Bec1601 What Are Services

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Bec1601 What Are Services

  1. 1. Amity Business School MBA Class of 2010, Semester III What are Services Prof. P K Bansal
  2. 2. <ul><li>In simple terms, services are Deeds, </li></ul><ul><li>Processes and Performances. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  3. 3. Services and Customer Service <ul><li>The following are the Services : </li></ul><ul><li>Airtel (Telecommunication) </li></ul><ul><li>Taj Intercontinental (hotels) </li></ul><ul><li>Air India (transportation) </li></ul><ul><li>ICICI (financial Services) </li></ul><ul><li>Accenture (traditional service company) </li></ul>
  4. 4. <ul><li>Customer Service is also provided by all types of </li></ul><ul><li>companies, including, manufacturers, IT companies, and </li></ul><ul><li>Service companies. </li></ul><ul><li>Customer Service is the service provided in support of a company’s core products. </li></ul><ul><li>It includes, answering questions, taking orders, handling complaints, repairs. </li></ul><ul><li>It can occur on site, over the phone or via internet. </li></ul><ul><li>These are for building customer relationships and not the ones provided for sale by a company. </li></ul>
  5. 5. Facts about Services <ul><li>Services are essentially intangible. </li></ul><ul><li>It is because of intangibility, they escape attention . </li></ul><ul><li>There is nothing to show when money is spent on them. </li></ul><ul><li>Service purchase does not result in ownership of something physical. </li></ul><ul><li>Services are actions that are directed at the customer or their possessions. </li></ul><ul><li>Action and deeds lead to creation of value desired by customers. </li></ul><ul><li>It involves in most cases, the transfer of some intangible benefits . </li></ul>
  6. 6. SERVICES MARKETING IS DIFFERENT <ul><li>More variables exist in the marketing mix for services than for consumer goods. </li></ul><ul><li>In services business, marketing and operations are more closely linked than in a manufacturing business. Service production process is part of the marketing process. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  7. 7. <ul><li>Customer – Employee interface a critical component of marketing. </li></ul><ul><li>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. </li></ul><ul><li>Costs associated with service production and delivery is difficult to assess. </li></ul><ul><li>Pricing is critical in services but using price, as a promotional weapon is not apparent. </li></ul>

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