Designing & Managing services

What is Service?
A service is any act or performance one party can offer to another that is essentially intangible & doesnt result in the ownership of anything. Its production may or may not be tied up with physical product.
Goods Tangible Produced in factory Can be stored Can be transferred Services Intangible Interaction with buyer & seller Cant be stored Cant be transferred
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Started in 1890 Employee Strength 5000 Time taken- 3 Hours 4 lakh transactions every day Area Coverage daily-60-70 km

Areas of focus

1. Design 2. Result 3. Leader 4. Strategy 5. Network

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MANAGEMENT PRINCIPLES
Team Work Time Management Customer Relationship Management 6 Sigma Logistics & Supply Chain

OVERVIEW OF SERVICE INDUSTRY IN INDIA

Business Sector

Other Services

Government Sector

Non profit sector

&
Manufacturing sector-Computer operators,accountants,legal staff
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Sector wise contribution

Agriculture: 18.5%

Industry: 26.3%
Services: 55.2%

(2010 est.)
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What is service mix? A selection of services developed to offer customers a choice within a particular range
Pure tangible goods (no services accompany the product)

Free Servicing Tangible goods (with accompanying services) Warranty Card

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Hybrid

Major service with accompanying minor goods & services

Pure Service
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Equipment based

Process based

Client presence

Objectives & ownership Different objectives likeProfit or non profit oriented hospitals

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E q u i p m e n t

Variability Price Intangibility

C o m m u ni c at io n

Place

Hiring & training Zero defects culture Customer Satisfaction

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Inseparability

Perish ability
On Demand Side On Supply Side

Differential PricingMovie Tickets Non peak demandHotels vacational package Complementary Services-Teller machine Reservation SystemAirline service

Part time employees Peak time efficiency Increased consumer participation-Mall concept Shared servicesMedical equipment sharing Future expansionSurrounding land for park

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People Physical Evidence Process

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ELEMENTS IN SERVICE ENCOUNTERS

Visible
Invisible

Like physical environment Employees and their behavior Like service outcome whole backroom production process and organization system

EXTERNAL MARKETING
Describes

the normal work of preparing, pricing,distributing,and promoting the services to customers

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INTERNAL MARKETING
Describes

training and motivating employees to serve customers well

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INTERACTIVE MARKETING
Describes employees skills

Technical quality eg.was surgery successful

Functional quality eg.-did the surgeon show concern & inspire confidence
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Profit tiers

Customer empowerment More concerned about product-support service

Coproduction

High profit tiers

Special offers

Low profit tiers

More fees

Internet has empowered customers Eg.planet feedback.com Taking time to nurture customer relationship Giving customer attention

Customers play active role in the delivery of that service. Eg-ATMs

Special discounts

Automated voice messages

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Redesign process and redefine roles to simplify service encounters

Incorporate the right technology to aid employees and customers

How to improve?

Encourage customer citizenship where customers help customers.

Create high performance customers by enhancing their role clarity , motivation, and ability.

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Pricing

Inconvenience
Core service failure Service encounter failures
Response to service failure Competition

Ethical Problems
Involuntary switching
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Advertisement

Past experiences

Word of mouth

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Service Quality

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Word of Mouth Communications

Personal needs

Past experiences

Expected services GAP 5 CONSUM ER MARKETE R Perceived services Service delivery(including pre & posts contact) GAP 3 GAP 1 GAP 2 Translation of perceptions into service-quality specifications Management perceptions of consumer expectations
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GAP 4

External communications to consumers

Gap between consumer expectation and management perception

Gap between perceived service and expected service

Gap between management perception and service-quality specifications

Gap between service delivery and external communications

Gap between servicequality specifications and service delivery

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Consumer Expectation

Management Perception

MANAGEMENT PERCEPTION

SERVICE QUALITY SPECIFICATION

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SERVICE QUALITY SPECIFICATION

SERVICE DELIVERY

External Communication

Service Delivery

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Expected
Services

Perceived
Services

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RELIABILITY

RESPONSIVENESS

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ASSURANCE

EMPATHY

TANGIBLES

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Strategic concept

Top management commitment

High standards
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Self service technologies

Monitoring systems

Satisfying employees as well as customers

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Satisfying Customer Complaints

Continued
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Service brands must be.

1)Skillful at differentiating themselves

2)Developing appropriate brand strategies

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Primary service package

Secondary service package

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 Choosing

brand elements image dimensions

Establishing Devising

brand strategy

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 Logos Symbols Characters Slogan

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 Brand

Personality is an important image for dimensions of services. Airtel is a trustworthy brand. In 2011, it was rated the best brand, where as in 2010, it was at No. 10.

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company should device a brand that is properly understood by the customers.

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 Ordering Delivery

ease

Installation Customer

training Customer consultation Maintenance Repair

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Three specific worries for customers

Reliability

and failure frequency

Downtime
Out

of pocket costs

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Customer service evolution

Earlier, manufacturing companies use to set up their own service centers. Now a days, manufacturers have started to switch maintenance and repair services to authorized dealers and distributers. This helps the customer to get quick service nearby their location.
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 Retaining

your customers with new

offerings. Some companies providing different services combine all services and sell them together.

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THANK YOU
PREPARED AND PRESENTED BY
Amruta Bondre
Bidesh Mohanty

Preeti Goel

Namrata Sachdeva
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