Chapter 1 Understanding Services - CA Sri Lanka 6.… · airlines, insurance, telecommunications,...

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Assignment 01

../../assesments/complete list of service industries MKT 8003.docx

• Appendix no 01 SWOT/ TOWS

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Assignment 01

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Assignment 01


• Appendix no 02 Gap analysis

Services defined

• An act or performance (or experience) which is essentially intangible and does not result in ownership of anything

• Economic activities that add time, place or form utility (value)

• Something that may be bought or sold but cannot be dropped on your foot

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Assignment 01

Classifications based on services customers

• Consumer services – provided to customers who are purchasing for their own personal needs

– Prominently visible in any community

• Business to business services – provided to customers who are purchasing on behalf of their organizations

– Rarely seen by the general public

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Assignment 01

• People-processing (e.g. airlines, hotels, hair salons, coach tours,

hospitals). The service is directed at the customer and thus, the

customer must physically enter the service system

• Possession-processing (e.g. repairs, cleaning, family pet, storage,

installation). The service provided is directed at some possession,

not directly at the customer.

• Mental-stimulus processing (e.g. education, news,

psychotherapy, professional advice and certain religious activities)

• Information-processing (e.g. banking, law, consulting). The

provider of the service presents information to the customer either

face-to-face, in hard copy, or through electronic channels

Service processes

Lovelock, Patterson & Walker (2007),

Assignment 01

Diversity of services • Large commercial corporations e.g. banking,

airlines, insurance, telecommunications, hotel chains, transport, consultants etc.

• Smaller corporations e.g. restaurants, laundries, taxis, travel agents, optometrists and many business to business professional services etc.

• Franchises e.g. Fast food chains, hotels, tax preparation services etc.

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Assignment 01

Value added utilities • Time based utility: airlines, car hire, cleaning and

maintenance services etc.

• Place based utility: distribution, retailing, telecommunicat

- ions, serviced offices etc.

• Form based utility: medical, hairdressing, investment management, sports and leisure etc.

• Problem solving utility: consulting, research services, legal services, IT services etc. 11

Assignment 01

Characteristics of services

• Intangibility

• Inseparability of production and consumption

• Heterogeneity

• Perishability 12

Assignment 01

Dominance of tangible versus intangible elements in goods and services

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Managing the 7Ps Requires Collaboration between Marketing, Operations, and HR Functions

Customers

Operations

Management Marketing

Management

Human Resources

Management 14

Assignment 01

Figure 1.12 An expanded marketing

mix for services

Customers Price Place &

Time

Promotion

Product

(Service) People Process

Physical Evidence

Customers Price cstomers

Place,

Cyber-

space

& Time

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5-16

Customer Gap

What is service quality? Customer gap

Service quality is the customer’s judgment of overall excellence of the service

provided in relation to the quality that was expected.

10-17

Standards are based on the most important customer expectations and reflect the customer’s view of these expectations.

Customer-Defined

Standards

Company-Defined

Standards

SOURCES

Customer Expectations

Customer Process Blueprint

Customer Experience

Observations

SOURCES

Productivity Implications

Cost Implications

Company Process Blueprint

Company View of Quality

Service standards

4-18

Zone of tolerance

Adequate Service

Desired Service

Zone of Tolerance

Delights

Desirables

Musts

5-19

Customer perceptions of quality and customer satisfaction


Customers

Operations


Management

Human Resources

Management 21

Assignment 01

Internal

marketing

Traditional

marketing

Organisation

Employees Customers

Satisfaction; Quality;

Brand Loyalty

Relationship

management

A framework for analysing services marketing

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Customers

Operations


Management

Human Resources

Management 26

Assignment 01

Internal

marketing

Traditional

marketing

Organisation

Employees Customers


Brand Loyalty

Relationship

management


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Service development, design and

standards

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Markets

Offerings

Existing Services

New Services

Current Customers New Customers

SHARE BUILDING

DIVERSIFICATION

MARKET DEVELOPMENT

SERVICE DEVELOPMENT

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Assignment 01


standards

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Step 1 Identify the process to be blue-printed.

Step 2 Identify the customer or customer segment.

Step 3 Map the process from the customer’s point of view.

Step 4 Map contact employee actions, onstage and back-stage.

Step 5 Link customer and contact person activities to needed support functions.

Step 6 Add evidence of service at each customer action step.

Building a service

blueprint

9-33

Blueprint for Express Mail Delivery Service

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Marketing strategy

A strategy that integrates an

organization's marketing goals into a

cohesive whole. Ideally drawn from

market research, it focuses on the ideal

product mix to achieve maximum profit

potential. The marketing strategy is set

out in a marketing plan

Competitive Strategy

‘First and foremost, a business must set itself apart from its competition. To be successful, it must identify and promote itself as the best provider of attributes that are important to target customers’

Source: George S. Day, 1990. See page 182.

Service marketing

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Marketing strategy

A strategy that integrates an organization's marketing goals

into a cohesive whole. Ideally drawn from market research,

it focuses on the ideal product mix to achieve maximum

profit potential. The marketing strategy is set out in a

marketing plan


standards

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standards

42


standards

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Customization or standardization


standards

44


Customers

Operations


Management

Human Resources

Management 47

Assignment 01

Internal

marketing

Traditional

marketing

Organisation

Employees Customers


Brand Loyalty

Relationship

management


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Customer Service Goals

Two main goals:

1. Customer Satisfaction

2. Operational efficiency

Employees and Customer

Service

• Employees are often central to an

effective customer service function

• All dimensions of service quality can be

influenced directly by service employees

• Delivering the core service may be totally

in the control of front line employees

Employees and Customer

Service

• Showing empathy implies that

employees will be attentive to

customers’ needs

• Employee appearance and dress

are important components of the

tangible evidence of the service

Causes of Stress in Service

Delivery

• Emotional Labour

• Role Conflict

• Role ambiguity

• Role overload

• Service Climate

Job Design and Recruitment

• Job design must consider the needs of the

operation, customer expectation, the

needs and capabilities of employees and

the characteristics of operational

equipment

• Some service jobs require prior

qualifications and skills rather than training

only after recruitment

Factors Shaping the

Customer Service Function

• Presence or absence of intermediaries

• High contact versus low contact

• Duration of service delivery

• Capacity constraints

• Frequency of use and purchase

• Complexity and customisation

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Physical evidence and the

servicescape

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Physical evidence and the

servicescape


Customers

Operations


Management

Human Resources

Management 60

Assignment 01

Internal

marketing

Traditional

marketing

Organisation

Employees Customers


Brand Loyalty

Relationship

management


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Service quality spells profits

Customer Retention

Lower costs

Price premium

Word of mouth

Margins

Profits

Defensive Marketing

Volume of purchases

Market share

Reputation

Sales

Price premium

Offensive Marketing

Service



• Appendix no 03 Porters 5 forces

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Introduction to service marketing



• Appendix no 03 porters 5 forces

• Appendix no 04 PESTLE analysis

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Assignment 01





• Appendix no 05 customer analysis




• Appendix no 04 Customer analysis

• Appendix no 05 Competitor analysis




• Appendix no 04 Customer analysis

• Appendix no 05 Competitor analysis

• Appendix no 06 Stakeholder analysis

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An executive summary and introduction outlining your

sector description

The introduction should provide an overview of what the

sector is and very clearly identify the sector market. The

report should comprise of a logical, sequential and

persuasive arguments, justified or supported by secondary

sources and journal articles. The purpose of your audit is

not to simply reword or describe the sector from the

literature but to offer a thorough understanding of the

operational and marketing issues and capabilities facing

the sector. Overall, you are writing a business case on

your sector.

Assignment 01

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A body that includes all the analysis of business, current marketing

and internal environments and customer/user/stakeholder analysis.

You must specifically conduct and include

an environmental scan

• porters 5 forces

• PESTLE analysis

• customer analysis

• and competitor analysis

• and stakeholder analysis.

Once you have completed all of the analytical sections, you must

develop a set of important services related issues/gaps related to

the way the sector is delivering the service.

Assignment 01

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Recommendations and Conclusion. This includes the

statement of issues you have found, the gaps in the

internal capability and external market forces found and a

brief summary of the main issues facing your sector in a

competitive market place and the needs of the customers.

These must be specific to services marketing.

List of references

Assignment 01

Chapter 1 Understanding Services - CA Sri Lanka 6.… · airlines, insurance, telecommunications,...

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