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Service Marketing

1. DEVELOPING SERVICE PRODUCT: CORE AND SUPPLEMENTARY ELEMENT

2. TABLE OF CONTENT I PLANNING AND CREATIVE SERVICE III BRANDING SERVICE PRODUCT AND EXPERIENCE II THE FLOWER OF SERVICE IV NEW SERVICE DEVELOPMENT

3. PLANNING AND CREATIVE SERVICE

4. 1. DEFINITION OF PRODUCT A service product comprises all elements of service performance, both tangible and intangible , that create value for customers.

5. 1. DEFINITION OF PRODUCT People Possessions Tangible Actions Intangible Actions

6. 2. DESIGNING A SERVICE CONCEPT Scheduling Nature of Process Service level Customer role

7. 2. DESIGNING A SERVICE CONCEPT Core Product Supplementary Services

8. 2. DESIGNING A SERVICE CONCEPT Core Product Supplementary Services: Facilitating Enhancing

9. 2. DESIGNING A SERVICE CONCEPT Scheduling Nature of Process Service level Customer role DELIVERY PROCESS Scheduling: How long the delivery last Nature of process: People Processing Possession processing Mental stimulate processing Information processing

10. 2. DESIGNING A SERVICE CONCEPT Scheduling Nature of Process Service level Customer role DELIVERY PROCESS Scheduling: How long the delivery last Nature of process: People Processing Possession processing Mental stimulate processing Information processing Service level: Low - Medium - High

11. 2. DESIGNING A SERVICE CONCEPT Scheduling Nature of Process Service level Customer role DELIVERY PROCESS Nature of process: People Processing Possession processing Mental stimulate processing Information processing Service level: Low - Medium - High Customer role: What customers/ service suppliers are expected to do.

12. 2. DESIGNING A SERVICE CONCEPT Scheduling Nature of Process Service level Customer role DELIVERY PROCESS Service level: Low - Medium - High Customer role: What customers/ service suppliers are expected to do.

13. 2. DESIGNING A SERVICE CONCEPT Service level: Low - Medium - High Scheduling Nature of Process Service level Customer role DELIVERING CONCEPT FOR CORE PRODUCT SUPPLEMENTARY SERVICES OFFERED AND HOW THEY ARE CREATED AND DELIVERED

14. 3. DOCUMENTING DELIVERING SEQUENCE OVER TIME Service level: Low - Medium - High The sequence that customers will use each of the core and supplementary services and the approximate length of time required in each instance.

15. Service level: Low - Medium - High SEQUENCE Certain service elements must be delivered in a prescribed sequence.

16. Service level: Low - Medium - High SEQUENCE Not every guest uses the same delivery sequence.

17. Service level: Low - Medium - High TIME A difference of time between using a core product and supplementary services.

18. Service level: Low - Medium - High TIME Some elements customers prioritize spending more time on. Some other customers simply want to get through quickly.

19. II. THE FLOWER OF SERVICE

20. II. THE FLOWER OF SERVICE

21. II. THE FLOWER OF SERVICE Enhancing Facilitating

22. II. THE FLOWER OF SERVICE Enhancing Facilitating Information Order - Taking Billing Payment

23. II. THE FLOWER OF SERVICE Enhancing Facilitating Consultant Hospitality Safekeeping Exceptions Information Order - Taking Billing Payment

24. II. THE FLOWER OF SERVICE Facilitating Information Helps customers to obtain full value the information has to be timely and accurate. Order - Taking Billing Payment

25. II. THE FLOWER OF SERVICE Facilitating Information Helps customers to obtain full value the information has to be timely and accurate. Order - Taking Billing Payment

26. II. THE FLOWER OF SERVICE Facilitating Information Helps customers to obtain full value the information has to be timely and accurate. Order - Taking Billing Payment

27. II. THE FLOWER OF SERVICE Facilitating Information Helps customers to obtain full value the information has to be timely and accurate. Order - Taking Billing Payment

28. II. THE FLOWER OF SERVICE Facilitating Information Order - Taking Billing Payment Helps customers to obtain full value the information has to be timely and accurate.

29. II. THE FLOWER OF SERVICE Facilitating Order - Taking H appens when customers are ready to buy - applications - order entry - reservations Information Billing Payment

30. II. THE FLOWER OF SERVICE Application: make sure customers meet basic enrollment criteria Facilitating Order - Taking Information Payment Billing H appens when customers are ready to buy - applications - order entry - reservations

31. II. THE FLOWER OF SERVICE Application Reservations : Entitles customers to a specified unit of service Facilitating Order - Taking H appens when customers are ready to buy - applications - order entry - reservations Information Payment Billing

32. II. THE FLOWER OF SERVICE Application Order Entry: How the business receives orders from customers. Polite, fast, and accurate Facilitating Order - Taking H appens when customers are ready to buy - applications - order entry - reservations Reservations Information Payment Billing

33. II. THE FLOWER OF SERVICE Application Order Entry: How the business receives orders from customers. Polite, fast, and accurate Facilitating Order - Taking H appens when customers are ready to buy - applications - order entry - reservations Reservations Information Payment Billing

34. II. THE FLOWER OF SERVICE Application Order Entry Facilitating Order - Taking Information Payment Billing H appens when customers are ready to buy - applications - order entry - reservations Reservations

35. II. THE FLOWER OF SERVICE Facilitating Billing - A document requesting payment for items with the quantity and unit price listed in. - C ommon to almost all services Information Payment Billing

36. II. THE FLOWER OF SERVICE Facilitating Billing Information Order- Taking Payment - A document requesting payment for items with the quantity and unit price listed in. - C ommon to almost all services

37. II. THE FLOWER OF SERVICE Facilitating Billing - A document requesting payment for items with the quantity and unit price listed in. - C ommon to almost all services Information Order- Taking Payment

38. II. THE FLOWER OF SERVICE Facilitating Billing Information Payment - A document requesting payment for items with the quantity and unit price listed in. - C ommon to almost all services The bills should show exactly what each charge is for and how the total amount is calculated. Billing should be timely and accurate Order - Taking

39. II. THE FLOWER OF SERVICE Facilitating Payment Information Order - Taking Billing Take a payment after or before using a service.

40. II. THE FLOWER OF SERVICE Facilitating Payment Information Order - Taking Billing Take a payment after or before using a service. Self-service

41. II. THE FLOWER OF SERVICE Facilitating Payment Take a payment after or before using a service. Self-service Direct to Payee or Intermediary Information Order - Taking Billing

42. II. THE FLOWER OF SERVICE Facilitating Payment Take a payment after or before using a service. Self-service Automatic Deduction from Financial Deposi0 ts Direct to Payee or Intermediary Information Order - Taking Billing

43. II. THE FLOWER OF SERVICE Facilitating Payment Take a payment after or before using a service. Self-service Automatic Deduction from Financial Deposi0 ts Direct to Payee or Intermediary S ome service businesses have instituted control systems Information Order - Taking Billing

44. II. THE FLOWER OF SERVICE Facilitating Payment Take a payment after or before using a service. Self-service Automatic Deduction from Financial Deposi0 ts Direct to Payee or Intermediary Information Order - Taking Billing

45. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions Facilitating Payment Information Order - Taking Billing Take a payment after or before using a service.

46. II. THE FLOWER OF SERVICE Facilitating Payment Information Order - Taking Billing Take a payment after or before using a service. Enhancing Consultant Hospitality Safekeeping Exceptions

47. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions

48. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions More complex than information

49. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions More complex than information Customized advice

50. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions More complex than information Personal Counseling Customized advice

51. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions More complex than information Tutoring/training in product use Personal Counseling Customized advice

52. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions More complex than information Management or technical consulting

53. II. THE FLOWER OF SERVICE Enhancing Consultant Hospitality Safekeeping Exceptions More complex than information Management or technical consulting Some consulting services are free S ome are expected to pay.

54. II. THE FLOWER OF SERVICE Enhancing Hospitality Safekeeping Exceptions

55. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions How customers are treated during a service. Hospitality

56. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Greeting How customers are treated during a service. Hospitality

57. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Food and beverages (F&B) Greeting How customers are treated during a service. Hospitality

58. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Food and beverages (F&B) Greeting How customers are treated during a service. Hospitality Waiting facilities and amenities

59. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Food and beverages (F&B) Greeting How customers are treated during a service. Hospitality Waiting facilities and amenities

60. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality

61. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality Take care of possessions that customers bring with them or goods that customers pay or rent.

62. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality Take care of possessions that customers bring with them or goods that customers pay or rent. Caring for possessions customers bring with them

63. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality Take care of possessions that customers bring with them or goods that customers pay or rent. Caring for Goods purchased (or Rented)

64. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality Take care of possessions that customers bring with them or goods that customers pay or rent. Caring for Goods purchased (or Rented)

65. II. THE FLOWER OF SERVICE Enhancing Safekeeping Hospitality Exceptions

66. II. THE FLOWER OF SERVICE Enhancing Safekeeping Hospitality Exceptions Involve supplementary services that fall outside the routine of normal service delivery.

67. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality Involve supplementary services that fall outside the routine of normal service delivery. Special requests Problem-solving Handling of complaints, suggestions,.. Restitution: Exceptions

68. II. THE FLOWER OF SERVICE Enhancing Safekeeping Hospitality Exceptions Involve supplementary services that fall outside the routine of normal service delivery.

69. II. THE FLOWER OF SERVICE Enhancing Safekeeping Exceptions Hospitality Involve supplementary services that fall outside the routine of normal service delivery.

70. II. THE FLOWER OF SERVICE Managerial Implications: Not Every Service n eeds All of 8 petals Understanding y our c ustomers to know which features should add This model helps to improve service and make it more appealing

71. III. BRADING SERVICE PRODUCTS AND EXPERIECE

72. III. BRADING SERVICE PRODUCTS AND EXPERIECE "A brand is the identity and story of a company that makes it stand out from competitors that sell similar products or services.” A B C Branding Stratergies for Services Tiering Service Products with Branding Branded Customer Experience III. BRADING SERVICE PRODUCTS AND EXPERIECE

73. III. BRADING SERVICE PRODUCTS AND EXPERIECE "A brand is the identity and story of a company that makes it stand out from competitors that sell similar products or services.” A B C Branding Stratergies for Services Tiering Service Products with Branding Branded Customer Experience III. BRADING SERVICE PRODUCTS AND EXPERIECE

74. III. BRADING SERVICE PRODUCTS AND EXPERIECE "A brand is the identity and story of a company that makes it stand out from competitors that sell similar products or services.” A B C Branding Stratergies for Services Tiering Service Products with Branding Branded Customer Experience III. BRADING SERVICE PRODUCTS AND EXPERIECE

75. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands Creating and managing a strong and memorable image for the service business in the minds of your target audience.

76. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands Used to describe a company that applies its brand name to multiple fields .

77. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands Used to describe a company that applies its brand name to multiple fields . - Created from an existing main brand to introduce new product lines or variations. - Has both the main brand's characteristics and unique features and benefits.

78. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands - Created from an existing main brand to introduce new product lines or variations. - Has both the main brand's characteristics and unique features and benefits.

79. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands - Created from an existing main brand to introduce new product lines or variations. - Has both the main brand's characteristics and unique features and benefits.

80. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands - A brand development model based on the reputation of the main brand. - Has a separate name and visual identity

81. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands - A brand development model based on the reputation of the main brand. - Has a separate name and visual identity

82. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands A company owns several different brands, each with its own distinct identity, target audience, and marketing approach.

83. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE Branded house Sub-brands House of brands Endorsed brands A company owns several different brands, each with its own distinct identity, target audience, and marketing approach.

84. A. Branding Strategies for Service III. BRADING SERVICE PRODUCTS AND EXPERIECE A company owns several different brands, each with its own distinct identity, target audience, and marketing approach. Branded House Sub-brand Endorsed Brand House of Brand Name Starts with the same letters as the main brand name. Starts with the same letters as the main brand’s name. Different Different Logo Can be the same or different Same Combine its own logo and the main brand’s logo Different Level of dependence Independent Completely dependent Dependent but has the potential to separate from the parent brand and develop into a main brand. Independent

85. B. Tiering Service Products with Branding III. BRADING SERVICE PRODUCTS AND EXPERIECE A company owns several different brands, each with its own distinct identity, target audience, and marketing approach. - It is used to differentiates service levels - Common in: hotels, airlines, car rentals, and credit cards industry.

86. B. Tiering Service Products with Branding III. BRADING SERVICE PRODUCTS AND EXPERIECE A company owns several different brands, each with its own distinct identity, target audience, and marketing approach.

87. B. Tiering Service Products with Branding III. BRADING SERVICE PRODUCTS AND EXPERIECE A company owns several different brands, each with its own distinct identity, target audience, and marketing approach.

88. C. Moving toward the branded customer experience The term “Branded Customer Experience” means a brand’s effort to create a unique and consistent experience for its customers at every touchpoint. III. BRADING SERVICE PRODUCTS AND EXPERIECE

89. C. Moving toward the branded customer experience There are several ways to develop the branded customer experience: III. BRADING SERVICE PRODUCTS AND EXPERIECE

90. There are several ways to develop the branded customer experience: C. Moving toward the branded customer experience Service products have to match with the brand’s image All the petal of the Flower of Services have to have the same level Training employees to better serve customers and build stable customer relationships III. BRADING SERVICE PRODUCTS AND EXPERIECE

91. IV. NEW SERVICE DEVELOPMENT B rands not only provide existing services well but also continuously improve by creating new services.

92. IV. NEW SERVICE DEVELOPMENT A. HIERARCHY OF NEW SERVICE CATEGORIES Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations

93. IV. NEW SERVICE DEVELOPMENT A. HIERARCHY OF NEW SERVICE CATEGORIES Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Simplest type of innovation. Does not change core product, performance, or processes. Highly visible Ex: Repainting in new colour , new uniforms, ….

94. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Simplest type of innovation. Does not change core product, performance, or processes. Highly visible Ex: Repainting in new colour , new uniforms, …. A. HIERARCHY OF NEW SERVICE CATEGORIES

95. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Modest changes in the performance of core product or existing supplementary services. Example: Faster check-in processes, extended customer service hours, new account features. A. HIERARCHY OF NEW SERVICE CATEGORIES

96. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Adding new facilitating or enhancing service elements to an existing core service significantly improving an existing supplementary service. A. HIERARCHY OF NEW SERVICE CATEGORIES

97. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Service Improvements A dding a lower contact distribution channel to an existing higher contact channel. O ffer more convenience, different experience, attract new customers A. HIERARCHY OF NEW SERVICE CATEGORIES

98. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Service Improvements Adding new services that typically deliver the same core service but specified to satisfy different needs A. HIERARCHY OF NEW SERVICE CATEGORIES

99. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Service Improvements Using new processes to deliver current products in new ways with additional benefits A. HIERARCHY OF NEW SERVICE CATEGORIES

100. IV. NEW SERVICE DEVELOPMENT Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Service Improvements Development of new core products for markets that have not been previously defined It's relatively rare A. HIERARCHY OF NEW SERVICE CATEGORIES

101. IV. NEW SERVICE DEVELOPMENT A. HIERARCHY OF NEW SERVICE CATEGORIES Style changes Service Improvements Supplementary Service Innovations Process Line Extension Product Line Extension Major process innovations Major service innovations Service Improvements

102. IV. NEW SERVICE DEVELOPMENT B. REENGINEERING SERVICE PROCESSES Reengineering - Analyzing and redesigning processes to achieve faster and better performance Add or eliminate supplementary services Re-sequence delivery of service elements Offer self-service options

103. IV. NEW SERVICE DEVELOPMENT B. REENGINEERING SERVICE PROCESSES Reengineering - Analyzing and redesigning processes to achieve faster and better performance Add or eliminate supplementary services Re-sequence delivery of service elements Offer self-service options

104. IV. NEW SERVICE DEVELOPMENT C. PHYSICAL GOODS AS A SOURCE OF NEW SERVICE IDEAS Goods and services may be competitive substitutes when they offer the same key benefits S ome businesses can use physical goods to inspire their new services. It can be people processing or possession processing

105. IV. NEW SERVICE DEVELOPMENT C. PHYSICAL GOODS AS A SOURCE OF NEW SERVICE IDEAS

106. IV. NEW SERVICE DEVELOPMENT D. ACHIEVING SUCCESS IN NEW SERVICE DEVELOPMENT Three factors contributed most to success were: 1 Organizatioal factors 2 Organizatioal factors 3 Organizatioal factors

107. IV. NEW SERVICE DEVELOPMENT D. ACHIEVING SUCCESS IN NEW SERVICE DEVELOPMENT 1 Organizatioal factors Three factors contributed most to success were: 2 Organizatioal factors 3 Organizatioal factors The new product fits well with the existing image of the brand Strong support from the company during and after launch Meeting customers’ needs Understands customers’ behavior

108. IV. NEW SERVICE DEVELOPMENT D. ACHIEVING SUCCESS IN NEW SERVICE DEVELOPMENT 1 Organizatioal factors Three factors contributed most to success were: 2 Organizatioal factors 3 Organizatioal factors Strong inter-functional cooperation and coordination. Internal marketing to educate staff on new products and its importance.

109. IV. NEW SERVICE DEVELOPMENT D. ACHIEVING SUCCESS IN NEW SERVICE DEVELOPMENT 1 Organizatioal factors Three factors contributed most to success were: 2 Organizatioal factors 3 Organizatioal factors Scientific studies conducted early in the development process Product concept well defined before undertaking field surveys.