Services marketing

1. Services Marketing 1

2. Marketing Marketing as per Peter Drucker – the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Chartered institute of marketing– marketing as the process of discovering, expecting and suiting the customer needs and at the same time making profits. 2

3. Services “When u build a manufacturing plant, it starts depreciating on the day it opens. The well – served customer, on the other hand, is an appreciating asset. Every small act on his or her behalf ups the odds for repeat business and priceless word – of – mouth referral” -Tom Peters management guru 3

4. Services 4

5. Services Traditionally difficult to define. Which services are created and delivered to customer are difficult to define because many inputs & outputs are intangible. 5

6. Service …definition Service is an act or performance offered by one party to another . Although the process may be tied to a physical product, the performance is essentially intangible and does not result to any owner ship of any factor of production. Services are economic activities that create value and provide benefits for customers at specific times, place. Philip Kotler ---”service is any activity of benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product 6

7. Service sector…. Comprises of bulk of today’s economy. US – 73% & Canada 67% of GDP. Consists of vide variety of industries that sell to individual customers , business customers , government customers , NGO’s. Change in economy – boom in agriculture, manufacturing – increased demand for brand new services and traditional services. Japan -- is it still known for being a manufacturing country ?????? India too is following the footsteps….. 7

8. Service organizations… Large international corporations –airlines , banking, telecom, hotel chains, freight transportation….. Locally owned small business– restaurants, laundries, taxi services, internet services, courier etc.,… B-2- B services… Franchised service outlets--- food , education… 8

9. Gats Classification. General agreement on trade in services classifies 155 activates as service. Major 11 categories are Business services. Communication. Construction & Engg. Distribution. Education. Environment. Finance. Health. Tourism. Recreation. Transport 9

10. Classification of services.. 10

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12. Reasons for growth of services industry… Reason Effect Service effected Affluence Per capita income Pest control, personal security, Interior design. beauty parlors, event management etc.. Leisure time Travel & Holiday Travel agencies, Hotels, entertainment, career prospects Health Consciousness Awareness Health clubs, Spas, Old age homes , gyms, yoga, meditation Working Couples Working wives Day care centers, home delivery, packed food Product complexity Variety available Water purifiers, Microwaves, PC, (= AMC) Life complexity Lack of time Tax consultants, legal service, property advisors, Investment advisors.. Resource scarcity & Ecology Need of conservation Car pools, water management, high rise apartments .. New Products IT PCO, pager, e- commerce , Internet service provider, mobile service providers, cyber café 12

13. Tangibility -- The quality of being perceivable by touch. Intangibility--The quality of being intangible and not perceptible by touch 13

14. Tangibility Spectrum 14

15. Differentiating services from goods… Pure tangible goods Wheat ,sugar, soap, cosmetic etc. Tangible good –Accompanied service Computer, cars air conditioners, machinery-after sales service Major service accompanying minor goods & service Beauty saloon providing cosmetics Child care centers providing baby food. Pure service Surgery, consultancy teaching 15

16. Goods vs. services Unique characteristics that distinguish goods from service Services are performance , deeds efforts. Services can’t be felt, seen ,tasted or touched as goods. Example movie tickets vs. shoes. 16

17. Characteristics of services Intangibility Heterogeneity Inseparability. Perishability 17

18. Intangibility Product is physical.--- Can be felt ,seen , smelt, tested.. Service is not tangible till it is experienced or consumed. Different people have different expectations with regard to the same service… Quality of service not strictly measurable….. 18

19. Problems with intangibility - Lack of ability to be stored. Lack of protection of patents. Difficulty in displaying or communicating services. Difficulty in pricing services. 19

20. Solutions to intangibility problems. Use of tangible clues. – assist customer in making service evaluation. ( insurance advt. in media…) ( ICICI bank --- strong ATM network….) Use of personal source of information. ( due to lack of objective means of evaluation customer looks to wards friends , family ) offering incentive to existing customers for roping in new customers) Creation of strong organizational brand. ( results in loyalty i.e. Maruti , Sony) In separatibility– 1.Service provider physical connection to service being provided. 2.Customer’s involvement in the service process. 3.Involvement of other customer in the service process. 20

21. Problems caused by inseparability Physical presence of the service provider ---like dentist. Evaluation of the service provider done by language, clothing, personal hygiene, IP communication skills. Face to face interaction with customer– make employee satisfied. Involvement of customer in the service production process… a) customer to be physically present to receive service. b) Customer need to be present to start the service –dry cleaning, auto repair etc.. c) Need of the customer to be mentally present -- thru internet.. 21

22. Unlike goods which are first produced ,sold , consumed… services are first sold, produced and consumed. 22

23. Involvement of other customers… Restaurants --- Smoking in non smoking areas.. Parking full means better service / food. 23

24. Challenge in mass production of service… How to successfully mass produce service… 24

25. Solutions to inseparable problems.. Emphasis on selection ,training public contact personnel. Consumer management. ( reservation in restaurant…) Use of multi site locations (ATM , McDonald's…..) 25

26. Heterogeneity Heterogeneous is an adjective used to describe an object or system consisting of multiple items having a large number of structural variations. It is the opposite of homogneous . 26

27. Heterogeneity Goods & services –Another difference- un ability to control the service quality before it reaches the customer. Service offered by one employee may differ from the other… Example - McDonald's franchise – moods swings of individuals before service. 27

28. Solutions to heterogeneity 28

29. Perish ability.. Service can’t be inventoried. ( Like movie tickets , airline tickets etc..) Matching the demand & supply in service is a challenge… 29

30. Solution to perish ability.. Creative pricing- (early bird incentive , happy hours ) Demand strategy – (reservation system, complimentary system, development of non peak demand) Supply strategy. - Part time utilization. capacity sharing (Doctors sharing cost of equipment), advance preparation of expansion, utilisation of third party, Increase in customer participation. 30

31. Service marketing -- system Service marketing triangle 31

32. Issues before a service organization Services premises. Packaging. Service personnel. Tools & equipment used. Customers. Convenience. Nature of service establishment. Managing productivity. Managing service quality. 32

33. Nature of service marketing. Narrow definition of marketing. By service providers. – Had only Advt , sales promotion, segmentation rare, --differentiation , new product development, service quality…???? Lack of appreciation of marketing. Skills in service org. Difference of org. structure of service firms. Problems in determining the cost of services. 33

34. c.s. --- Federal express.. 34

35. Service marketing system for high contact service 35

36. Service marketing system for Low contact service 36

37. Tangible elements & communication components in SM 37

38. Customer expectation & perception of service 38

39. Desired service --- Adequate service It is the level of service the customer hopes to receive // the level of performance wished for. Lower level of service expectation that the customer is willing to accept.—based on past experience, lack of remuneration to the service provider , socio -economic background of the service provider etc… 39

40. Zone of tolerance 40

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43. Diff. Between characteristics of goods and service Different goods and services have varying magnitudes of search, experience & credence qualities search qualities of goods can be estimated before purchase -- experience quality can be estimated only after purchase. Qualities that can`t be assessed completely are called Credence qualities. 43

44. Dimensions of S.E.C. qualities Search qualities Experience qualities Credence qualities Tangibility Access Competence Credibility Courtesy Security Reliability Responsiveness Understanding customer communications 44

45. Search quality For services include….. Price, Convenience. Mannerisms of service personnel. Promptness of service. 45

46. Experience qualities Taste of home delivered food. Wear ability of dress bought from boutique etc. Service have higher experience characteristics than goods. E.g. air line travel…courtesy of cabin crew, departure & arrival, quality of food, seating comfort etc.. 46

47. Credence qualities Customer often lack the knowledge & experience to judge the credence qualities of the service. E.g….. Bread may claim to have nutrition's..difficult for the customer to ascertain.. Services of professionals –doc, consultants,…services are accepted on faith. 47

48. Customer Decision Making Process & implications on service provider. 48

49. Customer decision making process.. Need perception.—difference in actual state & desired (Hungry –need to buy food-remove hunger) Search for info.-need felt-decides to purchase- search for info. To full fill needs (from –personal ,commercial ,public source, experimental) & perceived risks.(financial risk, functional ,physical, psychological, social, time risk) Evaluation of alternatives.—compare & evaluate services of alternatives. (Well defined attributes )e.g interior decoration –different from home to home & customer to customer.( emotions- influence on customer-evaluation ability) Purchase & consumption.- trail purchase, repeat purchase, long term commitment purchase) Post purchase evaluation.– compares performance vs. expectations. –satisfied customer becomes loyal, 49

50. Implications for service providers Customer gather info. From personal source– marketer needs to be careful in satisfying existing customers. Services are intangible- customer needs assistance to assess value of high credence qualities. 50

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52. Customer expectations SATISFACTION IS THE LEVEL OF A CUSTOMER`S FELT STATE RESULTING FROM COMPARING A PRODUCT`S OR SERVICE`S PERCEIVED PERFORMANCE STANDARD AGAINST THE CUSTOMER`S EXPECTATION ….. KOTLER 52

53. Customer expectation Five dimensions to measure service quality Assurance --- to use knowledge & courteous behavior to instill trust and confidence in customer regarding service. Empathy– ability to show concern for customers and devote individual attention to each customer. Reliability—ability of service provider to accurately perform promised service.( efficiency , handling of customer complaints, pricing etc). Responsiveness – prompt & service. Tangibles -- physical facilities- equipment of service, dress & appearance of service personnel. 53

54. Service level expectation adequate desired low high Zone of tolerance 54

55. Factors influencing desired service factors influencing adequate service Customer needs – Maslow's hierarchy of needs. –customer hungry wants food immediately – customer thirsty wants water immediately. Enduring service intensifiers Transitory service intensifiers – pizza does not come in 20 minutes or C.C. not accepted when buying medicines in emergency. Perceived service alternatives -- housing loans form different sources. Self perceived service role – dress designer find dress as per expectations. Situational factors – power failure interupts service of cable. Predicted service expectations.– flight will be delayed due to weather but reaches on time. Derived service expectation Customer philosophy Attitude & service providers conduct Conducted tour—expect food & travel arrangement 55

56. Customers criteria for service evaluation Speed. Certainty. Ease Personal recognition. 56

57. Customer perceptions Service encounter – customer estimates the quality of service during encounter – e.g. – banks. Service evidence – personnel , process & physical environment. E.g.- hotels Image – perceived image in the mind of the customer. a +ve image can ignore some poor service, however repeated bad service will change the same. Price – tangible nature of service – customer assume the quality of service 57

58. Strategies to influence customer satisfaction Enhance customer satisfaction thru service encounters.- recover from service failure, flexibility in delivering service, assistance in handling difficult customers. Reflect evidence of service- behavior & physical evidence. Communicate & create realistic image.- make promises & keep them. Enhance customer perception of quality & value thru price. 58

59. Market research in service Post transactional survey- immediately after service- questioner after dinner or questioner just before aircraft lands. Customer complaints comments & inquiry survey – use feedback and analyzing comments and taking remedial actions helps improve service. Total market survey – take opinion from all customers – existing, lost , potential customers.– find out customers needs.-take suitable actions. Employee survey –opinion of front line employees who come in direct contact with the customer. 59

60. Service Quality -- Dimensions Reliability – Ability to perform promised service dependably & accurately. e.g FedEx….. Responsively – Willingness to help customers & provide prompt service. Assurance – Employees ability to inspire trust & confidence. E.g.- Insurance , brokerage, legal services Empathy – Caring , Individual attention to customers. E..g. customized services..E.g.-- Hotel Tangibles – Appearance of physical facilities equipment, personnel & written materials. E.g. – travel agents putting attractive pictures.. 60

61. Servqual scale Measures five dimensions on a scale of 7 points. Generic dimensions used by customer to evaluate services Credibility, Security, Access, Communication, Understanding customer, Tangible, Reliability, Responsiveness, Competence, Courtesy….. 61

62. Gap Analysis Gap 1- Not knowing what the customer expects. Gap 2 – Not selecting the write service designs & standards. Gap 3 - Not delivering to service standards. Gap 4 - Not matching performance to promises. 62

63. Gap model – service quality 63

64. Process of market research Define the problem & research objectives Develop scales of measurement Develop & implement the research program. Coding & tabulating data. Interpreting. and analyzing findings Reporting findings 64

65. Approach to upward communication 65

66. Analysis customer needs. There buying pattern. Ways in which they can be satisfied. Analysis helps in :: Identify the competition in the market. To identify ,why customer choose one product/service over the other. To analysis the present strategies of the co. vis. Competition. Customer analysis 66

67. Strategic issues in service marketing 67

68. Market segmentation & targeting Mkt. Segment- a group of customers who respond in a similar way to a given set of market stimuli Mkt. segmentation- the process of dividing a market into distinct groups of buyers with different needs/ characteristics / behavior, who might require separate products or marketing mix.. Targeting .. A process of estimation & comparison previously identified segments for selecting one or more segments that fetch best result for business. 68

69. Mkt. Segments Undifferentiated Mkt. approach – mass marketing. Approach aimed at all consumers by offering single product / service. Differentiated Mkt. approach .- targeting various customers segments with different products & services. (Nokia – Hi flyers, Trendsetters, Social contact, Assured) Concentrated mkt. approach .- single segment strategy to serve limited segments in a total market. 69

70. Targeting Basis of targeting – Segment size & growth potential. Structural attractiveness Companies objectives & resources. 70

71. Targeting strategies Single segment strategies.- target single segment, develop single marketing mix & gain specialization. e.g. – software firm catering to logistic solutions only Selective specialization – targeting more than one segments. e.g. financial firm target retired persons & working women. Product specialization – single product or service to various segments e.g. conference halls in hotels used for corporate meetings, birthday parties, get together, kitty parties etc.. Market specialization- target segment remains same , company tries to cater to different needs by offering products / services e.g – your institution – various courses. Full mkt. coverage.—various products & services for the entire market E.g.– hindi movie released with sub tittles abroad. 71

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73. Positioning “Positioning is not what u do to the product, Positioning is what u do to the mind of the prospect…” by unknown Positioning is defined as the process of establishing & maintaining a distinctive place in the market for an organization or for its individual; products/ services in offering. 73

74. Positioning strategies by potter Product differentiator Low cost leader. Nicher . Company should concentrate in one strategy rather than trying to be good in all and failing subsequently. 74

75. Specific positioning strategies…. Attribute positioning – service provider positions on attributes / feature e.g.- Allahabad bank positions as oldest bank in India however Positioning service strategy based on feature does not work too well. Benefit positioning – offer add on benefits as customer pschye is to analyze the benefits e.g – ICICI bank , Citi Bank –ATMs & internet banking, bill payments etc.. Use / application positioning.—positioned as best for a certain application –SBI – positioned best for education loans. User positioning – positioned for specific target users – India as destination for tourists 75

76. Specific positioning strategies….cont. Competitor positioning strategy– positioned against competition ..e.g. IIPM positioned against IIMs- “dare to think beyond IIMs ”. Category positioning– category leader & becomes synonymous with the service– e.g. Essel world for entertainment. Quality & price positioning-service is positioned as possessing a certain standard, at a particular price… Taj Hotels high quality service at high price. 76

77. Differentiation A company is said to have achieved differentiated competitive advantage when its customers perceive the service offered as different from competition based on elements of marketing mix– product / service , price, promotion , distribution etc… DELL , AMWAY…… 77

78. Differentiating attributes To meet the following criteria… Important – customers in the target group view the difference offered by the firm as very important & high value to it. Distinctive– service offered is not offered by its competitor or unique service offered. Superior – the firms makes it an obvious choice for customers to opt for.. Communicable– difference offered by firm should be easily explained & communicated to customers. 78

79. Preemptive- Difference offered in service is not easily copied by competitors. Affordable – customer should be able to pay for the difference in price. profitable.– Firm should be able to offer difference to customer with out losing out on profitability. Differentiating attributes…cont 79

80. Managing demand & capacity 80

81. Managing demand Contraction & recession.– economy contracts in recession . Economy is said to have hit recession when the growth rate is substantially lower than normal for 6 continuous months Depression is a serious form of depression. Demand of goods & services decreases. 81

82. Managing demand…cont Expansion or Boom…increase in overall activity & growth. Demand of goods & services increases. 82

83. Managing demand…cont Technological developments..e mail, internet, CAD(compute aided designs) Demographics—demand has increase since independence. ( for goods & services) Natural & other disasters– increase or decrease the demand of goods & services 83

84. Demand patterns Sketching demand patterns– Co. has to track & sketch the demand level. ( Done by maintaining customer data base & monitoring the varying demand over a period of time )Demand of services can be easily predicted. Foreseeable cycles-- demand of financial services increases around financial year close. Random demand variation – some demands cycles are variable – healthcare & insurance? Demand pattern by Mkt. segment- Maintain data base – tour operators , insurance ,tax saving schemes. 84

85. Capacity constraints Capacity constraint 85

86. Strategies to match demand & capacity Demand shift .. Shift customers to a time when demand is low e.g. cell phone call rates…. Varying the original service offer – catering during non marriage season – economical. Communicating with customers – Banks talk to customers when salaries etc are been handled..some customers choose to come at another time.. Altering the time of service delivery – Banks worked 6 days –now 7 days Price differentiation – price variations between high demand vs. low demand—happy hours 86

87. Adjusting capacity to meet demand.. Time – extended hours to meet excess demand. Labour- employed on contract basis - get as per demand Facilities – increase capacity –restaurant putting extra tables, more seats in theatre, airlines adding more flights… Equipment—hire additional when needed ( owen , computers etc) Cross training of employees to meet extra demand. 87

88. Marketing mix for services 88

89. Traditional marketing. mix 4 P`s—product- place- price – promotion Adequate for product marketing. however they are inadequate for services ….. because ___________ 89

90. Inadequacy of 4 P’s Product are tangible – Services are intangible in nature. Part of promotion of services takes place at the time of consumption itself. PSU producing services –partly subsidized, standardized – Mkt.mix ignores this aspect. Dual role of service customers – co- producers and end consumers- unnoticed by 4Ps. 4ps fails to capture – distribution services. 90

91. Expanding the traditional P’s 91

92. The extended P’s People- Co. invest in People(attracting, Training, retaining best talent Process – ATMs- reduce human intervention / errors/ increase customer satisfaction. Physical evidence – TV commercial / brochures etc for holiday destination. . 92

93. Product :: service packaging Product – can be defined as an idea, a service or a good that involves a mix of tangible or intangible elements, with an aim to satisfying customers. Packaging a service is a critical component of mkt. mix. E.g.--burger at McDonald's viz. road side burger. British airways vs. other cheaper airlines. Difference is the quality and the service packed along – for a price. 93

94. Service product level 94

95. Service product level..cont Core product – core benefit of any product is to satisfy the basic needs of a customer. Example– a tax consultant- core service is to calculate tax to be paid- also files return, sell some financial instrument, advises on investments. 95

96. Actual product Tangible aspect attached to a service ,along with the service is the product itself. This facilitates the delivery of core product to the customer. Marketers develop the actual product after the core benefits are decided. Characteristics of actual product are –features, design , quality level, packing & brand name. 96

97. Actual product level qq Core product Quality level Design Brand name Features packaging Actual product 97

98. Augmented product The intangible aspects that support a service constitute the augmented product along with the actual product. Warranty , installation support, delivery, customer service – etc are augmented products. E.g.– caterer hired for wedding,-- core product food .—if decoration ,inviting guests, serving them is also done by caterer then these are augmented products.. 98

99. Potential product Features or benefits that can be added & which would be of value to the customer . Hair styling – computer aided pictures to help decide a suitable hair style….. 99

100. Service product decisions – growth strategies Market penetration Product/service development Market development Diversification Existing markets New markets Existing products New products “ Ansoff’s ” product growth matrix Mkt. penetration Product /service development Market development diversification Sell more of existing product for bigger mkt. share New product /service in existing mkts . New markets with existing services New market with new products 100

101. PLC Develop strategy Stabilize strategy Turn around strategy Harvesting strategy 101

102. Pricing services 102

103. “ The key to making the sale is to communicate VALUE ! Do it so strongly…that the price seems reasonable in relation to the product or service you are offering” A customer perception of what is a “reasonable price” is important than what you want to charge for your product or service. And the customer decides what’s reasonable based on perceived value for money, not price. it’s creating this perception of value that tells the customer - ”the price is right” Noel Peebles author “Sell your business the easy way” 103

104. Key characteristics of pricing in service Customer’s perceptions are different for goods & services. Customer finds easy to pay for a home theatre than flying by a particular airline or choosing a holiday destination. Price is a measure of quality of service:: Customer turns to pricing to assess the quality of service , in absence of info from other source. E.g. a beauty parlor charges 250/- instead of 150 for the same service & is considered to offer better quality service… Non monetary cost & pricing:: Non monetary cost perceived as time cost, search cost , psychological cost & convenience cost. Difficulty in comparing prices of services:: 104

105. Pricing objectives Survival Present profit maximization. Present revenue maximization. Prestige. Product quality leadership. 105

106. Other options Pricing can be done to make market unattractive for competition. How would co. like to position its services. How do the competition react to price changes. What is the duration of life cycle of services. How does the elasticity of demand fluctuate. Is the service capability over utilized or underutilized. 106

107. Approaches to pricing services. 107

108. Promotion of services Many attempts to communicate are mollified by saying too much……… 108

109. Promotion thru communication 109

110. Modes of communication 1.Oral 2.Written 3.Face to face 4.Online communication 5.Media. Type of communication Internal external 110

111. Elements of promotion mix Promotion elements mix Direct marketing Personal selling advertising Publicity & public relations Sales promotion 111

112. Promotional mix …cont Personal selling :: -develop rapport with customer- expensive – sales training to offer good service needed- relationship building with customer. Advertising :: cinemas, print, broadcast, outdoor & retail. Sales promotion :: used to encourage existing customers to use service more frequently, or attract new customers. Publicity & PR:: publicity-used to bring awareness in existing & new customers on offers. PR – maintain good relations with employees, customers , share holders, govt. etc. Direct marketing:: contact with customers –telemarketing, direct mail , on line marketing., … 112

113. Promotional strategies for services. Services can’t be inventoried..decrease use in peak & increase during lean times. Reduce role of intermediaries :: Role of service personnel:: Service delivery location Customer as a co- product.:: chef cooks food in front of customer, as per requirement. 113

114. Strategies for effective promotion Effective planning. Focused objective. Perfect timing. Value added thru tie-ups & promotions. Employee motivation. Well differentiated campaign. Regular evaluation of campaign . 114

115. Promotional techniques Sampling. Premium Prize promotion. Price /quantity promotion Refunds & future discounts. Coupons… 115

116. Design of a service promotion Which service to promote. Who would be the target customer. What value addition be there to the brand. Is the timing right for promotion Duration of promotion. Who is benefited from promotion. 116

117. Relationship marketing --definitions Relationship mkt. is attracting, maintaining & (in multi-service organizations) enhancing customer relationship. An integrated & coordinated effort to identify, maintain & build up a network with individual customers & employees & continuously strengthen the network for mutual benefits of both sides , through interactive, individualized & value added contacts continiously over a longer period of time. Relationship mkt. is to identify , establish, maintain & enhance,& when necessary terminate relationships with customers so that the objective regarding economic & other variables of all parties are met. This is achieved thru exchange & fulfillment of promises. 117

118. Benefits of R.M. Long term relationship for both customer & organization. Lower cost & increased profitability. Requirements & expectations of customer base. Reliable service provider. 118

119. R.M.---Benefits to Co. Customers will continue to avail the services.. Increase revenue from existing customers. Existing customers will provide FREE word of mouth publicity. By establishing & strengthening relationship –easy to retain customers. With relationship & quality of services –very few customers will go to competition. 119

120. R.M.---Benefits to customers Customer opts for service repeatedly- Saves on time & effort on choosing new S.P. Personalized services Special services. 120

121. 6 market models for R.M. 121

122. Customers markets Efforts required to maintain existing customers. Satisfied customer will come again & avail the services. Employees & managers to work as a team to make the experience more pleasant. Co. should work on complaints & suggestions –update the customer about the steps taken. Service experience to go beyond expectations – leads to actively recommendations of service to others. 122

123. Internal markets Employees – internal customers – internal markets Better facilities & good atmosphere leads to satisfies employees-better services to customers. Cos. Strive to win employee loyalty & commitment. Helps in retaining employees- better service to customers with complete commitment. 123

124. Suppliers Mkt. Cos need basic infrastructure & facilities to provide service. Cos. Depend on suppliers to provide them. Good relations with suppliers. E.g.--Courier & airlines 124

125. Referral Mkt. Referral Mkt – existing customers , intermediaries , consultants etc. Good relations helps in better service & more business for Co. Reward referrals….. 125

126. Recruitment market Attracting talent from institutes… Cos. need to maintain contacts with institute heads etc . Sponsor student events , conduct work shops etc.. Placement agencies, head hunters 126

127. Influence markets Share holders , financers, consumer protection groups, environmentalists, government, media, trade unions, general public… 127

128. 128 Services Blue print

129. Internal marketing Viewing employees as customers – viewing jobs as internal products that satisfies the needs of internal customers while addressing the objectives of organization. 129

130. Role of Internal marketing… Customer attraction & retention. Employee retention & motivation. Corporate image. Change management. Cos. Performance & continuity. 130

131. Components of internal marketing…. Recruitment & selection Motivation. Education & training. Coordination. Empowerment. Rewards. Communication. Knowledge sharing. 131

132. SERVICES FUNCTIONS AND BLUEPRINT 132

133. New service development process Generation of idea Testing the concept Screening Business analysis & Design of service Test marketing Infrastructure development Service launch

134. Customer Service Management Cycle Customer Service Where you want it to be Customer Service Where it is now Stage 1 Understand the service Seekers Stage 4 Check up regularly Stage 2 Set customer service Standards Stage 3 Build a winning Team Stage 5 Provide proactive Problem solving 134

135. STAGE 1: UNDERSTAND THE CUSTOMER Specific service niche : Determined by the targeted services and the service seekers Characteristics People/Things orientation High/Low tech Personal Interaction : Physical, Mental, Emotional Time involvement Location Complexity: Actual, Visual Flexibility Numbers served per transaction Training Supervision 135

136. Developing the Service seeker profile Values and beliefs Attitudes Social habits and norms Preferences Expectations 136

137. Customer Perception of the service and service provider The service profile: Service characteristics, Service seekers wants and needs and perceptions of requisite characteristics Characteristics include The service purpose The degree of necessity The magnitude of importance View of results Relative cost and benefits Perceived risks 137

138. STAGE 2::SET CUSTOMER STANDARDS Establish a target Communicate expectations Create a valuable management tool Dimensions in strong customer service: Procedural and personal Standard areas of procedural dimension: Timing, Flow, Flexibility, Anticipation, Communication, Customer Feedback, Organization and Supervision Standard Areas of personal dimension : Appearance, body language and tone of voice, attentiveness, tact, guidance, selling skills, gracious problem solving 138

139. Writing customer service standards Timeliness Anticipation Attitude Customer Feedback Appearance Guidelines for developing customer service standards 139

140. STAGE 3: BUIDING A WINNING TEAM Design customer service jobs Writing job specifications Screening job applicants Training for customer service Practice leadership skills Supportive organizational environment 140

141. STAGE 4: CHECK UP REGULARLY Service Audit system Service seeker feedback system Employee feedback system 141

142. STAGE 5: PROACTIVE PROBLEM SOLVING Create supportive climate for solving problems Appoint teams to identify problem areas Select teams to improve through brainstorming Transferring team problems and complaints into opportunities 142

143. COMPONENTS OF SERVICE BLUEPRINT Customer Actions Onstage Contact Employee action Backstage Contact Employee Action Support Process Line of internal action Line of visibility Line of External Action 143