Services Marketing

- Module 3
Faculty:
Prof. Gayathri Ranjit
Asst Prof, CETSOM
 Contents
• Developing service products: Planning and
creating service products
• The flower of service
• Branding service products and experiences
• New Service Development
 Service Products
A service product comprises of all elements of service
performance, both tangible and intangible, that create
value for customers.
Service products consist of:
• Core Product  central component that supplies the
principal, problem-solving benefits customers seek
• Supplementary Services  augments the core
product, facilitating its use and enhancing its value
and appeal
• Delivery Processes  used to deliver both the core
product and each of the supplementary services
 Designing a service concept
• Service concept design must address the
following issues:
– How the different service components are
delivered to the customer
– The nature of the customer’s role in those
processes
– How long delivery lasts
– The recommended level and style of service to be
offered
 Documenting delivery sequence over
time
• Must address sequence in which customers
will use each core and supplementary service
• Determine approximate length of time
required for each step
• Information should reflect good
understanding of customers, especially their:
– needs
– habits
– expectations
Integration of Core Product, Supplementary
Elements, and Delivery Process
 Temporal Dimension to Augmented
Product
Reservati
on
Parking Get car
Check in Check out
Internet Internet
Use
Room USE GUESTROOM OVERNIGHT
internet

Porter
Pay TV
Meal
Room service

Time Frame of an Overnight Hotel Stay

Before Visit (real-time service use)
 Flower of Service
• A core product surrounded by cluster of
supplementary services
• There are two types of supplementary services
– Facilitating: either needed for service delivery, or help
in the use of the core product
– Enhancing: add extra value for the customer
• In a well-managed service organization, the
petals and core are fresh and well-formed
• Market positioning strategy helps to determine
which supplementary services should be included
 The Flower of Service

Information

Payment Consultation

Billing Core Order-Taking

Exceptions Hospitality

Safekeeping
KEY:
Enhancing elements
Facilitating elements
Facilitating Supplementary Services
Information ― customers often require information
about how to obtain and use a product or service
Order-Taking ― Customers need to know what is
available and may want to secure commitment to
delivery. The process should be fast and smooth
Billing ― Bills should be clear, accurate and
intelligible
Payment ― Customers may pay faster and more
cheerfully if you make transactions simple and
convenient for them
 Enhancing Supplementary Services
Consultation ― Value can be added to goods and
services by offering advice and consultation tailored
to each customer’s needs and situation
Hospitality ― Customers who invest time and effort
in visiting a business and using its services deserve to
be treated as welcome guests
Safekeeping ― Customers prefer not to worry about
looking after the personal possessions that they bring
with them to a service site
Exceptions ― Customers appreciate some flexibility
when they make special requests and expect
responsiveness when things don’t go according to
plan
Facilitating Services-Information
• Directions to service site
• Schedules/service hours
• Prices
• Reminders
• Warnings
• Conditions of sale/service
• Notification of changes
• Documentation
• Confirmation of reservations
• Summaries of account
activities
• Receipts and tickets
Facilitating Services - Ordertaking
Applications
• Memberships in clubs/programs
• Subscription services
(e.g., utilities)
• Prerequisite based services (e.g.,
financial credit, college enrollment)
Order Entry
• On-site order fulfillment
• Mail/telephone/e-mail/web order
Reservations and Check-in
• Seats/tables/rooms
• Vehicles or equipment rental
• Professional appointments
Facilitating Services – Billing
• Periodic statements of
account activity
• Invoices for individual
transactions
• Verbal statements of
amount due
• Self-billing (computed by
customer)
• Machine display of
amount due
Facilitating Services – Payment
Self-Service
• Insert card, cash or token into machine
• Electronic funds transfer
• Mail a check
• Enter credit card number online
Direct to Payee or Intermediary
• Cash handling or change giving
• Check handling
• Credit/charge/debit card handling
• Coupon redemption
Automatic Deduction from Financial
Deposits
• Automated systems (e.g., machine-
readable tickets that operate entry
gate)
• Human systems (e.g., toll collectors)
Enhancing Services – Consultation
• Customized
advice
• Personal
counseling
• Tutoring/training
in product use
• Management or
technical consulting
Enhancing Services – Hospitality
Greeting
Food and beverages
Toilets and washrooms
Waiting facilities and
amenities
• Lounges, waiting areas,
seating
• Weather protection
• Magazines, entertainment,
newspapers
Transport
Security
Enhancing Services – Safekeeping
Caring for Possessions Customer
Bring with Them
• Child care, pet care
• Parking for vehicles, valet parking
• Coat rooms
• Baggage handling
• Storage space
• Safe deposit boxes
• Security personnel
Enhancing Services – Safekeeping (cont)
Caring for Goods Purchased
(or Rented) by Customers
• Packaging
• Pickup
• Transportation and delivery
• Installation
• Inspection and diagnosis
• Cleaning
• Refueling
• Preventive maintenance
• Repair and renovation
Enhancing Services – Exceptions
Special Requests in Advance of
Service Delivery
• Children’s needs
• Dietary requirements
• Medical or disability needs
• Religious observances
Handling Special
Communications
• Complaints
• Compliments
• Suggestions
Enhancing Services – Exceptions (cont)
Problem Solving
• Warranties and guarantees
• Resolving difficulties that arise
from using the product
• Resolving difficulties caused by
accidents, service failures
• Assisting customers who have
suffered an accident or a medical
emergency
Restitution
• Refunds and compensation
• Free repair of defective goods
 Managerial Implications
• Core products do not have to have
supplementary elements
• Nature of product helps determine
supplementary services offered to enhance value
• People-processing and high contact services have
more supplementary services
• Different levels of service can add extra
supplementary services for each upgrade in
service level
• Low-cost, no-frills basis firms needs fewer
supplementary elements
 Branding in Services
• A brand is an identification of certain products
& services, on the basis of certain attributes of
the products & services.

• Simply, a name is given to the attributes for

easy identification, generation of confidence
and repute.
Branding Service Products and Experiences

• Service Products
• A product implies a defined and consistent
“bundle of output”
• Firms can differentiate its bundle of output
from competitors’
• Providers of more intangible services also
offer a “menu” of products
– Represent an assembly of elements that are built around the core
product
– May include certain value-added supplementary services
 Product Lines and Brands
• Most service organizations offer a line of
products rather than just a single product.

• They may choose among 3 broad alternatives:

– Single brand to cover all products and services
– A separate, stand-alone brand for each offering
– Some combination of these two extremes
Spectrum of Branding Alternatives
 Eg: British Airways Subbrands
• British Airways offers seven distinct air travel
products
– Four intercontinental offerings:

» First (deluxe service)

» Club World (business class)

» World Traveller Plus (premier economy class)

» World Traveller (economy class)

– Two intra-European offerings:
» Club Europe (business class)

» Euro-Traveller (economy class)

» UK Domestic (economy class between London and

major British cities
 Example:
British Airways Subbrands
British Airways offers seven distinct air travel products

Intercontinental Offerings Intra-European

Offerings
Club World
First (Deluxe Club Europe
(Business
Service) (Business
Class)
Class)
Shuttle

World World
Traveller Plus Traveller Euro-Traveller
(Premier (Economy) (Economy)
economy)
 Offering a branded experience
• Branding can be used at both company and
product levels
• Corporate brand:
– Easily recognized
– Holds meaning to customers
– Stands for a particular way of doing business
• Product brand:
– Helps firm establish mental picture of service in
consumers’ minds
– Helps clarify value proposition
Moving Towards a Branded
Experience

Shape truly
Create brand
differentiated
promise
customer experience

Give employees
skills, tools, and Measure and
supporting processes monitor
to deliver promise