BY

TEAM
HIGHLANDERS
 Services
A service is any act or performance one party can
offer to 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 INDUSTRY IS EVERYWHERE...........

•Government

•Private non-profit

•Business

•Manufacturing

•Retail
 A popular non-profit sector….

Dr .Govindappa venkataswamy
Many services though ,include no physical products….

And many pure service firms are now using the internet to
reach customers…(purely online firms)…
 Categories of Service
Mix

Pure Tangible
Major Pure
Tangible Good
Hybrid Service Service
Good w/
w/ Goods
Services
Service companies can choose among
different processes to deliver their
service.

Restaurants have developed cafeteria-

style, fast food , buffet and candlelight
service formats.

Services vary as to whether they are

equipment based (automated car washes) or
people based (window washing, accounting
services).
 Intangibility
Intangibility Inseparability
Inseparability
Services cannot
Services cannot Services cannot
cannot
be seen,
be seen, tasted,
tasted, Services
felt, heard,
heard, or
or be separated
be separated
felt, from their
from their
smelled before
smelled before providers
purchase
purchase providers

Services
Services
Variability
Variability Perishability
Perishability
Quality of
Quality of Services cannot
cannot
services depends
services depends Services
on who
who provides
provides be stored
be stored for
for
on later sale
later sale or
or use
use
them and
them and when,
when,
where, and
where, and how
how
Palace on wheels-A luxury tourist train

An example for intangibility

Here it’s a combination of Rajasthan tourism and Indian

railways. The train moves from Rajasthan to Agra.

Here is the look at the luxurious train interiors….

Maharaja restaurant

The luxurious bedroom

VARIABILITY

Invest in good hiring and training procedures: recruiting the

right employees and provided them with excellent training is
crucial, regardless of whether employees are highly skilled
professionals or low skilled workers.

Standardize the services performance throughout the

organization.

Monitor customer satisfaction: Employ

suggestion and complaint systems, customer survey and
comparison shopping.
BLUEPRINT OF OVERNIGHT HOTEL STAY
PERISHABILITY

ON THE DEMAND SIDE:

• Differential pricing
• Nonpeak demand
• Complementary services
• Reservation systems.

ON THE SUPPLY SIDE:

• Part time employees

• Peak time efficiency
• Increased consumer participation
• Shared services
 Intangibility Inseparability
Inseparability
Intangibility
Use cues
cues toto Increase
Increase
Use productivity of
productivity of
make itit tangible
make tangible providers
providers

Services
Services

Variability
Variability Perishability
Perishability
Standardize
Standardize Match supply
supply
service
service Match
production and demand
and demand
production
&& delivery
delivery
Marketing Strategies for Service Firms

At one time, service firms lagged behind manufacturing

firms in their use of marketing because they were small, or
they were professional businesses that did not use marketing,
or they faced large demand or little competition. This has
certainly changed.
A Shifting Customer Relationship..

because of competition in the modern world.

Profit Tiers
Customers in high profit tiers get special
discounts, promotional offers, and lots of special service.
Customers in lower profit tiers may get more
fees, stripped down service..

Customer Empowerment:-
Ninety percent of angry customers reported
that they shared their story with a friend.
They can share their stories with strangers via the internet.
the websites like….
 Co-Production
which is the direct
involvement of customers in
the design, delivery, and
marketing of goods and
services that they themselves
consume, implies customer-
firm collaboration..
In many service industries, such as airlines, banks, stores, and
hotels, customer satisfaction in the United States has actually
dropped in recent years..
Because……

Customers complain about inaccurate information.

Unresponsive

Rude, or poorly trained personnel

Long wait times.

Forrester Research had its analysts contact 16 top
companies to assess customer service, their experiences
were not all positive

When the researchers called RadioShack for digital camera recommendations, a sales
agent told the caller to call back and request technical support, but the second call was
transferred back to the same sales department again.

When analysts called Wal-Mart to track an order and collect additional information, the
automated voice system politely told them that their complete satisfaction was a priority,
then said “goodbye” and hung up.
 Hewlett Packard tries to respond to every e-mail query within
an hour, and usually answers within 10 minutes.
The firm monitors its e-mail center minute by
minute to ensure.
Because of its successful e-mail service centers, HP
received 25% fewer calls to its call center between 2005-2006.
E-mail volume rose,
improving profits because an e-mail response costs
HP 60% less than a phone call!!
Service Marketing Mix/Extended Marketing Mix

The service marketing mix comprises off the 7’p’s.

These include..

• Product
• Price
• Place
• Promotion

• People
• Process
• Physical evidence.
People:-
An essential ingredient to any service provision is the use of
appropriate staff and people.
Consumers make judgments and deliver perceptions of the service based
on the employees they interact with
Staff should have the appropriate interpersonal skills, aptitude, and service
knowledge to provide the service that consumers are paying for.

Process:-
Refers to the systems used to assist the organization in delivering the
service. Imagine you walk into Burger King and you order a Whopper Meal
and you get it delivered within 2 minutes.
Physical Evidence:-

The physical facilities are important because customers come there and have
the service. Hence the design and maintenance of the facility becomes a
marketing issue.
If you walk into a restaurant your expectations are of a clean, friendly
environment
 Managing Service Quality

Service quality of the firm is tested at each service encounter.

If service personnel are bored, cannot answer simple questions, or are

visiting with each other while customer are waiting….

Customer will think twice about

doing business again with that
seller!!
 Service-Quality Model
Word-of-mouth
communications Personal needs Past experience
Consumer

Expected service

Gap 5
Perceived service

Gap 1
Service delivery (including External
pre- and post-contacts) communi-
Gap 4 cations to
Marketer

Gap 3 consumers
Translation of perceptions
to service-quality specifications
Gap 2
Management perceptions
of consumer expectations
Determinants of Service
Quality
 Reliability
 Responsiveness
 Assurance
 Empathy
 Tangibles
Reliability

 Providing service as promised

 Dependability in handling customers’
service problem
 Performing services right the first time
 Performing services at the promised time
 Maintaining error-free records
 Employee who have the knowledge to
answer customers
Responsiveness

 Keeping customer informed as to

when service will be performed
 Prompt service to customers
 Willingness to help customers
 Readiness to respond to customers
requests
Assurance

 Employee who instill confidence in

customers
 Making customers feel safe in their
transactions
 Employees who consistently
courteous
Empathy

 Giving customers individual attention

 Employees who deal with customers
in a caring fashion
 Having the customer’s best interests
at heart
 Employees who understand the needs
of their customers
 Convenient business hours
Tangibles

 Moderns equipment
 Visually appealing facilities
 Employee who have a neat,
professional appearance
 Visually appealing materials
associated with service
 Service
Excellence
 Strategic Concept
 Top-Management Commitment
 High Standards
 Satisfying Customer Complaints
 Satisfying Both Employees &
Customers
 Managing Productivity.
No. of Attribute description Mean imp. Mean
Attribute Rating performance
rating
1 Job done right the first 3.83 2.63
2 Fast action on complaints 3.63 2.73
3 Prompt warranty work 3.60 3.15
4 Able to do any job needed 3.56 3.00
5 Service available when needed 3.41 3.05
6 Courteous and friendly service 3.41 3.29
7 Car ready on promised 3.38 3.03
8 Perform only necessary work 3.37 3.11
9 Low prices on service 3.29 2.00
10 Clean up after service work 3.27 3.02
11 Convenient to home 2.52 2.25
12 Convenient to work 2.43 2.49
13 Courtesy buses and car 2.37 2.35
14 Send out maintenance notice 2.05 3.33
**1)No important, 2)Slightly important, 3)Important & 4) extremely important
 Importance-Performance
Analysis
Extremely important
A. Concentrate here B. Keep up the good work
12

Excellent performance
3
Fair performance

4 5
7 6
9 8
10

11 12
13 14
C. Low priority D. Possible overkill
# = Attributes
Slightly important
Managing service brands

 Some of the world’s strongest brands

are Services…
consider financial service
leaders such as Citicorp, American
express,JP morgan,HSBC…

Like any brand, service

brands must be skillful at differentiating
themselves and developing appropriate
brand strategies.
Services marketers have now more work to do on
branding their service.

Customer view service as fairly Homogeneous, they

care less about the provider than about the price.

However,
marketers can differentiate service offerings
in many ways…it may include,..
•Primary service package: Is what the customer expects.

But the good part is that, there is a

secondary service feature to the package,

for example, In hotel industry, various

chains have introduced such secondary service feature as
merchandise for sale, free breakfast buffets and loyalty award
programs.

Marriott (hotel) is setting up hotel rooms for high tech travelers

who needs accommodations that will support computers, fax
machines and emails.
The famous ITC –welcomgroup logo, Taj hotels targeting
different customer groups with different brands.

Creativity and Innovation is as vital in services as in any

industry. there are always ways to improve the customer
experience.

When a group of hospitality and travel industry experts convened

late in 2006 to share their insights into what the ideal 2025 Hotel
look like….
Their visions suggested totally transformed service
experience…!
The few ideas came up..those were…

Kinetic corridors could light up with a blanket of stars and

illuminated signs to provide guests with an easy, relaxing entry
to their rooms.

A multipurpose bed could be flipped over to create more work

surfaces or rise all the way up to be a ceiling panel.

A multitask chair could be equipped with reading lights, fold-

up tablet tray tables, integrated speakers near the ears, and a
muscle massager.
Developing brand strategies for services

Developing brand strategies for a service brand requires special

attention to..

-choosing brand elements

-establishing image dimensions

-Devising the branding strategy

Choosing brand elements

•Brand recall is critically important. So as easy-to-remember

brand name is critical

•Logos,symbols,characters and slogans-can also complement

the brand awareness and brand image.

•For example-

•Identify the logo…

Or easy to remember punch-lines/slogans….

-sar utha ke jiyo

-A complete man

-A lot can happen over a coffee

-Bond with the best

-thanda matlab??
Establishing image dimension

Given the human nature of service, its no surprise that the brand
personality is an important dimension for services.

Lets take an example of Starwood hotels and resorts,

Starwood trains there Hotel employees and call center operators

to convey different experience for the firms different hotel chain

Sheraton positioned as warm, comforting and casual

westin positioned in terms of renewal and little more formal….
Service firms can also design marketing communication and
information programs.

For ex-

Comcast’s “its comcastic!” ad campaign created by ad agency

goodby,silverstien & partners was a multifaceted campaign
designed to confidently, but humorously brand the cable
provider s the premiere for entertainment needs….
Devising branding strategy

Finally, service also must consider developing a brand

hierarchy and brand portfolio.

Marketers can brand classes of service vertically on the basis of

price and quality.

Vertically extensions often require sub-branding strategies that

combine the corporate name with an individual brand name or
modifier…..
In hotel and airline industries, brand lines and portfolios have
been created by brand extension..like

Hilton hotels has portfolio of brands includes Hilton garden inns

to target budget- conscious customers , travelers

and they are competing with courtyard by

Marriott hotels.
Best example about devising brand is

CIRQUE DI SOLIEL ( french for “circus of the sun”)

In its 25 year history ,it has continually broken loose from

circus convention.

It takes traditional ingredients such as trapeze artist, muscle

men, clowns and cartoonists and places them in non-
traditional setting with lavish costumes, new age music and
spectacular stage design…and they don’t use animals..
Managing Product-Support Services

No less important then service industries are product-based

industries that must provide a service bundle.

Manufactures of equipment-small appliances, office

machines,tractors,mainframes,airplanes—all must provide
product-service support.

Key differentiations-ordering ease, delivery , installation,

customer training, customer consultation , maintenance and
repair…
Identifying and satisfying customer needs

Customer have three specific worries,

-They worry about reliability and failure frequency.

-They worry about Downtime

-They worry about out-of-pocket costs.

To provide the best support, a manufacturer must identify the
services customer value the most.

-facilitating services such as installation, staff training ,

maintenance and repair services.

-value- augmentated services that extent beyond the

functioning and performance of the product itself.
Thank you..