Service providers


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Assignment, Service Marketing, BBA-BI 5th semester, Ace Institute of Management

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Service providers

  1. 1. A Group Presentation on Chapter 1 Service Providers
  2. 2. Group MembersSatish Ashish AayushSapan Chhitiz
  3. 3. Introduction Any act or performance that one party can offer to another that is essentially intangible and does not result in ownership of anything. E.g. if we subscribe NTC Internet we don’t become its owner we just use the service. “ Service are deeds, process and performances. ”
  4. 4. Examples of Services Professional service- accounting, legal authorities, architecture Health care- hospital, eye care, dentistry Financial services- banking, insurance, advising, brokerage fires Hospitality services- restaurant, hotels Travel services- airlines, buses, agencies Other services- electrician, plumbing, health club, counseling services
  5. 5. Service - Contribution In WorldEconomy Sector World economy Nepal (2010) (2004) Agriculture 4% 35% Industry 32% 16% Services 62% 49%
  6. 6. Service - Contribution In WorldEconomy
  7. 7. Service - Contribution In WorldEconomy
  8. 8. Characteristics of Services Intangibility Heterogeneity Simultaneous production and consumption Perishability
  9. 9. Differences Between Services And Goods Goods Services Goods are tangible. Services are intangible. Goods are homogeneous. Services are heterogeneity. Goods are non perishable. Services are perishable. In case of goods, the consumption In case of services, production , consumption and distribution goes simultaneously, Trade marks/ Patent rights can be No such rights are there in services. gained in goods. Brand loyalty can be found in case of Brand loyalty cannot be found in case goods, of services.
  10. 10. Differences Between Services And Goods Goods Services Standard can be setup in goods, It is difficult to set up the standard in services. Demand and supply for the goods can In services, the firm cannot match be in equilibrium. demand and supply.; Goods are measured in terms of Services are measured in terms of quantity. quality. Goods can be stored for consumption Services cannot be in future. stored/inventoried for future The pricing of goods is easier due to As actual cost of production is hard availability about actual cost of to determine, the pricing is difficult production of goods. in services.
  11. 11. Service Marketing Mix Compilation of different factors that helps in selling a product. Service Marketing Mix Traditional Extended Price Promotional People ProcessProduct Place Physical evidence
  12. 12. Traditional “4” P’s Product Price Promotion Place• Physical good • Flexibility • Promotion on • Channel type features • Price level blend • Exposure• Accessories • Terms • Sales people • Intermediately• Packing • Differentiation • Adverting • Outlet• Branding • Allowances • Sales location• Product lines • discount promotion • Transportation• durability • publicity • storage
  13. 13. Extended “3” P’s Physical People Process evidence• People • Signage • Flow of activates • Equipment • Number of steps • Employee dress • Level of customer• Customer Employees involvement • Other tangible• Communicating cultures and values• research
  14. 14. Challenges of Service Marketers How would you define and improve service quality- exact definition not thereEg. Services provided by a dentist is difficult to define. Likewise, it is difficult to compare services provided by two different doctors. How would you design new service and how can one test when it is not there.Eg. The high price at KFC might not attract general income earners although it is a multinational company. One can’t store and one cant always match demand and supply and bring it in equilibrium How can one set up price when it is difficult to determine the actual cost of productionEg. It takes years and years, huge amount of money to be a dentist. If the dentist charges Rs.5000 to his/her patients, then people might not visit him/her because it is too expensive. But for dentist, it might be a fair price as he/she has completed dentistry devoting his/her time and huge amount of money.
  15. 15. Challenges of Service Marketers Service can’t be patented One cannot communicate your service It is always difficult to motivate and select right worker How would you set up standard One cannot expect services to be good all time
  16. 16. Service Marketing Triangle Company Internal Marketing External Marketing “Enable The “Setting Promise” Promise” Employee Customer Interactive Marketing “ Deliver The Promise ”
  17. 17. CompanyEmployee Customer
  18. 18. Cycle Chain Employee Satisfaction Customer Satisfaction Profit
  19. 19. Service Profit Chain Employee Satisfaction Employees retention Employees productivity External Service Value Customer Satisfaction Gain Loyalty Revenue growth Profit