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Service marketing With GAPS Model

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  • 1. GURURAJ PHATAK SERVICE MARKETING
  • 2. GURURAJ PHATAK What is a Service?  “Any act or performance that one party can offer to another party is essentially intangible and does not result in the ownership of anything”  Ex:  Educational Services.  Hospital Services.
  • 3. GURURAJ PHATAK
  • 4. Differences between Product and Services GURURAJ PHATAK
  • 5. S.No.S.No. ProductsProducts ServicesServices 1.1. TangibleTangible IntangibleIntangible 2.2. Homogeneous(SameHomogeneous(Same type)type) Heterogeneous(Different)Heterogeneous(Different) 3.3. Production and distributionProduction and distribution separated fromseparated from consumptionconsumption Production, distribution andProduction, distribution and consumption reconsumption re simultaneous processsimultaneous process 4.4. A thingA thing An activityAn activity 5.5. Customers do notCustomers do not participate in theparticipate in the production processproduction process Customers participate inCustomers participate in productionproduction 6.6. Can be kept in stockCan be kept in stock Cannot be kept in stockCannot be kept in stock 7.7. Transfer of ownershipTransfer of ownership No transfer of ownershipNo transfer of ownership GURURAJ PHATAK
  • 6. GURURAJ PHATAK Types of Services: Consumer Services.  Food Services:  Ex:  Hotel Services: The “TAJ” HOTEL, MUMBAI
  • 7. GURURAJ PHATAK Types of Services: Consumer Services  Personal Care Services:  Health and Fitness Centers.  Ex:  Automotive Service Firms: Bike/Car Care outlets.
  • 8. GURURAJ PHATAK  Entertainment Services:  Music & Movies :  Transport Services: Types of Services: Consumer Services. RFC: Amusement Park Hyderabad
  • 9. GURURAJ PHATAK  Communication Services:  Insurance Services:  Financial Services: Types of Services: Consumer Services.
  • 10. GURURAJ PHATAK Types of Services: Industrial Services  Financial Services:  Insurance Services: Employee Insurance Corporation.  Transport and Warehousing Services:
  • 11. GURURAJ PHATAK  Engineering Services:  Advertising & Promotion Services:  O&M Advertising Agency, The Times of India etc Types of Services: Industrial Services
  • 12. GURURAJ PHATAK  Management Consultancy Services. Types of Services: Industrial Services
  • 13. GURURAJ PHATAK Define Service Marketing  Marketing of Any act or performance that one party can offer to another party is essentially intangible and does not result in the ownership of anything such as Educational Institutions or Hospital or Entertainment Services”
  • 14. GURURAJ PHATAK Characteristics of Services & Their Marketing Implications *2m *8m
  • 15. GURURAJ PHATAK Service Marketing Mix  Product  Price  Promotion  Place  People  Physical Evidence  Process
  • 16. GURURAJ PHATAK Service Marketing Mix with Hutch  “Where ever you go our network follows”…………  Product:  Postpaid connections  Prepaid connections  Hutch PCO Product Decisions: Branding Features Quality
  • 17. GURURAJ PHATAK Price  The prices are being charged in accordance with:  The charges vary from region to region. Roaming rates Services Talk plans Prices
  • 18. GURURAJ PHATAK Promotion.... Promotion Advertisement Hoardings Personal selling Media Publicity Internet
  • 19. GURURAJ PHATAK Promotion….. Two two talk plan VIP no’s Reducing rates Validity offer Easy recharge Promotion
  • 20. GURURAJ PHATAK Place • The hutch outlets are being situated in various places in India which includes 16 states. • It has both postpaid outlets and prepaid outlets. • Andhra Pradesh, Punjab, West Bengal, Karnataka, Maharashtra & Goa, Tamil Nadu, Rajasthan • UP (E) UP (W) • Kerala • Delhi • Mumbai • Haryana
  • 21. GURURAJ PHATAK Physical Evidence Sim cards Bills Before and After sale documents PHYSICAL EVIDENCE
  • 22. GURURAJ PHATAK People People are important because:  Providing a service, rather than selling a product.  Quality of personal relationships between company and clients becomes vital.  New staff needs thorough training and constant monitoring.  Staffing costs-----the highest cost  Recruiting specialist staff ------time consuming and expensive.
  • 23. GURURAJ PHATAK People Include... Higher managers Middle managers Lower managers Others like: Technicians Dealers Other Employees (BPO Employees)
  • 24. GURURAJ PHATAK Process: Process of taking a postpaid connection Go to Hutch Shop Choose a product (Say Postpaid connection) Pay the appropriate fees Take the Respective product (Like SIM Card in this case) Avail the facilities Give the feedback
  • 25. GURURAJ PHATAK Suggestions  The charges should be less  The outlets should be opened in the small towns also  No. of Hutch PCO should be raised  More schemes should be introduced  Customer satisfaction should be there
  • 26. GURURAJ PHATAK Marketing Strategies for Service Firms SERVICE PROFIT CHAIN Internal Service Quality Satisfied & Productive Service Employees Healthy Service Profits and Growth Greater Service Value Satisfied and Loyal Customers
  • 27. GURURAJ PHATAK 1. Service Profit Chain  The chain that links service firm profits with employees and customer satisfaction.  Internal Service Quality: superior employee selection and training.  Satisfied and productive service employees: loyal and hard multi tasking and smart working employees  Greater service value: more efficient and effective customer value creation and service delivery.  Satisfied and loyal customers: repeat purchasers, referrers.  Healthy service profits growth: superior service firm performances
  • 28. GURURAJ PHATAK SERVICE MARKETING TRIANGLE  Internal Marketing:  Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction.  Interactive Marketing:  Training service employees in fine art of interacting with customer to satisfy their needs. COMPANY EMPLOYEES CUSTOMERS INTERNAL M ARKETING EXTERNAL M ARKETING INTERACTIVE MARKETING
  • 29. GURURAJ PHATAK 3. Managing Service Differentiation 1. Give different offers to the customers which is not given by your competitor. 2. Delivery of the services plays key role.
  • 30. GURURAJ PHATAK 4. Managing Service Quality.  The determinants of Service Quality are: RATER  Reliability: the ability to perform the promised service dependably and accurately.  Assurance: the knowledge and courtesy of the employees and their ability to convey trust and confidence.  Tangibles: the appearance of physical facilities, equipment, personal and communication materials.  Empathy: the provision of caring and individual attentions to customers.  Responsiveness: the willingness to help customers and to provide prompt service.
  • 31. GURURAJ PHATAK Managing Product Support Services.  What is Product Support Service?  To provide the best support to the product a manufacturer identify and prioritize the services that customers value the most.These types of services is known as Product Support Services.  Ex: Assembling of Computer System  Installation of new software's like antivirus system ex: Quick Heal Antivirus.  Installation of new processing technologies like Dual Core, Core2duo,Windows Xp,Windows 7.  Installation of Management Software's such as ERP Systems.
  • 32. GURURAJ PHATAK Types of Product Support Services.  Ordering Ease: how easy it is for customer to place an order with the company.  Delivery: refers to how well the product as service is brought to the customers. It includes speed, accuracy and care throughout the process.  Installation: refers to the work done to make a product operational in its planned location.This service is important for companies offering complex products such as Integrated Circuits related to Digital Electronics Ex: IC 7400 etc.
  • 33. GURURAJ PHATAK  CustomerTraining: refers to the training of customers/his employees to use the equipment properly and efficiently.  Customer consulting: refers to the data, information systems and advice services that the seller offers to the buyers.  Maintenance & Repair:  1. Pre-Sale Services: Facilitating the value augmented services. 2. Post-Sale Services: Customer service Departments Repair and Maintenance. Types of Product Support Services.
  • 34. GURURAJ PHATAK GAP Model  Introduce the framework, called the gaps model of service quality, used to organize this textbook.  Demonstrate that the gaps model is a useful framework for understanding service quality in an organization.  Demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions.  Show that four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap.  Identify the factors responsible for each of the four provider gaps.
  • 35. GURURAJ PHATAK Defining GAP Model The Gaps Model—A Conceptual Tool to Identify and Correct Service Quality Problems
  • 36. GURURAJ PHATAK GAP MODEL/SERVQUAL MODEL CUSTOMER GAP
  • 37. GURURAJ PHATAK Key Factors Leading to the Customer Gap  Provider Gap 1: Not knowing what customers expect  Provider Gap 2: Not selecting the right service designs and standards  Provider Gap 3: Not delivering to service standards  Provider Gap 4: Not matching performance to promises Customer Expectations Customer Perceptions Customer Gap
  • 38. GURURAJ PHATAK Gaps Model of Service Quality  Customer Gap:  difference between customer expectations and perceptions  Provider Gap 1 (Listening Gap):  not knowing what customers expect  Provider Gap 2 (Service Design & Standards Gap):  not having the right service designs and standards  Provider Gap 3 (Service Performance Gap):  not delivering to service standards  Provider Gap 4 (Communication Gap):  not matching performance to promises
  • 39. GURURAJ PHATAK Company perceptions of customer expectations Customer expectations CUSTOMER COMPANY Gap 1: The Listening Gap Provider Gap 1 Perceived Service
  • 40. GURURAJ PHATAK Key Factors Leading to Provider Gap 1
  • 41. CUSTOMER COMPANY Gap 2: The Service Design and Standards Gap Customer-driven service designs and standards Company perceptions of customer expectations Provider Gap 2 2-41 GURURAJ PHATAK
  • 42. Key Factors Leading to Provider Gap 2 2-42 GURURAJ PHATAK
  • 43. CUSTOMER COMPANY Service delivery Gap 3: The Service Performance Gap Customer-driven service designs and standards Provider Gap 3 2-43 GURURAJ PHATAK
  • 44. Key Factors Leading to Provider Gap 3 2-44 GURURAJ PHATAK
  • 45. CUSTOMER COMPANY External communications to customers Gap 4: The Communication Gap Provider Gap 4 Service delivery 2-45 GURURAJ PHATAK
  • 46. Putting All Gaps Together 2-46 GURURAJ PHATAK
  • 47. GURURAJ PHATAK You Find 4 GAPS in Zeithmal Text Book And You Find 7 GAPS in Christopher Lovelock Text Book. Both the Models Describes the Same Context. NOTE:
  • 48. Seven Service Quality Gaps Customer experience relative to expectations 1. Knowledge Gap 2. Standards Gap 3. Delivery Gap 5. Perceptions Gap 7. Service Gap Customer needs and expectations 6. Interpretation Gap 4. Internal Communications Gap MANAGEMENT CUSTOMER 4. Customer perceptions of service execution Management definition of these needs Translation into design/delivery specs Execution of design/delivery specs Advertising and sales promises Customer interpretation of communications GURURAJ PHATAK
  • 49. Prescriptions for Closing the Seven Service Quality Gaps 1. Knowledge gap: Learn what customers expect  Understand customer expectations  Improve communication between frontline staff and management  Turn information and insights into action 1. Standards gap: Specify SQ standards that reflect expectations  Set, communicate, and reinforce customer-oriented service standards for all work units  Measure performance and provide regular feedback  Reward managers and employees GURURAJ PHATAK
  • 50. Prescriptions for Closing the Seven Service Quality Gaps 3. Delivery gap: Ensure service performance meets standards  Clarify employee roles  Train employees in priority setting and time management  Eliminate role conflict among employees  Develop good reward system 3. Internal communications gap: Ensure that communications promises are realistic  Seek comments from frontline employees and operations personnel about proposed advertising campaigns  Get sales staff to involve operations staff in meetings with customers  Ensure that communications sets realistic customer expectations GURURAJ PHATAK
  • 51. Prescriptions for Closing the Seven Service Quality Gaps 5. Perceptions gap: Educate customers to see reality of service quality delivered  Keep customers informed during service delivery and debrief after delivery  Provide physical evidence 5. Interpretation gap: Pretest communications to make sure message is clear and unambiguous  Present communication materials to a sample of customers in advance of publication 5. Service gap: Close gaps 1 to 6 to meet customer expectations consistently GURURAJ PHATAK