mrkt 55030 - week 2 - service offerings; technology-aided service delivery;

8/13/2019 MRKT 55030 - Week 2 - Service Offerings; Technology-Aided Service Delivery;

1/41

MRKT 55030: SERVICES

MARKETING

WEEK 2: Service Offerings; Technology-aidedService Delivery; andOrganizational Service Culture.

Dr. Okey Peter ONYIA


2/41

TODAYS OUTLINE:Comparing Goods and Services

Characteristics of Services compared to Goods

The expanded Marketing-mix for Services Marketing

Article reading & group discussions

Applying the expanded marketing-mix

The four broad types of Services and their characteristics

Flowcharts of various service offerings and delivery

sequences

The role and impacts of technology in Services Marketing

Organizational Service Culture

Next lecture pre-work.


3/41

Intended Learning Outcomes (ILOs): At the end of this session, you should be able to:

Analyze the characteristics of Serv i ces compared toG o o d s .

Evaluate the application of the expanded marketing-mixin the marketing and delivery of services.

Appraise the delivery sequences of various types ofservices.

Discuss the roles and impacts of technology in serviceprocessing and delivery.

Analyze the factors that enhance service culture inservice-oriented businesses.


4/41

Comparing Goods and Services


5/41

Lets discuss the mission statements of the servicecompanies you brought.

Can a company sell both physical productsand service components ? Give us examples.

Group Discussion:Whats Starbucks really selling?

Goods, or services, or goods and services?


6/41

Characteristics ofServices compared to Goods

Intangibility

PerishabilitySimultaneous

Productionand

Consumption

Heterogeneity


7/41

Implications of Intangibility

Services have no physical features that canbe seen or touched, but have describablecharacteristics that customers can experience.

It is difficult to quantify and inventory services.

Services cannot be easily patented.

Services cannot be easily displayed orcommunicated.

It is also difficult to price services.


8/41

Implications of Heterogeneity

Service delivery and customer satisfactiondepend on employee and customer interactionsand actions .

Service quality depends on many uncontrollablefactors (moods of the actors; process timing; etc.)

There is no assurance that the service delivered

will match what was planned and promoted. Not being a physical product, there is noexactitude of service delivery and quality for

any two different parties buying the same service.


9/41


10/41

Implications of Perishability

It is difficult to synchronize supplyand demand with services.

Both supply and demand are measuredwith the same indexes number of peoplewho enquired about the services, andnumber of those who bought the services.

Services cannot be returned orresold (no Return Policy in services).


11/41

Traditional Marketing Mix

Elements that an organization uses in itsstrategies to market to, communicate with,and satisfy customers:

Product

Price

Place

Promotion


12/41

Expanded Marketing-mix for Services The new 7-P s of Marketing

1. Product2. Price3. Place4. Promotion

5. People:

The human beings who play a part in service processing/delivery.They influence the customers perceptions of the firm, its personnel,and its services. Also, all customers in the service environment.

6. Physical Evidence:

The environment in which the service is delivered and where the firmand customer interact. Any tangible components that facilitateperformance, communication, and perception of the service.

7. Process:The actual procedures , mechanisms, and flow of activities by whichthe service is delivered. T he firms operating and delivery systems .


13/41

The Marketing Mix:

TARGET

CUSTOMERS

PEOPLEEmployees

InternsCommission Agents

Dealers staff Franchise employeesSupplier employees

PROMOTION Advertising

Personal Selling Sales Promotions

Sponsorships Direct/Events Mktg. Comm

Merchandizing Public Relations Word of Mouth

PRODUCT Variety Quality Design Feature

Brand name Packaging Services

PHYSICALEVIDENCE

Website designsCorporate colours

Logos and trademarksOutlets decor

Frontal signage

PLACEDistribution channelsGeographical coverage

AssortmentsOutlet locations

InventoryTransportation

Logistics

PRICE Price list

Discounts Allowances

Payment periods Credit terms

PROCESSAdmin operations

Production operationsOrder processing

Sales support servicesDelivery operationsAfter-sales services

(With the new 3-P s of Marketing )


14/41

Article Reading Group Discussion:

In your small groups, read and discuss thefollowing article in the textbook:

Exhibit 1.2 (Page 28)

Also, in your group, discuss and provide answersto questions 4 and 5 on page 29 of the textbook.

Present your groups summary of the answers tothe class:

(15 minutes)


15/41

Applying the 7-P s of Marketing in Services Marketing Context:

Overall StrategicPlanning &

Assessments:

What are the firms service marketing strategies for each ofthe mix element?

How effective is the firmsoverall service marketing mix?

Is the mix well-aligned withoverall vision and strategy?

What are the firms strengths &weaknesses in terms of the 7-Ps ?

Specific ServiceImplementation &

Assessments:

Who are the target customers ?

What exactly is the service?

How effectively does the servicesmarketing mix communicate the

quality and benefits of theservice?

In measuring the quality of theservice provided , what changesand improvements are necessary?


16/41

There are Four Broad Types of Services

People Processing:Services directed at thecustomers body . E.g.:

Barbing, Caregiving,Massaging, Chiropractic

services, etc.

PossessionProcessing:Services directed at the

customers physical

possession . E.g.: Car-wash,Laundromat, TV Repair, etc.

Mental-stimulusProcessing:

Services directed at thecustomers mind . E.g.:Education, Advertising,

Training, Counseling

services, etc.

InformationProcessing:

Services directed at thecustomers intangibleassets . E.g.: Banking,Accounting, Taxation,

Insurance services, etc.


17/41

People Processing:Services directed at the

customers body . E.g.: Barbing,

Caregiving, Massaging,Chiropractic services, etc.


18/41

PossessionProcessing:

Services directed at thecustomers physicalpossession . E.g.: Car-

wash, Laundromat, Auto-garage, TV Repair, etc.


19/41

Mental-stimulus

Processing:Services directed at the

customers mind . E.g.:Education, Advertising,

Training, Counselingservices, etc.


20/41

f


21/41

Characteristics of theFour Types of Services

People Processing:Services directed at the customers

body . E.g.: barbing, caregiving,massaging, chiropractic, etc.)

Customers must physically enter the servicefactory.cooperate actively with theservice operation.

Managers should thinkabout process and output

from the customersperspective

so as to identify benefitscreated and non-financialcosts; including time,

mental, and physicalefforts

Possession Processing:Services directed at the customers

physical possession . E.g.: Car-wash,Laundromat, TV Repair, etc.)

Customers involvement

is limited

is less physical

Production andconsumption are separable :

Customer enjoys drivinga clean car after thewash

Customer feels goodwearing a clean shirtafter wash.

h f h


22/41

Characteristics of theFour Types of Services contd .

Mental-stimulus Processing:Services directed at the customersmind . E.g.: education, advertising,

training, counseling, etc.)

Ethical standards are required:

Customers might be

manipulated.Customers physical presencemay or may not be required atthe point of production:

Customer can opt toexperience the serviceremotely.

Core content of service isinformation-based :

Content can beinventoried .

Information Processing:Services directed at the customers

intangible assets . E.g.: Banking,Accounting, Taxation services)

Customers involvement:

Most intangible form of

service.

May be transformed:

Into enduring forms ofservice output.

The lines of differencebetween

information processingand mental-stimulus

processing may beunclear .


23/41

Flowcharts of Various ServiceOfferings and Delivery Sequences

Service flowcharts

display the nature and sequence of the differentsteps in delivering services to customers.

offer ways to understand and implement totalcustomer service experience .

show how the nature of customers involvements inthe service process and delivery varies between the fourdifferent types of services :

People processing service

Possession processing service

Mental-stimulus processing service

Information processing service


24/41


25/41

h l f h l


26/41

In services marketing,physical products areoften not moved .

Experiences , performances , andsolutions are not physically shipped orstored .

More and moreinformation-basedtransactions areconducted through IT /electronic channels .

The Role of Technology in Service Ordering, Processing,

and Delivery:

h l f h l d l


27/41

The Role of Technology in Service Processing and Delivery:


28/41


29/41

Electronic Service Delivery: 1. Remote Ordering Devices

W ireless W aiter CallButton :

Restaurant CustomersRemote (Online)Ordering Button

System

Table Ser viceCalling Device :

Restaurant GuestsWaiter-calling

Remote Ordering

System

MultifunctionalGPRS S MS P rinter :

RestaurantOnline/Phone Text-message Ordering

System
http://www.alibaba.com/product-gs/532966513/Wireless_Waiter_Call_Button_Restaurant_Customer.html


30/41

Electronic Service Delivery:2. Drive-through Ordering Devices

Drive thru RemoteOrdering D evice :

RestaurantCustomers Drive -Through Ordering

System

Drive thru Ordertaking Intercom Kit :

RestaurantDrive-Through Order-

takers Intercom System

Q TRAN 713SDrive Through

TransactionStation :

Remote BankingDrive-Through

System

El i S i
http://www.interbank-equipment.com/q-tran-713sdrivethroughtransactionstation.aspxhttp://www.ebay.com/itm/Drive-Thru-Intercom-Kit-Restaurants-KIT-1-/130652189802?pt=Intercoms_Access_Controls&hash=item1e6b7a346ahttp://en.wikipedia.org/wiki/File:McDonalds_drive_thru.jpg


31/41

In-store self checkout Tickets, Stamps, etc.

Airportcheck-in

Online purchases

Dispensers Multi-product

kioskFood kiosk

Electronic ServiceDelivery: 3. Self-

Service Technologies(SST)

Drinks kiosk

Internet Bankingand e-Commerce


32/41

SST s are the ultimate forms of customerinvolvement in services, whereby customersundertake specific activities using facilities orsystems provided by service suppliers.

The customers time and effort replacethose of employees .

Information Technology (IT)-mediated serviceslend themselves particularly well to self-service bycustomers through special system terminals ordevices designed for each self-service purpose.

Used in both core and supplementaryservices delivery.

Electronic Service Delivery:Self-Service Technologies (SST)


33/41

Electronic Service Delivery:


34/41

Electronic Service Delivery:Self-Service Technologies (SST)

SST s can be pleasant sometimes and

annoying some other times: People love SSTs

when

SST machines areconveniently located and accessible 24/7 . (For instance,as close as the nearest computer!)

Obtaining detailed informationand completing transactions arefaster than through face-to-face and telephonecontacts .

SST systems are dependable,

easy-to-use, and user-friendly .

People hate SST swhen

Self Service fails i.e., the SST machine is down or too slow; PINnumbers are not accepted; or Card isrejected; etc.

Customer is clumsy with SS-technologies unfamiliar withmachine; hitting wrong buttons;forgetting passwords; failing to provideinformation as/when requested; etc.

SST systems are complicated,difficult to use, and user-unfriendly .


35/41

Organizational Service Culture

A culture where an appreciation for goodservice exists, and where giving good service tointernal and, ultimately, to external customers , isconsidered a natural way of life and one of the mostimportant norms by everyone in the organization.

- Christian GrnroosProfessor of Services and

Relationship Marketing ,Hanken School of

EconomicsHelsinki, Finland

O i ti l S i C lt
http://en.wikipedia.org/wiki/File:Christian_Gr%C3%B6nroos.jpg


36/41

Organizational Service Culture:The Services Marketing Triangle

Internal Marketing

Interactive Marketing

External Marketing

CompanyManagement

CustomersService

Providers

Enabling thepromise

elivering the

promise

Making thepromise

Source : Adapted from Mary Jo Bitner Christian Gronroos and Philip Kotler

Developing Service Culture:


37/41

Developing Service Culture:1. Making Promises

Understand customers and customer needs. Manage customer expectations proactively.

Focus marketing communications messageson customer needs and expectations. Design appropriate sales promotions andincentives to gain and retain customers.

Use theme and scheme advertising properly.

Take advantage of the suitability of Internet

technologies to services marketing.



38/41

Developing Service Culture:2. Keeping/Delivering PromisesService delivery must be done as faithfully as promised:

Reliability, responsiveness, empathy, assurance, tangibles,recovery, flexibility.

Face-to-face, telephone, and online interactions must be friendlyand truthful.

The customer experience must be memorable.

Customer interactions with sub-contractors and service deliverypartners must be as promised by the main company .

Service uniformity means ensuring that all service outlets aroundthe country must keep the service promises and offer the sameservice quality, with very minor difference if any at all.

Transporting service culture to foreign markets must ensure thatwhile all promises are kept, services must align with the nationalcultures of the various foreign markets.



39/41

Developing Service Culture:3. Enabling Promises

Internal marketing:Dedication to carrying employees along, inculcating the companysservice culture in them, and treating them well.

Hiring the right people:Employing qualified and people-oriented work force.

Training and developing employees:Enabling workers to deliver service as faithfully as promised and toembrace the companys service culture.

Employee empowerment:Decentralized decision-making and employee involvement in policymaking and decisions.

Support systems:

Providing adequate management support and network of suppliers.

D l i S i C l


40/41

Appropriate technology and equipment:Employing the right service-enabling technologies andsystems.

Rewards and incentives:Paying, motivating, and treating employees well; and givingthem good-performance incentives and rewards.

Developing Service Culture:Enabling Promises contd.

Making, enabling, and delivering promisesin a consistent manner over time builds up

the organizational service culture .


41/41

mrkt 55030 - week 2 - service offerings; technology-aided service delivery;

Documents