Escolar Documentos
Profissional Documentos
Cultura Documentos
50% 69%
USA
77% 74% UK FRANCE GERMANY JAPAN 76% INDIA 70%
56%
USA
78% 78% UK FRANCE GERMANY JAPAN INDIA
69%
74% 78%
Agriculture
33%
29.80%
56.30%
Services
55%
Industry
Financing, Insurance,Business Services & Real Estate Community, Social & Personal Services
14%
16%
Construction
Series 1
0%
20%
40%
60%
80%
100%
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Baby sitting or Day Care Services Investment Advisory & Financial Services Event Management Services Transportation/ Logistics/ Maintenance Services Retailing & Online Shopping Consultancy & Market Research Leisure & Life style Management Services. R& D Services.
Changes in Regulation Privatization New Rules to Protect Customers, Employees & Ecology New Agreements on Trade in Services Rising Consumer Awareness & Expectations, Competition More Affluence More people Short of Time Increased Desire for Buying Experiences Vs. Things More Working Women & Mobility of Labour Rising Ownership of Technologically Advanced devices & applications Manufacturers Add Value through Services & Sell Services Emphasis on Quality Movement, Productivity, Cost-Saving& Innovative practices ,Internet, Use of Advanced communication Medium & Media Focus on Alliances & Transnational Operations to drive profitability & growth.
Social Changes
Business Trends
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WHAT IS A SERVICE?
As per Philip Kotler Service is an act or performance offered by one party to another, that is essentially INTANGIBLE & does not result in ownership of anything. Its production may or may not be tied to a physical product. As per Adrian Payne An Economic activity that creates value & provides benefits for customers at specific TIME & PLACE by bringing about a desired change in, or on behalf of, the recipient of the service ( Either with the customers or with the property belonging to customers)
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IMPLICATIONS
Services cannot be inventoried Services cannot be patented Services cannot be readily displayed or communicated. Consumers perceives it as a High Risk proposition Uses Price as a basis for assessing Quality
So, Organization Needs to Stress on 1. Tangible Clues 2. WOM 3. Focus on Service Quality 13
2. HETEROGENEITY
No two service providers are same and even the service personnel within the same organization makes a complete difference. The same service can not be even same to different customers.
IMPLICATIONS
Service delivery and customer satisfaction depend on employee actions Service quality depends on many uncontrollable factors There is no sure knowledge that the service delivered matches what was planned and promoted
So, Organization should focus on : 1. Careful Employee Selection, Recruitment, Orientation & Training. 2. Communicating Standards and conforming to its adherence. 3. Focus on Quality control. 14
3. PERISHABILITY As services can not be stored , if unavailed , they are treated as Lost.
IMPLICATIONS Services can not be Stored for Future. Problems with Demand Fluctuations
So, organization should: 1. Better match between Supply & Demand by way of discounts, promotional schemes etc. Example: Airlines & Movies Weekend Specials, Early- bird discounts, Off-Season specials, Group, Senior Citizen rates or Family Rates. Even Banks today have arranged for privilege banking hours to map and manage peak hour demands and ensure smooth flow of operations
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4.INSEPARABILITY
SEQUENCE OF PRODUCTION & CONSUMPTION PHYSICAL GOODS SEQUENCE OF PRODUCTION & CONSUMPTION SERVICES
Sale
Produced & Consumed at Same time
As a result of this feature it leads to customers being CoProducers of the service & often have to travel to the point of service production. Here the Management has to emphasis on 16 improving service delivery systems and Process.
5. LACK OF OWNERSHIP
Whenever a customer pays for a service or utility, he/ she has access to the action or experience , but its only for a stipulated time frame and does not own the activity or facility.
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6. SIMULTANEITY
Unlike products, services are produced and consumed simultaneously. They cant be stocked. As the customer requires service (point of sale), services are produced and consumed at the same time. IMPLICATIONS: Due to simultaneity as one of the characteristics, In case if services, it is necessary that buyer and seller should be at the same place unlike products. The production process of services is called Servuction Process
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Physical Product
Service Environment Service Delivery
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Services As a System
The components of Service as a System includes:
1. Service Operations System ( Back & Front End activity) 2. Service Delivery System (Back & Front End activity + Interaction to customer)
3. Service Marketing System (Includes all elements which contribute to customers overall view of organization)
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SERVICES
Durable Goods
NonDurable Goods
NonGoods Services
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Product is a Physical object/ good Product is homogenous Product can be inventoried Can be readily displayed on Shelf
Service is an Action Heterogeneous in nature Services can not be inventoried Cannot be readily be displayed on Shelf
Production and consumption takes Service is produced and consumed at place at different time same time Customer participation does not always affect transaction Product can be returned or resold Mass production is easy Customer participation affects transaction Services once rendered cannot be returned or resold. Mass production is difficult
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No
PRODUCT
SERVICES
No surety that service delivered is same as planned and promoted Employees providing services are a matter of concern for customer. Transfer of Ownership does not take place Difficult for consumers to assess Quality
10 Employees involved in producing product is not a matter of concern for customers 11 Transfer of Ownership takes place 12 Easy for customers to assess the Quality of Product & Services
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Classification of Services
1. Based on degree of Customer Involvement
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Pure Goods
Service Related
Goods Related
Pure Services
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External Marketing
Setting the promise
arketingz
Employees
Interactive Marketing
delivering the promise
Customers
Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler
Type of service Nature of relationship shared by the customer with service organization Service delivery Type of demand and supply of services Extent to which service provider need to customize services
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Services is a necessary evil for manufacturing firms Service sector is labor-intensive and less productive Service firms earn less revenue when compared to other two sectors Growth in service economy is linked to growth of the public sector services Marketing a service is not different from marketing a product Growth in service sector eliminates jobs from the manufacturing
GE, Motorola
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Internal Forces:
Shortage of people with specialized skills Lack of resources and small size of firm Limited competition in some service sub-sectors (Eg: Rail transport)
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Experience Qualities
Access Courtesy
Credence Qualities
Competence Security
Internal sources
Purchase decision
Post-purchase evaluation
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Customers rely on information obtained from personal sources. Customers need assistance of service provider to assess the value of service Co-production Time Intangibility Quality and customization
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