.

No impulse purchase.

No one measure the features and quality of the services.

There is no concept of ownership, possession or acquisition for

the customer after the service transaction.

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Services cannot be inventoried

Services cannot be patented

Services cannot be readily displayed or communicated

Pricing is difficult


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Use of tangible clues.assist customer in making service evaluation.

( insurance advt. in media)( ICICI bank --- strong ATM network.)

Use of personal source of information.( due to lack of objective means of evaluation

customer looks to wards friends , family )

offering incentive to existing customers forroping in new customers)

Creation of strong organizational brand.( results in loyalty i.e. Maruti , Sony)

In separatibility 1.Service provider physical connection to service beingprovided.

2.Customers involvement in the service process.3.Involvement of other customer in the service process.

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Of same quality

Goods & servicesAnother difference- un ability to control

the service quality before it reaches the customer.

Service offered by one employee may differ from the other

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Service delivery and customer satisfaction depend on employee

actions

Service quality depends on many uncontrollable factors

There is no sure knowledge that the service delivered matcheswhat was planned and promoted


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Customization. .

Standardization.

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Services are generally created or supplied simultaneously. Theyare inseparable. For e.g., the entertainment industry, health

experts and other

professionals create and offer their service at the same given

time.

Services and their providers are associated closely and thus, notseparable.

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Customers participate in and affect the transaction

Customers affect each other

Employees affect the service outcome

Decentralization may be essential

Mass production is difficult


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Emphasis on selection ,training public contactpersonnel.

Consumer management. ( reservation in restaurant)

Use of multi site locations (ATM , McDonald's..)

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Services cannot be stored, inventoried (saved), resold

or returned.

A bad haircut cannot be returned or resold to anothercustomer.

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It is difficult to synchronize supply and

demand with services

Services cannot be returned or resold


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Creative pricing- (early bird incentive , happy hours ) Demand strategy(reservation system, complimentary system,

development of non peak demand)

Supply strategy. - Part time utilization ,advance preparation of

expansion,

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T R A N S P O R T F A D B S KO E G O D E L L K I T E H J IU A L I G H T Z V N S Q D X NR T A E M R E T A I L I N GI H B A C L R D U N P Q S K KS E E Y O O T U A C V B T D OM A L W O P M C W E B N R T NA L I Q K O H A Q O G W I E GR T N T H U R T F I F X B R DK H G B A N K I N G U Z U S OE C C A T B O O K I N G T X GT A U M B P O N P S T U I C RF R T R A I N O O O L L O M TY E A A L D O I N G G U N N IC O M M U N I C A T I O N J H

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1Brand ppt