service providers

A Group Presentation onChapter 1

Service Providers

Group Members

Sapan

Satish

Chhitiz

Ashish Aayush

IntroductionAny act or performance that one party can

offer to another that is essentially intangible and does not result in ownership of anything.

E.g. if we subscribe NTC Internet we don’t become its owner we just use the service.

“ Service are deeds, process and performances. ”

Examples of ServicesProfessional service- accounting,

legal authorities, architectureHealth care- hospital, eye care,

dentistryFinancial services- banking,

insurance, advising, brokerage firesHospitality services- restaurant,

hotelsTravel services- airlines, buses,

agenciesOther services- electrician, plumbing,

health club, counseling services

Service - Contribution In World EconomySector World

economy (2004)

Nepal (2010)

Agriculture 4 % 35%

Industry 32% 16%

Services 62% 49%

Service - Contribution In World Economy

Service - Contribution In World Economy

Characteristics of ServicesIntangibilityHeterogeneitySimultaneous production and consumptionPerishability

Differences Between Services And GoodsGoods Services

Goods are tangible. Services are intangible.

Goods are homogeneous. Services are heterogeneity.

Goods are non perishable. Services are perishable.

In case of goods, the consumption

In case of services, production , consumption and distribution goes simultaneously,

Trade marks/ Patent rights can be gained in goods.

No such rights are there in services.

Brand loyalty can be found in case of goods,

Brand loyalty cannot be found in case of services.

Goods Services

Standard can be setup in goods,

It is difficult to set up the standard in services.

Demand and supply for the goods can be in equilibrium.

In services, the firm cannot match demand and supply.;

Goods are measured in terms of quantity.

Services are measured in terms of quality.

Goods can be stored for consumption in future.

Services cannot be stored/inventoried for future

The pricing of goods is easier due to availability about actual cost of production of goods.

As actual cost of production is hard to determine, the pricing is difficult in services.

Differences Between Services And Goods

Service Marketing MixCompilation of different factors that helps in

selling a product.

Service Marketing

Mix

Traditional

product

price promotional

place

Extended

people

Physical evidence

process

Traditional “4” P’s

Product

•Physical good features •Accessories•Packing •Branding•Product lines•durability

Price

•Flexibility•Price level•Terms•Differentiation•Allowances•discount

Promotion

•Promotion on blend•Sales people•Adverting•Sales promotion•publicity

Place•Channel type•Exposure•Intermediately•Outlet location•Transportation •storage

Extended “3” P’s

people

• People

• Customer employees

• Communicating cultures and values

• research

Physical evidence

• Signage• Equipment• Employee

dress• Other tangible

process

• Flow of activates

• Number of steps

• Level of customer involvement

Challenges of Service Marketers How would you define and improve service quality- exact definition not thereEg. Services provided by a dentist is difficult to define. Likewise, it is difficult to

compare services provided by two different doctors.

How would you design new service and how can one test when it is not there.Eg. The high price at KFC might not attract general income earners although it is

a multinational company.

One can’t store and one cant always match demand and supply and bring it in equilibrium

How can one set up price when it is difficult to determine the actual cost of production

Eg. It takes years and years, huge amount of money to be a dentist. If the dentist charges Rs.5000 to his/her patients, then people might not visit him/her because it is too expensive. But for dentist, it might be a fair price as he/she has completed dentistry devoting his/her time and huge amount of money.

Challenges of Service MarketersService can’t be patentedOne cannot communicate your serviceIt is always difficult to motivate and select

right workerHow would you set up standardOne cannot expect services to be good all

time

Service Marketing Trianglecompany

customeremployee

Internal Marketing

“Enable The Promise”

External Marketing

“Setting Promise”

Interactive Marketing

“ Deliver The Promise ”

Company

Customer

Employee

Cycle Chain

profit

Customer Satisfaction

Employee Satisfaction

Service Profit Chain

Gain Loyalty

Revenue growth Profit

Customer Satisfaction

External Service Value

Employee Satisfaction

Employees retention Employees productivity

The End