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Designing and Managing Service


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Designing and Managing Service

  1. 1. Designing and Managing Services “How to market them most effectively.” ROSALINA C. MANANSALA 05 February 2014
  2. 2. The 4 “HOWs” . . . • How do we define and classify services, and how do they differ from goods? • What are the new services realities? • How can we achieve excellence in services marketing? • How can we improve service quality? • How can goods marketers improve customer support services?
  3. 3. What is a Service? 1. It is any act or performance one party can offer to another; 2. It is essentially intangible and does not result in the ownership of anything; 3. Its production may or may not be tied to a physical product.
  4. 4. 5 Categories of Service Offerings Pure tangible good • consists primarily of a tangible good such as soap, toothpaste, or salt with no accompanying services.t Tangible good w/ accompanying services • consists of a tangible good accompanied by one or more services Hybrid • consists of equal parts goods and services Service with accompanying goods • consists of a major service along with additional services or supporting goods Pure service • consists primarily of a service Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  5. 5. 5 Ranges of Services Offered ● ● Equipment-based or people-based Equipment-basedor people-based ● ● Service processes Service processes ● ● Client’s presence required or not Client’s presence required or not ● ● Personal needs or business needs Personal needs or business needs ● ● Objectives and ownership Objectives and ownership Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  6. 6. 4 Basic Characteristics of Services INTANGIBILITY • services cannot be seen, tasted, felt, heard, or smelled before they are bought INSEPARABILITY • services are typically produced and consumed simultaneously VARIABILITY • the quality of services depends on who provides them, when and where, and to whom, services are highly variable PERISHABILITY • services cannot be stored
  7. 7. 5 Best Practices of Service-Quality Management 1. Strategic Concept • "customer obsessed“ • a clear sense of their target customers and their needs 2. Top Management Commitment • their managements look not only at financial performance on a monthly basis, but also at service performance 3. High Standards • best service providers set high service-quality standards 4. Self·Service Technologies (SSTs) • consumers value convenience in services • not all SSTs improve service quality, but they can make service transactions more accurate, convenient, and faster 5. Monitoring Systems - collect voice of the customers
  8. 8. 10 “KEYS” To Improve Service Quality 1. Listening - understand what customers really want 2. Reliability - must be a service priority 3. Basic Service - must deliver the basics & do what are they supposed to do 4. Service Design - take a holistic view of the service 5. Recovery - respond quickly to customer satisfaction
  9. 9. 6. Surprising Customers - process dimensions such as assurance, responsiveness, and empathy are most important in exceeding customer expectations. 7. Fair Play - demonstrate fairness to customers & employees 8. Teamwork - deliver service with care and attentiveness by improving employee motivation & capabilities 9. Employee Research - conduct research with employees to reveal service problems & what companies must do 10. Servant Leadership - quality service comes from inspired leadership throughout the organization
  10. 10. IN SUMMARY: 1. A service is any act or performance that one party can offer to another that is essentially intangible , inseparable, variable and perishable which does not result in the ownership of anything. 2. Marketing of services faces new realities in the 21st century. It calls not only for external but also for internal marketing as well as interactive marketing. 3. Top service companies excel at a strategic concept, a history of top management commitment to quality, high standards, profit tiers, and systems for monitoring service performance and customer complaints. 4. Superior service delivery requires managing customer expectations and incorporating self-service technologies. Even product-based companies must provide postpurchase service.
  11. 11. POSITION: Product Marketing is different from Service Marketing but still we say: “good marketing is good marketing”.