SERVICE MANAGEMENT, T.Y.

BBA (SEM 6), VNSGU

Chapter 03

SERVICES MANAGEMENT OF DIFFERENT SECTORS

1. CONSULTANCY SERVICE MANAGEMENT

MEANING:
Consultancy service is provided by a qualified and expert person. He identifies and investigates the
problems of an organisation. He then recommends action to implement his recommendations.
MARKETING MIX OF CONSULTANCY MARKETING:
Following are marketing mix of consultancy marketing:1) Product: Consultants provide many types of services to their customers. In the Consultancy services,
the important products are;
- technical services helps in solving the technology related problems of the customers
- legal services helps in solving the legal problems faced by the customers.
- medical services helps in dealing with the medical related help to the customers.
- managerial services helps in solving managerial problems of customers.
The main part of the product of consultants is to provide advice to the customers.
2) Promotion: Consultancy services also requires promotion. Following are the different ways to
promote the consultancy services:

Advertising
Publicity
Sales Promotion
Personal Selling
Word-of-mouth Promotion
Telemarketing

3).Price: In the consultancy services, price mix means fee or commission charged by the consultants for
providing the services to the customer. Following are the objectives while deciding the price;

Profit
Market stability
Market share

The pricing methods adopted by consultants can be of following types;

charging lowest fee as compared to competitors.

charging fee to maintain premium image in market.
charging fees like the competitors.
charging higher fees.

ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

charging lower fees.

providing discounts during various occasions.
4).Place: In the consultancy services, the distribution mix is also very important. The consultancy
services must be made available to the customers on time. Consultant offers the services directly to the
customers at the customers place. They also offer the services to the customers with the help of branch
office.
5). People: In almost all the consultancy organizations, we find importance of people to implement the
policies and programmes in the effective way. We know that technology plays an important role in
improving the quality and efficiency. But people who operate, maintain and control different types of
technologies play a more important role. The skill of the people in understanding the problem and
deciding an appropriate solution is very important part of consultancy services. Hence the role of
individual consultant is very important in providing consultancy services.
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2. HEALTH-CARE AND HOSPITAL SERVICE MANAGEMENT

INTRODUCTION:
Health care services includes the following;
Hospitals
Pathology Clinics
Blood Banks
Yoga Centres
Meditation Centres
Online Medical Services

Telemedicine
Naturopathy
Health Spas
Emergency services like Ambulances, etc. Laughter Clubs
Fitness centres

CHARACTERISTICS / FEATURES:
A hospital has the following service characteristics.
1) Intangibility: Hospital & Health care services are highly intangible.
2) Inseparability: Health services are produced & consumed at the same time & cannot be separated
from their providers.
3) Variability: Variability is very much possible in the medical services provided by the professionals
like doctors.
4) Quality: Word of mouth is the best form of publicity and it also play an important role in service
quality.
SERVICE QUALITY DIMENSIONS:
The following are the service quality dimensions of health-care services;
ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

1) Tangibles: The physical facilities, equipment, personnel & communication facilities.

2) Reliability: It is the ability to perform the promised service dependently and accurately.
3) Responsiveness: The willingness to help patients and to provide prompt service.
4) Assurance: The knowledge & courtesy of the employees and their abilities to convey trust &
confidence.
5) Empathy: The provision of caring individualized attention to patient.

CLASSIFICATION OF HOSPITALS AND HEALTH CARE SERVICES:

Hospital services can be classified into following ways;
1. On the basis of the OWNERSHIP, there are four types:
Government hospital, which is owned, managed and controlled
government
Semi-government hospital, which is partially shared by the government.
Voluntary organisations also run hospitals (eg by any NGO)
Charitable trusts also runs hospitals.

by

2. On the basis of TREATMENT, there are:

Allopath - English system.
Ayurved, which is based on the Indian system
Unani
Homeopath
Naturopath
3. On the basis of the SIZE, there are:
Teaching hospitals generally have 500 beds, according to number of
students.
District hospital generally have 200 beds
Taluka hospital generally have 50 beds
Primary health centres generally have 5-10 beds.
7PS / MARKETING MIX OF HOSPITAL/HEALTH-CARE SERVICES:
Following is the description of 7Ps of Health-care / Hospital services;
1. Product: The main product of the hospital is the medical services. There are three categories of
services in a hospital.
A) LINE SERVICES:
1) Emergency Services: This department is specially meant for patients having sickness which requires
immediate treatment.
ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

2) Out Patient Dept.(OPD): In the OPD all patients are examined whether serious or not.
3) In Patient Services: After the patient is examined in the OPD they are advised to get admission in
inpatient ward.
4) Intensive Care Unit (ICU): It is meant for those patients who require special treatment.
5) Operation Theatres: operation of customers is done here.
B) SUPPORTIVE SERVICES:
Hospital medication, Official laundry, Laboratories, Clinical pathology, Blood bank, Nursing services
C) AUXILLARY SERVICES:
1) Registration & case records
2) Store management
3) Transportation management
4) Mortuary management
5) Security arrangement.
2. Price: Price is an important element in the marketing mix. Prices charged by a hospital depend on the
treatment and facilities given to the patient.
- The basic objective of Government hospital is not profit maximization but to provide quality service at
a reasonable price. Private hospitals provide quality at a premium price.
- The pricing strategy adopted by a hospital does not depend on the price offered by competitors but the
nature of facilities & services offered.
- The Government hospitals adopt cost free pricing strategy. Where as trust & private hospitals adopt
subsidized or cost based pricing strategy.
3. Promotion: The promotion in the hospital services can be personal & impersonal promotion.
- The promotion can be through advertising, publicity, and sales promotion measures.
- In hospital services impersonal promotion is important as advertising and publicity.
4. Place: The selection of place is very important in order to avoid the inconvenience to the users in
reaching the hospital in time.
- Adequate transport & communication facilities should be available where the hospitals are located.
5. People: People are also an important element in the marketing mix. They play an important role in the
provision of services. It is necessary that the staff in the hospital be trained to provide quality patient
ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

care. This can be done by-- Use of latest technology; Motivating the employees to be efficient, dedicated
and loyal; Providing continuous on job training to the employees.
6. Process: In a hospital the process is: Patients Arrival - Registration & case paper preparation Patients diagnosis Treatment - Discharge of the patient - Payment of the bill at the billing
counter.
7. Physical Evidence: The environment in which the service is delivered with physical or tangible
commodities and where the firm and the customer interact is called the physical evidence. Physical
evidence plays a very important role in the hospital services. In a hospital there is a dress code for the
staff which indicates professionalism and to maintain discipline. It is necessary for hospital to be well
organized and special care should be taken to maintain hygiene, cleanliness and whole hospital should
be well it.
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3. HOSPITALITY / TOURISM SERVICE MANAGEMENT

MARKETING MIX / 7PS:
1. Product: In planning its market offering, the marketer needs to think through five levels of product.
Each level adds to the customer value The levels of the product that the travel and tourism industry
offers to its customers are as follows:
1) Core product: The core product offered by Travel and Tourism industry is the Tourist place. It is core
because the main aim of the tourist is the tourist place where he has to reach
2) Basic product: The basic products offered by Travel and Tourism industry are ticket booking,
transport, sight seeing, hotel booking.
3) Expected product: These are the products that the customer expects from the tour agent.
4) Augmented product: These are the products that are offered by the companies to distinguish itself
from others.
5) Potential products: These are the future products that the companies will offer to its customers. These
can be underwater tourism, hovercraft for traveling. Also Virgin Atlantic airlines are thinking of adding a
casino and a shopping mall in the airline.
2. Price: Pricing decisions are influenced by internal factors like pricing policy of the company, and
external factors like the tourist place. They are required to think of discounting price. These may include
discounts for cash payments, seasonal discounts, trade discounts etc.
3. Place: Most tour operators sell their services through travel agents, however some deal directly with
the consumers and eliminate middlemen. For example, Thomas Cook has its own branches situated
throughout the country so they are easily accessible. The customer, in the travel and tourism industry,
has to go to the service provider. Hence strategic locations are very important for Thomas Cook.
ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

4. Promotion: The marketers need to use the various components of promotion optimally so that they
succeed in increasing the number of habitual users. The various dimensions of tourism promotion are as
follows: Advertising; Publicity: in media; Sales promotions; Word-of-mouth Promotion; Personal
Selling; Telemarketing; Exhibitions
5. Process: There are different type of processes involved in running a tourism business. i.e
administration, training, planning, and strategizing, recruitment, distribution, purchasing and service
delivery.
6. People: the travel agents, tour operators and travel guides Travel guides are expected to have a lot of
patience, good sense of humour, strategy to transform the occasional tourists into habitual ones, best
knowledge of the places, language skills etc.
7. Physical Evidence:
1) The environment in which the sales takes place
2) The environment where the product is consumed
The environment in which the sales takes place - customers expectations are influenced by factors
like layout of the room, the furniture, noise level, temperature, lights and other factors like the brochure
of the company.
The environment where the product is consumed- The tangibles include Wi-Fi connection in hotels,
customized meals while travelling, online booking in hotels, hotels providing laptops on request, internet
access etc.
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4. BANKING SERVICE MANAGEMENT

CHARACTERISTICS OF BANK SERVICES
1.) Intangibility - It is that characteristics of a service indicating that is not a physical attribute that a
person may feel, hear, taste before they buy it.
2.) Inconsistency - For a bank, a new customer may not get the same type of service as much as a
regular customer may get.
3.) Inseparability : This means that whenever a product is sold a service is also attached with it. Like for
Example, if a customer needs cash, he/she has to interact with the service provider. Both have to
remain present at the same time.
4.) Inventory: By this one means that the perishable characteristics of the service marketing. Banking
services also cannot be stored.
MARKETING MIX / 7 PS of BANKING SECTOR
It is very important for any bank to identify the 7 Ps of services so was understands their customers
better and provide them with best of service. The 7 Ps are:
PRODUCT:
ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

(A) DEPOSITS: Savings, Current, Fixed

(B) LOANS:
(1)

Fund Oriented:

a) Term Loan,
b) Pre-shipment Finance,
c) Post-shipment finance,
(C) INTERNATIONAL BANKING:
a) Letter of Credit, and
b) Foreign Currency loans.
(D)

CONSULTANCY:
a) Investment Counselling,
b) Project Counselling,
c) Tax Consultancy.

PRICE: The price mix in the Banks is the interest rates charged by the different banks. Interest rates are
decided on the basis of RBI guidelines. Banks also charge annual fees for services like credit cards,
DMAT Account etc. Another important part of the banks pricing policy is the interest charged on the
Home Loans and Car Loans.
PLACE: Place mix is the location for banks branches. There are number a factors affecting the
determination of the location of the branch of bank. It is very necessary a bank to situated at a location
where most of its target population is located. Some of the important factors affecting the location
analysis of a bank are Trading area, income of people, age, caste, religion, saving habit of people,
businesses around etc.
PROMOTION: Promotion is making the customer more and more aware of the services and benefits
provided by the bank. The banks today can use a lot of new technology to communicate to their
customers. Two of the fastest growing modern tools of communicating with the customers are:
1. Internet Banking
2. Mobile Banking
Different ways of Promotion:
Public Relations:
Personal Selling:
Sales Promotion:
Word of mouth Promotion:
Telemarketing:
Internet:
PEOPLE: People are the employees that are the service providers. In a banking sector the service
provider plays a very important and determinant role in providing the customers a good service. In a
ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI

SERVICE MANAGEMENT, T.Y. BBA (SEM 6), VNSGU

banking sector the customer needs to be guided in a lot of matters. Behaviour of employees plays an
important role in satisfaction of the customers.
PROCESS: The process means the procedure involved in using the services offered by the bank. It is
very necessary that the process is very customer friendly. Process should be such that the customer is
easily able to understand and easy to follow.
PHYSICAL EVIDENCE: Physical evidence is the overall layout of the place. For example in case of a
bank the physical evidence would be the placement of the customer service executives desk, or the
place for depositing Cheques. It is very necessary the place is designed in such a manner so as to give
maximum convenience to the customer.
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ZAKIR A PATEL, PROF, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI