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SM Assignment (Ambika Mba
SM Assignment (Ambika Mba
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QUESTION: Review each of the different ways in which service can be classified. How would
you explain the usefulness of each framework to managers?
SOLUTION:
Y lassification by industry
V
ËY Entertainment
ËY Education
ËY Telecommunication
ËY ?inance
ËY Transportation
ËY ×ublic utilities
ËY ÷overnment industry
ËY Health industry
ËY Hospitality industry
ËY Vusiness services
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Service can be classified according to the nature of service i.e. service processes used to bring
the service to customer who is as follows:
ËY ×eople ×rocessing: In this type of services, the customer is physically present in the
service system and there is need of interaction and cooperation among service providers
and customers. E.g.: barbers and health care etc.
ËY ×ossession ×rocessing: In this type of service, there is very limited contact among
customers and service provider and customer ask a service provider to provide treatment
to physical possession. E.g.: repair and maintenance, laundry etc.
ËY cental Stimulus: In this type of service, the main involvement of mind of service
provider is there in some way. E.g.: educational, physiotherapy etc
ËY ×rofessional: The services in which there is need of some professional degrees. E.g.:
lawyer and doctors etc.
ËY Non- ×rofessional: The services in which there is not any need of some professional
degrees. E.g.: transportation etc.
V
The degree of customer contact in service helps in its classification which is as follows:
ËY High ontact Services: The services in which there is high degree of contact among
customers and service providers. E.g.: mobiles etc.
ËY cedium ontact Services: The services in which there is medium degree of contact
among customers and service providers. E.g.: barber etc
ËY Low ontact Services: The services in which there is low degree of contact among
customers and service providers. E.g.: doctors etc
V
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ËY ×eople Vased: The services in which there is more labors than the capital investment.
E.g.: Electrician, plumbers etc
ËY Equipment Vased: The services in which there is more investment in equipments than the
labors. E.g.: hotel etc
The manager has to review all the frameworks to use its in providing their services in best way
i.e. more effective and efficient manner. This review helps in the following way:
The review of each framework helps the manager to design its service factory according to types
of services it provided. It helps in taking decision on service environment for attracting and
retaining the customers. The design should be in such way that service provides with maximum
efficiency.
It also helps in deciding the types of channel for service delivery whether direct service or use of
intermediary etc.
This review also helps the managers to match the unfulfilled demand with the supply of services.
It is totally different from products because service is intangible and cannot be stored.
àeciding the right marketing mix is an important application for a manger of this review. Vy
analyzing the above classification, a manager can decide about the design of service, pricing of
products and way of communication etc.
It also helps in deciding the right marketing techniques for segmentation, targeting and
positioning the service for survival in the market and facing the competition.
It also help in identifying the emerging services in the economy which can be exploited by
mangers as opportunities.