Date post: | 13-May-2015 |
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Marketing |
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Services MarketingUnderstanding services, its customers, and its market
The gaps model of service quality
Why services?
YOUR expectations from course, facilitator, and
classmates
Some backgrounds
Services dominate the economy in most nations.
Most new jobs are generated by services.
Offers a personal competitive advantage.
Stimulating factors
Government policiesSocial changesBusiness trends
Advances in information technologyGlobalization
Services are economic activities offered by one party to another. Often time-based, performances bring about desired results to recipients, objects, or other assets for
which purchasers have responsibility.
Services are deeds, processes, and performances.
Four categories of services
People Possessions
Tangible actions People-processing (at people’s bodies)
Possessions-processing(at physical possessions)
Intangible actionsMental stimulus
processing(at people’s mind)
Information processing
(at intangible assets)
Examples of four categories
Eight common featuresDifference Implication
Most services cannot be inventoried Customers may be turned away or have to wait
Intangible elements dominate value creation Harder to evaluate and distinguish service
Difficult to visualize and understand Greater risk and uncertainty
Customers may be involved in co-production Interaction with provider’s equipment, facilities, and system
People may be part of the service experience Service personnel and other customers can shape the experience and affect satisfaction
Operational inputs and outputs tend to vary Harder to maintain consistency, reliability, and service quality
The time factor often assumes great importance Customers spend time wisely
Distribution through non-physical channels Information-based services through electronic channels; but cannot for physical activities/goods
Seven Ps
PRODUCTPRICEPLACE
PROMOTIONPROCESS
PHYSICAL ENVPEOPLE
PRODUCTPRICEPLACE
PROMOTION
Service focus strategies
Wide service offering
Narrowservice offering
Few markets Market focusedFully focused
(service and market focused)
Many markets Unfocused(everything for everyone)
Service focused
Examples Strategies
Market focused
Fully focused
Unfocused
Service focused
Janitorial
Hobby stores
Some malls
Cafe
Attributes for positioning
Important attributes: important to the consumer, but that may not be important for buying decisions.
Determinant attributes: significant differences between competing alternatives.
Break
Service quality dimensionsTangibles - appearance of physical environment
Reliability - dependable and accurate performance
Responsiveness - promptness and helpfulness
Assurance - credibility, security, competence, and courtesy
Empathy - easy access, good communications, and customer understanding
ServQual Dimensions forBankHotel
Hospital
The gaps modelWord of mouth Personal needs Past experience
Expected service
Perceived service
Service delivery
Perception translation into servqual specs
Management perception of
expected service
External communications
to consumers
CONSUMER
SERVICE FIRM
Gap 1
Gap 2
Gap 3
Gap 5
Gap 6
Gap 4
The gaps model
Gap 1: the knowledge - educate management about what customers expect
Gap 2: the policy - establish the right service processes and specify standards
Gap 3: the delivery - ensure that performance meets standards
Gap 4: the communications - ensure the communications promises are realistic and correctly understood by customers
Gap 5: the perception - tangibilize and communicate the service quality delivered
Gap 6: the service quality - close gap 1 to 5 to consistently meet customer expectation
Share your gap experience as service consumers
Gap 1: The knowledge
Sharpen market research procedures
Implement an effective customer feedback system
Increase interactions between consumers and management
Facilitate and encourage communication between front-liner and management
Gap 2: The policy
Get customer service process right
Develop tiered service products that meet customer expectations
Set, communicate, and reinforce measurable customer-oriented service standards for all work units
Gap 3: The delivery
Ensure that customer service teams are motivated and able to meet service standards
Install the right technology, equipment, support processes, and capacity
Manage customers for service quality
Gap 4: The communications
Educate managers responsible for sales and marketing communications about operational capabilities
Ensure that communications content sets realistic customer expectations
Be specific with promises and manage customers’ understanding of communication content
Gap 5: The perceptions
Make service quality tangible and communicate the service quality delivered
Concern with service environment, physical evidence, and information quality.
Gap 6: The service quality
Gap 6 is the accumulated outcome of all the preceding gaps. It will be closed when Gaps 1 to 5 have been addressed.
Class conclusion and questions
Class assignmentscase and final presentation
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