Service marketing product 4

8/7/2019 Service marketing product 4

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Services Marketing

Module 4



Service Decision Framework:

Decisions Involving Product ElementsWhat Business Are We In?

What Service Processes Can Be Used in

Our Operation? (PROCESS)

Who Are Our Customers andHow Should We Relate to Them?

WHAT SHOULD BE THE CORE AND SUPPLEMENTARY ELEMENTS

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What Price Should We Charge? (PRICE AND OTHER USER OUTLAYS)

How to Communicate? (PROMOTION &

EDUCATION, PHYSICAL EVIDENCE)

Options for Delivery? (PLACE, CYBERSPACE

& TIME, PHYSICAL EVIDENCE)

How Can We Balance

?PRODUCTIVITY AND QUALITY

How Should We Match Demand and Productive Capacity?

What Are Appropriate Roles for People and Technology? (PEOPLE)

How Can Our Firm Achieve Service Leadership?



Conceptualizing the Service Product

Level 1 Consumer Benefit ConceptConcerned with what benefits do customers/clients seek

Level 2 Service ConceptConcerned with what general benefits will the service organization offer

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Level 3 Service OfferConcerned with more detailed shaping of the service concept.

Decisions on, and clarifications of:

• service elements (tangible and intangible)

• service forms (in what way / how)• service levels (quality and quantity)

Level 4 Service Delivery SystemConcerned with people, process, facilities etc.



The Service Product

Intangibleproduct core

4

Augmented level

Unexpected

positive level



What Should Be the Core and Supplementary

Elements of Our Service Product?

• What are the characteristics of our core product?• What supplementary elements augment this

core?

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• What product benefits create the most value forcustomers?

• How can we differentiate our service offeringfrom the competition’s?

• How should we go about designing new

services?



Molecular Model of

Passenger Airline ServiceDistribution

Price

Servicefrequency

Vehicle

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Pre andpost-flight

serviceFoodand

drink

In-flightservice

Transport

KEY

Tangible elements

Intangible elements

Marketing Positioning

(Weighted toward evidence)Source: Shostack



Core Products and Supplementary Services• Most firms offer customers a package of benefits:

– core product (a good or a service)– supplementary services that add value to the

r

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• In mature industries, core products often become

commodities

• Supplementary services help to differentiate coreproducts and create competitive advantage by:

– facilitating use of the core service

– enhancing the value and appeal of the core



The Flower of Service:

Core plus Supplementary Services

Information

ConsultationPayment

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Core Order-Taking

Hospitality

Safekeeping

Exceptions

Billing

KEY:

Facilitating

Enhancing



Facilitating Services - Information

Customers often require

information about how to

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o a n an use a pro uc orservice. They may also need

reminders and documentation

Cor

eCore



Facilitating Services - Order Taking

Many goods and services

must be ordered or reserved in

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know what is available and maywant to secure commitment to

delivery

Cor

eCore



Facilitating Services - Billing

“How much do I owe you?”

t m r rv l r

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accurate and intelligible billsand statements

Cor

eCore



Facilitating Services - Payment

Customers may pay faster

n m r h rf ll if

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make transactions simpleand convenient for them

Cor

e

Core



Enhancing Services - Consultation

Value can be added to goods

and services by offering advice

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an consu a on a aretailored to each customer’s

needs and situation

Cor

e

Core



Enhancing Services - Hospitality

Customers who invest timeand effort in visiting a

business and using its

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services deserve to betreated as welcome guests

(after all, marketing invited

them there!)

Cor

e

Core



Enhancing Services - Safekeeping

Customers prefer not toworry about looking afterthe personal possessions

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to a service site; they alsoexpect firms to help carefor the goods that theypurchase or rent.

Cor

e

Core



Enhancing Services - Exceptions

Customers appreciate some

flexibility in a business

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requests. They expect it

when not everything goes

according to plan

Cor

e

Core



The secondary service• Differentiating features of the service:

– features– styling

– acka in

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– branding

– physical evidence

– service delivery– people

– quality



Service Blueprinting: Key Components(Where appropriate, show Fail Points, risk of Excessive Waits)

1. Define standards for frontstage activities

2. Specify physical evidence

3. Identify principal customer actions

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4. ------------line of interaction (customers and frontstage personnel)--------

5. Frontstage actions by customer-contact personnel

6. ------------line of visibility (between front stage and backstage)--------------

7. Backstage actions by customer contact personnel

8. Support processes involving other service personnel

9. Support processes involving IT



Flowcharts of Alternative Meal

Delivery Options

See signPark &enter

Order meal& pay

Pick upmeal

Find table& eat

Fast-FoodRestaurant

(eat in)

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See sign

atorder point

micro-phone

atpickup, pay

Drive away,eat in car

TelephoneRestaurant

Order food,give

address

Deliveryboy rings

doorbell

Paydelivery boy

take food

Eat

Arrange tomeet

caterer

Plan menupay

deposit

Food &staff

arrive

Mealprepared& served

Eat

Drive-In

Restaurant(Take Out)

Home

Delivery

Home

Catering

Service marketing product 4

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