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SERVICE MANAGEMENT

By Neelam

WHAT IS SERVICE
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Service is a work done by one person or group that benefits another. What is SM: Service Management is the activity of planning and organizing people, infrastructure, communication and material components of a service, in order to improve its quality, the interaction between service provider and customers and the customer's experience.

CHARACTERISTICS OF SERVICES
The services have unique characteristics which make them different from that of goods. The most common characteristics of services are:

INTANGIBILITY

INSEPARABILITY
PERISH ABILITY

VARIABILITY

CLASSIFICATION OF SERVICES
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Classifications can be done by By Industry By target effect Skill level of service provider ( skilled / semi skilled / non skilled )

Labor intensiveness ( people based / machine based )

Degree of customer contact ( high / low ) Goal of the service provider ( profit / non profit )

MARKETING MIX IN SERVICES

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Service market in India

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Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2009-2010, the share of services in India's GDP is 55.1 %. Services of the economy covers a wide area of activities like trading, banking & finance, real estate, transportation, security, management & technical consultancy and many more. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub.

servqual model
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CUSTOMER BEHAVIOR IN SERVICES

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Some major criteria from which we can easily evaluate the behavior of customer in service industry

Behaviors

How they use the product. How they buy the product. needs and wants features they like and dislike Age income, assets gender

Attitudes

Demographics

SERVICE SEGMENTATION
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Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. Helping in finding most profitable Customers. Consumer markets can be segmented on the following customer characteristics.

Geographic Demographic Psychographic

Behavior

SERVICES TARGETING
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After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it .
3 approaches of targeting : Undifferentiated marketing(mass marketing) Differentiated marketing Concentrated marketing

PRICING IN SERVICE
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Pricing is the process of determining what a company will receive in exchange for its products or services. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product or services. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing.

SERVICES DELIVERY
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The delivery of a service typically involves six factors:

The accountable service provider and his service suppliers (e.g. the people) Equipment used to provide the service (e.g. vehicles, cash registers, technical systems, computer systems) The physical facilities (e.g. buildings, parking, waiting rooms) The requesting service consumer Other customers at the service delivery location Customer contact

COMMUNICATION mix
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Marketing Communication Mix is the "Promotion" of the marketing Ps and covers every method and medium of communicating with the target audience.

5 Traditional communication mix :

Advertising Direct Marketing Personal Selling

Public Relations
Sales Promotion

CUSTOMER RELATIONSHIP IN SERVICES

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Good customer service is the need of any business.

Some approaches from which any organization can develop a good relationship with there customers-

Always answer your customer.

Don't make promises unless you will keep them.

Listen to your customers. Be helpful Train your staff

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LEVEL OF SERVICE PRODUCT

Customers will choose a product based on their perceived value of it. A customer is satisfied only if the actual value is the same or exceeds the perceived value.

FIVE LEVELS OF A SERVICE PRODUCT :

Core Benefit Generic Product Expected Product Augmented Product Potential Product

SERVICE BLUEPRINT
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A service blueprint describes a service in enough detail to implement and maintain it carefully.

Blueprinting includes :

Mapping out of a service process. identifying the processes

isolating possible fail points

establishing the time frame for the process.

CONTD
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Example of service blueprint.

PERCEPTUAL MAP
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Plot competing offerings on two or three determinant

attributes.

Map reveals:

firms current position direct competitors gaps - opportunities

ideal product

CONTD
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Example of perceptual Map

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