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    Service marketing mba1 Service marketing mba1 Presentation Transcript

    • GOODS Vs. SERVICES “ Goods is a set of tangible physical attributes assembled in an identifiable form to provide want satisfaction to customers.” “ Service is an identifiable intangible activity designed to provide want satisfaction to customers” ,
    • DEFINING SERVICES PHENOMENON
      • “ SERVICES ARE ACTIVITIES , BENEFITS, OR SATISFACTIONS WHICH ARE OFFERED FOR SALE, OR PROVIDED IN CONNECTION WITH SALE OF GOODS .”
      • - American Marketing Association(1960)
      • “ SERVICES ARE SEPARATELY IDENTIFIABLE, INTANGIBLE ACTIVITIES WHICH PROVIDE WANT SATISFACTION WHEN MARKETED TO CONSUMERS OR INDUSTRIAL USERS AND WHICH ARE NOT NECESSARILY TIED TO SALE OF A PRODUCT OR ANOTHER SERVICE.”
      • -Stanton(1974)
    • DEFINING SERVICES
      • “ A SERVICE IS AN ACTIVITY OR BENEFIT THAT ONE PARTY CAN OFFER TO ANOTHER ,THAT IS ESSENTIALLY INTANGIBLE AND DOESN’T RESULT IN THE OWNERSHIP OF ANYTHING.”
      • - KOTLER & BLOOM(1984)
    • TYPES OF GOODS & SERVICES GOODS NON-DURABLE GOODS DURABLE GOODS SERVICES NON-GOODS SERVICES RENTAL GOODS SERVICES OWN GOODS SERVICERS
    • GOODS - SERVICES CONTINUUM PURE GOODS GOODS RELATED SERVICE RELATED PURE SERVICES
    • SERVICE CATEGORIES
      • PURE TANGIBLES
      • MAJOR TANGIBLES WITH MINOR INTANGIBLES
      • MINOR TANGIBLES WITH MAJOR INTANGIBLES
      • PURE SERVICES
    • TYPE OF SERVICES
      • TRANSPORTATION SERVICES
      • COMMUNICATION
      • FINANCIAL AND INSURANCE
      • SERVICES
      • MARKETING RELATED SERVICES
      • GOVT. PROVIDED SERVICES
      • ENGINEERING SERVICES
      • HOSPITALITY SERVICES
      • PUBLIC UTILITY SERVICES
      • ENTERTAINMENT SERVICES
      • HEALTH CARE SERVICES
      • OTHER SERVICES
    • REASONS FOR GROWTH AND CURRENT STATUS
      • INCREASE IN AFFLUENCY
      • INCREASE IN LEISURE TIME
      • WORKING WOMEN
      • LIFE’S COMPLEXITY
      • INCREASED LIFE EXPECTENCY
      • RANGE OF NEW PRODUCTS
      • PRODUCT COMPLEXITY
      • RESOURCE SCARCITY
      • GLOBALISATION
    • SERVICES NEEDS & PRODUCTS AS CONSEQUENCE Theft proof devices, Security gadgets Security services Vehicles Courier services Toys,Games,Books Child-day care Medicines,Medical equipments Hospitals Coffee making equipment,catering aids Restaurants Projection system,OHP Education PRODUCTS AS CONSEQUENCE NEED FOR SERVICES
    • SERVICES NEEDS & PRODUCTS AS CONSEQUENCE CAD Software Fashion Designing Photo Copiers, Fax Machines Copying Services Rides Theme Parks Pollution Monitoring Devices,Filters. Pollution Control Devices Senior Citizen homes,Wheel Chairs Old Age Care PRODUCTS AS CONSEQUENCE NEED FOR SERVICES
    • SERVICE CLASSIFICATION
      • BY MARKET SEGMENT
      • BY DEGREE OF TANGIBILITY
      • BY SKILLS OF THE SERVICE PROVIDERS
      • BY DEGREE OF CUSTOMER CONTACT
    • BY MARKET SEGMENT BY MARKET SEGMENT FINAL CONSUMER ORGANISATIONAL CONSUMER Coaching, Taxi, Life Insurance Management Consulting, Accounting Services & Legal Services
    • BY DEGREE OF TANGIBILITY BY DEGREE OF TANGIBILITY RENTAL GOODS OWNED GOODS Non-Goods Car Rental, Hotel Room Rental, Tool Rental Television Repair, Watch Repair, Plumbing Repair College Education, Tutoring, Legal Services
    • BY SKILLS OF SERVICE PROVIDERS BY SKILL OF SERVICE PROVIDER PROFESSIONAL NON-PROFESSIONAL Legal services, Medical services, Accounting services, Management Consulting Taxi, Security, Shoe Shining
    • BY DEGREE OF CUSTOMER CONTACT BY DEGREE OF CUSTOMER CONTACT HIGH CONTACT LOW CONTACT Universities, Air Travel, Hotel Lawn care, Automated Care wash
    • 4 I’S OF SERVICES INTANGIBILITY INSEPARABILITY INCONSISTENCY INVENTORY
    • TYPES OF SERVICE PRODUCTION SELF SERVICE ISOLATED PRODUCTION SERVICE PRODUCTION CO-PRODUCTION
    • MARKETING ENVIRONMENT
      • “ MARKETING ENVIRONMENT INCLUDES ALL FORCES THAT AFFECT MARKETING POLICIES, DECISIONS AND OPERATIONS OF A COMPANY”
    • SERVICES MARKETING ENVIRONMENT TECHNOLOGY SOCIO-CULTURAL FORCES ECONOMIC CONDITIONS POLITICAL –LEGAL FORCES
    • MARKET SEGMENTATION
      • “ IT IS THE PROCESS OF DIVIDING THE TOTAL MARKET FOR GOOD OR SERVICE INTO SEVERAL SMALLER GROUPS, SUCH THAT MEMBERS OF EACH GROUP ARE SIMILAR WITH RESPECT TO THE FACTORS THAT INFLUENCE DEMAND ”.
    • SEGMENTATION STRATEGIES
      • GEOGRAPHIC SEGMENTATION
      • DEMOGRAPHIC SEGMENTATION
      • PSYCHOLOGICAL SEGMENTATION
      • VOLUME SEGMENTATION
      • BENEFIT SEGMENTATION
    • VOLUME SEGMENTATION
      • HEAVY USAGE ( ALSO KNOWN AS HEAVY HALF)
      • MEDIUM USAGE
      • LIGHT USAGE
      • NON-USAGE
    • PSYCHOGRAPHIC SEGMENTATION
      • LIFE STYLE
      • SOCIAL CLASS
      • PERSONALITY
    • BENEFIT SEGMENTATION
      • BENEFIT SEGMENTATION IS THE PROCESS OF GROUPING CONSUMERS INTO MARKET SEGMENT ON THE BASIS OF DIFFERENT BENEFITS SOUGHT FROM THE PRODUCT.
    • TARGET MARKET
      • TARGET MARKET IS A GROUP OF CUSTOMERS (PEOPLE OR ORGANISATIONS) FOR WHOM A SELLER DESIGNS A PARTICULAR MARKETING MIX.
    • GUIDELINES FOR SELECTING TARGET MARKET
      • THE TARGET MARKET SHOULD BE CONSISTENT.
      • AN ORGANISATION SHOULD LOOK FOR MARKETS WHICH WILL GENERATE NOT ONLY SUFFICIENT SALES VOLUME BUT PROFIT VOLUME.
      • AN ORGANISATION SHOULD LOOK FOR A TARGET MARKET WHERE THE NUMBER AND SIZE OF COMPETITOR IS SMALL.
    • APPROACHES TO TARGET MARKET
      • UNDIFFERENTIATED MARKETING
      • (MASS MARKETING)
      • DIFFERENTIATED MARKETING
      • (MULTIPLE SEGMENTATION)
      • CONCENTRATED MARKETING
    • POSITIONING
      • OBJECTIVES:
      • To create a distinctive place of a product or service in the minds of potential customers.
      • To provide a competitive edge to a product or service.
      • To give the target market the reason of buying services.
    • POSITIONING APPROACHES
      • POSITIONING BY CUSTOMER BENEFITS
      • POSITIONING BY PRICE VALUE.
      • POSITIONING BY USE OF APPLICATION.
      • POSITIONING ACCORDING TO USERS OR CLASS OF USERS.
      • POSITIONING BY ENDORSEMENT.
      • POSITIONING BY QUALITY DIMENSIONS.
      • POSITIONING BY OF SERVICE EVIDENCE .
    • POSITIONING BY QUALITY DIMENSIONS
      • RELIABILITY
      • ASSURANCE
      • TANGIBILITY
      • EMPATHY
      • RESPONSIVENESS
    • RELIABILITY
      • “ RELIABILITY REFERS TO ABILITY TO PERFORM THE SERVICE DEPENDABLY AND ACCURATELY.”
    • ASSURNACE
      • “ ASSURANCE IS KNOWLEDGE, COURTESY OF EMPLOYEES AND THEIR ABILITY TO CONVEY TRUST AND CONFIDENCE.”
    • TANGIBILTY
      • “ TANGIBILITY RELATES TO PHYSICAL FACILITIES , EQUIPMENT, PERSONNEL AND COMMUNICATION MATERIALS.”
    • EMPATHY
      • “ EMPATHY RELATES TO CARING ATTITUDE, INDIVIDUALISED ATTENTION THE FIRM PROVIDES ITS CUSTOMERS.”
    • RESPONSIVENESS
      • “ RESPONSIVENESS RELATES TO WILLINGNESS TO HELP CUSTOMERS PROVIDE PROMPT SERVICE.”
      • PEOPLE
      • PHYSICAL EVIDENCE
      • PROCESS
      POSITIONING BY OF SERVICE EVIDENCE
    • CONSUMER BEHAVIOUR
      • “ CONSUMER BEHAVIOUR REFERS TO ACTIONS OF CONSUMER IN THE MARKET PLACE AND THE UNDERLYING MOTIVES FOR THE ACTIONS”
    • FACTORS AFFECTING CONSUMER BEHAVIOUR
      • SOCIAL FACTORS
      • CULTURAL FACTORS
      • PSYCHOLOGICAL FACTORS
      • PERSONAL FACTORS
    • CONSUMER BUYING PROCESS
      • STAGE 1: AWARENESS
      • STAGE 2: SEARCH & COMPREHENSION
      • STAGE 3: ATTITUDE DEVELOPMENT
      • STAGE 4: EVALUATION OF ALTERNATIVES
      • STAGE 5: PURCHASE
      • STAGE 6: ADOPTION & POST-PURCHASE BEHAVIOUR
    • CULTURAL FACTORS
      • SOCIAL CLASS
      • CULTURE
    • SOCIAL FACTORS
      • FAMILY INFLUENCE
      • REFERENCE GROUP INFLUENCE
      • ROLE & STATUS
    • PSYCHOLOGICAL FACTORS
      • LEARNING
      • BELIEFS & ATTITUDES
    • PERSONAL FACTORS
      • AGE & FAMILY LIFE CYCLE
      • ECONOMIC CIRCUMSTANCES
      • OCCUPATION
      • PERSONALITY
      • LIFE STYLE
    • CONSUMER DECISION MAKING FRAMEWORK SOCIAL FACTORS CULTURAL FACTORS PSYCHOLOGICAL FACTORS PERSONAL FACTORS BELIEFS & ATTITUDE LEARNING FAMILY INFLUENCE REFERENCE GROUP INFLUENCES ROLES AND STATUS CULTURE SUB-CULTURE SOCIAL CLASS AGE AND FAMILY LIFE CYCLE ECONOMIC CIRCUMSTANCES OCCUPATION PSYCHOGRAPHICS PERSONALITY CONSUMER AS DECISION-MAKER
    • SERVICE MARKETING TRIANGLE COMPANY EMPLOYEES MARKET
    • MARKETING MIX
      • “ MARKETING MIX DESCRIBES THE SPECIFIC COMBINATION OF MARKETING ELEMENTS USED TO ACHIEVE AN ORGANISATION’S OBJECTIVES AND SATISFY THE TARGET MARKET”.
    • MARKETING MIX FOR SERVICES
      • PRODUCT
      • PRICE
      • PLACE
      • PROMOTION
      • PEOPLE
      • PHYSICAL EVIDENCE
      • PROCESS
    • SERVICE PRODUCT CORE OR GENERIC PRODUCT EXPECTED OFFER AUGMENTED OFFER POTENTIAL OFFER
    • WHAT DO CUSTOMERS BUY?
      • “ CUSTOMERS BUY SOLUTIONS TO THEIR PROBLEMS”
      • “ CUSTOMERS HAVE CERTAIN NEEDS AND REQUIRE PRODUCTS THAT SATISFY THEIR NEEDS.”
    • SERVICE PRODUCT
      • “ THE TERM PRODUCT IS DEFINED AS A BUNDLE OF ATTRIBUTES CAPABLE OF EXCHANGE OR USE, USUALLY A MIX OF TANGIBLE AND INTANGIBLE FORMS.IT MAY BE AN IDEA, A PHYSICAL ENTITY, OR A SERVICE, OR ANY COMBINATION OF THREE.”
    • PRODUCT MIX
      • WIDTH OF PRODUCT MIX
      • DEPTH OF PRODUCT MIX
    • SERVICE DEVELOPMENT IS DIFFERENT:- WHY?
      • INTANGIBLE EXPERIENCES
      • INDIVIDUALIZED EXPERIENCE
      • STRATEGIC BENEFITS
      • SIMULTANEOUS PRODUCTION AND DELIVERY
      • QUALITY VARIABILITY
    • REASONS FOR DEVELOPMENT
      • BUILD RECOGNITION AS AN INNOVATOR
      • PROVIDE A NEW SERVICE OFFERING TO DEVELOP A MARKET
      • PROACTIVE TERRITORIAL EXPANSION THROUGH A NEW OR MODIFIED OFFERINGS AT THE EXISTING SERVICE PLACE
      • DEFENSIVE ACTION TO CHALLENGE COMPETITORS
      • TAKE ADVANTAGE OF THE TECHNOLOGICAL BREAK THROUGH
      • TO REPOSITION
    • TYPES OF NEW SERVICE
      • MAJOR INNOVATION
      • START UP BUSINESSES
      • NEW SERVICE FOR THE CURRENTLY SERVED MARKET
      • SERVICE LINE EXTENSIONS
      • SERVICE IMPROVEMENTS
      • STYLE CHANGES
    • MAJOR INNOVATION
      • “ THESE ARE NEW SERVICES FOR MARKET AS YET UNDEFINED.” (TECHNOLOGICAL BREAK THROUGH)
    • START UP BUSINESSES
      • “ THESE CONSIST OF NEW SERVICES FOR MARKET ALREADY SERVED BY EXISTING SERVICES THAT MEET THE SAME GENERIC NEEDS .”
    • NEW SERVICE FOR THE CURRENTLY SERVED MARKET
      • “ THESE REPRESENT ATTEMPTS TO OFFER EXISTING CUSTOMERS OF THE ORGANIZATION A SERVICE NOT PREVIOUSLY AVAILABLE FROM THE COMPANY ALTHOUGH IT WAS AVAILABLE ELSEWHERE.”
    • SERVICE LINE EXTENSIONS
      • “ THESE RELATE TO AUGMENTATION OF EXISTING SERVICE LINE OR DISTINCTIVE NEW WAYS OF DELIVERING EXISTING SERVICES.”
    • SERVICE IMPROVEMENTS
      • “ THESE ARE THE MOST COMMON TYPE OF INNOVATION INVOLVING CHANGES IN THE FEATURES OF THE SERVICE.”
    • STYLE CHANGES
      • “ THESE REPRESENT MOST MODEST SERVICE INNOVATIONS, ALTHOUGH THEY ARE OFTEN HIGHLY VISIBLE AND CAN HAVE A SIGNIFICANT IMPACT ON CUSTOMER PERCEPTION, EMOTION AND ATTITUDES. THERE IS NO IN THE SERVICE, ONLY ITS APPEARANCE IS CHANGED.”
    • SOURCES OF NEW SERVICE IDEAS
      • EXTERNAL SOURCES OF NEW SERVICE IDEAS
      • INTERNAL SOURCES OF NEW SERVICE IDEAS
    • INTERNAL SOURCES OF NEW SERVICE IDEAS
      • RESEARCH AND DEVELOPMENT
      • ENGINEERING, MANUFACTURING, PURCHASING
      • MARKETING, MARKET RESEARCH, SALES PERSONNEL, CUSTOMER SERVICE
      • MANAGEMENT
      • OTHERS
          • EMPLOYEE SUGGESTIONS
          • BRAIN STORMING
    • EXTERNAL SOURCES OF NEW SERVICE IDEAS
      • CUSTOMERS
      • COMPETITORS
      • SPECIALISTS
      • OTHERS
    • NEW SERVICE DEVELOPMENT STAGES
      • EXPLORATION AND IDEA GENERATION
      • SCREENING
      • CONCEPT TESTING
      • BUSINESS ANALYSIS
      • SERVICES DEVELOPMENT
      • TESTING MARKETING
      • COMMERCIALIZATION
      • EVALUATION
    • THE PRICE CHALLENGE
      • “ TOO HIGH THE PRICES, THE CUSTOMER WILL NOT BUY”.
      • “ TOO LOW THE PRICES, THE COSTS WILL NOT BE COVERED”.
    • TERMS USED FOR PRICING SERVICES Theatre Entry Admission 10 Sales person’s services, Agent’s Services Commission 9 Services of Blue Collar Worker Wages 8 Services of an Executive/White Collar Worker Salary 7 Travel on Some Highway Toll 6 Services of Doctor/Lawyer Fee 5 Taxi ride, Airline Flight or Bus Journey Fare 4 Use of Living House or Piece of Equipment Rent 3 Use of Money Interest 2 Education Tuition 1 WHAT YOU GET (SERVICE) WHAT YOU PAY (PRICE) No.
    • SERVICE INDUSTRY PRICING METHODS
      • COST ORIENTED
      • DEMAND ORIENTED
    • COST ORIENTED PRICING
      • COST PLUS PRICING
      • RATE OF RETURN PRICING
    • DEMAND ORIENTED PRICING
      • DISCRIMINATING PRICING
      • MARKET PENETRATION PRICING
      • SKIMMING PRICING
      • GUARANTEE PRICING
    • DISCRIMINATING PRICING
      • BY CUSTOMER
      • BY PRODUCT OR SERVICE
      • BY LOCATION
      • BY TIME
      • BY QUANTITY
    • DISCOUNTS
      • “ Discounts are reductions from the list price that a seller gives a buyer as a reward for some buyer activity favorable to the seller”.
    • TYPES OF DISCOUNTS
      • QUANTITY DISCOUNTS
      • CUMULATIVE QUANTITY DISCOUNTS
      • NON-CUMULATIVE QUANTITY DISCOUNTS
      • SEASONAL DISCOUNTS
      • TRADE (FUNCTIONAL) DISCOUNTS
      • COMMISSIONS
      • CASH DISCOUNTS
    • PROMOTION PROMOTION IS AN ELEMENT IN AN ORGANISATION’S MARKETING MIX THAT SERVES TO INFORM, PERSUADE, OR REMIND PEOPLE ABOUT AN ORGANISATION’S OR INDIVIDUAL GOODS,SERVICES,IMAGE,IDEAS.
    • WHY PROMOTION?
      • IT CREATES IMAGE
      • IT CREATES REPUTATION
      • IT REASSURS
    • COMMUNICATION MIX
      • ADVERTISING
      • PERSONAL SELLING
      • SALES PROMOTION
      • PUBLIC RELATIONS
    • PROMOTION MIX
      • ADVERTISING
      • PERSONAL SELLING
      • SALES PROMOTION
      • PUBLICITY
      • PUBLIC RELATIONS
      • DIRECT MAIL
      • WORD OF MOUTH
      • TELE-MARKETING
    • GUIDELINES FOR SERVICE PROMOTION
      • PROVIDE TANGIBLE CLUES
      • MAKE THE SERVICE UNDERSTOOD
      • COMMUNICATION CONTINUITY
      • PROMISING WHAT IS DELIVERED
      • CAPITALISING ON WORD OF MOUTH
      • DIRECT COMMUNICATION TO EMPLOYEES
    • ADVERTISING
      • “ ADVERTISING IS ANY PAID FORM OF NON-PERSONAL COMMUNICATION THROUGH THE MEDIA ABOUT A PRODUCT/SERVICE THAT HAS AN IDENTIFIED SPONSOR .”
    • ADVERTISING APPROACHES USED TO PROMOTE SERVICES
      • TANGIBILISE INTANGIBLES
      • MAKE THE SERVICE APPEAR ITSELF
      • FOCUS ON BENEFITS
      • BUILD IMAGE
    • ADVERTISING OJECTIVES
      • DEMAND ORIENTED
      • INFORMATION
      • PERSUATION
      • REMINDING
      • IMAGE ORIENTED
    • ADVERTISING MEDIA SELECTION
      • MEDIA AVAILABALE CRITERIA FOR SELECTION
      • PRESS & NEWSPAPERS -WASTE
      • MAGAZINES -COST
      • TELEVISION -REACH
      • CABLE TV MEDIA -PERSUASIVE IMPACT
      • OUTDOOR -LEAD TIME
      • CINEMA
      • EXHIBITIONS
      • DIRECT MAIL
      • TELE-MARKETING
      • DIRECTORIES
      • FLYERS
      • INTERNET
    • PERSONAL SELLING
      • “ PERSONAL SELLING INVOLVES ORAL COMMUNICATION WITH ONE OR MORE PROSPECTIVE BUYERS BY PAID REPRESENTATIVES FOR THE PURPOSE OF MAKING SALES ”.
    • TYPE OF INCENTIVES /MOTIVATORS PROVIDED BY FIRMS TO ITS SALES-FORCE
      • SALES CONTESTS
      • SALES TRAINING
      • SALES CONFERENCES
      • HONOURS/AWARDS
    • SALES PROMOTION
      • “ SALES PROMOTION INVOLVES PAID MARKETING COMMUNICATION ACTIVITIES (OTHER THAN ADVERTISING, PUBLICITY OR PERSONAL SELLING) THAT ARE INTENDED TO STIMULATE CONSUMER PURCHASES AND DEALER EFFECTIVENESS.”
    • PROMOTIONAL ACTIVITIES DIRECTED AT CUSTOMERS
      • SAMPLES
      • CONTESTS
      • REBATES
      • BONUS PACKS
      • GIFTS TO FREQUENT SHOPPERS
      • SPECIAL
    • PUBLIC RELATIONS EFFORTS OF A SERVICE PROVIDER TO WIN THE ESTEEM OF ITS PUBLICS: STOCKHOLDERS, EMPLOYEES, CUSTOMERS, SOCIETY, MEDIA ETC.
    • PLACE (DISTRUBUTION)
      • “ THE PLACE OR DISTRIBUTION OF SERVICES REFERS TO AVAILABILITY OF A SERVICE, i.e,WHEN AND WHERE IT CAN BE PURCHASED.”
    • KEY ISSUES REGARDING LOCATION
      • NEED OF THE MARKET
      • TECHNOLOGICAL INNOVATION
    • SERVICE LOCATION:SITUATIONS
      • SERVICE PROVIDER GOES TO THE CUSTOMER
      • SERVICE PROVIDER AND CUSTOMER TRANSACT AT ARM’S LENGTH
      • CUSTOMER GOES TO THE SERVICE PROVIDER
    • SERVICE LOCATION:SITUATIONS & THEIR IMPACT APPROPRIATE LOCATION OR MULTI LOCATIONS CUSTOMER GOES TO THE SERVICE PROVIDER & INVOLVES CLOSE INTERACTION LOCATION BECOMES INSIFNIFICANT SERVICE PROVIDED AT ARM’S LENGTH WITHOUT SERVICE PROVIDER & CUSTOMER INTERACTION LOCATION BECOMES LESS IMPORTANT SERVICE PROVIDER GOES TO THE CUSTOMER IMPACT SITUATION
    • CHANNELS OF DISTRIBUTION
      • THE SERVICE PROVIDER
      • INTERMEDIARIES
      • CUSTOMERS
      PARTICIPANTS:
    • CHANNEL OPTIONS
      • DIRECT SALES
      • AGENTS OR BROKERS
      • FRANCHISES
    • CHANNEL OPTIONS
      • FORM OF CHANNEL
      • Direct Sales
      • Producer Consumer
      • Agents or Broker
      • Producer Agent Consumer
      • Agents or Broker Franchises & Contracted Services Deliveries
      • Agent Consumer
    • MANAGING CHANNELS
      • INTENSIVE DISTRIBUTION
      • SELECTIVE DISTRIBUTION
      • EXCLUSIVE DISTRIBUTION
    • MAJOR INTERMEDIARIES FOR SERVICE DELIVERY SERVICES FRANCHISEES ELECTRONICS AGENTS/ BROKERS
    • FRANCHISING
      • “ IT IS A CONTRACTUAL VERTICAL MARKETING SYSTEM THAT INVOLVES A CONTINUING RELATIONSHIP IN WHICH A FRANCHISOR (PARENT COMPANY) PROVIDES THE RIGHT TO USE A TRADE MARK & VARIOUS FORMS OF MANAGEMENT ASSISTANCE IN RETURN FOR THE PAYMENTS FROM FRANCHISEE (THE OWNER OF THE INDIVIDUAL BUSINESS UNIT).”
    • FRANCHISING PRODUCT/SERVICE CATEGORY SAMPLE FRANCHISES FAST FOOD Mc Donald’s Domino’s Wimpy’s EDUCATION Aptech NIIT CMC STG Tulec COURIER Overnite Express DHL Fedex HOTELS Holiday Inn Radisson BEAUTY PARLOURS Shehnaz
    • ELECTRONIC CHANNELS
      • “ DISTRIBUTION OF SERVICES THROUGH ELECTRONIC CHANNEL IS WITHOUT ANY DIRECT HUMAN INTERACTION”
      • Some examples
        • E - BANKING
        • E-MBA
        • VIDEO CONFERENCING
        • PLASTIC MONEY
        • ATM’S
        • INTERNET
    • ELECTRONIC CHANNELS
      • ADVANTAGES
      • CONVENIENCE
      • LOW COST
      • WIDE DISTRIBUTION
      • QUALITY CONTROL
    • SERVICE DISTRIBUTION THROUGH AGENTS AND BROKERS
      • AGENTS
          • SERVICE PROVIDER AGENTS
          • SELLING AGENTS
      • BROKERS
    • PHYSICAL EVIDENCE
      • “ THE PHYSICAL EVIDENCE IS DEFINED AS THE ENVIRONMENT IN WHICH THE SERVICE IS DELIVERED AND WHERE THE FIRM AND THE CUSTOMERS INTERACT ; AND TANGIBLE COMMODITIES THAT FACILITATE PERFORMANCE OR COMMUNICATE THE SERVICE” .
    • COMPONENTS OF PHYSICAL EVIDENCE
      • EXTERIOR FACILITIES
      • INTERIOR FACILITIES
      • OTHER TANGIBLES
    • PHYSICAL ENVIRONMENT AMBIENT FACTORS DESIGN FACTORS SOCIAL FACTORS
    • ROLE OF PHYSICAL EVIDENCE
      • Socilaising Shaping
      • Employees First
      • Impression
      • Providing Managing
      • Sensory ROLE OF EVIDENCE Trust
      • Stimuli
      • Changing Facilitating
      • The Image Quality of Service
    • ELEMENTS OF PHYSICAL EVIDENCE Organisation Physical Facilities Other Tangibles (Service Scape) Facility Exterior Business Cards Exterior design Stationary Signage Billing Statements Parking Report Landscape Employee Dress Surrounding Environment Uniform Brouchers Facilities Interior Interior Design Equipment Signage Layout Airquality/ Temperature
    • KINDS OF PHYSICAL EVIDENCE
      • PERIPHERAL EVIDENCE
      • ESSENTIAL EVIDENCE
    • PROCESS
      • “ PROCESS REFERS TO THE WAYS OF UNDERTAKING TRANSACTIONS, SUPPLYING INFORMATION AND PROVIDING SERVICES TO THE CUSTOMERS IN A MANNER WHICH IS ACCEPTABLE TO THE ORGANISATION.”
    • TYPES OF PROCESS
      • LINE OPERATIONS
      • JOB SHOP OPERATIONS
      • INTERMITTENT OPERATIONS
    • Operating System
      • Materials Resource
      • Labour Conversion Products
      • Machines Process Services
      • Power
      • Information
      • Technology
      • Inputs Outputs
    • CLASSIFICATION OF SERVICES OPERATING SYSTEMS SERVICES OPERATING SYSTEM THE TYPE OF PROCESS THE DEGREE OF CONTACT
    • THE DEGREE OF CONTACT High Contact Low Contact
    • SERVICE PERSONNEL
      • “ SERVICE PERSONNEL ARE THE PEOPLE WHO PROVIDE THE ORGANIZATION'S SERVICES TO CUSTOMERS.” e.g, Operators, Bus-drivers, Chefs, Receptionists, Security guards, Waiters, Bank -Clerks, lift Attendants, librarians etc.
    • PEOPLE Service personnel Customers
    • ROLES PERFORMED BY SERVICE PERSONNEL
      • PRODUCTION
      • OPERATIONAL
    • SERVICE PERSONNEL QUALITY
      • TECHNICAL QUALITY (WHAT?)
      Technical Solutions Know Technical Machines How Quality Computerized Systems
    • SERVICE PERSONNEL QUALITY
      • FUNCTIONAL QUALITY (HOW?)
      Attitudes Behaviour Internal Functional Relations Quality Accessibility Customer Appearance Contact
    • MAINTAINING & IMPROVING SERVICE PERSONNEL QUALITY & PERFORMANCE
      • CAREFUL SELECTION & TRAINING OF SERVICE PERSONNEL
      • INTERNAL MARKETING
      • USING PRACTICES TO OBTAIN CONSISTENT BEHAVIOUR
      • ENSURING CONSISTENT APPEARANCE
    • PRACTICES TO ACHIEVE CONSISTENT BEHAVIOUR
      • COMMUNICATION WITH MANAGEMENT AND STAFF
      • TRAINING
      • MANAGEMENT/STAFF RELATIONSHIP
      • CUSTOMER SERVICES IMPROVEMENT
      • LINK MAJOR CHANGE TO CUSTOMER SERVICE
      • REWARDS FOR OUTSTANDING INDIVIDUAL PERFORMANCE
    • PERSONNEL AUDIT
      • SALES-RELATED SYSTEMS
      • COMPLAINT SYSTEMS
      • SUGGESTION SCHEMES
      • AUDIT VISITS
      • CUSTOMER SATISFACTION SURVEY
    • CAPACITY CONSTRAINTS
      • TIME CONSTRAINTS
      • LABOUR CONSTRAINTS
      • EQUIPMENT CONSTRAINTS
      • FACILITIES CONSTRAINTS
    • STRATEGIES FOR MANAGING DEMAND
      • MATCHING CAPACITY & DEMAND
      • ADJUSTING CAPACITY TO MEET DEMAND
    • MATCHING CAPACITY & DEMAND
      • MATCH CAPACITY BY SHIFTING DEMAND
      • MATCH CAPACITY BY SERVICE VARIATION
      • BY MODIFYING TIMING & LOCATION OF SERVICE DELIVERY
      • BY ADJUSTING PRICES
    • BY ADJUSTING CAPACITY TO MEET DEMAND
      • BY STRETCHING TIME
      • BY STRETCHING LABOUR
      • BY STRETCHING EQUIPMENT
      • BY STRETCHING FACILITIES
    • STRATEGIES FOR DEALING WITH INSEPARABILITY
      • BUILD MEMBERSHIP RELATIONSHIP
      • PERSONALIZE THE SERVICE
      • PROVIDE TRAINING
    • BUILD MEMBERSHIP RELATIONSHIP
      • CONTINUOUS DELIVERY OF SERVICES
      • DISCRETE TRANSACTIONS
    • THE SERVICE MUST BE DELIVERED AT
      • RIGHT TIME
      • RIGHT PLACE
      • RIGHT WAY
    • HOW TO DEAL WITH INCONSISTENCY
      • INDUSTRIALISE SERVICES
      • ESTABLISH SET RULES & PROCEDURES
    • INDUSTRIALISE SERVICES
      • HARD TECHNOLOGIES
      • SOFT TECHNOLOGIES
      • HYBRID TECHNOLOGIES
    • SENSITIVITY TRAINING
      • RIGHT TIME
      • RIGHT PLACE
      • RIGHT WAY
    • CATEGORY OF CUSTOMERS CATEGORY OF CUSTOMERS HEAVY USERS MODERATE LOW USERS OCCASIONAL USERS
    • TYPE OF RELATIONSHIP BETWEEN THE SERVICE ORGANISATION & ITS CUSTOMERS
      • Pay Phone
      • Movie Theatre
      • Public Transportation
      • Restaurant
      • Long-Distance Phone Call
      • Theatre Series Subscription
      Discrete Transactions
      • Radio Station
      • Police Protection
      • Public Highway
      • Insurance
      • Telephone
      • College Enrollment
      • Banking
      Continuous Delivery of Service NO FORMAL RELATIONSHIP MEMBERSHIP RELATIONSHIP NATURE OF DELIVERY
    • TANGIBILISING THE INTANGIBLES
      • PROMOTIONAL STRATEGIES USED TO PORTRAY BENEFITS
      • VISUALISATION
      • ASSOCIATION
      • PHYSICAL REPRESENTATION
      • DOCUMENTATION
    • TANGIBILISNG SERVICES THROUGH BENEFITS
      • TANGIBILISING THROUGH POSITIONING
      • TANGIBILISING THROUGH PROMOTION
      • TANGIBILISING THROUGH PHYSICAL EVIDENCE
    • HANDLING COMPLAINTS EFFECTIVELY
      • STAY CALM
      • AVOID ADMITTING ANY LIABILITY
      • LET THE CUSTOMER GET THE STORY OFF THEIR CHEST
      • GET THE FACTS
      • FIND OUT WHAT THE CUSTOMER WANTS
      • IDENTIFY THE APPROPRIATE ACTION TO TAKE
    • SERVICES-BASED COMPONENTS OF QUALITY
      • TANGIBLES
      • RELIABILITY
      • RESPONSIVENESS
      • ASSURANCE
      • EMPATHY
    • GAPS IN SERVICES DESIGN AND DELIVERY
      • THE KNOWLEDGE GAP
      • THE STANDARDS GAP
      • THE DELIVERY GAP
      • THE INTERNAL COMMUNICATIONS GAP
      • THE PERCEPTIONS GAP
      • THE SERVICE GAP
    • HARD MEASURES OF SERVICE QUALITY
      • CONTROL CHARTS TO MONITOR A SINGLE VARIABLE
      • SERVICE QUALITY INDEXES
      • ROOT-CAUSE ANALYSIS
    • HOW PRODUCTIVITY IMPROVEMENT IMPACTS QUALITY AND VALUE
      • CAREFUL CONTROL OF COSTS
      • EFFORTS TO REDUCE WASTEFUL USE OF RESOURCES
      • MATCHING PRODUCTIVE CAPACITY TO AVERAGE LEVELS OF DEMAND
      • REPLACEMENT OF WORKERS BY AUTOMATED MACHINES
      • PROVIDING EMPLOYEES WITH EQUIPMENT
      • TEACHING EMPLOYEES HOW TO WORK MORE PRODUCTIVELY
      • INSTALLING EXPERT SYSTEMS THAT ALLOW PARAPROFESSIONAL