KARTHEEK.A.P What Are Services?

In simple words services can be defined as deeds, process & performance provided or co produced by one entity or person for another entity of person What Are Services? According to American marketing association activities, benefits or satisfactions which offered for sale or provided in connection with sale of goods According to Kotler & Armstrong A service is any activity or benefit that one party can offer to another which is essentially intangible & does not result in the ownership of anything. Its production may or may not be tied to a Physical product.

Special Characteristics of Services

Services are said to have four key characteristics which impact on marketing programmes. These are: Intangibility Inseparability Heterogeneity variability Perish ability (simultaneous production/consumption)

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Expanded marketing mix of services Product Price Place Promotion People all human actors who play a part in service delivery & thus influence the buyers perception namely the firms personnel, the customer & other customers in the service environment Physical evidence The environment in which the service is delivered & where the firm & customer interact & any tangible component that facilitate performance or communication Process the actual procedures, mechanism, & flow of activities by which the service is delivered

Classification of Services

End-user Service Tangibility People-based Services Expertise Profit Orientation

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Consumer decision making process Need arousal Recognition of the need Choice of level of involvement Search for information & identification of alternatives Evaluation of alternatives Decision buy or not buy Purchase action & other decisions Post purchase feeling & behavior Customer expectation of service
Customer hold several different types of expectations about services 1. Desired service defined as the level of service the customer hopes to receive . 2.Adequate service the level of service the customer will accept

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The extent to which customers recognise & willing to accept this variation is called the zone of tolerance Customer tolerance zones also vary for different services attributes or dimensions.

Sources of adequate service expectation 1.transitory service intensifiers 2.perceived service alternatives 3.customer self-perceived service role 4.situational factors 5.Predicted service Sources of both desired & predicted service expectation
when consumers are interested in purchasing services they are likely to seek or take in information from several different sources

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In addition to the external search for information consumers may conduct an internal search by reviewing the information held in memory about the service. 1.explict service promise 2.implicit service promise 3.word of mouth communication 4.past experience

Customer perception of service

Types of service encounters a service encounter occurs every time a customer interacts with the service organisation. Three types of service encounters are 1.remote encounters 2.phone encounters 3.face to face encounters

Sources of pleasure & displeasure in service encounters Recovery - employee response to service delivery system failures.
Adaptability employee response to customer needs & request Spontaneity unprompted & unsolicited employee actions Coping employee response to problem customers

Service quality & dimensions

Consumers consider five dimensions in their assessment of service quality Reliability Responsiveness Assurance Empathy Tangibles

Strategies for influencing customer perceptions (very important)

Aim for customer satisfaction in every service encounter

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Plan for effective recovery Facilitate adaptability & flexibility Encourage spontaneity Help employees cope with problem customers Use price to enhance customer perceptions of quality & value

SERVQUAL SURVEY SERVQUAL SURVEY Is a measure developed specifically to measure service quality. The servqual scale involves a survey containing 21 service attributes grouped into five service quality dimensions (reliablilty, responsiveness, assurance, empathy & tangibles) Data gathered through a servqual survey can be used for To determine the gap between customers perception & expectations. To track customer expectations & perception over a period of time. To compare a companys servqual scores against those of competitors To assess internal service quality that is the quality of service rendered by one department or division of a company to others within the same company)

Building customer relationships through segmentation & retention strategies Relationship marketing is a philosophy of doing business that focusses on keeping & improving current customers rather than on acquiring new customers. Benefits for customer retention 1.benefit for customers 2.benefit for Organisation.

Bases for segmenting the market

1.Demographics variables such as age, gender, income, ethnicity, occupation, religion are the easiest to identify.

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2.Geographic segmentation geographic variables such as nations, countries, states & regions form the base for dividing the market place or identifying potential unmet needs. 3.Psychographic segmentation a service based on psychographic segmentation will focus on a common life style or common personality characterstic. 4.Behavioural segmentation based on knowledge,atitudes or usage patterns

Market targeting Once the firm has identified its market segment opportunities it has to decide how many & which ones to target. Target marketing is nothing but compamy offering its marketing programs to the segments identified.

Market Positioning
Is the act of designing the company's offering & image to occupy a meaningful & distinctive position in the minds of the target market

The Levels of Positioning

Industry positioning - the

positioning of the service industry as a whole. Organizational positioning - the positioning of the organization as a whole. Product sector positioning - the positioning of a range or family of related products and services being offered by the organization. Individual product or service positioning the positioning of specific products.

The Process of Positioning

Product positioning involves a number of steps including the fol-lowing: Determining levels of positioning. Identification of key attributes of importance to selected segments. Location of attributes on a positioning map. Evaluating positioning options. Implementing positioning. As explained in the previous chapter Positioning & differentiation of service Offer features, packaging Service & other tangibles free home delivery of pizza Channel/distribution amazon.com

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Price People employees of the Organisation Image of the company.

Service Blueprinting
Service Blueprinting is a picture map that visually portrays the service system, process of delivery, role of customers & employees, visible elements of the service

Blueprinting Key components Physical evidence Customer Action Line of Interaction Employee Action (onstage/visible) Employee action (Backstage/in Visible) Support Processes

The critical role of Service Employees 1.They are the service.

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2.They are the firm in the customers eyes. 3.They are marketers.

Key Pricing Concepts

Price Skimming Penetration Pricing Mixed Pricing Cost-plus Pricing Variable Pricing Marginal Pricing Promotional Pricing Differential Pricing

Perceived Service Quality People: credibility, professionalism, efficiency, courtesy,approachability, accessibility, appearance, communications skills Process: timekeeping, dependability, trusted performance levels, promptness, efficiency. Physical evidence: appearance of tangible aspects of the service, physical surroundings, smartness

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Who are Boundary Spanners?

The frontline service employees are referred to as boundary spanners. they provide a link between the external customer & environment & the internal operations of the organisation. For ex front desk employees, store clerks,

Emotional Labour Refers to the labour that goes beyond the physical or mental skills needed to deliver quality service. They are expected to display emotions that are required by the organisation point For ex delivering smiles, making eye contact & engaging in friendly conversation

Sources of Conflict for Boundary-Spanning Workers 1. Person vs. Role conflict between employee Personality, Value, feeling & belief with that of Customer For ex in a restaurant if the customer asks the waiter to clean his shirt on which he has dropped the food. 2. Organization vs. Client to follow with company Policies or customer demands. For ex in a retail counter when a employee has to give discount which is against the policy of the Company but where the customer is demanding Client vs. Client when a company employee is serving two or more customers at a time (Teachers) or serving customers in turn (Bank teller) For ex in a bank when a employee spends more time with one customer other customers waiting may feel dissatisfied with the service. Quality vs. Productivity when service workers are asked to be both effective & efficient. For ex a physician is expected to deliver, caring, caring, quality, individualized service to the patients & getting involved him day to day college academic matters.

Customer roles customer as productive resources service customers have been referred to as partial employees of the organisation who contribute to the organisation productive capacity Customers as contributors to service quality & satisfaction Customers as competitors

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Definition of Physical Evidence Services cape: the environment in which the service is delivered and where the firm and the customer interact Any tangible commodities that facilitate performance or communication of the service

Strategies for Delivering Service Quality through People Hire the Right People Compete for the Best People Hire for Service Competencies and Service Inclination Be the Preferred Employer Develop People to Deliver Service Quality Train for Technical and Interactive Skills Empower Employees Promote Teamwork

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Provide Needed support systems Measure Internal Service Quality Provide Supportive Technology and Equipment Develop Service-Oriented Internal Processes

Retain the best People Include Employees in the Companys Vision Treat Employees as Customers Measure and Reward Strong Service Performers

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TOURISM AND HOSPITALITY SERVICES

The tourism and hospitality industry is identified by the products which are needed to satisfy the demand for travel, accommodation, food and beverage away from home. Demand for accommodation is a function of travel and tourism. A tourist is often defined as an individual spending at least 24 hours away from home for the purposes of pleasure, holiday, sports, business or family reasons. Tourism is one the major industries today, with over 720 million tourist traveling annually. The annual average growth rate for the industry is estimated to be between 9% to 12% globally. Tourism as a service industry comprises of several allied activities which together produce the tourism product. We find involved in the tourism product development, three major subindustries. They are: (a) tour operators and travel agents; (b) accommodation sector (hotelling and catering); and (c) passenger transportation. According to international estimates, a tourist spends 35% of his total expenditure on transportation, about 40% on lodging and food and the balance 25% on entertainment, shopping and incidentals.

FACTORS GOVERNING TOURISM DEMAND AND SUPPLY

Income Levels More Leisure time Mobility Growth in Government Security Programmes and Employment Benefits Growth of Business Tourism Motivation

HEATH SERVICES
TYPES OF HEALTH SERVICES a) Government owned b) Privately owned / commercial

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