Designing and Managing Services

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This is About the Tips on Designing and Managing Your Services, its definition, Nature of Services, Marketing Strategies and its Characteristics.

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Designing and Managing Services

  1. 1. DESIGNING AND MANAGING SERVICES
  2. 2. What is a service?
  3. 3. A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
  4. 4. Nature of Services  The Service Industry includes the following: –Government Sector –Private nonprofit Sector –Business Sector –Manufacturing Sector
  5. 5. “Government Sectors”
  6. 6. “Private nonprofit Sector”
  7. 7. “Business sectors”
  8. 8. Nature of Services • Categories of Service Mix –Pure tangible good –Good with accompanying services –Hybrid –Service with accompany goods –Pure service
  9. 9. Nature of Services CHARACTERISTICS • Intangibility oCannot be seen, touched, tasted, heard or smelled before purchase oLack of trial means higher consumer needs oConsumer rely on cues to draw quality inferences
  10. 10. SALON, SPA
  11. 11. Nature of Services CHARACTERISTICS • Inseparability oServices are produced and consume at the same time. oService providers and sometimes other customers become part of the service.
  12. 12. Air travel Services Restaurant Services
  13. 13. Nature of Services CHARACTERISTICS • Variability oServices providers varies with respect to attitudes, skills, moods etc. Even the same provider may give different service on a different day. oQuality control is critical: Hiring the right people Standardizing service Monitoring satisfaction
  14. 14. Nature of Services CHARACTERISTICS • Perishability oServices cannot be inventoried or otherwise stored.
  15. 15. Marketing Strategies • People physical evidence must be considered in addition to the 4 P’s when creating external marketing plan. • Successfully delivering the service often depends on staff being trained via internal marketing efforts.
  16. 16. Marketing Strategies • Interactive marketing refers to the employees’ skill in serving the client. • Customers judge a service by its: • Technical Quality • Functional Quality • Search qualities, experience qualities and credence qualities are evaluated by customers.
  17. 17. Marketing Strategies • Marketing Task Managing differentiation oCannot differentiate on price alone. oInnovative features. oDelivery system Reliability Resilience Innovativeness oImage and Branding
  18. 18. Marketing Strategies • Marketing Task Managing Service Quality oThe service quality model identifies five gaps that can cause service delivery failure oService companies that successfully address these gaps follow common practices
  19. 19. Marketing Strategies • Service Delivery Failure Results from Gaps Between: Consumer expectation and management perception Management perception and Service-quality specification Service-quality specifications and service delivery Service delivery and external communications Perceived service and expected service
  20. 20. Marketing Strategies • Well-Managed Service Firms Shared These Characteristics: A strategic concept Commitment from top-management High standards Firm and customer monitoring system Satisfying customer complaints
  21. 21. Thank you!! 

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