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This document discusses key concepts in managing services. It defines services as intangible acts that do not result in ownership. Services are classified into different categories depending on whether they are goods-based or customer-focused. The document also outlines characteristics of services like intangibility and perishability. It provides strategies for improving service quality, managing demand, and creating strong service brands.
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- 1. Marketing Management MBA CP 205
- 3. Learning Objectives: Know how services are defined and classified, and how do they differ from goods. Know how services are marketed. Know how service quality can be improved. Know how service marketers create strong brands. Know how goods-producing companies can improve customer support services. Managing Services
- 4. Managing Services Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product. Service
- 5. Managing Services Government Business Retail Private Non-Profit Manufacturing Service Sectors
- 6. Managing Services Pure tangible good Pure service Hybrid Tangible with Accompanying services Service with Accompanying goods Categories of Service Mix
- 7. Managing Services Services vary whether they are equipment based or people based . Companies can choose different processes to deliver services. Some services require client’s presence, some do not. Services differ whether personal or business needs met. Service providers differ on objectives (profit, non-profit) and ownership (private, public). Service Distinctions
- 8. Managing Services Continuum of Evaluation for different types of Products
- 9. Managing Services Intangibility Inseparability Variability Perishability Characteristics of Services
- 10. Managing Services Intangibility Services can’t be seen, heard, felt, tasted or smelled before buying. Service provider’s task is to manage the evidence, to tangibilize the intangible. Service providers can demonstrate their quality through physical evidence and presentation . Services marketers can make their positioning strategy tangible through various marketing tools.
- 11. Managing Services The service marketing tools Place. People. Equipment. Communication material. Symbols Price
- 12. Managing Services Ways to improve service quality control Investment in good hiring and training procedures. Well trained employees exhibit competence, a caring attitude, responsiveness, initiative, problem solving ability and goodwill. Standardizing the service performance process across organization. Monitoring customer satisfaction by employing suggestion & complaint system and customer surveys.
- 13. Managing Services Perishability, Matching demand and supply Demand side Differential pricing. Non-peak demand. Complementary services. Reservation systems. Supply side Part-time employees. Peak-time efficiency. Increased consumer Participation. Facilities for future expansion.
- 14. Managing Services Demand side Differential pricing , Shifts some demand from peak to off-peak periods. Non-peak demand , can be cultivated. Complementary services , can be developed to provide alternatives to waiting customers like ATMs in banks. Reservation systems , are a way to manage demand level.
- 15. Managing Services Supply side Part time employees , can be hired to serve peak demand. Peak time efficiency routines , can be introduced. Increased consumer participation , can be encouraged. Shared services , can be developed. Facilities for future expansion , can be developed.
- 16. Managing Services Internal Marketing External Marketing Interactive Marketing Employees Customers Company Holistic marketing for services Hospitality sector Financial/ banking sector Civil aviation sector
- 17. Managing Services Factors leading to customer switching behavior Pricing High price Price increases Unfair pricing Deceptive pricing Inconvenience Location/hours Wait for appointment Wait for service Service Encounter failures Uncaring Impolite Unresponsive Not knowledgeable Response to service failures Negative response No response Reluctant response Competition Found better service Ethical problems Cheat Hard-sell Unsafe Conflict of interest Involuntary Switching Customer moved Provider closed Core service failures Service Mistakes Billing errors Service Catastrophe
- 18. Managing Services Service Quality Model
- 19. Managing Services Gaps that cause unsuccessful service delivery Gap between consumer expectation and management perception, Management does not perceive what customers want. Gap between management perception and service-quality specifications, management may correctly perceive consumers’ needs but not set a performance standard. Gap between service-quality specifications and service delivery, personnel are poorly trained or incapable. Gap between service delivery and external communications, customer expectations affected by ads.
- 20. Managing Services Gap between perceived service and expected service, consumer misperceives service quality. Determinants of service quality Reliability: The ability to perform the promised service dependably and accurately. Responsiveness: The willingness to help customers and provide prompt service. Empathy: The provision of caring, individualized attention to customers. Tangibles: The appearance of physical facilities, equipment, personnel and communication material.
- 21. Managing Services Determinants of service quality Reliability Providing service as promised. Dependability in handling customers service problems. Providing services at the promised time. Maintaining error-free records. Responsiveness Keeping customer informed as to when services will be performed. Prompt service to customers. Willingness to help customers. Readiness to respond to customers’ requests.
- 22. Managing Services Determinants of service quality Empathy Giving customers focused attention. Employees who deal in caring fashion. Convenient business hours. Having the customers’ best interests at heart. Assurance Employees who instill confidence in customers. Making customers feel safe in their transactions. Employees who are knowledgeable. Employees who are consistently courteous.
- 23. Managing Services Strategic Concept. Top-Management Commitment. High Standards. Self-Service Technologies. Monitoring Systems. Satisfying Customer Complaints. Satisfying Employees. Best practices
- 24. Managing Services Choosing Brand Elements Establishing Image Dimensions Devising Branding Strategy Developing Brand Strategies For Services
- 25. Managing Services Customer Worries Failure frequency Downtime Out-of-pocket costs
- 26. Recap: How services are defined and classified, and how do they differ from goods. How services are marketed. How service quality can be improved. How service marketers create strong brands. How goods-producing companies can improve customer support services. Managing Services