7 P’s of Services:1. Product2. Prices3. Place4. Promotion5. Process: Steps of doing things e.g. Call Centre, Banks, Insurance etc.6. People7. Physical Evidences: Clues, ambience etc.In product marketing only 4 P’s are lying but in service marketing not only top 4 butother 3 P’s are also equally important.How services are different from product?1. Goods are tangible means we can see, touch & feel before buying whereasservices are intangible we can’t be seen and touch but we can only feel it.2. Consumption and procurement of goods may not occur simultaneously whereasin services it is mandatory that the consumption & procurement of services occurat the same time/ simultaneously.3. Goods cannot be stored whereas services can be stored for long time period.Example: Insurance.4. Goods can be owned and services cannot be owned.5. 7 P’s are lying under services marketing whereas only 4 P’s are lying underproduct marketing.In case of Banks:Product: Current account and savings accounts, loan etc.Price: Locker charges, interest rates etc.Place: Branches at different places, ATMs etc.Promotion: AdvertisementsProcess: it is the stipulated set of procedures that is applicable to all and that mustbe followed to reduce the heterogeneity of services.It is the set of procedures that have to be followed from the company’s point of view.
People: people are central of the service marketing because people (employees)are the giver of the services and the people (customers) are the receiver of theservices.The services marketing triangle explains the concepts and highlights theimportance of people:1. The management promises the customer the timely services e.g. Dominospromises its customer delivery within 30 min. or free pizza.2. Management enables their employees by giving them training. So that theemployees are enabled to deliver the services. E.g. Dominos provides training toits staff and provides two wheeler to the delivery boys.3. The employees finally interact with the customer if the employee is rude or has alanguage problem the entire services explain gets smarted on the other hand ofthe customer is rude again services so also bad. So we can say that the peopleare central to services deliver.ManagementEnabler PromisorEmployees Interacting/ Receiver CustomerServices Marketing TrianglePhysical Evidence: Services cannot be tried so before availing the services, everycustomer should focus on same clues; these clues help the customer in takingdecisions. For e.g. in Banking: No. of Employees present on their seats.Physical evidences are the clues that give indication about the quality of services.For e.g. while planning to have a meal at a restaurant, the parking, the cloth on thetable, general cleanliness, uniform of the waiter give indications about the services,we are about to experience.Assignment:
Benchmarking and BlueprintingBlueprinting: It is the process that is laid down from the customer’s point of view.Example:Customer Arrives Park Vehicle Goes ForRegistrationGoes to Market to Bring Grocery Looks For A Market Hires A Cab/ OwnCarComes Back Unfasten Boat Himself Load GroceriesReturn Cooks His Food Looks for a Direction Stays in Boat 3 DaysGAP AnalysisCustomer Expectation Communication to CustomerActual Service Decline GAP 5GAP 4Perceived ServiceGAP 3Service Delivery SpecificationGAP 2Management perception of customer expectationGAP1
Serve- Qual ModelFive Dimensions of Service Quality:1. Reliability: the extent delivering consistent service and maintaining consistentstandard throughout is a measure of reliability.Example: 1. Indian Railways are never on time enhance score very badly onreliability.2. Indigo Airlines always goes off & consistency delivers on time delivery ordeparture of its flight.3. City Bank assures 100% secure i-banking.2. Assurance: The level to which the management and the employees of anorganisation manage to build confidence in the mind of the customer that all theirproblems will be taken care off.Example: When a tourist books a room in a five star hotel & find that the room is notso clean & the bed linen is dirty. Assurance involves the manager coming to him.a) Accepting the faultb) Apologizingc) Taking all necessary actionsd) Giving a Complementary Gifts as free dinner or free entry in casino or disco tospecify his mood.3. Empathy: The extent to which the manager or an employee put themselves intothe customer’s shoe and then look for a solution is termed as empathy. For e.g.Customer Care of Airtle.4. Tangibility: A service that provides tangible cues to its customer or prospectivecustomer is considered good on service quality. Example on entering in arestaurant, the overall ambience, parking facility, dress of chef or waiter givepossible hints about the service we are about to buy.A good service provides the customer many such tangible cues.5. Consideration: The extent to which customer recommends a service to other isa measure of service quality.
Managing Demand and Supply in Services:What makes service industries so distinct from manufacturing ones is their immediacy: thehamburgers have to be hot, the motel rooms exactly where the sleepy travelers want them,and the airline seats empty when the customers want to fly. Balancing the supply anddemand sides of a service industry is not easy, and whether a manager does it well or notwill, this author writes, make all the difference. In this rundown of the juggling feat servicemanagers perform, the author discusses the two basic strategies—“chase demand” and“level capacity”—available to most service companies. He goes on to discuss several waysservice managers can alter demand and influence capacity.The literature on capacity management focuses on goods and manufacturing, and manywriters assume that services are merely goods with a few odd characteristics. Unfortunately,these researchers never fully explore the implications of these strange traits:1. Services are direct; they cannot be inventoried. The perishability of services leaves themanager without an important buffer that is available to manufacturing managers.2. There is a high degree of producer-consumer interaction in the production of service,which is a mixed blessing; on the one hand, consumers are a source of productive capacity,but on the other, the consumer’s role creates uncertainty for managers about the process’stime, the product’s quality, and the facility’s accommodation of the consumer’s needs.3. Because a service cannot be transported, the consumer must be brought to the servicedelivery system or the system to the consumer.4. Because of the intangible nature of a service’s output, establishing and measuringcapacity levels for a service operation are often highly subjective and qualitative tasks.Whereas the consumption of goods can be delayed, as a general rule services are producedand consumed almost simultaneously. Given this distinction, it seems clear that there arecharacteristics of a service delivery system that do not apply to a manufacturing one and thatthe service manager has to consider a different set of factors from those that would beconsidered by his or her counterpart in manufacturing. And if one looks at service industries,it is quite apparent that successful service executives are managing the capacity of theiroperations and that the unsuccessful are not. So, the “odd characteristics” often make all thedifference between prosperity and failure.
Gap analysis:- In business and economics, gap analysis is a tool that helpscompanies compare actual performance with potential performance. At its core aretwo questions: "Where are we?" and "Where do we want to be?" If a company ororganization does not make the best use of current resources, or foregoesinvestment in capital or technology, it may produce or perform below its potential.This concept is similar to the base case of being below the production possibilitiesfrontier.Gap analysis identifies gaps between the optimized allocation and integration of theinputs (resources), and the current allocation level. This reveals areas that can beimproved. Gap analysis involves determining, documenting, and approving thevariance between business requirements and current capabilities. Gap analysisnaturally flows from benchmarking and other assessments. Once the generalexpectation of performance in the industry is understood, it is possible to comparethat expectation with the companys current level of performance. This comparisonbecomes the gap analysis. Such analysis can be performed at the strategic oroperational level of an organization.Benchmarking:- is the process of comparing ones business processesand performance metrics to industry bests or best practices from other industries.Dimensions typically measured are quality, time and cost. In the process of bestpractice benchmarking, management identifies the best firms in their industry, or inanother industry where similar processes exist, and compares the results andprocesses of those studied (the "targets") to ones own results and processes. In thisway, they learn how well the targets perform and, more importantly, the businessprocesses that explain why these firms are successful.Benchmarking is used to measure performance using a specific indicator (cost perunit of measure, productivity per unit of measure, cycle time of x per unit of measureor defects per unit of measure) resulting in a metric of performance that is thencompared to othersBenchmarking: It means comparing oneself to the best in the business.For example: City bank is the best on IT support, ICICI is best in aximpillary services.