elements of service mktg mix product physical evidence process customer service people place price...
TRANSCRIPT
Elements Of Service Mktg Mix
•Product
•Physical Evidence
•Process
•Customer Service•People
•Place•Price
•Promotion
Prof. M K Sarma, Tezpur University, Autumn, 2009
Process
Processes involve the procedures, tasks, schedules, mechanisms, activities and routines by which a service is delivered to the customer.
Two Basic Concepts:Two Basic Concepts:
•Complexity•Divergence
Prof. M K Sarma, Tezpur University, Autumn, 2009
Process
Complexity: Number of steps or sequence and intricacy ( or complexity) to be performed during the process
Divergence: Executional freedom or variability of the steps
Prof. M K Sarma, Tezpur University, Autumn, 2009
Process
Higher Complexity leads to
Higher Divergence gives rise to
•Uniformity in quality
•Reduced cost of production thus lower selling price
•Increased productivity
•Low skilled or unskilled labourer
•Inflexibility
•High stanardisation
•High customisation•Premium price•High flexibility•Skilled worker•Difficult distribution
Prof. M K Sarma, Tezpur University, Autumn, 2009
ProcessFour Strategies for Repositioning Through Structural Changes
•Reduce Divergence
•Increase Divergence
•Increase Complexity
•Reduce Complexity
Mass Marketing, Easy availability of services
High Customisation, Niche marketing, Milching
Market Penetration
Specialised market, Easier Distribution
Prof. M K Sarma, Tezpur University, Autumn, 2009
ProcessFour Strategies for Repositioning Through Structural Changes
Low Divergence High Divergence
High Complexity
Low Complexity
• MBA Institute
• Adds Tourism Mgnt
•Adds Consultancy
• Only Diploma level
• Gets Affiliated to a University
• Exams run by the University
Prof. M K Sarma, Tezpur University, Autumn, 2009
ProcessSteps in Service Blueprinting
1. Divide the total process into different sequence and logical steps
2. Relate each activity and event with other activities and events3. Allot divergence in each activity or event4. Identify the fail points
(executional and consistency problems)5. Set executional standards in terms of
Cost, performance criteria, and tolerance limits
6. Identify the moments of truth
Prof. M K Sarma, Tezpur University, Autumn, 2009
ProcessBlueprinting Preparation of a Cup of Tea
Put a pan with Water on the stovePut water on pan Water boils
Strain the Boiled waterPrepare
StrainerClean strainer
Put Appropriate amount of Tea Leaves on the strainer
Prepare Water
Add Sugar
Stir
Add Milk
SERVE
Reduce Customisation
A very simple operation blueprinting
Moment of truth
Prof. M K Sarma, Tezpur University, Autumn, 2009
ProcessService Blueprinting
It is a tool for simultaneously depicting the service process, the points of customer contacts, and the evidence of service from the point of view of the customer.
PROCESS
CONTACT PTS.
EVIDENCE
SERVICE BLUEPRINT
Prof. M K Sarma, Tezpur University, Autumn, 2009
Process
Service Blueprinting
It is a picture or a map that accurately portrays the service system so that different
people involved in providing it can understand and deal with it objectively
regardless of their roles from their individual point of view.
Prof. M K Sarma, Tezpur University, Autumn, 2009
Process Service Blueprinting
Components of Blueprinting
PHYSICAL EVIDENCE
CUSTOMER ACTION
Line of Interaction
Line of Visibility
Line of Internal Interaction
ON STAGE CONTACT EMPLOYEE ACTION
BACKSTAGE CONTACT EMPLOYEE ACTION
SUPPORT PROCESS
Prof. M K Sarma, Tezpur University, Autumn, 2009
Process Service Blueprinting
Anytime the vertical line crosses the boundary of the horizontal boxes (line of interaction) service encounter occurs.
KEY COMPONENTS OF SERVICE BLUEPRINT
1. Definition of standard of each front stage activity2. Physical and other evidence3. Principal customer action4. Line of Interaction (Moment of Truth)5. Front Stage Action by Customer Contact Persons (CCP)6. Line of Visibility7. Backstage Activities by Customer Contact Persons8. Support Process involving Service Personnel9. Support Process involving Information Technology.
Prof. M K Sarma, Tezpur University, Autumn, 2009