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Service Decisions
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Agenda
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
1
Reading
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Reading
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
2
Reading
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Context
Word of Mouth
Personal Needs Past Experience
Communications
GAP 5
Perceived Service
Service Delivery
GAP 1 (including pre- and post- External Communications to
contacts) Consumers
GAP 3 GAP 4
GAP 2
Management Perceptions of
Consumer Expectations
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
3
New Service Development
CSF:
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
• Business analysis
• Market testing
Implementation
• Commercialization
• Post-introduction evaluation
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
4
Business Strategy Development or Review
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Jet Airways will achieve this pre-eminent More and more Indians are traveling for
position by offering a high quality of business and pleasure, and everyone
service and reliable, comfortable and needs to save both time and money.
efficient operations. SpiceJet’s vision is to address that and
ensure that flying is for everyone.
Source: Respective company websites (accessed on 01 Feb 11)
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
5
Vision / Mission / Strategy (examples)
1st Source is a partnership of people ING DIRECT exists to help you save your
bound together by: money.
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
6
New Service Strategy Development
Markets
Current New
customer segments customer segments
Existing Market
Share building
services development
Offerings
New Service
Diversification
services development
Idea Generation
Several methods…
– Brainstorming
– Soliciting ideas from employees
• Customer contact personnel as well as back office staff
– Learning from competitors
– Collaborating with vendors, partners, competitors
– Empathic design
• Observing how customers use firm’s products and services
Remember Thomson case study in the session on Segmentation?
– Soliciting ideas from customers
• User groups, social networks
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
7
Idea Generation
CSF:
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Levels of service
– Core, Expected, Augmented, Potential
– Core, Supplementary
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
8
Business Analysis
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
“Service blueprinting”
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
9
Service Development and Testing: CSF
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Market Testing
Key challenge
– Difficult to test new service in isolation, because
• New service offerings are often intertwined with the delivery
system for existing services
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
10
Market Testing
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Commercialization
Going live!!
CSFs:
– Build and maintain acceptance of new service among
service delivery personnel
– Monitor all aspects of the service during introduction and
through the complete service cycle
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
11
Post-introduction Evaluation
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
READ !!
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
12
Types of New Services
Read:
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Exercise
For example:
– For airline service, some of the elements could be:
• Check-in
• Baggage handling
• Transportation from city A to city B
• Onboard services: food & beverages; duty-free shopping;
communication facilities; internet facilities
• Pick-up and drop service between home/hotel and airport
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
13
Levels of Service
Core-Expected-Augmented-Potential
Theodore Levitt
Core-Supplementary
Lovelock, Wirtz, Chatterjee
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Core-Expected-Augmented-Potential
Core Need
Core Benefit
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
14
Exercise (contd.)
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Core-Supplementary
Core service
– What is the customer really purchasing?
– What business are we in?
Supplementary services
– Services that improve/enable the core service
• Facilitating services
Enabling the use of core service
• Enhancing services
Improving the appeal and value of core service
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
15
Supplementary Services
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
16
Facilitating Services
“Information” elements
– Examples:
• Instructions for using the core/supplementary services
• Terms & conditions
• Pricing information
Facilitating Services
“Billing” elements
– Examples:
• Monthly/quarterly billing statements
• SMS alerts
• Bills generated at check-out counters
“Payment” elements
– Examples:
• Cash handling, Returning change
• Online payments using credit cards or auto-pay facilities
• Gift coupon redemption
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
17
Enhancing Services
“Consultation” elements
– Examples:
• Advising (such as: barber recommending a particular hair-style)
• Counseling (such as: training institute helping a student choose
the right course)
“Hospitality” elements
– Examples:
• Waiting area and amenities
• Offering transport to and from service site
• Availability of shopping carts from check-out counter to parking lot
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Enhancing Services
“Safekeeping/caretaking” elements
– Examples:
• Cloakrooms / coatrooms in restaurants
• Safe deposit boxes in hotel rooms
“Exceptions” elements
– Examples:
• Special requests (such as: availability of “Jain” meals in flights)
• Handling special communications (such as: complaint handling)
• Problem solving (such as: help desk facilities)
• Restitution (such as: refunds)
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
18
Exercise (contd.)
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Range
– For example
• Hotel stay: Ordinary rooms, Executive rooms, Deluxe rooms…
• Air travel: Economy class, Business class, First class…
Quality levels
– Reliability, Responsiveness, Assurance, Empathy, Tangibles
Brand
Guarantees
Service recovery
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
19
What We Covered Today
Services Marketing
Girish Ketkar Session 07
BITM 2010-12 (Semester 2)
Levels of service
– Core-expected-augmented-potential
– Core-supplementary
• Core services, Facilitating services, Enhancing services
• “The Flower of Service”
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