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
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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
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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
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