Download - Designing and Managing Services
DESIGNING AND MANAGING SERVICES
What is a service?
A service is 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.
Nature of Services
The Service Industry includes the following:–Government Sector–Private nonprofit Sector–Business Sector–Manufacturing Sector
“Government Sectors”
“Private nonprofit Sector”
“Business sectors”
Nature of Services
• Categories of Service Mix–Pure tangible good–Good with accompanying services–Hybrid– Service with accompany goods–Pure service
Nature of Services
CHARACTERISTICS• Intangibility
oCannot be seen, touched, tasted, heard or smelled before purchase
o Lack of trial means higher consumer needs
oConsumer rely on cues to draw quality inferences
SALON, SPA
Nature of Services
CHARACTERISTICS• Inseparability
o Services are produced and consume at the same time.
o Service providers and sometimes other customers become part of the service.
Air travel Services
Restaurant Services
Nature of Services
CHARACTERISTICS• Variability o Services providers varies with
respect to attitudes, skills, moods etc. Even the same provider may give different service on a different day.
o Quality control is critical: Hiring the right peopleStandardizing serviceMonitoring satisfaction
Nature of Services
CHARACTERISTICS• Perishability oServices cannot be
inventoried or otherwise stored.
Marketing Strategies
• People physical evidence must be considered in addition to the 4 P’s when creating external marketing plan.
• Successfully delivering the service often depends on staff being trained via internal marketing efforts.
Marketing Strategies
• Interactive marketing refers to the employees’ skill in serving the client.
• Customers judge a service by its:• Technical Quality• Functional Quality
• Search qualities, experience qualities and credence qualities are evaluated by customers.
Marketing Strategies
• Marketing Task
Managing differentiation
o Cannot differentiate on price alone.
o Innovative features.
o Delivery systemReliabilityResilienceInnovativeness
o Image and Branding
Marketing Strategies
• Marketing Task
Managing Service Quality
oThe service quality model identifies five gaps that can cause service delivery failure
oService companies that successfully address these gaps follow common practices
Marketing Strategies
• Service Delivery Failure Results from Gaps Between:
Consumer expectation and management perception
Management perception and Service-quality
specification
Service-quality specifications and service delivery
Service delivery and external communications
Perceived service and expected service
Marketing Strategies
• Well-Managed Service Firms Shared These Characteristics:
A strategic concept
Commitment from top-management
High standards
Firm and customer monitoring system
Satisfying customer complaints
Thank you!!