Chp 12 : DESIGNING AND
MANAGING SERVICES
Presented by
KiranNaseem
B.S 6
SERVICE
An act or performance
offered by one person
to another. It tends to
be intangible and does
not result in ownership
of anything. Services
can be bought and sold
but cannot be held.
Categories Of Service Mix
Pure
Pure tangible
tangible good
good
Tangible
Tangible good
good with
with
accompanying
accompanying
services
services
Hybrid
Hybrid
Service
Service with
with
accompanying
accompanying
goods
goods and
and services
services
Pure
Pure service
service
Distinctive Characteristics
Of Services
Intangibility
Inseparability
Variability
Perishability
Intangibility
Services cannot be seen,
tasted, felt, heard or smelled
before they are bought.
Service companies can try to
demonstrate their service
quality through physical
evidence and presentation.
Like: Place, People,
Equipment, communication
material and price
For example: dominos if unable to deliver the
pizza in 30 minutes then the pizza will be free.
Inseparability
Services are typically produced
and consumed simultaneously.
Service provider and client
interaction is a special feature
of services marketing
Variability
The quality of services depends on who
provides them, when and where and to
whom, services are highly variable.
How to Increase Quality Control
Invest in good hiring and
training procedures
Standardize the
service-performance process
Monitor customer satisfaction
Perishability
Services cannot be stored, so their parish
ability can be a problem when demand
fluctuates
Matching Demand and Supply
Demand side
Differential pricing
Nonpeak demand
Complementary services
Reservation systems
Supply side
Part-time employees
Peak-time efficiency
Increased consumer participation
Shared services
Facilities for future expansion
The New Service
Realities
1 Customer
Empowerment
Three types of marketing in
Services
Achieving Excellence In
Services Marketing
External marketing
describe the normal work of
preparing pricing distributing and
promoting the services to customer
Internal marketing
Interactive marketing
describe
the work to train and motivate
employees to serve customer.
describes the employees skill in
serving the clients because the client
judges services not only by technical
quality but also its functional quality.
Best Practices Of Top Service
Companies
Various studies have shown that well
managed service companies share the
following common practices
Strategic Concept
Top Management Commitment
High Standards
Profit Tiers
Monitoring Systems
SatisfyingCustomerComplaints
Differentiating
Services
Primary Service
Secondary Service
INNOVATION WITH SERVICE
Managing Service
Quality
The service quality of a firm is tested at
each service encounter. If service
personnel are bored, cannot answer
simple questions, or visiting with each
other while customers are waiting,
customers will think twice about doing
business again with that seller
Improving Service
Quality
Listening
Reliability
Basic service
Service design
Recovery
Surprising customers
Fair play
Teamwork
Employee research
Servant leadership
Gaps That Cause Unsuccessful
Service Delivery
Gap between consumer expectation
and management perception
Gap between management perception
and service-quality specifications
Gap between service-quality
specifications and service delivery
Gap between service delivery and
external communications
Gap between perceived service and
expected service
Gaps Model
for improving service quality
THANK
YOU