What are Services..........?

Deeds, Processes & Performances All economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health), that are essentially intangible. (Quinn, Baruch and Paquette, 1987).

There are no such things as Service Industries. There are only Industries whose Service Components are greater or less than those of other Industries ..... Theodore Levitt American economist, Prof at Harvard, Editor HBR, popularized Globalization. Goods Vs Services Distinctive Characteristics of Services Characteristics of Services 1. Intangibility - u cant touch this Marketing Strategies Stress tangible cues, eg. Smiling face Use personal information, sources, references Use word-of-mouth Contact customers post purchase to sustain enthusiasm and encourage to talk it up

Characteristics of Services 2. Inseparability: Production (or performing the service) and Consumption (using the service) - happens at the same time Many people involved in delivering a service Mass production of services is hard to do

Characteristics of Services

3. Heterogeneity - services are not always delivered the same way because of the involvement of the human element. e.g. A machine can make ice cream cones in a standard size 100% of the time. A person filling an ice cream cone with a scoop cannot do it in the same amount each time, unless a machine is used to dispense the ice cream. Standardization of services The Key Challenge Characteristics of Services 4. Perishability - cannot be put in inventory or stored for later use. Demand has seasonality and cyclicality. e.g. You cant buy 2 haircuts. Airline seat perishes on flight take-off. Summer vacation useless in winter ! The Key Challenge

Capacitization

Understanding the Service Process Addressing Challenges......

Price Price Pricing Strategy Know the prevailing market price points Know your costs Be sensitive to price elasticity Keep an eye on competition. Product Product

Improve/differentiate product to gain and sustain competitive advantage. Extension strategies Customised versions Relaunch and refurbish offering Improvements real or perceived! Upgrade packaging R&D Promotion Promotion Strategies to create consumer awareness for the product or service Not enough to rely just on advertising Place Place The point of confluence for product delivery and its consumption Widen the distribution. Improve ease of access for product consumption.

Services Standardization The Key Challenge People People People represent the business The image they present is important First impression is the lasting impression. For service disseminators, depth of product / service knowledge is critical. Mission & Vision complete alignment is critical. Do staff represent the desired culture of the organisation and business?

Process Process Critical questions to be answered. How do people consume services? Where do they find the service? What is the purchase processes? Contact Register, Fill Forms. Subscribe / Consume Service. Reminders for repeat purchase.

Technology can be a key differentiator for service delivery and to counter heterogeneity. Physical Environment Physical Environment The ambience, mood or physical presentation of the environment Feel : Smart/shabby. Look : Trendy/retro/modern/conservative. Lighting : dark/bright/subdued. Mood : Romantic/chic/loud, Music, Fragrance Housekeeping : Clean/dirty/unkempt/neat. Addressing Challenges...... The Service Experience Playing Out a role as per a Script............ Dr. M.R.Solomon ,Professor at Auburn University. Services can be treated as scripts Played out by the Service provider and the customer

Must be played according to the script THANK YOU