Managing and Designing Services

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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Documents

Managing and Designing Services