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Designing & Managing services

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What is Service?A service is any act or performance one party canoffer to another that is essentially intangible &doesnt result in the ownership of anything. Itsproduction may or may not be tied up with physicalproduct.

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Goods Services

Tangible IntangibleProduced in factory Interaction with buyer & seller

Can be stored Cant be stored

Can be transferred Cant be transferred

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Areas of focus

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Started in 1890

Employee Strength 5000

Time taken- 3 Hours

4 lakh transactions every day

Area Coverage daily-60-70 km

1. Design2. Result3. Leader4. Strategy5. Network

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Business Sector

Other Services

OVERVIEW OF SERVICE INDUSTRY IN INDIA

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Non profit sector

Government Sector

Manufacturing sector-Computer

operators,accountants,legal staff8

&

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Sector wise contribution

Agriculture: 18.5%

Industry: 26.3%

Services: 55.2%

9(2010 est.)

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What is service mix?A selection of services developed to offercustomers a choice within a particularrange

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Free Servicing

Pure tangible goods(no services accompany

the product)

Tangible goods(with accompanying

services)

WarrantyCard

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Hybrid

Major service withaccompanying minorgoods & services

Pure Service

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Equipment based Process based Clientpresence

Objectives &ownership

Differentobjectives like-

Profit or nonprofit orientedhospitals

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IntangibilityPrice

Equipment

Place

Communication

Variability

Hiring & training

Zero defects culture

Customer Satisfaction

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Inseparability Perish ability

On DemandSide

On SupplySide

Differential Pricing-Movie TicketsNon peak demand-Hotels vacationalpackageComplementaryServices-Teller machineReservation System-Airline service

Part time employeesPeak time efficiencyIncreased consumerparticipation-MallconceptShared services-Medical equipmentsharingFuture expansion-Surrounding land forpark

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People

Physical Evidence

Process

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Like physicalenvironment

Employees and theirbehaviorVisible

Like service outcome

whole backroomproduction process andorganization system

Invisible

ELEMENTS IN SERVICE ENCOUNTERS

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Describes the normal work of preparing,pricing,distributing,and promoting theservices to customers

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EXTERNAL MARKETING

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Describes training and motivatingemployees to serve customers well

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INTERNAL MARKETING

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INTERACTIVE MARKETING

Describes employees skills

Technicalquality eg.-was surgerysuccessful

Functionalquality eg.-didthe surgeon

show concern& inspire

confidence

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Profit tiers Customerempowerment

Coproduction

More concerned aboutproduct-support service

Internet has empoweredcustomersEg.planet feedback.com

Taking time to nurture

customer relationshipGiving customerattention

Customers playactive role in the

delivery of thatservice.

Eg-ATMs

High profittiers

Specialoffers

Specialdiscounts

Low profittiers

More fees

Automatedvoice

messages

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Redesignprocess and

redefine roles to

simplify serviceencounters

Encouragecustomer

citizenshipwhere customershelp customers.

Create highperformancecustomers by

enhancing theirrole clarity ,

motivation, andability.

Incorporate the

right technologyto aidemployees and

customers

How toimprove?

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Pricing

Inconvenience

Service encounter failures

Core service failure

Response to service failure

Competition

Ethical Problems

Involuntary switching

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Pastexperiences

Word of mouth

Advertisement

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ServiceQuality

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Word of MouthCommunications

Personal needs

CONSUMERMARKETER

Externalcommunicationsto consumers

Management perceptions

of consumer expectations

Translation ofperceptions intoservice-qualityspecifications

Servicedelivery(including pre &posts contact)

Perceivedservices

Expectedservices

Pastexperiences

GAP 4

GAP2

GAP 1

GAP 3

GAP 5

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Gap between consumerexpectation andmanagement perception

Gap betweenmanagementperception and

service-qualityspecifications

Gap between service-quality specificationsand service deliveryGap between servicedelivery and external

communications

Gap between perceivedservice and expectedservice

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Management

Perception

Consumer

Expectation

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MANAGEMENTPERCEPTION SERVICE QUALITYSPECIFICATION

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SERVICE QUALITY

SPECIFICATION

SERVICEDELIVERY

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ExternalCommunication

ServiceDelivery

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ExpectedServices

PerceivedServices

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RELIABILITY

RESPONSIVENESS

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ASSURANCE

EMPATHY

TANGIBLES

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Strategic concept

Top managementcommitment

High standards

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Satisfying employees as well

as customers

Monitoring systems

Self service technologies

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Satisfying Customer

Complaints

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Continued

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Service brands must be.

1)Skillful at differentiating themselves

2)Developing appropriate brand strategies

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Primary service package

Secondary service package

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Choosing brand elements

Establishing image dimensions

Devising brand strategy

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Logos

Symbols

Characters

Slogan

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Brand Personality is an importantimage for dimensions of services.

Airtel is a trustworthy brand. In 2011, it

was rated the best brand, where as in2010, it was at No. 10.

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A company should device a brand thatis properly understood by thecustomers.

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Ordering easeDeliveryInstallationCustomer trainingCustomer consultationMaintenance

Repair

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Reliability and failure frequency

Downtime

Out of pocket costs

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Three specific worries for customers

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Earlier, manufacturing companies use to set up

their own service centers.

Now a days, manufacturers have started toswitch maintenance and repair services to

authorized dealers and distributers. This helps the customer to get quick service

nearby their location.

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Customer service evolution

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Retaining your customers with newofferings.

Some companies providing different

services combine all services and sellthem together.

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THANK YOU

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Namrata Sachdeva

Bidesh Mohanty

Preeti Goel

Amruta Bondre

THANK YOU

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