URGENT - SERVICE MARKETING - CUSTOMER VALUE REPORT - NEED DONE ASAP - OFFERING HIGH

ServicesMarketingLecture2CoreSuppServices1.ppt

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PowerPoint to accompany

Developing service products:

Core and supplementary service elements

Based on: Text Book Chapter 4

Marketing of Services Lecture 2

PowerPoint to accompany

In both goods or services businesses, there is generally a service component (everyone is in services!)
A service business is one in which the core service is intangible
Services marketing has 3 additional P’s to manage: People, Physical Evidence, Process
Since services are intangible, consumers pay more attention to People and Physical Evidence around the brand when evaluating a service offering
Services marketing is tough! (Real time; simultaneous production and consumption, consumer urgency, each customer encounter contributes to the brand; importance of digital platforms etc)

Marketing of Services Lecture 2

Describe what is meant by the total service product concept
Describe the ‘Flower of Service’ model and explain how the facilitating and enhancing supplementary services relate to the core product
Formulate a service product strategy
Explain key principles of service redesign
Explain various service branding strategies

Marketing of Services Lecture 2

The benefit the consumer gets from the basic product

The benefit the consumer gets from the basic service

includes pricing, delivery, appearance, personnel

value adding services around the core

brand, corporate reputation, tiered service levels

how the service is delivered

Physical Product (for goods marketing)	Service Products (for services marketing)
The core product	The core service
Expected product	Supplementary service
Augmented Product	Delivery process

Marketing of Services Lecture 2

Facilitating Supp Services: Information, Order-taking, Billing, Payment

Enhancing Supp Services: Consultation, Hospitality, Safekeeping, Exceptions

Marketing of Services Lecture 2

Core service:

Accommodation

Supplementary Services include Hospitality, Safekeeping of valuables, Information, Billing etc.

Physical delivery of service

Marketing of Services Lecture 2

Core service:

Convenient Financial Transacting

Supplementary Services include Information, Order taking, Exceptions such as lower interest rates for established customers etc.

Electronic delivery of service

Marketing of Services Lecture 2

Information can be used to gain competitive advantage. For example:

Highly informed front-line staff
QR codes to access additional information on self service products
Self-tracking of parcel movements
Feature catalogues E.g. Ikea

Information:

Directions to service site
Schedule/Service hours
Prices
Reminders
Warnings
Conditions of sale/service
Notification of changes
Documentation
Confirmation of reservation
Summary of account
Receipts
Tickets

Marketing of Services Lecture 2

Order taking should be:

Polite
Fast
Accurate

Ensure that this process is streamlined to avoid:

Wasted time
Unnecessary physical or mental effort

Get it right first time!
Be particularly careful with bookings
Printed confirmations and reminders are important

Order Taking:

Membership in clubs/programs
Subscription services
Pre-requisite based services
On-site fulfilment
Mail/telephone order
Booking seats, tables, rooms
Professional appointments
Admission

Marketing of Services Lecture 2

Bills should be:

Clear
Informative
Timely
Accurate

Billing should be streamlined:

Guests preview hotel bills on the room’s TV monitor
Express checkout option

Billing:

Periodic statements of account activity
Invoices for individual transactions
Verbal statements of the amount due
Machine display of the amount due
Self-billing (computed by customer; billing and payment are combined into a single action)

Marketing of Services Lecture 2

Pay attention to:

Maintenance of payment equipment
Contingency plans (what if?)
Controls to ensure payment has been made

Payment:

Self-service – change, prepayment card, credit card, charge card, debit card, token, electronic funds transfer, cheque
Payment received by a staff member – cash handling, change giving, cheque handling, card handling, coupon redemption, tokens, vouchers
Automatic deduction (e.g. bank charges)
Control and verification

Marketing of Services Lecture 2

Consultation is often directed at provided a customized solution for the client’s need

Medical practitioners, travel agents, financial advisors and real estate agents are examples of service providers who typically provide consultation

Some consultation is offered free of charge. E.g. home valuations, debt assessments

Consultation:

Advice
Auditing
Personal counselling
Tutoring/training
Management or technical consultancy

Marketing of Services Lecture 2

Taking care of the customer

Treat them as guests:

Welcome
Comfortable
Valued

Protocol for meeting new customers

Protocol for greeting existing customers

Hospitality:

Greetings
Food and beverages
Toilets/washrooms
Toiletry kits
Waiting facilities/amenities – lounge, seating, weather protection, magazines/newspapers, entertainment
Transportation
security

White rabbit – caltex

Rac – courtesy bus

Bunnings greeter – good or bad?

Singapore vs SAA

Marketing of Services Lecture 2

Safes in hotel rooms

Buy or rent: packaging, pick-up, delivery, assembly, installation, cleaning, inspection

Repair and maintenance, maintenance contracts

Safekeeping:

Childcare
Pet care
Parking
Coat room
Baggage handling
Storage space
Safety/deposit/security

White rabbit – caltex

Rac – courtesy bus

Bunnings greeter – good or bad?

Singapore vs SAA

Marketing of Services Lecture 2

Exceptions:

Special requests in advance of service delivery
Handling special communications (complaints, compliments, suggestions)
Problem solving
Restitution (refunds, compensation, free repair)

Consider how many of these a Pre-school centre may offer:

Dietary requirements
Personal disability needs
Religious observance requirements
Suggestions Box
Complaints process
Playground accidents
Bullies
Courtesy vehicles

Iinet – 24/7 service;

Rac – courtesy bus

Bunnings greeter – good or bad?

Singapore vs SAA

Marketing of Services Lecture 2

Do all service businesses have all 8 petals?

Which service businesses are the most demanding?

In which service businesses is safekeeping more important?

Should we focus on ALL relevant services within our business model?

Very unlikely!

People processing (core service) PLUS hospitality (supplementary service)

Possession Processing

Yes, the chain is only as strong as its weakest link!

Marketing of Services Lecture 2

Because so many supplementary services are information based, there are more and more opportunities to enhance service (and also to improve productivity in some instances), through intelligent applications of information technology

For example:

A hotel knows which newspaper you prefer and automatically allocates your paper of choice each morning during your stay
An airline knows you are gluten-intolerant and provides a gluten-free meal each time you fly

Marketing of Services Lecture 2

E.g. Theme restaurants

E.g. 24/7 gyms

E.g. Bring the service to the customer, revamp the service environment (Servicescape)

E.g. Banks that retail insurance products

E.g. Self check-out services in supermarkets

E.g. Web based radio

watchful robot

Categories of new service innovations from high to low intensity

Major service innovations

Major process innovations

Product line extensions

Process line extensions

Supplementary service innovations

Service redesign

Marketing of Services Lecture 2

A service brand reflects the experiences and perceptions of consumers
In service firms, the brand takes on added importance by acting as a proxy for what the service is and how it will be delivered
Strong brands enable customers to better visualise and understand intangible services
The primary brand in services is the firm itself
Each service element must align with the brand promise
Different service levels (service tiering) such as airline classes add layers to the brand offering

Marketing of Services Lecture 2

Lead

Eraser

Colour

Hexagonal

Wooden

Writes

Self correcting

Visible

Good Grip

???

For service businesses, we must identify those service benefits that are most important in creating value for our customers!!

Features of a Pencil	Corresponding Benefits

PowerPoint to accompany

The End

Marketing of Services Lecture 2