POTENTIAL SERVICES, EXPECTED SERVICES
BASIC SERVICES, CORE BENEFIT, Line of visibility,
Service Design- 8 steps , Gaps Model of Service Quality,Provider Gap 1,Provider Gap 2,Key Factors Leading to Provider Gap 2,Provider Gap 3,Key Factors Leading to Provider Gap 4, Zone of Tolerance
3. Traditional Marketing Mix
All elements within the control of the firm that
communicate the firm’s capabilities and image to
customers or that influence customer satisfaction with
the firm’s product and services:
Product
Price
Place
Promotion
4. Expanded Mix for Services –
The 7 Ps
People
All human actors who play a part in service delivery and thus
influence the buyer’s perceptions: namely, the firm’s
personnel, the customer, and other customers in the service
environment.
Physical Evidence
The environment in which the service is delivered and where the
firm and customer interact, and any tangible components that
facilitate performance or communication of the service.
Process
The actual procedures, mechanisms, and flow of activities by
which the service is delivered—the service delivery and
operating systems.
6. Ways to Use the 7 Ps
Overall Strategic
Assessment
How effective is a firm’s
services marketing mix?
Is the mix well-aligned
with overall vision and
strategy?
What are the strengths
and weaknesses in terms
of the 7 Ps?
Specific Service
Implementation
Who is the customer?
What is the service?
How effectively does the
services marketing mix for a
service communicate its
benefits and quality?
What changes/
improvements are needed?
7.
8. Service product or package
Service product or package can be defined as a
bundle of features and benefits which have relevance
to specific target market and are developed to fulfill
their needs and wants.
Tourism industry or the education industry can be an
excellent example.
9. Service product or package
Product: In case of services, the ‘product’ is
intangible, heterogeneous and perishable
Production and consumption are inseparable. Hence,
there is scope for customizing the offering as per
customer requirements .
Too much customization would compromise the
standard delivery of the service and adversely affect its
quality.
Hence particular care has to be taken in designing the
service offering.
10.
11.
12. Place
Place in reference to service means , where the service
or service package is going to be located.
Ex : the best place for opening a software company
must be in a business hub with a lot of companies
nearby rather then being placed in a rural area.
13. Place
Since service delivery is concurrent with its production
and cannot be stored or transported, the location of
the service product assumes importance.
Service providers have to give special thought to where
the service would be provided.
Thus, a fine dine restaurant is better located in a busy,
upscale market as against on the outskirts of a city.
Similarly, a holiday resort is better situated in the
countryside away from the rush and noise of a city.
14. Promotion
Promotions have become a critical factor in the service
marketing mix.
Services are easy to be duplicated and hence it is
generally the brand which sets a service apart from its
counterpart.
You will find a lot of banks and telecom companies
promoting themselves rigorously. Why is that? It is
because competition in this service sector is generally
high and promotions is necessary to survive.
15. Pricing
Pricing of any product or service developed for
customer must be competitive.
Pricing of offered services or service package should be
based on its features.
While deciding the price of a service , the market
competition should be considered.
16. Pricing
Pricing of services is tougher than pricing of goods.
While the latter can be priced easily by taking into
account the raw material costs, in case of services
attendant costs - such as labor and overhead costs -
also need to be factored in.
Thus a restaurant not only has to charge for the cost of
the food served but also has to calculate a price for the
ambience provided.
The final price for the service is then arrived at by
including a mark up for an adequate profit margin.
17. Process
Service process is the way in which a service is
delivered to the end customer.
Lets take the example of two very good companies –
Mcdonalds and Fedex. Both the companies thrive on
their quick service and the reason they can do that is
their confidence on their processes. On top of it, the
demand of these services is such that they have to
deliver optimally without a loss in quality. Thus the
process of a service company in delivering its product
is of utmost importance.
18. Process
The process of service delivery is crucial since it
ensures that the same standard of service is repeatedly
delivered to the customers. Therefore, most companies
have a service blue print which provides the details of
the service delivery process, often going down to even
defining the service script and the greeting phrases to
be used by the service staff.
19. People
People define a service.
In case of service marketing, people can make or break
an organization.
20. People
People are a defining factor in a service delivery process,
since a service is inseparable from the person providing it.
If you have an IT company, your software engineers define
you.
Thus, a restaurant is known as much for its food as for the
service provided by its staff.
The same is true of bank employees in your branch and
their behavior towards customers defines you.
Consequently, customer service training for staff has
become a top priority for many organizations today, staff
trained in interpersonal skills and customer service with a
focus towards customer satisfaction is always valued.
21. Physical evidence
The last element in the service marketing mix is a very
important element.
As said before, services are intangible in nature. However,
to create a better customer experience tangible elements
are also delivered with the service.
Take an example of a restaurant which has only chairs and
tables and good food, or a restaurant which has ambient
lighting, nice music along with good seating arrangement
and this also serves good food. Which one will you prefer?
The one with the nice ambience. That’s physical evidence.
Several times, physical evidence is used as a differentiator
in service marketing.
22. Physical evidence
Since services are intangible in nature most service
providers strive to incorporate certain tangible
elements into their offering to enhance customer
experience.
Thus, there are hair salons that have well designed
waiting areas often with magazines and plush sofas for
patrons to read and relax while they await their turn.
Similarly, restaurants invest heavily in their interior
design and decorations to offer a tangible and unique
experience to their guests.
24. CORE BENEFIT
The basic core can be defined as bundle of functional
benefits. Basic core includes all main benefits that a
firm promises to deliver.
Mainly the customer expects core needs to be satisfied
with basic core features of a product and customer
satisfaction greatly depends on the functional benefits.
If the basic core fails in a product, the product is going
to be a failure as it is the core benefit customers expect
and failure can be resulted in a major dissatisfaction in
the mind of the consumer.
26. Basic services
The intangible service through which the core benefits
received is called as basic services.
For eg: an airlines should have aircraft.
Indigo.
27. Expected Services
Customer expects to get certain service quality or
features when they purchase services.
Airline ticket =good food
Restaurant= clean washrooms
28. Augmented services
The augmented service product consists of the measures
taken to differentiate the services from competitors.
Augmented services are beyond the expectations of the
customers.
It always incurs an extra cost.
Most competition takes place at augmented level.
A smart marketer finds out whether the target customer
shall be ready to pay the price.
Augmented products are also easy to copy and become a
basic after some time.
Eg: TVs in rooms ,theme
32. Island Hotel is one of Florida’s most famous
Bed and Breakfast Inns.
33. Potential Products
Includes all the augmented & the futuristic product
development.
A smart marketer finds out better ways to delight the
customers.
Eg: A resort adds sight seeing tours ,cultural events for
its customers making services more enjoyable.
A educational university may include online
programs ,journals and make their alumni into
brand ambassador.
34.
35.
36. Line of visibility
Designing the
front office
The Tangibles
External décor of where
the customer can see
touch feel experience .Mc.
Donald’s, ICICI
Designing the
back office
The In-
tangibles
Unhygienic conditions of
restaurant can be masked
by good decor but the
stomach upset of the
customer shall tell the
truth
38. Service Design- 8 steps
Ramaswamy‘s frame work for Service
Design
1. Defining the design attributes
2. Setting design performance standard
3. Generating & evaluating design
concepts
4. Developing design details
39. Service Design- 8 steps
The next level the service is actually
delivered ,tested on satisfaction with the
attributes of it could be modified to
improve satisfaction.
5. Implementing the design
6. Measuring the performances
7. Assessing satisfaction
8. Improving performance
44. Gap 1
Customer
expectation minus
Company
Understanding
Gap 2
Customer understanding
minus Setting standard
Gap 3
Standard set minus
Delivery
Gap 4
Delivery minus
External
Communication
The Four Individual Gaps
in Service according
to Gaps Model
45. Gaps Model of Service Quality
Customer Gap:
difference between customer expectations and perceptions
Provider Gap 1 (Knowledge Gap):
not knowing what customers expect
Provider Gap 2 (Service Design & Standards Gap):
not having the right service designs and standards
Provider Gap 3 (Service Performance Gap):
not delivering to service standards
Provider Gap 4 (Communication Gap):
not matching performance to promises
49. Provider Gap 1: Not knowing what customers expect
Provider Gap 2: Not selecting the right service designs and standards
Provider Gap 3: Not delivering to service design and standards
Provider Gap 4: Not matching performance to promises
Customer
Expectations
Customer
Perceptions
Key Factors Leading
to the Customer Gap
Customer
Gap
54. Spiralling expectations
A car dealer at the luxury end of the market has a policy of monitoring its
customers' satisfaction with its services through surveys and focus groups.
This has led to improvements in its services, such as:
offering a 'call and collect' service
booking an exact time for the completion of a service
providing a comfortable lounge area with coffee and tea
contacting customers afterwards to check they are happy with everything.
The dealer claims to have a generally loyal group of customers. However, a
recent experience has shown how customers' expectations are rising. For some
time the last stage of the service has been to put a vehicle through the car
wash. On the customer service questionnaire is the question 'Was your vehicle
returned in a clean condition?'
The Managing Director and his Business Development Manager found that
several customers had responded 'no'. First they checked with the workshop
supervisor that the cars had been cleaned as normal, and he confirmed that
they had.
The customers were then contacted and it transpired that the customers'
definition of 'clean' and the company's had diverged. The customers were
expecting their vehicles to be fully valeted before their return, not just washed.
A few other up-market dealers, it transpired, were already doing this.
55. CUSTOMER
COMPANY
Gap 2: The Design and Standards
Gap
Customer-Driven
Service Designs and
Standards
Company
Perceptions of
Consumer
Expectations
Provider Gap 2
63. Zone of Tolerance
Customers have two levels of expectation:
•adequate - what they find acceptable
•desired -what they hope to receive.
The zone of tolerance (ZOT) is defined as “the difference
between desired service and the level of service considered
adequate” (Zeithaml et al 1993). As may be noted in this
definition, the ZOT model recognizes that customers enter
service encounters with different expectation levels.
69. Explicit and Implicit Services
Explicit services
The benefits that are
readily observable by the
senses and that consist of
the essential or intrinsic
features of the service.
Examples are the absence
of pain after a tooth is
repaired, a smooth-
running automobile after a
tune-up, and the response
time of a fire department
Implicit services
Psychological benefits that
the customer may sense
only vaguely, or the
extrinsic features of the
service. Examples are the
status of a degree from an
Ivy League school, the
privacy of a loan office, and
worry-free auto repair
72. Ways to Use Gap Analysis
Overall Strategic Assessment:
How are we doing overall in meeting or exceeding
customer expectations?
How are we doing overall in closing the four company
gaps?
Which gaps represent our strengths and where are our
weaknesses?
73. Ways to Use Gap Analysis
Specific Service Implementation
Who is the customer? What is the service?
Are we consistently meeting/exceeding customer
expectations with this service?
If not, where are the gaps and what changes are needed?
(Examine gaps 1-4 for this particular service.)
Clothing retailer, American Apparel, is adopting Augmented Reality to bring the online experience offline. By using the augmented reality application, in-store patrons can scan the item to see the product in different colors and read reviews by other customers who have bought that item.
To be honest, it doesn’t seem like anything truly extraordinary, but it is functional. It seems to be a great way to bring those online shoppers back into the stores.
What do you think?
If the high price tag to Hawaii is holding you back, fear not, Marriott hotels has you covered with their new virtual-reality Teleporter. Marriott teamed up with Relevant and Framestore to develop the Teleporter, a part of their their ‘Travel Brilliantly’ campaign.
The ‘Teleporter’ is a virtual-reality booth that Marriott created to to offer people a quick look into their hotel lobby, and take people on a short vacation in a virtual world. Hotel guests and members of the public are encouraged to step inside and place the headphones and goggles on and be transported to a virtual vacation spot.
Each trip in the virtual reality Transporter begins in a virtual version of the Marriotts Greatroom Lobby. From the Greatroom visitors are transported to one of two virtual locations, Tower 42 in London, or black sand beach in Hawaii. The Teleporter is more than just seeing the locations, or hearing them with the headphones; the experience also includes 4-D elements in the form of heat, wind and mist and engages visitors sense of smell with lush palm trees, coconut oil and salty sea air, so visitors feel as though they are physically on vacation.
Show the web site http://www.islandhotel-cedarkey.com/
Which explains the difference between personal touch and common facility.With the gaps to be filled