Amity Business School MBA Class of 2010, Semester III What are Services Prof. P K Bansal
In simple terms, services are Deeds,
Processes and Performances.
IBM offers repair and maintenance services for its equipment, consulting services for IT and e-commerce applications, training services, web design and hosting and other services. These services may include a final, tangible report, a website, or, in the case of training, tangible instructional materials.
But, the entire service to the client is represented through problem analysis activities, meetings with the client, follow-up calls, and reporting – series of deeds, processes, and performances.
Services and Customer Service
The following are the Services :
Taj Intercontinental (hotels)
Air India (transportation)
ICICI (financial Services)
Accenture (traditional service company)
Customer Service is also provided by all types of
companies, including, manufacturers, IT companies, and
Customer Service is the service provided in support of a company’s core products.
It includes, answering questions, taking orders, handling complaints, repairs.
It can occur on site, over the phone or via internet.
These are for building customer relationships and not the ones provided for sale by a company.
Facts about Services
Services are essentially intangible.
It is because of intangibility, they escape attention .
There is nothing to show when money is spent on them.
Service purchase does not result in ownership of something physical.
Services are actions that are directed at the customer or their possessions.
Action and deeds lead to creation of value desired by customers.
It involves in most cases, the transfer of some intangible benefits .
SERVICES MARKETING IS DIFFERENT
More variables exist in the marketing mix for services than for consumer goods.
In services business, marketing and operations are more closely linked than in a manufacturing business. Service production process is part of the marketing process.
Customer interface is a major difference. People are as much part of the product in the consumer’s mind as any other attribute of the service.
People buy products because they believe they work. But with services, people deal with people they like and they tend to buy because they believe they will like them.
Customer – Employee interface a critical component of marketing.
Customers’ exposure to the full range of need-fulfilling service products is limited by the salesperson’s “mental inventory”. Service product manager competes for the “mental shelf space” of the firm’s sales personnel.
Costs associated with service production and delivery is difficult to assess.
Pricing is critical in services but using price, as a promotional weapon is not apparent.