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Venkatesh.N
Asst Professor
Koshys Institute of Management Studies
Topic :- Service Management
Subject :- Marketing And Services Management
Class :- I Semester B.Com
ByVenkatesh.N
ByVenkatesh.N
Koshys college
Introduction to
SERVICE MANAGEMENT
Service
>A service is an action of doing something to some one
which is essentially (purely) intangible…
>“Service is an act or performance offered
by one party to another that is essentially
intangible and does not result in the
ownership of anything.”
What is Management Management is an individual or a group of individuals that
accept responsibilities to run an organisation. They Plan,
Organise, Direct and Control all the essential activities of
the organisation. Management does not do the work
themselves. They motivate others to do the work and co-
ordinate (i.e. bring together) all the work for achieving the
objectives of the organization.
Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets.
Layman or layperson:-(a professional person)
Characteristics of services
Characteristics of services
Characteristics Intangibility:
It cannot be taste, feel & smell before they are bought
unlike physical product. The intangibility creates a
feeling of uncertainty about the outcome of service.
Inseparatebility:
Services cannot be separated from the services
provided (we cannot separate the service from the
product) in fact the product delivers consumption of a
service.
Variability:
Services of highly variable. It is almost impossible to
have the same service from the same seller the second
time.
Contd….
Customer participation:Service product is not a one side activity customerare core product of services. The product quality ofservices greatly depends upon the ability, skills andperformance of the employees as well as theactivity and performance of the customer.
No ownershiphere we cannot transfer ownership from oneperson to other person that particular servicebelongs to particular person because its purelyintangible
Pershability They cannot be stored
Goods / Services
Service encounter
A service encounter is a period of time duringwhich customer interact directly with a service. Itis also called as "Moment of Truth“
Service encounters are transactional interactionsin which one person (e.g., a vendor, office clerk,travel agent) provides a service or good (e.g., aproduct, an appointment, airline tickets) toanother person.
It is a period of time during which customer interactdirectly with a service.
It has 3 different P’s than the product and theyare…..?
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The Services Marketing Triangle
Aligning the Triangle
Organizations that seek to provide again
and again the high levels of service
excellence will continuously work to
align the three sides of the triangle.
Aligning the sides of the triangle is an
ongoing process.
Services Marketing Triangle
Applications Exercise Focus on a service organization. In the
context you are focusing on, who occupies
each of the three points of the triangle?
How is each type of marketing being carried
out currently?
Are the three sides of the triangle well
aligned?
Are there specific challenges or barriers in
any of the three areas?
Making Promises
Understanding customer needs
Managing expectations
Traditional marketing communications
Sales and promotion
Advertising
Internet and web site communication
Keeping Promises
Service delivery
Reliability, responsiveness, empathy,
assurance, tangibles, recovery, flexibility
Face-to-face, telephone & online
interactions
The Customer Experience
Customer interactions with sub-
contractors or business partners
The “moment of truth”
Enabling Promises
Hiring the right people
Training and developing people to
deliver service
Employee empowerment
Support systems
Appropriate technology and equipment
Rewards and incentives
Ways to Use the
Services Marketing Triangle
Overall Strategic
Assessment
How is the service
organization doing on
all three sides of the
triangle?
Where are the
weaknesses?
What are the
strengths?
Specific Service
Implementation
What is being promoted
and by whom?
How will it be delivered
and by whom?
Are the supporting
systems in place to
deliver the promised
service?
Service blueprint
The blueprint is an operational tool that
describes the nature and the
characteristics of the service interaction
in enough detail to verify, implement and
maintain it.
Blue print
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Steps in developing service blue
print Step 1:- identify the process to be blueprinted-
in this stage the company should clearly mention the
service process that should be blueprinted(it means the
company should have a clear picture of the objective
behind blueprinting)once the purpose is clear , the other
requirements can neatly be arranged.
Step 2 :- identify the customer or customer segment-
identifying customer segment is a very important aspect of
service blueprinting . the content of the service delivery
system and condition of facilities are largely dependent on
the selected customer segment
Step 3:- Map the process from the customer point of
-view
As we said earlier , the service blueprint aims at providing
maximum customer convenience and satisfaction. This
point should be kept in mind at all the level of service
designing process.
Step 4:- Map the contact employee actions, onstage and
back stage
the design should be describe in detail and
responsibilities for all the individuals involved in the
service delivery system(there must not be any changes
in the statement of roles and responsibilities if
necessary the employee should maintain a record)
Step 5:- link customer and contact persons activities
to need support functions
each performed activity is expected to produce some
value to the customer . If any of the activities are not
adding any value to the customer, they will be treated
as unnecessary such kind of things we have to remove.
Step 6:- Add evidence of service at each customer
action step
it is necessary to illustrate to the customer what he sees
and receives at each stage of customer encounter and
experience.(this can be done through photos or videos.
This helps customer in knowing the expected service
and the service received by him.
GAP Model
The GAP Model
The Service Quality Model, also known as the
GAP Model, was developed in 1985.
It highlights the main requirements for
delivering a high level of service quality by
identifying five ‘gaps’ that can lead to
unsuccessful delivery of service.
o GAP 1: Gap between consumer expectation and
management perception(awareness): arises when the
management or service provider does not correctly
identify what the customers wants or needs.
o GAP 2 : Gap between management perception
and service quality requirement: this is when the
management or service provider might correctly perceive
(identify) what the customer wants, but may not set a
performance standard.
o GAP 3: Gap between service quality requirement and
service delivery: may arise pertaining to the service
personnel. This could arise due to there being poor
training, incapability or unwillingness to meet the set
service standard
GAP 4 : Gap between service delivery and external
communication: consumer expectations are highly
influenced by statements made by company
representatives and advertisements. The gap arises when
these assumed expectations are not fulfilled at the time of
service delivery.
GAP 5: Gap between expected service and experienced
service: this gap arises when the consumer misunderstand
the service quality.
Product And Service Marketing Mix
Product Goods/service manufactured by organizations
for the end-users are called products/Services
Products can be of two types - Tangible
Product and Intangible Product (Services)An
individual can see, touch and feel tangible
products as compared to intangible products.
A product in a market place is something which
a seller sells to the buyers in exchange of
money.
Good example:- here you can see both product as well as service
(tangible and intangible) Once you open the saving account , current
account, or demat account you will receive a card documents from the
bank that is tangible and once u started doing transaction (receiving
service from the bank )that is intangible.
Bank will be providing life insurance(product) bond that bond itself
tangible and later you will be receiving service that is intangible
Price
it is a key element of the marketing mix. All the
other elements represent costs—for example,
expenditure on product design
(product),advertising and salespeople
(promotion), and transportation and distribution
(place). Marketers, therefore ,need to be very
clear about pricing objectives, methods and the
factors that influence price setting
Place refers to the location where the products are
available and can be sold or purchased. Buyers can
purchase products either from physical markets or
from virtual markets. In a physical market, buyers
and sellers can physically meet and interact with
each other whereas in a virtual market buyers and
sellers meet through internet.
Promotion Promotion refers to the various strategies and ideas
implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses.
Promotion can be through any of the following ways:
Advertising
Print media, Television, radio are effective ways to entice customers and make them aware of the brand’s existence.
Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas, crossings, railway stations, bus stands attract the passing individuals towards a particular brand.
Contd…
Taglines also increase the recall value of the brand
amongst the customers.
Word of mouth
One satisfied customer brings ten more customers along
with him whereas one dis-satisfied customer takes away ten
more customers. That’s the importance of word of mouth.
Positive word of mouth goes a long way in promoting
brands amongst the customers.
People
People - The individuals involved in the sale and
purchase of products or services come under
people.
Peoples are the ultimate users of product/service
Here service provider can get feedback about
the banking service and there is chance of re
design the service or modify to fulfill their need
and attract the more number of customer.
Process
Process - Process includes the various
mechanisms and procedures which help the
product to finally reach its target market
Service process is the way in which a service is
delivered to the end user
Process is something related to
How do people consume service
What process do the have to go through to
acquire the service
P.Evidence With the help of physical evidence, a marketer
tries to communicate the USP’s(unique selling
propositions) and benefits of a product to the end
users.
Ex:-if a customer is going to meet bank employ to
know about the home loans while explaining a
service provider will be showing some broachers ,
Documents, bonds , company website , these are
all physical evidence.
Managing the service sector Service marketing focus on selling the service in the best
interest of users/customers, marketing a service is meant for
marketing something intangible. It is marketing a promise.
Service management includes formulation of a sound mix
for marketing, such as
product,price,place,promotion,people,proces and physical
evidence.
The aim of service management is:
To understand the utility (usefulness) the customer receive
by consuming or using the service offered by the
organization
Contd…. To understand how the organization( personnel, technology,
physical resources ,system and customer) will be able to
produce and deliver this utility.
To understand how the organization should be developed
and managed so that intended(future) quality can be
achieved.
To make the organization function so that this quality can
be delivered on a continuous basis
Functions of service management
Marketing objectives:- the marketing objectives may be short term or long term. They have to be in coherence(unity) with the organizational goals
Planning:-after setting objectives the organization should plan to achieve those objectives. This includes sales forecast, marketing programmes and marketing strategies
Organizing:-the organizing functions involves structure of marketing organization, duties responsibilities and powers of various members of the marketing organization
Coordination :-it involves coordination of among various activities such as sales forecasting, product planning , product designing and development, transportation, warehousing etc..
Directing:-Direction In marketing management refers to
the development of new markets, employee
communication, motivation and control of employees.
Control;- Controlling refers to the effectiveness with which
the marketing plan is implemented.(it involves purpose of
standards , evaluation of actual performance and adoption
of corrective measure).
Staffing:-the marketing manager coordinates with human
resource manager to hire the staff with the desired
capacity.(here in this step the company is recruiting the
employees to a particular job to run marketing actives)
Analysis and evaluation:-marketing management involves
tha analysis and evaluation of the productivity and
performance of each employees.
What is Customer Loyalty?
Customer loyalty is all about attracting the right customer,
getting them to buy, and buy in higher quantities and bring
you even more customers. However, that focus is not how
you build customer loyalty.
In short, you build customer loyalty by treating people how
they want to be treated. Does your marketing plan include
strategies and tactics for customer loyalty & customer
retention?
Marketing Plan
You build loyalty by… keeping touch with customers using email marketing,
thank you cards and more.
treating your team well so they treat your customers well.
showing that you care and remembering what they like and don’t like.
You build it by rewarding them for choosing you over your competitors.
“The function of business is to
attract and maintain customers.”
Why Do You Want Loyal Customers?
?
?
?
?
Contd….
Measurements
Customer Satisfaction
Customer Loyalty
“I expected…I got it”
“I got more than I expected”
C
People don’t quit organization
they quit BOSSES!
Perceived Value
Defined by your customer
Differences B/W Goods and Services