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8/8/2019 Service Product 11 09 09
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Introduction to the 7Ps
Product the first P
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Service Product Concept
Core Benefit
Basic Service Product
Expected Service
Augmented Service
Potential Service
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Service Product Concept
Core Benefit
Is was the buyer is really buying Use, benefit or solution
E.g. Movie ticket Entertainment, Airline Travel,
Cosmetic Hope, Mobile service Connectivity
Basic Service Product
The intangible service through which the core benefit is received
Consists of all those factors which consumers assume to be present
in the offering. E.g. Air travel Aircraft & basic infrastructure to
implement the service
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Service Product Concept
Expected Service
Customers expect to get certain service quality or features when they
purchase service. They are the unwritten features in given context.
E.g. : Expecting a good in-flight food, pleasant service from crew
Augmented Service
Consists of measures taken to differentiate the service from
competitors and provide service quality beyond expectations
Customer delight is an objective of augmentation
E.g.: Providing business centre in the airline lounge or discounted
snacks at airport lounge (Jet Airways to its frequent Flyers)
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Service Product Concept
Potential Service
Includes all the augmentations and the futuristic product
development
Finding out better ways of delighting the customer
E.g.: Providing added services like sight seeing & cultural activities
apart from normal lodging & boarding by hotels
Another way of segregating service is Core Service Minimum expectation
Supplementary Services Providing an edge that helps in
differentiating the service provider
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Classification of supplementary services
Facilitating Services
Information
Order taking
Billing
Payment
Enhancing Services
Consultations
Hospitality
Safe keeping
Exceptions
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Facilitating Services
Information
Timely and accurate information regarding service hours, prices,
reminders, warnings, documentations, confirmation of reservation
etc by means of brochures, instruction books, video tapes, touch-screen video displays etc
Order taking
Politeness, speed and accuracy to save consumers time and
prevent unnecessary mental or physical effort Order taking elements include applications, order entry,
reservations & check-ins
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Facilitating Services
Billing
Bills should be clear, informative and itemized without any
ambiguity. Inaccurate, illegible or incomplete bills lead to
dissatisfied customers
Payment
Customers expect ease and convenience of payment including
credit increased used of debit and credit cards
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Enhancing Services
Consultations
Involves a dialogue to probe customer requirement and then to
develop a tailored solution
Consultation elements include advice, personal counseling, trainingin product use
Hospitality
Reflects pleasure at meeting new customers and greeting old ones
when they return, that is treating customers as guests
Courtesy and consideration are the two key elements
Recruiting employees who are naturally warm and welcoming for
customer contact jobs
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Enhancing Services
Safe keeping
Elements Caring for possessions customers bring with them
parking facility, valet parking, storage space, child care, per care, etc
Caring for goods purchased by customers packaging,transportation, delivery, installation, inspection, repairs, etc
Exceptions
Include services that fall outside the routine of normal service
delivery
Elements Special requests, problem solving, handling complains
and suggestions, restitution compensation for serious
performance failures
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Technology & Services
Inspite of the arrival of new technology broad service or category
or need remain constant over a long period of time
Technology changes have altered product form but basic need
category is same VHS cassette rental DVD rental Home entertainment
Traditional cinema halls Multiplexes Entertainment
Traditional banking services ATM, Debit & Credit cards
Though some technology has drastically alltered or deleted
certain pattern/category of services
Mobile versus pagers
Internet surpassing traditional postal services
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DEVELOPING NEW SERVICE OFFERING
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Stage I CONSUMER BENEFIT CONCEPT
Assess the consumer benefit
Consumers dont buy products because of their attributes
rather they buy the benefits
Problems encountered
In articulate consumers
Benefit sought change overtime
Wrong interpretation of hierarchy of benefits Proper market research and appropriate information search
should be undertaken
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Stage II SERVICE CONCEPT
Consumer benefits have to be translated into core,
facilitating and support services
Aim being defining what general benefits the service
organization would offer to its customers
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Stage III & IV - SERVICE OFFER & DELIVERY
Service Elements Tangible & intangible
Service Form In what way/how
Service Levels Quality (Image, Technology & Function)
Service Quantity Volume, timing
Careful planning is essential to deliver the right service inthe right form in the right quality and quantity
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Stage V MANAGING IMAGE & COMMUNICATION
Appropriate market communication strategies should be
prepared and implemented to not only inform and
persuade the customers but to also enhance the companys
image
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Developing new service offering
Stage I CONSUMER BENEFIT
CONCEPT
What benefits consumer seeks
Stage II SERVICE CONCEPT What benefits the services organization should offer
Stage III SERVICE OFFER Sr. Elements Tangible & intangible
Sr. Form In what way/how
Sr. Levels Quality (Image, Technology & Function)
Sr. Quantity Volume, timing
Stage IV SERVICE DELIVERY
SYSTEM
Using benchmarks
Developing process, people and facilities
Stage V MANAGING IMAGE
&COMMUNICATION
To support an enhance perceptions on service offers