School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Lodging – hotel, resort, b&bHealthcare – hospital, clinicTransportation – airlines, bus, railways, taxiEducation – university, college, kindergartenEntertainment – cineplex, disco, themeparkFood & Beverage – restaurant, café, pubFinancial – bank, insurance, investment MRO – workshop, service centre, cleaningTelecommunication – telecom, internetLegal – lawyer firmTraining/Consultancy – consulting, advertising, trainingSocial – escort, tourist guide, security firm

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

V A L U E - A D D E D Performances Actions

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Services cannot be seen, felt, tasted or touched before they are

purchased.

8

Tangibility SpectrumTangibility Spectrum

TangibleDominant

IntangibleDominant

SaltSoft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

ManagementConsulting

Teaching

Fast-foodOutlets

Fast-foodOutlets

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Mktg Implications:Difficult to describeDifficult to measure QCannot be storedCannot be easily patented

10

INTANGIBILITY:SUGGESTED SOLUTIONS

Use tangible clues/physical evidence Utilize personal sources of information Create a strong organizational image

School of Business ManagementUniversiti Kebangsaan Malaysia ___________________________________________________________________________________

11

12

13

14

Awards: Pangkor Laut Resort

"Marina Bay Pangkor Laut Estates Listed in Best 101 Hotels in the World" by Tatler Travel Guide U.K. (2006)"20 Most Fabulous Spa Retreats in the World" by Australian Gourmet Traveller Magazine (2005) "Spa of Malaysia"and"Best Traditional Chinese Medicine (TCM) - Influenced Spa" Spa Asia Crystal Awards - Spa Asia Magazine (2005) 'World's Top 25 Spas 2005' by The Sunday Telegraph, U.K. Senses Wellness Award - "Best Beach Resort" by Senses Wellness Guide, Germany (2005)"Top Ten Spa Retreats - Overseas" byConde Nast Traveller U.K. - Readers' Spa Awards (2005)"Top Ten Best Overseas Resort" by Luxury Travel & Style Magazine, Australia - The Gold List 2005Five Star Diamond Award by The American Academy of Hospitality Sciences (2002, 2003, 2004 & 2005)

15

16

Pretty Woman: Julia Roberts gets a taste of the high-life:

Regent Beverly Wilshire, 9500 Wilshire Boulevard, Beverly Hills

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

No two services will be precisely alike

Services are heterogeneous across: time,organizations, and people

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Heterogeneity

No two services will be precisely alike

- Produced and influenced by humans

- No two persons are precisely alike

- Even the same person may differ in his performance from day to day (hour to hour)

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Mktg Implication:Standardization and quality control are difficult to achieve

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Suggested Solution:• Effective training of staffs• Good standard practice & procedures (P&P)• Good HRM

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Services are produced and consumed simultaneously

24

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Interactions “Service provider-Customer”– Customer is present while the service is being produced

Interactions “Customer-Customer”– Customers interact with each other during the service production process

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Mktg Implications:

Mass production is difficult

Service provider is part of the product itself and as

essential ingredient in the service experience for the

consumer

Quality depends on interactions between:

- customer – service provider

- customer – customer

•

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Suggested Solutions:

Focus on the training and selection of public contact personnel

Develop strategies to manage consumers

- separate waiting areas (workshop),

minimized interaction SP-C

- by appointment (clinic),minimized interaction C-C

Develop multi-site locations

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Services cannot be saved, resold or returned.- a seat on an airplane- an hour of a lawyer’s time- badly haircut

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Mktg Implications:It is difficult to synchronize supply and demand with services

- because service cannot be inventoried for future use

Service cannot be returned and resold

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

Suggested Solutions:

• Good mktg communication strategies• Good pricing strategies

04/12/23

ProductPricePlacePromotionPeoplePeopleProcessProcessPhysical EvidencePhysical Evidence

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

All human actors who play a part in servicedelivery and thus influence the buyer’s perceptions; namely the firm’s personnel,the customer, and other customers in theservice environment.

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

All human actors who play a part in servicedelivery and thus influence the buyer’s perceptions; namely the firm’s personnel,the customer, and other customers in theservice environment.

• Employees• The customer• Other customers

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

The environment in which the service isdelivered and where the firm and customer interact, and any tangible components thatfacilitate performance or communication ofthe service.

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

The environment in which the service isdelivered and where the firm and customer interact, and any tangible components thatfacilitate performance or communication ofthe service.

• Facility design• Equipment• Signage• Employee dress• Others – buss. cards, brochures etc.

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

The actual procedures, mechanism, and flowof activities by which the service is delivered –the service delivery and operating systems.

School of Business ManagementUniversiti Kebangsaan Malaysia _______________________________________________________________________________________

The actual procedures, mechanism, and flowof activities by which the service is delivered –the service delivery and operating systems.

• Flow of activities• Number of steps• Customer involvement

39

Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“making thepromise”

Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler