Service Marketing


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Service Marketing

  1. 1. Services Marketing
  2. 2. Themes Of My Presentation <ul><li>The Servuction Model </li></ul><ul><li>Art of BluePrinting </li></ul><ul><li>Steps in Designing a BluePrint </li></ul><ul><li>Fail Points </li></ul>
  3. 3. The Servuction Model ( the service experience) <ul><li>Model used to illustrate factors that influence service experience, including those that are visible and invisible to consumer. </li></ul><ul><li>Invisible component consists of invisible organizations and systems. </li></ul>
  4. 4. The Servuction Model ( the service experience) <ul><li>Visible part consists of 3 parts: inanimate environment, contact personnel/service providers, and other consumers. </li></ul><ul><li>Inanimate environment: All nonliving features present during service encounter. </li></ul><ul><li>Contact personnel: : Employees other than primary providers that interact with consumer . </li></ul>
  5. 5. The Servuction Model ( the service experience) <ul><li>Service Provider: Primary provider of core service, such as dentist, physician or instructor. </li></ul><ul><li>Other Customers </li></ul><ul><ul><li>Customer A : Recipient of bundle of benefits created through service experience. </li></ul></ul><ul><ul><li>Customer B : Other customers who are part of Customers A’s experience. </li></ul></ul>
  6. 6. Customer Involvement in Production Process <ul><li>Servuction model demonstrates consumers are an integral part of service process. </li></ul><ul><li>Participation may be active or passive, but always there. </li></ul><ul><li>Managers must understand interactive nature of services and customer involvement in production process. </li></ul>
  7. 7. Art of Blueprinting <ul><li>Blueprinting is flowcharting of a service operation. </li></ul><ul><li>Enables marketing managers to understand the parts of operating system visible to consumer, hence part of servuction system. </li></ul><ul><li>Identifying components of an individual firm’s servuction system is difficult. </li></ul>
  8. 8. Art of Blueprinting <ul><li>Many firms underestimate points of contact. </li></ul><ul><li>Service flowcharts allow managers to better understand servuction process. </li></ul><ul><li>Designing the process is key to product design. </li></ul><ul><li>Visible part of operations must be supported by invisible process. </li></ul>
  9. 9. Art of Blueprinting <ul><li>Blueprint provides communications between operations and marketing on paper before they occur in real time. </li></ul>
  10. 10. Steps in Designing a Blueprint <ul><li>Identify the process to blueprinted </li></ul><ul><li>Map process from the customer’s point of view </li></ul><ul><li>Draw line of interaction </li></ul><ul><li>Draw line of visibility </li></ul><ul><li>Map process from customer contact person’s view distinguishing visible activities form invisible </li></ul>
  11. 11. Steps in Designing a Blueprint <ul><li>Draw line of internal interaction </li></ul><ul><li>Link customer and contact person activities to needed support functions </li></ul>
  12. 12. The Evidence of Service (from the customer’s point of view) People Process Physical Evidence Contact Employees Other Customers Tangible Communication Price Servicescape Guarantees Operational Flow of Activities Steps in the Process Flexibility
  13. 13. Service Blueprint Components Line of Interaction Line of Visibility Line of Internal Interaction INVISIBLE SUPPORT ACTION “ BACKSTAGE” CONTACT ACTIONS “ ONSTAGE” CONTACT EMPLOYEE ACTIONS CUSTOMER ACTIONS
  14. 14. Service Blueprint Component Line of Interaction Line of Visibility Line of Internal Interaction INVISIBLE SUPPORT ACTION “ BACKSTAGE” CONTACT ACTIONS “ ONSTAGE” CONTACT EMPLOYEE ACTIONS CUSTOMER ACTIONS
  15. 15. Overnight Hotel Stay Physical Evidence Contact Person Customer Invisible Process (Back Stage) (On Stage) Arrive Hotel Exterior Parking Carts for Bags Give Bags Greet Take Bags Desk Lobby Key Check In Process Papers Paper System Take bags to room Delivery Bags Receive Bags Cart for Bags Go to Room Elevators Hallways Room
  16. 16. Overnight Hotel Stay Check Out & Leave Process Check Out Paper System Bill Desk Lobby Hotel Parking Physical Evidence Contact Person Customer Invisible Process (Back Stage) (On Stage) Menu Call Room Service Take Food Order Prepare Food Deliver Food Receive Food Delivery Tray Food Appearance Food Eat
  17. 17. Art of Blueprinting <ul><li>Provides a check on logical flow of whole process </li></ul><ul><li>Bottlenecks represent points in system where consumer waits longest. </li></ul><ul><li>Balanced Production Line : Process times and inventories of all steps are same or consumer never waits for next process. </li></ul>
  18. 18. Art of Blueprinting <ul><li>Managers should recognize benefits of changing system to process consumers more effectively. </li></ul><ul><li>Target times should initially be set by marketing and based on consumers expected level of service. </li></ul>
  19. 19. Fail Points <ul><li>Three Characteristics: </li></ul><ul><ul><li>Potential for operations malfunction is high. </li></ul></ul><ul><ul><li>Results of the malfunction visible to consumers. </li></ul></ul><ul><ul><li>System malfunction is regarded by consumers as particularly significant. </li></ul></ul>
  20. 20. Operations Blueprint <ul><li>Alternative way to develop blueprint would be to start from consumer scripts. </li></ul><ul><li>Consumers would describe their process they follow in using a service. </li></ul>
  21. 21. USAir Blueprint <ul><li>Consumers asked about a USAir flight might start with the travel agent. </li></ul><ul><li>Then they might describe the airport, parking, and terminal. </li></ul>
  22. 22. Constructing Blueprint <ul><li>1st step: elicit scripts from both employees and consumers. </li></ul><ul><li>One-sided blueprint: Unbalanced blueprint based on management’s perception of how sequence events should occur. </li></ul>
  23. 23. USAir Blueprint <ul><li>Employee scripts are equally important in identifying parts not observable to consumer. </li></ul>
  24. 24. Constructing Blueprint <ul><li>Consumers posses purchasing scripts that guide their thinking and behavior during service encounters. </li></ul>
  25. 25. Convergent/Divergent Scripts <ul><li>Convergent scripts: Employee/consumer scripts that are mutually agreeable and enhance consumer satisfaction. </li></ul><ul><li>Divergent scripts: Scripts that mismatch and point to areas in which expectations are not met. </li></ul>
  26. 26. Constructing Blueprint <ul><li>Two-Sided blueprint : Considers both employee and customer perceptions of how events occur. </li></ul><ul><li>Consumers are asked to pay special attention to contact activities of service encounters. </li></ul>
  27. 27. Script Norms <ul><li>Script Norms : Proposed scripts that group events and orders events in sequence of occurrence. </li></ul>
  28. 28. Constructing Blueprint <ul><li>Blueprint development process identifies steps where system can go awry. </li></ul><ul><li>Process involves specifying timeframe of service execution. </li></ul>