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Utsav Mahendra : Services Management
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Utsav Mahendra : Services Management



Service Management

Service Management



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    Utsav Mahendra : Services Management Utsav Mahendra : Services Management Presentation Transcript

    • Global ServiceManagement
    • Corporate Involvement in Services MarketingTypical International Services – Banking and financial services – Construction, design, and engineering services – Legal and accounting services – Communication services – Teaching and training services – Management consulting 2
    • Differences Between Services and GoodsDefinitions and distinctions– Goods are physical objects, devices, or things.– Services are deeds, performances, or actions.– Goods are fixed in form and require physical distribution; services are delivered as problem solutions on or off-site.– The main difference between goods and services is intangibility. Services are generally more intangible, personalized, and perishable. 3
    • Linkage between Services and GoodsGoods and services complement oneanother. Goods frequently requireservicing after their purchase.Goods and services are marketed invarying packages or combinations totargeted customer groupsCustomer groups have differingperspectives on the features and provisionof services. 4
    • Stand-Alone ServicesServices compete with goods andcompete with other services (e.g., videorentals).Services are intangible and perishable,presenting problems in matching servicecapacity to variations in demand.Consumption of services requires providerand customer involvement.Service consistency is required. 5
    • Tangible/Intangible Offerings of Airlines Distribution Airlines Price Vehicle Service Frequency Transport Transport Transport Food and Drinks Intangible Tangible Source: Adapted from G. Lynn Shostack, “Breaking Free from Product Marketing, “ in Services Marketing, ed. Christopher H. Marketing, 6 Lovelock (Englewood Cliffs, NJ: Prentice-Hall, 1984), 40.
    • Problems with ServicesMarket transparency– Consumers have difficulty in evaluating services because customers may use (or require )the same service in different way.Service heterogeneity– Services vary in their content and quality of delivery as customer requirements change.Cultural sensitivity– Services are delivered directly to the customer, making them potentially more culturally sensitive than products. 7
    • The Role of ServicesIn the U.S. economy– The service sector produces 77% of U.S. GNP and employs 80% of the workforce.– Financial and technical services exporting and importing are both growing rapidly.In the world economy– Services are the fastest growing world trade sector– International services contribute more than half of GNP in many industrial nations.– Trade in services is about 25% of all world trade. 8
    • Global Transformation of ServicesReduced governmental regulation – Transportation, banking, and telecommunicationsDecreased regulation by industry groups.Technological advances are opening upand increasing worldwide servicetrade opportunities.Both labor-intensive and technology-intensive services are expandinginto global markets. 9
    • International Trade Problems in ServicesData collection problems– The quality of data collected on the service trade is poor due to the difficulty of quantifying and tracking the delivery of services.– Services lack of homogeneity for transparency, making comparisons and the measurement of the effects of services in global markets difficult . 10
    • Regulation of Services TradeU.S. disincentives to international services– State and federal regulations are formidable barriers to entry.Governmental justification for entrybarriers– National Security– Economic Security– Protection of infant industries 11
    • Regulation of Services TradeObstacles to service trade abroad– barriers to entry– performance– Discriminatory and nondiscriminatory regulations 12
    • Governmental Responses to Services ProblemsTrade liberalization developments– OECD code on invisible transactions (1950’s)– GATT and the Tokyo Round– The Government Procurement Code– Subsidies and Countervailing Measures Code– The Uruguay Round and the General Agreement on Trade in Services (GATS) 13
    • Starting to Market Services InternationallyFor services tied to complementary goods“ – Follow the path of the good in the market.For services independent of goods – Identify market situations abroad similar to the domestic market where the application of services expertise presents opportunities for market entry and expansion.Identify and understand transition points – Domestic and economic changes in foreign countries can create the need for services expertise. 14
    • International Services Marketing Strategic Implications – Identify the nature and the aim of the service offering core. – Communicate the performance of the service on both the mass level and the personal level. – Train organizational personnel to convey the spirit, values, and attitudes of the corporation. – Address issues of service pricing and financing. – Consider the distribution implications of international services. 15
    • Thank You!!! 16