65d2c01 understanding services

8/8/2019 65d2c01 Understanding Services

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Amity Business School


MBA Class of 2010, Semester III

Understanding ServicesProf. P K Bansal


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Amity Business SchoolDefining Services

Services are economic activities offered by one partyto another, most commonly employing time basedperformances to bring about desired results inrecipients themselves or in objects or other assets for

which purchasers have responsibility.

In exchange for their money, time ,and effort, servicecustomers expect to obtain value from access togoods, labour, professional skills, facilities, networks,and systems; but they do not normally take ownershipof any of the physical elements involved.


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What is a Service?

In simple terms, services are:Deeds, Processes and Performances.

IBM offers repair and maintenance services for its

equipment, consulting services for IT and e-commerce applications, training services, web designand hosting and other services. These services may include a final, tangible report, a website, or, in thecase of training, tangible instructional materials.

But, the entire service to the client isrepresented through problem analysisactivities, meetings with the client, follow-upcalls, and reporting series of deeds,processes, and performances.


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Services andCustomer Service

T he following are the Services :

Airtel ( T elecommunication)T aj Intercontinental (hotels)

Air India (transportation)

ICICI (financial Services)

Accenture (traditional service company)


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Customer Service is also provided by all types of companies, including, manufacturers, I T companies,and Service companies.

Customer Service is the service provided insupport of a companys core products .It includes, answering questions, taking orders,handling complaints, repairs.It can occur on site, over the phone or viainternet.T hese are for building customer relationshipsand not the ones provided for sale by a company.


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Amity Business SchoolService Package

Defined as Bundle of Goods and Service that is provided to thecustomers in an environment.Bundle consists of the following elements:

Supporting facility : T he physical resources that must be in placebefore a service can be sold. Examples are golf course, ski lift,hospital, airplane.

Facilitating Goods : Materials purchased or Consumed by the buyersor the items provided by the customers. Examples are food items,legal documents, golf clubs, medical history.

Explicit Services : Benefits readily observable by the senses.Examples are quality of meal, attitude of the waiter, on-time departure

Implicit Service : Psychological benefits e.g. Atmosphere, Privacy,Security, convenience etc.


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Core andSupplementary Services

Core service product is so fundamental that itbecomes the minimum entry ticket for amarketer. Markets, over a period of time, haveplayers offering same core product, i.e. no scopeof differentiation, e.g. PVR, D T , Wave

Centre of the flower is a core service and petalsthat form the shape of the flower aresupplementary services, both complementing

each other.

Supplementary services can be: Information,Consultation, Order taking, Hospitality, Care

taking, Billing and Payment etc.


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Amity Business SchoolFacts about Services

Services are essentially intangible.It is because of intangibility, they escapeattention .T here is nothing to show when money is spent

on them.Service purchase does not result in ownershipof something physical.Services are actions that are directed at thecustomer or their possessions.

Action and deeds lead to creation of valuedesired by customers.It involves in most cases, the transfer of someintangible benefits .


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SERVICES MARKETING ISDIFFERENT

More variables exist in the marketing mix for services than for consumer goods.In services business, marketing and operationsare more closely linked than in a manufacturingbusiness. Service production process is part of themarketing process.Customer interface is a major difference.consumers are as much a part of the service productproduction as any other attribute of a service.People buy products because they believe theywork. But with services, people deal with peoplethey like and they tend to buy because they believethey will like them.


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This makes the Customer Employee interface acritical component of marketing.

Customers exposure to the full range of need-fulfillingservice products is limited by the salespersonsmental inventory. Service product manager competes for the mental shelf space of the firmssales personnel.

Costs associated with service production and deliveryis difficult to assess.

Pricing is critical in services but using price, as apromotional weapon is not apparent.

65d2c01 understanding services

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