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BASAVESHWAR ENGINEERING COLLEGE
           BAGALKOT

 (DEPARTMENT OF MANAGEMENT STUDIES)

           PRESENTATION ON


         SERVICE MARKETING

          (HOTEL INDUSTRIES)
Team members:

 Praveenkumar G H

 Manjula Rolli

 Sushma Janmatti

 Abdul salam

 Manjunath M
MEANING OF SERVICE INDUSTRY:

An industry made up of companies that primarily earn revenue
through    providing    intangible    products    and    services.


Service     industry      companies      are      involved      in
retail, transport, distribution, food services, as well as other
service-dominated businesses. Also called service sector, tertiary
sector                        of                         industry.
INTRODUCTION TO THE SERVICE INDUSTRY:

 Service Sector in India today accounts for more than half of
  India's GDP. The various sectors that combine together to
  constitute service industry in India are:
 Hotels and Restaurants

 Railways

 Other Transport & Storage

 Communication (Post, Telecom)

 Banking
Contd…..
 Insurance

 Business Services

 Public Administration;

 Defence

 Other Services
Introduction of Hotel Industry:
 Hotels have a very long history, but not as we know today, way
  back in the 6th century.

 Hotel can be classified into different categories or classes, based
  on their operational criteria.

 For example the type of accommodation they provide, location of
  the property, type of services provided, facilities given and
  the clientele they cater to can help categories hotels today Hotels
  today are basically classified into the following categories:
Contd……
 According to market segment.

 According to size.

 According to property type.

 According to services level.
Indian Listed Star Hotels:
 Name of the hotel     Year of establishment        Founder           Place



 The Indian Hotels             1903              Jamsetji N Tata     Mumbai
    Company
       (Taj)
 ITC/ grand chola              2012             Y. C. Deveshwar      Chennai

 The Leela Group               1957            Capt. C.P. Krishnan   Mumbai
                                                      Nair
 The EIH Ltd (The              1934            Rai Bahadur Mohan      Delhi
  Oberoi Group)                                   Singh Oberoi
Royal orchid central                                                 Bellary
   keerti hotel
 Clarks shiraz hotel                                                  Agra
INTRODUCTION TO HOTEL INDUSTRY:

The hotel industry is a broad category of fields within the service industry that
includes lodging, restaurants, event planning, theme parks, transportation, cruise
line, and additional fields within the tourism industry. The hospitality industry is
a several billion dollar industry that mostly depends on the availability of leisure
time and disposable income.

A hospitality unit such as a restaurant, hotel, or even an amusement park
consists of multiple groups such as facility maintenance, direct operations
(servers,              housekeepers,                 porters,               kitchen
workers, bartenders, etc.), management, marketing, and human resources.
SEVEN P’S OF SERVICE INDUSTRY:
Product     Physical features, quality, accessories, Packaging, warranties,
            brands


Place       Channel type, Outlet locations, Transportation, Storage.


Promotion   Sales people, Advertising, Sales Promotion, Publicity.


Price       Discounts, Allowances, Price levels.

People      Employees, Customers


Process     Flow of activities, Customer Involvement



Physical    Facility, Equipment, Other Tangibles
evidence
TOTAL NUMBER OF HOTELS IN BAGALKOT

Restaurants               11
Hotels                    11
Khanavalies               243
Small hotels(road side)   12
Canteens                  2
Snacks centres            83
Total                     350
INTRODUCTION TO PAKWANN:


Name of the business    Restaurant

Year of establishment   2011

Name of the partners    Mr. Anand Agarwal

                        Mr. Pavan Kulkarni

Address                 College road, 19th cross, vidyageri,
                        Bagalkot.
NUMBER OF EMPLOYEES IN PAKVAN:

Owners             2
cooks              5
waiters            6
cleaners           3
others             3
TOTAL              19
SEVEN P’S OF PAKVAN RESTAURANT:


Products                                    Price


Variety of food items:                      North Indian dish: per plate 110 Rs
North Indian dish, South Indian dish,       South Indian dish: per plate 110 Rs
Chinese, Snacks, Ice-creams, cold drinks,   Chinese: per plate           50 Rs
sweets(22)                                  Snacks: per plate            100 Rs
                                            Sweets: per KG-200 Rs
                                            Cold drinks: 14 Rs
                                            Ice cream: family pack 2 KG-115 Rs
Contd...
Place                                  Promotion


College road, 19th cross, vidyageri,   Advertisements in local channels,
Bagalkot.                              Banners, Pamphlets.
Contd...
people                               process

Employees, students, public people   Flow of activities, Customer
etc.                                 Involvement.
Contd...
    Physical Evidence:




    Furniture's, sound system, lighting, gardening
Service encounter chart for Pakwann Restaurant:
                          Welcome


                       Interaction with
                      customers(order)

                      Service delivery



                      Accepting service



                           Billing



                         Check out
DIMENSIONS OF SERVICE QUALITY:

Empathy          Good customer relationship, responding to
                 their needs and wants.

Reliability      Promise and according to that they will
                 provide services.
Responsiveness   Employees are liable, shows honesty with their
                 customers.

Assurance        Knowledge and courtesy of employees and
                 their ability to convey trust and confidence.



Tangibles        Furniture, music, lightings.
Questionnaire
 CUSTOMER PERCEPTION QUESTIONNAIRE
 CUSTOMER EXPECTATION QUESTIONNAIRE
Presentation -3
Customer
Expectation
How long have you visiting Pakwaan?


       10%

 12%
                            0 to 4 month
                            4 month to 6 months
              54%           6 to 8 months
                            More than 8 months
 24%
How many times do you visit PAKWAAN in a month?




        12%


                       36%
                                        0 to 2 times
                                        3 to 5 times
                                        More than 5 times

  52%
Who influenced you to go to Pakwann?


        12%
                    20%
  10%                           Family Member
                                Friends
                                 Advertisement
                                Others

              58%
why do you prefer Pakwaan restaurant?




      14%

                    34%
                                     For refreshment
                                     For fun
                                     For party
32%
                                     Others


              20%
Rank the following factors according to your expectation for
the service provided by the service provider.

        Explains all items regarding meals
                     2%
                        4%

                              14%
                                                Highly dissatisfied
       46%                                      Dissatisfied
                                                Nuteral
                                                Satisfied
                                                Highly satisfied
                              34%
High speed service
      2%
         4%

               14%

                           Highly dissatisfied
46%                        Dissatisfied
                           Nuteral
                           Satisfied
                           Highly satisfied

               34%
Reasonable price
      2%
         4%

              14%

                         Highly dissatisfied
46%                      Dissatisfied
                         Nuteral
                         Satisfied
                         Highly satisfied

              34%
Convenient location
       2%
         4%

               14%

                            Highly dissatisfied
46%                         Dissatisfied
                            Nuteral
                            Satisfied
                            Highly satisfied

               34%
Nice and clean environment
           2%
                4%

                     14%


                                   Highly dissatisfied
46%                                Dissatisfied
                                   Nuteral
                                   Satisfied
                                   Highly satisfied


                     34%
Good sitting arrangements
            2%
                 4%

                      14%

                                  Highly dissatisfied
46%                               Dissatisfied
                                  Nuteral
                                  Satisfied
                                  Highly satisfied


                      34%
Customer
Perception
Are you satisfied with the services provided by the Pakwaan?

                       2%

                             6%

                                     8%



                                                         Highly dissatisfied
48%                                                      dissatisfied
                                                         Neutral
                                                         Satisfied
                                                         Highly satisfied
                                        36%
Are you satified with the way the empolees care with
                     customers?
              0%
                   8%

    24%
                        12%
                                            Highly dissatisfied
                                            dissatisfied
                                            Neutral
                                            Satisfied
                                            Highly satisfied

                 56%
Are you satisfied with the pamphlets distributed by the
                       Pakwaan?
               0%
                 4%

                         16%
                                                Highly dissatisfied
  44%                                           dissatisfied
                                                Neutral
                                                Satisfied
                                                Highly satisfied
                         36%
Are you satisfied with the services provided by the
         Pakwaan as promised with you?
                2%
                   4%

                           16%
    34%
                                              Highly dissatisfied
                                              dissatisfied
                                              Neutral
                                              Satisfied
                                              Highly satisfied


                     44%
Are you satisfied by the services of handling
     customers problems in Pakwaan?
            0%
              4%


 32%
                        28%                Highly dissatisfied
                                           dissatisfied
                                           Neutral
                                           Satisfied
                                           Highly satisfied




            36%
Are satisfied with the way of Pakwaan informs about
         the price and quality of the service?


                4%
                     4%


                          16%
                                           Highly dissatisfied
                                           dissatisfied
                                           Neutral
  52%                                      Satisfied
                                           Highly satisfied
                          24%
Are you satisfied with promptness of Pakwaan
         in providing service to you?
             0%
              4%

                    16%
                                     Highly dissatisfied
    44%                              dissatisfied
                                     Neutral
                                     Satisfied
                                     Highly satisfied
                    36%
Are you satisfied with the willingness of the empolees
   to help the customers while providing services?
                0%
                  4%


                             20%
  36%                                         Highly dissatisfied
                                              dissatisfied
                                              Neutral
                                              Satisfied
                                              Highly satisfied


                       40%
Are you satisfied with the way of employees
       behave with you in Pakwaan?
           0% 2%


                   16%


                                      Highly dissatisfied
                                      dissatisfied
                                      Neutral
                                      Satisfied
  58%                    24%          Highly satisfied
Are you satisfied with the employee's eagerness of
       instilling confidence in customers?
               0%
                 4%

      20%
                         16%


                                             Highly dissatisfied
                                             dissatisfied
                                             Neutral
                                             Satisfied
                                             Highly satisfied




               60%
Are you satisfied by the Pakwaan service of providing
      customers best interest in all the ways?
                  2%

                       6%



  38%                         20%              Highly dissatisfied
                                               dissatisfied
                                               Neutral
                                               Satisfied
                                               Highly satisfied




                       34%
Are you satisfied by the Pakwaan services of
 providing the products that best suits you?
              0%
               4%


                       20%
                                      Highly dissatisfied
                                      dissatisfied
 50%                                  Neutral
                                      Satisfied
                                      Highly satisfied

                      26%
Are you satisfied by the overall service quality
               of the Pakwaan?
               0%
                 4%


                         20%

                                         Highly dissatisfied
                                         dissatisfied
  50%                                    Neutral
                                         Satisfied
                                         Highly satisfied

                        26%
Are you satisfied with the sitting
        arrangements in Pakwaan?
              2%

                   6%


                        12%

                                       Highly dissatisfied
44%                                    dissatisfied
                                       Neutral
                                       Satisfied
                                       Highly satisfied

                        36%
Are you satisfied with the interior decoration
                of Pakwaan?
                0%
                 4%


    28%

                           32%          Highly dissatisfied
                                        dissatisfied
                                        Neutral
                                        Satisfied
                                        Highly satisfied




          36%
Are feel comfortable in Pakwaan while
           receiving service?
           2%
                4%



34%                   20%
                                  Highly dissatisfied
                                  dissatisfied
                                  Neutral
                                  Satisfied
                                  Highly satisfied



                40%
Customer loyalty:



In Pakwaan more customers are loyal because, they treat
customers with friendly nature. And also because of their
and quality service.
Customer relationship:
  In Pakwaan they are managing good customer
  relationship   from   their   quick   reactions   with
  customers and also they are maintaining relations
  with Banks, Education institutes in Vidyagiri area.
Service recovery:
Service Failure:
 Slow service
 Wrong Billing
 Conflicts with customers


Service Recovery:
 Quick service
 Discounts in Billing
 Smooth handling.
Service paradox:
 Example: Birthday cakes
New Service Development process:

Execution Stage                       Planning Stage

          Full         People
                                     Design
        Launch
                      Products

                  Tech-
                  nology   Systems

      Developm
                                      Analysis
         ent
Process of Restaurant:

     New Process design



      Analysis of design



 Development of new design



 Introduction of new service
Business Strategy Development or Review:

 First step is to develop the mission and vision to
  implement the new process.
 Mission:
 Providing good service and making customer satisfaction.
New Service Strategy Development:
  New service is food parsal (family pack).

  The strategy provided by the pakwaan is to provide good
  service than the present service through phone. And door to
  door service.
Idea generation

This is demanded by customers only
Concept development and evaluation:
  Once the idea of service is fit for both the customers and the
  employees, then it is ready for the implementation.
Business analysis:
 Based upon existing service and new idea it is analyzed and
  introducing new service. It will give more satisfaction to the
  customers.
Blue print of restaurant :

 Physical                Exterior               Tray and            Meals       FP and taste            Bill
 evidence                packing                presentation of
                                                snacks


custom      Arrive at      Check availability     Receive         Order meal   Receive food    Ask for bill      Pay and leave
ers         restaurant                            snacks




                          Greet and take        Serve snacks      Take food    Deliver food       Process bill
                          order                                   order
Contact
employees

                         Prepare snacks                           Order to
                                                                  kitchen




Support
processes                                                         Prepare                      Payment
                                                                  Food                         system
(Back house)
Hard and soft CDS:
   Hard CDS:
    Delivering the services in the time, Approaching at the
   right time to customers.



   Soft CDS:
   Motivating the employees to provide good service with
   smile and care.
SERVICE TRIANGLE
                      Company
                    (Management)



        Internal                      External
       Marketing                      Marketing

       enabling                         setting
       promises                        promises




  Employees Interactive Marketing          Customer
                   keeping promises
Three points of the triangle
COMPANY- PAKWAAN RESTURAENT
 OWNER-
 ANITA KULKARNI
  ANAND.AGARWAL

EMPLOYEES-7 MEMBERS
CUSTOMERS-STUDENTS
             LECTURES
             OLD AGE PEOPLE
             BUSINESS PEOPLE
             HOUSE HOLD PEOPLE
Internal marketing:
 COMPANY-
 Owners will give all information about there service
 to there employees with respect of there menu and
 also they will give information regarding there
 service .like cake ,sweets..
EXTERNAL MARKETING

 In hotel external marketing
    like-
   Pamplets
   Tv adds
   Charity
   Cycle advertising
Interactive Marketing
 According to menu available from the company
  employees interacting with customers.
 They will take orders from the customers, provide
  service according to that.
 Lastly they will take feed back from the customers.
Are the three sides of the triangle well aligned?

 yes
Provider GAP 3
CUSTOMER




                        Service Delivery
COMPANY
               GAP 3
                        Customer-Driven
                       Service Designs and
                           Standards
The Services Marketing Triangle
                     Company
                   (Management)

     Internal                           External
    Marketing                           Marketing
     enabling                             setting
     promises                            promises



 Employees      Interactive Marketing    Customers
                   keeping promises
Focus on a service organization. In the context you are
 focusing on, who occupies each of the three points of the
 triangle?

 Company : pakwaan restaurant

 Employees: waiters, Owners, cooks, cleaners.

 Customers: students, business man, middle class people.
How is each type of marketing being carried out
 currently?
 Internal marketing: promises are delivered to the employees
  with the services which are not kept then the customers become
  dissatisfied and leave the restaurant.

 external marketing : here the promises are made to the
  customers. Promises made must be kept.

 Interactive marketing: here the employees will finally deliver
  services to the customer.
Are the three sides of the triangle well aligned?

 Yes the three sides of the triangle are aligned.

 All the three sides of the triangle are essential to complete the
  whole, and the sides of the triangle should be aligned.

Are there specific challenges or barriers in any of the three areas?

Specific challenges:

 Fast Service

 Shortage of space.
How is the service organization doing on the three
       sides of triangle?

i.      External Marketing:- By making the promises to the customers and
        delivering the same .
ii.     Interactive Marketing:-the waiters, will deliver the service to the
        customers.
iii.    Internal     Marketing:-By   enabling   the    promises    through
        recruiting, training, motivating, recording and providing equipment
        and technology.
What is being promoted and by whom?

•   The product and services like North Indian dishes, South Indian

    dishes, snacks are promoted by employees of the restaurant.

•   How will it be delivered and by whom?

    It will be delivered by the process and by the help of physical evidence and

    it will be delivered by the employees.

•   Are the supporting systems in place to deliver the promised service?

•   The physical evidence of the restaurant is most pleasant which attracts the

    customers to come to restaurant and experience the services.
The Service Profit Chain in restaurant



                           ER                          Revenue
                                                       Growth

                                External
Internal                         Service   CS   CL
               ES
   SQ                             Value




SQ-Service Quality         EP
ES-Employee Satisfaction                             Profitability
ER-Employee Retention
EP-Employee Productivity
CS-Customer Satisfaction
CL-Customer Loyalty
Boundary Spanners
    Boundary Spanners
    Employees :of the restaurant
    i.e., owners, waiters, cooks, cleaners.
    Classification:
•    Subordinate Service Roles: waiters, cleaners, cooks.
 Professional Service Roles: Owners.
Sources of Conflict for Boundary-Spanning Workers


• Person vs. Role (Agarwal v/s His role)


• Organization vs. Client(Pakwann v/s the employee)


• Client vs. Client (employee v/s employee)


• Quality vs. Productivity(Services provided v/s productivity of the services)
Cont…

 Person vs. Role: Here there is a conflict between owners and his
  personality .

  Ex: The restaurant employees are forced to do on time delivery when
  they are providing the services.

 Organization/ Client:       Here there is a conflict between the
  organization and the client. Here the employees has to follow the
  rules which are developed by the owners .

  Ex: The cook cant delay the preparation of food within a time .
Cont…

 Client vs. Client : there are more customers conflict arises between them..

  Ex: When a restaurant employees serving the customers continuously.

 Quality/ Productivity: Here there is a conflict between quality and
  productivity. The employees are asked to be both effective and efficient.

  Ex: A employees of the restaurant should behave courtesy with customers
  and see to it that the customers are well treated.
Human Resource Strategies for Closing GAP 3
                                     Hire for Service
                                     Competencies
                                      and Service
                                       Inclination



                                       Hire the
                                     Right People


                                                        Develop
                                      Customer-
        Employees as




                                                                    Employees
                                                                     Empower
                                                        People to
         Customers




                       Retain the      Oriented
           Treat




                         Best                            Deliver
                                       Service           Service
                        People
                                       Delivery          Quality


                                       Provide
                                    Needed Support
                                       Systems


                                        Provide
                                       Supportive
                                     Technology and
                                       Equipment
Hiring The Right People

 Compete for the Best People:- for restaurant waiters plays a
  very important role so selection of waiters is very important.

 Hire for Service Competencies and Service Inclination:-
  training the waiters in a systematic manner like how to behave
  with customers and all.

 Be the Preferred Employer:- the employees should be preferred
  more and given more opportunity.
Develop people to Deliver SQ
 •Train for Technical and Interactive Skills:- training the
 employees for doing billing in absence of owner and also the
 smooth interaction skills and how to have patience.
 •Empower Employees:- here the some power
 ,authority, responsibility will be given to the employees
 •Promote Teamwork:- the team work should be developed
 in the restaurant to provide the services on time and retain
 the customers .
Provide needed support systems

 Measure Internal Service Quality:-here the owners are

  providing good support to their employees to deliver proper
  service.

 Provide Supportive Technology and Equipment:- according to

  there experience they will deliver the service .

 Develop Service-oriented Internal Processes:- they are mainly

  focusing on customer satisfaction.
Retain the Best People

 Include Employees in the Company’s Vision:- they are

  motivating employees by providing good salary and bonus.

 Treat Employees as Customers:-when they are treating

  employees as a customer then they will loyal to the there work
  and organization.

 Measure and Reward Strong Service Performers:- here they

  will provide bonus and occasionally they will provide cloths.
Descriptions of Staffing Issues in Firms

 High Passion for Service:- pakwaan is having sufficient

  employees for providing service to the customers.

 Moderate Passion for Service:- in pakwaan if the employees

  were absent they will adjust with the available employers

 Low Passion for Service :- if the employers are not working

  properly they were replaced by other employees.
Service Culture

 They are mainly focusing on the customer satisfaction by
  providing news papers, light music ,with well interior
  decoration.
Customer Role
 As the customer role is also playing a very important role
  in service delivery.
 In the Pakwaan hotel the first service starts from customer
  by through giving order.
Customer input in service game
 As by focusing vidyageri identified customer needs.
 According to that there should be requirement of hotel in
  this place so the pakwaan hotel is started.
Recognize That Quality Starts with Needs:


 The pakwaan is recognize that the quality is starts from
  the customer needs and the expectations of customers are
  differ from one to other so as per the needs they are
  providing services to the customer.
Recognize That Violating Needs Means Losing a
Customer:

 In the hotel as if the service failed it can be recovered
  in the form of discounting and asking sorry for that
  but if the owner is not accepted the customer
  complaint then they are going to loose the customers.

 In pakwaan they are not going to loose the customer
  because they are handling the customer very carefully
  as well as they are receving the complaints.
Respect Customers' Need for Security

When the Pakwaan hotel provide the services, it should
 ensure that the services which are provided will be safe.
Ex: Quality Food.
Respect Customers' Need for Justice
 The hotel must provide the services according to the
 expectation of customer and the way of handling the
 customers. so that customers feel satisfied by having
 satisfactory service from the hotel.
Clarify the Customer's Co-production Role

 Pakwaan is identifying the wants of the customers and
 based on that they are providing realistic services.
Motivate Customers to Participate
 The pakwaan is trying to attract the customers by
 providing good quality of food as well as well as good
 services and also they are taking party orders from the
 customers.
Watch for Clues That Customers Could Do More


 The pakwaan hotel will provide the brochures, visiting
  cards, vehicle and pamphlets for the easy understanding of
  the services.
Draw in Customers as Co-designers of the Service Delivery
System


   The pakwaan hotel will encourage the customers to give
   feedback about their services so that they can improve in
   delivering the better services.
How Customers Widen Gap 3
 The customers are unable to understand their role.

 The customers will not be willing or able to perform their role.

 It might be a service complaint or any queries which they wanted to ask.

 Sometimes if they are willing to perform their role, their will be no rewards
  for their performance.

 Incompatible market segments
Customer roles in service delivery:
   Customers as Productive Resources:

    Organizational productivity can be increased if customers try to understand
    the situations of service delivery & perform the service-related activities.



 Customers as Contributors to Service Quality and Satisfaction:

    Effective customer participation can increase the likelihood that the needs
    are met and that the benefits the customer are actually attained.

Ex: feedbacks & Word of mouth
Contd…
 Customers as Competitors:
 Some times some of the customers are acting competitors
  to the services which are providing by the pakwaan this
  happens when the customers thought they are getting both
  veg and non-veg food items but pakwaan is providing
  only the veg items.
Services Production Continuum
 Customer production : As in pakwaan they taught to keep
 self service as addition then the customers are paying
 amount in the counter and serving themselves.

 Joint production & Firm production : In pakwaan the
 service is providing by the waiters and the customers are
 going to pay the amount in the counter.
Strategies for Enhancing Customer Participation
 Define customer job : The pakwaan is identifying the needs of
  the customers in food items and providing services.

 It is educating the customer through by giving advertisements
  and making aware about the quality and service of their hotel.

 And they are managing the customers by providing the services
  according to their wish.
Waiting Strategies:
 Employing the operating logic to reduce wait

 Establish a reservation process by booking the tables in
  advance.

 Differentiate waiting customers as per the Veg & non veg.

 Make waiting fun ,or at least tolerable by providing the
  menu, music, DJ’s.
Waiting Line Strategies


         Employ operational logic   Make waiting fun or at
         to reduce wait             least tolerable




          Establish a reservation     Differentiate waiting
          process                     customers
Waiting Line Configurations
 Single queue:




                   Enter
Services Intermediaries

 Agents

 Vendor
Constraints on Capacity

 Nature of the constraint   Type of service
 Time                       Consulting
                            Billing


 Labor                      Consulting employee




 Equipment                  Billing machine




 Facilities                 Hotel
 Gap 4   Not Matching Performance to
           Promises
Gaps Model of Service Quality
      CUSTOMER
                                Expected Service


                     Customer
                       Gap
                                     Perceived
                                      Service

                                                                       External
     COMPANY                     Service Delivery                  Communications to
                                                           GAP 4      Customers
             GAP 1   GAP 3
                                Customer-Driven Service
                                 Designs and Standards

                      GAP 2
                                  Company Perceptions of
                                  Consumer Expectations

12/17/2012                                                                             106
GAP 4
External communication   Actual service

Quick service            Not providing

Menu items               Some items are not available

Delicious food           Some times fail to deliver delicious food
Integrated Services
Marketing Communications
Communications and the
Services MarketingPakwann )
          Company(Hotel
                        Triangle
    Internal Marketing                              External Marketing
    Management rules like
                                                     Communication
                                                        Advertising
                                                      Sales Promotion
                                                      Public Relations




Employees(waiters,          Interactive Marketing   Customers
Cook, cleaners)
Service
 Communication Problems
1)  Inadequate Management of Service Promises:
 In advertisement they advertise availability of different types of items like Gajar
    ka Halwa….
But when customer ask this type of item, management will say that it is not
    available.

2)Inadequate Management of Customer Expectations:
Customer expectation might be availability of quick service(5mins) & quality
   food, but management will take minimum 20mins to serve.

3) Inadequate Internal Marketing Communications
Employees unaware of the promises made by the pakwann hotel to the customers.
     Hotel may not communicate to their employees.
Four Categories of Strategies to Match Service Promises with
                           Delivery
Approaches for Managing Service Promises

 Create Effective Services Advertising
In pakwann restaurant they are using vehicle, pamphlets.

 Coordinate External Communication:
Word of mouth, Discount offers

 Make Realistic Promises:
Making the promises such that it should be able to deliver
  effectively & efficiently
Ex: Home delivery.
Approaches for
           Managing Customer Expectations
Offer Choices:
Pakwann hotel offer different choices of menus which fulfill the
customers expectations.
Communicate Criteria for Service Effectiveness:
Quality food items at very reasonable prices.
Quick service.
Negotiate Unrealistic Expectations:
Customer expectation might be availability of food within 5 mins
(unrealistic)
Sir, it takes time to fresh & delicious food so please wait for 15
mins. (realistic)
Approaches for
           Improving Customer Education
Teach Customers to Avoid Peak Demand Periods
and Seek Slow Periods:
Asking apology to the customers after delay service.
Clarify Expectations after the Sale:
Sir, it will take time to prepare fresh food So, it was
late.
Prepare Customers for the Service Process:
Greeting the customer, offering the seat then taking
the order & providing the food & then the bill is
prepared after completing the service.
Approaches for Managing
          Internal Marketing Communications



Training them effectively
Updating their knowledge
Clearly setting their objectives on the bases of what we’ve
promised in the external market and make them to understand
the objectives clearly.
Pricing:
 It is value for the product or service, which is paid by the
  customer to the provider.

 For marketers of industrial goods and construction
  companies, pricing is the single judgment that translates
  potential business into reality. Yet pricing is the least
  rational of all decisions made in this specialized field.
Price determinants of pakwaan

        Expected service

                                   Food quality

                                    Decoration

                                      Menu
   Price of service
                                Weightier behaviour


                                      Image


                                    Cleanliness
Three key ways service prices are different for consumers:
 Customer knowledge of service prices:

  Here prices of providers are unwilling to estimate prices. Providers are unable
  or unwilling to estimate prices often cannot tell what the services will involve
  until the delivery is well underway. It is depends upon the satisfaction of
  customers. And needs are vary from customer to customer.


 The role of Non monetary Costs:

  Customer interacts with the service provider. The effort invested to identify
  and select among services you desire are also higher for services than for
  physical goods. Here convenience cost is very less because         this place is
  convenient. And customers are satisfied with the service.
Contd…
 Price as an indicator of service quality:
 According to price fixed by provider they will deliver the
  services. And prices are reasonable.
Four Customer Definitions of Value


 Value is low price.   Value is everything
                       I want in a service.




     Value is the         Value is all that
   quality I get for       I get for all
   the price I pay.         that I give.
Pricing Strategies:
(Four Customer Definitions of Value)
 Value is low price:

   In festivals they are providing discounts in billing to the
   customers.
 Value is the quality I get for the price I pay.

  They stetted prices according to their services and they are
   helping them to increase customer satisfaction.
 Value is every thing I want in a service.

    Here they concentrating on customer loyalty.
 Value is all that I get for all that I give.

   They will not provide result based price.
Satisfaction-Based, Relationship, and Efficiency Pricing
Strategies

Pricing         Provides Value By                      Implemented As
Strategy
Satisfaction-   Recognizing and reducing customers‘ Service guarantees
based pricing   perceptions of uncertainty, which the Benefit-driven
                intangible nature of service magnifies. pricing Flat-rate.

Relationship    Encouraging long-term relationships    Long-term Price
pricing         contracts with the company that        bundling
                customers view as beneficial.

Efficiency      Sharing with customers the cost        Cost-leader pricing
pricing         saving that the company has achieved
                by understanding, managing, and
                reducing the costs of providing the
                service.
                                                                         123
Elements of Physical Evidence:
Services scape            Other tangibles
Interior decoration       Employee dress(red colour)

Menu system               Business cards

Surrounding environment   Pamphlets

Delivery of service       Holdings

                          Billing machine
Framework for Understanding Environment-User Relationships in pakwaan:


                                         Weighter mood
                                                                 Individual
                                          attitude, and
                                                                 behaviour
                                             comfort
                                                                Satisfaction
                                                                 with work
                                             Employee
 Eminent condition                           response
  Individual care
Interior decoration
                         Perceived
  Music system        service scape
     Sitting
                                              Customer           Individual
   arrangements                                                  behaviour
                                              response
                                                                Satisfaction
                                                                with service
                                       Customer mood attitude
                                            and comfort
Service scapes:

 Inter personal service:

 In pakwaan involvement of both employer and
 customer.
THANK YOU

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service marketing presentation on Hotel

  • 1. BASAVESHWAR ENGINEERING COLLEGE BAGALKOT (DEPARTMENT OF MANAGEMENT STUDIES) PRESENTATION ON SERVICE MARKETING (HOTEL INDUSTRIES)
  • 2. Team members:  Praveenkumar G H  Manjula Rolli  Sushma Janmatti  Abdul salam  Manjunath M
  • 3. MEANING OF SERVICE INDUSTRY: An industry made up of companies that primarily earn revenue through providing intangible products and services. Service industry companies are involved in retail, transport, distribution, food services, as well as other service-dominated businesses. Also called service sector, tertiary sector of industry.
  • 4. INTRODUCTION TO THE SERVICE INDUSTRY: Service Sector in India today accounts for more than half of India's GDP. The various sectors that combine together to constitute service industry in India are:  Hotels and Restaurants  Railways  Other Transport & Storage  Communication (Post, Telecom)  Banking
  • 5. Contd…..  Insurance  Business Services  Public Administration;  Defence  Other Services
  • 6. Introduction of Hotel Industry:  Hotels have a very long history, but not as we know today, way back in the 6th century.  Hotel can be classified into different categories or classes, based on their operational criteria.  For example the type of accommodation they provide, location of the property, type of services provided, facilities given and the clientele they cater to can help categories hotels today Hotels today are basically classified into the following categories:
  • 7. Contd……  According to market segment.  According to size.  According to property type.  According to services level.
  • 8. Indian Listed Star Hotels: Name of the hotel Year of establishment Founder Place The Indian Hotels 1903 Jamsetji N Tata Mumbai Company (Taj) ITC/ grand chola 2012 Y. C. Deveshwar Chennai The Leela Group 1957 Capt. C.P. Krishnan Mumbai Nair The EIH Ltd (The 1934 Rai Bahadur Mohan Delhi Oberoi Group) Singh Oberoi Royal orchid central Bellary keerti hotel Clarks shiraz hotel Agra
  • 9. INTRODUCTION TO HOTEL INDUSTRY: The hotel industry is a broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources.
  • 10. SEVEN P’S OF SERVICE INDUSTRY: Product Physical features, quality, accessories, Packaging, warranties, brands Place Channel type, Outlet locations, Transportation, Storage. Promotion Sales people, Advertising, Sales Promotion, Publicity. Price Discounts, Allowances, Price levels. People Employees, Customers Process Flow of activities, Customer Involvement Physical Facility, Equipment, Other Tangibles evidence
  • 11. TOTAL NUMBER OF HOTELS IN BAGALKOT Restaurants 11 Hotels 11 Khanavalies 243 Small hotels(road side) 12 Canteens 2 Snacks centres 83 Total 350
  • 12. INTRODUCTION TO PAKWANN: Name of the business Restaurant Year of establishment 2011 Name of the partners Mr. Anand Agarwal Mr. Pavan Kulkarni Address College road, 19th cross, vidyageri, Bagalkot.
  • 13. NUMBER OF EMPLOYEES IN PAKVAN: Owners 2 cooks 5 waiters 6 cleaners 3 others 3 TOTAL 19
  • 14. SEVEN P’S OF PAKVAN RESTAURANT: Products Price Variety of food items: North Indian dish: per plate 110 Rs North Indian dish, South Indian dish, South Indian dish: per plate 110 Rs Chinese, Snacks, Ice-creams, cold drinks, Chinese: per plate 50 Rs sweets(22) Snacks: per plate 100 Rs Sweets: per KG-200 Rs Cold drinks: 14 Rs Ice cream: family pack 2 KG-115 Rs
  • 15. Contd... Place Promotion College road, 19th cross, vidyageri, Advertisements in local channels, Bagalkot. Banners, Pamphlets.
  • 16. Contd... people process Employees, students, public people Flow of activities, Customer etc. Involvement.
  • 17. Contd... Physical Evidence: Furniture's, sound system, lighting, gardening
  • 18. Service encounter chart for Pakwann Restaurant: Welcome Interaction with customers(order) Service delivery Accepting service Billing Check out
  • 19. DIMENSIONS OF SERVICE QUALITY: Empathy Good customer relationship, responding to their needs and wants. Reliability Promise and according to that they will provide services. Responsiveness Employees are liable, shows honesty with their customers. Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence. Tangibles Furniture, music, lightings.
  • 20. Questionnaire  CUSTOMER PERCEPTION QUESTIONNAIRE  CUSTOMER EXPECTATION QUESTIONNAIRE
  • 23. How long have you visiting Pakwaan? 10% 12% 0 to 4 month 4 month to 6 months 54% 6 to 8 months More than 8 months 24%
  • 24. How many times do you visit PAKWAAN in a month? 12% 36% 0 to 2 times 3 to 5 times More than 5 times 52%
  • 25. Who influenced you to go to Pakwann? 12% 20% 10% Family Member Friends Advertisement Others 58%
  • 26. why do you prefer Pakwaan restaurant? 14% 34% For refreshment For fun For party 32% Others 20%
  • 27. Rank the following factors according to your expectation for the service provided by the service provider. Explains all items regarding meals 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
  • 28. High speed service 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
  • 29. Reasonable price 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
  • 30. Convenient location 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
  • 31. Nice and clean environment 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
  • 32. Good sitting arrangements 2% 4% 14% Highly dissatisfied 46% Dissatisfied Nuteral Satisfied Highly satisfied 34%
  • 34. Are you satisfied with the services provided by the Pakwaan? 2% 6% 8% Highly dissatisfied 48% dissatisfied Neutral Satisfied Highly satisfied 36%
  • 35. Are you satified with the way the empolees care with customers? 0% 8% 24% 12% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 56%
  • 36. Are you satisfied with the pamphlets distributed by the Pakwaan? 0% 4% 16% Highly dissatisfied 44% dissatisfied Neutral Satisfied Highly satisfied 36%
  • 37. Are you satisfied with the services provided by the Pakwaan as promised with you? 2% 4% 16% 34% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 44%
  • 38. Are you satisfied by the services of handling customers problems in Pakwaan? 0% 4% 32% 28% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 36%
  • 39. Are satisfied with the way of Pakwaan informs about the price and quality of the service? 4% 4% 16% Highly dissatisfied dissatisfied Neutral 52% Satisfied Highly satisfied 24%
  • 40. Are you satisfied with promptness of Pakwaan in providing service to you? 0% 4% 16% Highly dissatisfied 44% dissatisfied Neutral Satisfied Highly satisfied 36%
  • 41. Are you satisfied with the willingness of the empolees to help the customers while providing services? 0% 4% 20% 36% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 40%
  • 42. Are you satisfied with the way of employees behave with you in Pakwaan? 0% 2% 16% Highly dissatisfied dissatisfied Neutral Satisfied 58% 24% Highly satisfied
  • 43. Are you satisfied with the employee's eagerness of instilling confidence in customers? 0% 4% 20% 16% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 60%
  • 44. Are you satisfied by the Pakwaan service of providing customers best interest in all the ways? 2% 6% 38% 20% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 34%
  • 45. Are you satisfied by the Pakwaan services of providing the products that best suits you? 0% 4% 20% Highly dissatisfied dissatisfied 50% Neutral Satisfied Highly satisfied 26%
  • 46. Are you satisfied by the overall service quality of the Pakwaan? 0% 4% 20% Highly dissatisfied dissatisfied 50% Neutral Satisfied Highly satisfied 26%
  • 47. Are you satisfied with the sitting arrangements in Pakwaan? 2% 6% 12% Highly dissatisfied 44% dissatisfied Neutral Satisfied Highly satisfied 36%
  • 48. Are you satisfied with the interior decoration of Pakwaan? 0% 4% 28% 32% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 36%
  • 49. Are feel comfortable in Pakwaan while receiving service? 2% 4% 34% 20% Highly dissatisfied dissatisfied Neutral Satisfied Highly satisfied 40%
  • 50. Customer loyalty: In Pakwaan more customers are loyal because, they treat customers with friendly nature. And also because of their and quality service.
  • 51. Customer relationship: In Pakwaan they are managing good customer relationship from their quick reactions with customers and also they are maintaining relations with Banks, Education institutes in Vidyagiri area.
  • 52. Service recovery: Service Failure:  Slow service  Wrong Billing  Conflicts with customers Service Recovery:  Quick service  Discounts in Billing  Smooth handling.
  • 53. Service paradox: Example: Birthday cakes
  • 54. New Service Development process: Execution Stage Planning Stage Full People Design Launch Products Tech- nology Systems Developm Analysis ent
  • 55. Process of Restaurant: New Process design Analysis of design Development of new design Introduction of new service
  • 56. Business Strategy Development or Review:  First step is to develop the mission and vision to implement the new process.  Mission:  Providing good service and making customer satisfaction. New Service Strategy Development: New service is food parsal (family pack). The strategy provided by the pakwaan is to provide good service than the present service through phone. And door to door service.
  • 57. Idea generation This is demanded by customers only Concept development and evaluation: Once the idea of service is fit for both the customers and the employees, then it is ready for the implementation. Business analysis: Based upon existing service and new idea it is analyzed and introducing new service. It will give more satisfaction to the customers.
  • 58. Blue print of restaurant : Physical Exterior Tray and Meals FP and taste Bill evidence packing presentation of snacks custom Arrive at Check availability Receive Order meal Receive food Ask for bill Pay and leave ers restaurant snacks Greet and take Serve snacks Take food Deliver food Process bill order order Contact employees Prepare snacks Order to kitchen Support processes Prepare Payment Food system (Back house)
  • 59. Hard and soft CDS:  Hard CDS: Delivering the services in the time, Approaching at the right time to customers.  Soft CDS: Motivating the employees to provide good service with smile and care.
  • 60. SERVICE TRIANGLE Company (Management) Internal External Marketing Marketing enabling setting promises promises Employees Interactive Marketing Customer keeping promises
  • 61. Three points of the triangle COMPANY- PAKWAAN RESTURAENT OWNER- ANITA KULKARNI ANAND.AGARWAL EMPLOYEES-7 MEMBERS CUSTOMERS-STUDENTS LECTURES OLD AGE PEOPLE BUSINESS PEOPLE HOUSE HOLD PEOPLE
  • 62. Internal marketing:  COMPANY- Owners will give all information about there service to there employees with respect of there menu and also they will give information regarding there service .like cake ,sweets..
  • 63. EXTERNAL MARKETING  In hotel external marketing like-  Pamplets  Tv adds  Charity  Cycle advertising
  • 64. Interactive Marketing  According to menu available from the company employees interacting with customers.  They will take orders from the customers, provide service according to that.  Lastly they will take feed back from the customers.
  • 65. Are the three sides of the triangle well aligned?  yes
  • 66. Provider GAP 3 CUSTOMER Service Delivery COMPANY GAP 3 Customer-Driven Service Designs and Standards
  • 67. The Services Marketing Triangle Company (Management) Internal External Marketing Marketing enabling setting promises promises Employees Interactive Marketing Customers keeping promises
  • 68. Focus on a service organization. In the context you are focusing on, who occupies each of the three points of the triangle?  Company : pakwaan restaurant  Employees: waiters, Owners, cooks, cleaners.  Customers: students, business man, middle class people.
  • 69. How is each type of marketing being carried out currently?  Internal marketing: promises are delivered to the employees with the services which are not kept then the customers become dissatisfied and leave the restaurant.  external marketing : here the promises are made to the customers. Promises made must be kept.  Interactive marketing: here the employees will finally deliver services to the customer.
  • 70. Are the three sides of the triangle well aligned?  Yes the three sides of the triangle are aligned.  All the three sides of the triangle are essential to complete the whole, and the sides of the triangle should be aligned. Are there specific challenges or barriers in any of the three areas? Specific challenges:  Fast Service  Shortage of space.
  • 71. How is the service organization doing on the three sides of triangle? i. External Marketing:- By making the promises to the customers and delivering the same . ii. Interactive Marketing:-the waiters, will deliver the service to the customers. iii. Internal Marketing:-By enabling the promises through recruiting, training, motivating, recording and providing equipment and technology.
  • 72. What is being promoted and by whom? • The product and services like North Indian dishes, South Indian dishes, snacks are promoted by employees of the restaurant. • How will it be delivered and by whom? It will be delivered by the process and by the help of physical evidence and it will be delivered by the employees. • Are the supporting systems in place to deliver the promised service? • The physical evidence of the restaurant is most pleasant which attracts the customers to come to restaurant and experience the services.
  • 73. The Service Profit Chain in restaurant ER Revenue Growth External Internal Service CS CL ES SQ Value SQ-Service Quality EP ES-Employee Satisfaction Profitability ER-Employee Retention EP-Employee Productivity CS-Customer Satisfaction CL-Customer Loyalty
  • 74. Boundary Spanners Boundary Spanners Employees :of the restaurant i.e., owners, waiters, cooks, cleaners. Classification: • Subordinate Service Roles: waiters, cleaners, cooks.  Professional Service Roles: Owners.
  • 75. Sources of Conflict for Boundary-Spanning Workers • Person vs. Role (Agarwal v/s His role) • Organization vs. Client(Pakwann v/s the employee) • Client vs. Client (employee v/s employee) • Quality vs. Productivity(Services provided v/s productivity of the services)
  • 76. Cont…  Person vs. Role: Here there is a conflict between owners and his personality . Ex: The restaurant employees are forced to do on time delivery when they are providing the services.  Organization/ Client: Here there is a conflict between the organization and the client. Here the employees has to follow the rules which are developed by the owners . Ex: The cook cant delay the preparation of food within a time .
  • 77. Cont…  Client vs. Client : there are more customers conflict arises between them.. Ex: When a restaurant employees serving the customers continuously.  Quality/ Productivity: Here there is a conflict between quality and productivity. The employees are asked to be both effective and efficient. Ex: A employees of the restaurant should behave courtesy with customers and see to it that the customers are well treated.
  • 78. Human Resource Strategies for Closing GAP 3 Hire for Service Competencies and Service Inclination Hire the Right People Develop Customer- Employees as Employees Empower People to Customers Retain the Oriented Treat Best Deliver Service Service People Delivery Quality Provide Needed Support Systems Provide Supportive Technology and Equipment
  • 79. Hiring The Right People  Compete for the Best People:- for restaurant waiters plays a very important role so selection of waiters is very important.  Hire for Service Competencies and Service Inclination:- training the waiters in a systematic manner like how to behave with customers and all.  Be the Preferred Employer:- the employees should be preferred more and given more opportunity.
  • 80. Develop people to Deliver SQ •Train for Technical and Interactive Skills:- training the employees for doing billing in absence of owner and also the smooth interaction skills and how to have patience. •Empower Employees:- here the some power ,authority, responsibility will be given to the employees •Promote Teamwork:- the team work should be developed in the restaurant to provide the services on time and retain the customers .
  • 81. Provide needed support systems  Measure Internal Service Quality:-here the owners are providing good support to their employees to deliver proper service.  Provide Supportive Technology and Equipment:- according to there experience they will deliver the service .  Develop Service-oriented Internal Processes:- they are mainly focusing on customer satisfaction.
  • 82. Retain the Best People  Include Employees in the Company’s Vision:- they are motivating employees by providing good salary and bonus.  Treat Employees as Customers:-when they are treating employees as a customer then they will loyal to the there work and organization.  Measure and Reward Strong Service Performers:- here they will provide bonus and occasionally they will provide cloths.
  • 83. Descriptions of Staffing Issues in Firms  High Passion for Service:- pakwaan is having sufficient employees for providing service to the customers.  Moderate Passion for Service:- in pakwaan if the employees were absent they will adjust with the available employers  Low Passion for Service :- if the employers are not working properly they were replaced by other employees.
  • 84. Service Culture  They are mainly focusing on the customer satisfaction by providing news papers, light music ,with well interior decoration.
  • 85. Customer Role  As the customer role is also playing a very important role in service delivery.  In the Pakwaan hotel the first service starts from customer by through giving order.
  • 86. Customer input in service game  As by focusing vidyageri identified customer needs.  According to that there should be requirement of hotel in this place so the pakwaan hotel is started.
  • 87. Recognize That Quality Starts with Needs:  The pakwaan is recognize that the quality is starts from the customer needs and the expectations of customers are differ from one to other so as per the needs they are providing services to the customer.
  • 88. Recognize That Violating Needs Means Losing a Customer:  In the hotel as if the service failed it can be recovered in the form of discounting and asking sorry for that but if the owner is not accepted the customer complaint then they are going to loose the customers.  In pakwaan they are not going to loose the customer because they are handling the customer very carefully as well as they are receving the complaints.
  • 89. Respect Customers' Need for Security When the Pakwaan hotel provide the services, it should ensure that the services which are provided will be safe. Ex: Quality Food.
  • 90. Respect Customers' Need for Justice  The hotel must provide the services according to the expectation of customer and the way of handling the customers. so that customers feel satisfied by having satisfactory service from the hotel.
  • 91. Clarify the Customer's Co-production Role  Pakwaan is identifying the wants of the customers and based on that they are providing realistic services.
  • 92. Motivate Customers to Participate  The pakwaan is trying to attract the customers by providing good quality of food as well as well as good services and also they are taking party orders from the customers.
  • 93. Watch for Clues That Customers Could Do More The pakwaan hotel will provide the brochures, visiting cards, vehicle and pamphlets for the easy understanding of the services.
  • 94. Draw in Customers as Co-designers of the Service Delivery System The pakwaan hotel will encourage the customers to give feedback about their services so that they can improve in delivering the better services.
  • 95. How Customers Widen Gap 3  The customers are unable to understand their role.  The customers will not be willing or able to perform their role.  It might be a service complaint or any queries which they wanted to ask.  Sometimes if they are willing to perform their role, their will be no rewards for their performance.  Incompatible market segments
  • 96. Customer roles in service delivery:  Customers as Productive Resources: Organizational productivity can be increased if customers try to understand the situations of service delivery & perform the service-related activities.  Customers as Contributors to Service Quality and Satisfaction: Effective customer participation can increase the likelihood that the needs are met and that the benefits the customer are actually attained. Ex: feedbacks & Word of mouth
  • 97. Contd…  Customers as Competitors: Some times some of the customers are acting competitors to the services which are providing by the pakwaan this happens when the customers thought they are getting both veg and non-veg food items but pakwaan is providing only the veg items.
  • 98. Services Production Continuum  Customer production : As in pakwaan they taught to keep self service as addition then the customers are paying amount in the counter and serving themselves.  Joint production & Firm production : In pakwaan the service is providing by the waiters and the customers are going to pay the amount in the counter.
  • 99. Strategies for Enhancing Customer Participation  Define customer job : The pakwaan is identifying the needs of the customers in food items and providing services.  It is educating the customer through by giving advertisements and making aware about the quality and service of their hotel.  And they are managing the customers by providing the services according to their wish.
  • 100. Waiting Strategies:  Employing the operating logic to reduce wait  Establish a reservation process by booking the tables in advance.  Differentiate waiting customers as per the Veg & non veg.  Make waiting fun ,or at least tolerable by providing the menu, music, DJ’s.
  • 101. Waiting Line Strategies Employ operational logic Make waiting fun or at to reduce wait least tolerable Establish a reservation Differentiate waiting process customers
  • 102. Waiting Line Configurations  Single queue: Enter
  • 104. Constraints on Capacity Nature of the constraint Type of service Time Consulting Billing Labor Consulting employee Equipment Billing machine Facilities Hotel
  • 105.  Gap 4 Not Matching Performance to Promises
  • 106. Gaps Model of Service Quality CUSTOMER Expected Service Customer Gap Perceived Service External COMPANY Service Delivery Communications to GAP 4 Customers GAP 1 GAP 3 Customer-Driven Service Designs and Standards GAP 2 Company Perceptions of Consumer Expectations 12/17/2012 106
  • 107. GAP 4 External communication Actual service Quick service Not providing Menu items Some items are not available Delicious food Some times fail to deliver delicious food
  • 108.
  • 109.
  • 111. Communications and the Services MarketingPakwann ) Company(Hotel Triangle Internal Marketing External Marketing Management rules like Communication Advertising Sales Promotion Public Relations Employees(waiters, Interactive Marketing Customers Cook, cleaners)
  • 112. Service Communication Problems 1) Inadequate Management of Service Promises: In advertisement they advertise availability of different types of items like Gajar ka Halwa…. But when customer ask this type of item, management will say that it is not available. 2)Inadequate Management of Customer Expectations: Customer expectation might be availability of quick service(5mins) & quality food, but management will take minimum 20mins to serve. 3) Inadequate Internal Marketing Communications Employees unaware of the promises made by the pakwann hotel to the customers. Hotel may not communicate to their employees.
  • 113. Four Categories of Strategies to Match Service Promises with Delivery Approaches for Managing Service Promises  Create Effective Services Advertising In pakwann restaurant they are using vehicle, pamphlets.  Coordinate External Communication: Word of mouth, Discount offers  Make Realistic Promises: Making the promises such that it should be able to deliver effectively & efficiently Ex: Home delivery.
  • 114. Approaches for Managing Customer Expectations Offer Choices: Pakwann hotel offer different choices of menus which fulfill the customers expectations. Communicate Criteria for Service Effectiveness: Quality food items at very reasonable prices. Quick service. Negotiate Unrealistic Expectations: Customer expectation might be availability of food within 5 mins (unrealistic) Sir, it takes time to fresh & delicious food so please wait for 15 mins. (realistic)
  • 115. Approaches for Improving Customer Education Teach Customers to Avoid Peak Demand Periods and Seek Slow Periods: Asking apology to the customers after delay service. Clarify Expectations after the Sale: Sir, it will take time to prepare fresh food So, it was late. Prepare Customers for the Service Process: Greeting the customer, offering the seat then taking the order & providing the food & then the bill is prepared after completing the service.
  • 116. Approaches for Managing Internal Marketing Communications Training them effectively Updating their knowledge Clearly setting their objectives on the bases of what we’ve promised in the external market and make them to understand the objectives clearly.
  • 117. Pricing:  It is value for the product or service, which is paid by the customer to the provider.  For marketers of industrial goods and construction companies, pricing is the single judgment that translates potential business into reality. Yet pricing is the least rational of all decisions made in this specialized field.
  • 118. Price determinants of pakwaan Expected service Food quality Decoration Menu Price of service Weightier behaviour Image Cleanliness
  • 119. Three key ways service prices are different for consumers:  Customer knowledge of service prices: Here prices of providers are unwilling to estimate prices. Providers are unable or unwilling to estimate prices often cannot tell what the services will involve until the delivery is well underway. It is depends upon the satisfaction of customers. And needs are vary from customer to customer.  The role of Non monetary Costs: Customer interacts with the service provider. The effort invested to identify and select among services you desire are also higher for services than for physical goods. Here convenience cost is very less because this place is convenient. And customers are satisfied with the service.
  • 120. Contd…  Price as an indicator of service quality: According to price fixed by provider they will deliver the services. And prices are reasonable.
  • 121. Four Customer Definitions of Value Value is low price. Value is everything I want in a service. Value is the Value is all that quality I get for I get for all the price I pay. that I give.
  • 122. Pricing Strategies: (Four Customer Definitions of Value)  Value is low price: In festivals they are providing discounts in billing to the customers.  Value is the quality I get for the price I pay. They stetted prices according to their services and they are helping them to increase customer satisfaction.  Value is every thing I want in a service. Here they concentrating on customer loyalty.  Value is all that I get for all that I give. They will not provide result based price.
  • 123. Satisfaction-Based, Relationship, and Efficiency Pricing Strategies Pricing Provides Value By Implemented As Strategy Satisfaction- Recognizing and reducing customers‘ Service guarantees based pricing perceptions of uncertainty, which the Benefit-driven intangible nature of service magnifies. pricing Flat-rate. Relationship Encouraging long-term relationships Long-term Price pricing contracts with the company that bundling customers view as beneficial. Efficiency Sharing with customers the cost Cost-leader pricing pricing saving that the company has achieved by understanding, managing, and reducing the costs of providing the service. 123
  • 124. Elements of Physical Evidence: Services scape Other tangibles Interior decoration Employee dress(red colour) Menu system Business cards Surrounding environment Pamphlets Delivery of service Holdings Billing machine
  • 125. Framework for Understanding Environment-User Relationships in pakwaan: Weighter mood Individual attitude, and behaviour comfort Satisfaction with work Employee Eminent condition response Individual care Interior decoration Perceived Music system service scape Sitting Customer Individual arrangements behaviour response Satisfaction with service Customer mood attitude and comfort
  • 126. Service scapes: Inter personal service: In pakwaan involvement of both employer and customer.