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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
PREPARED AND PRESENTED BY