Introduction to service

“Service are going to move in this decade to being the front edge of the
industry”

It requires changes in management mind-set,changes in culture, change in the

ways people work and are rewarded,and new ways of implementing customer
solutions. At IBM this change has evolved over decades. It is suggested that Lou
Gerstner’s legacy at IBM may well be the definitive switch that the company has
made from hardware to services and the strategic focus on customers. This switch to
service has carried over into IBM’s research divison as well, where hundreds of
researchers currently focus on service science and service innovation.

Many companies (such as Hewlett-Packard,Oracle, and Cisco) have viewed

IBM’s success and are pushing to make the same transition to service. It is not as
easy as it looks. In morning into services, companies discover what service
businesses such as hospitality, consulting, health care, financial services, and
telecommunications have known for years: services marketing and management are
different – not totally unique, but different. Selling and delivering a computer is not
the same as selling and delivering a service that solve a customer’s problem.

WHAT ARE SERVICES?

Put in the most simple terms, service are deeds,processes,and performance

provided or coproduced by one entity or person for another or person. Our opening
vignette illustrates what is meant by this definition. The services offered by IBM are
not tangible things that can be touched, seen, and felt, but rather are intangible
deeds and performances provided and/or coproduced for its customers. To be
concrete, IBM offers repair and maintenance service for its equipment, consulting
services for IT and e-commerce applications, training services, web design and
hosting, and other services. These services may include a final, tangible report, a
website, or in the case of training, tangible instructional materials. But for the most
part, the entire services is represented to the client through problem analysis
activities, meetings with the client,follow-up calls,and reporting a series of
deeds,processes, and performances. Similarly, the core offerings of

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hospitals,hotels,banks, and utilities are primarily deeds and actions performed for
customers, or coproduced with them.

Although we will rely on the simple,broad definition of services, you should be

aware that over time services and the service sector of the economy have been
defined in subtly different ways. The variety of definitions can often explain the
confusion or disagreements people have when discussing services and when
describing industries that comprise the services sector of the economy. Compatible
with our simple broad definition is one that defines services to include “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
concerns of its first purchaser.”

Services Industries,Services as Products, Customer Service, and Derived

Service

As we begin our discussion of services marketing and management, it is important to

draw distinctions between service industries and companies,services as
products,customer service, and derived service. Sometimes when people think of
service, they think only of customer service, but service can be divided into four
distinct categories. The tools and strategies you will learn in this text can be applied
to any these categories.

a). Service industries and companies include those industries and companies
typically classified within the service sector whose core product is a service. All of
the following companies can be considered pure service companies: Marriott
International (lodging).American Airlines (transportation), Charles Schwab (financial
services ), Mayo Clinic (health care). The total services sector companies a wide
range of service industries, as suggested by companies in these industries sell
services as their core offering.

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b). Services as products represent a wide range of intangible product offerings
that customers value and pay for in the marketplace. Service products are sold by
service companies and by nonservice companies such as manufacturers and
technology companies. For example, IBM and Hewlett-Packed offer information
technology consulting services to the marketplace, competing with firms such as
EDS and Accenture, which are traditional pure services firms. Other industry
examples include department stores, like Macy’s that sell services such as gift
wrapping and shipping, and pet stores like PetSmart that sell pet grooming and
training services.

c). Customer services is also a critical aspect of what we mean by “service.”

Customer service is the service provided in support of a company’s core products.
Companies typically do no charge for customer service can occur on-site (as when a
retail employee helps a customer find a desired item or answers a question), or it
can occur over the phone or via the Internet (e.g., Dell computer provides real-time
chat sessions to help customers diagnose hardware problems). Many companies
operate customer service call centers, often staffed around the clock. Quality
customer service is essential to building customer relationships. It should not,
however, be confused with the services provided for sale by the company.

d). Derived servis is yet another way to look at what service means. In an award-
winning article in the journal of marketing. Steve Vargo and Bob Lusch argue for a
new dominant logic for marketing that suggests that all products and physical goods
are valued for the services they provide. Drawing on the work of respected
economists,marketers, and philosophers, the two authors suggest that the value
derived from physical goods is really the service provided by the good, not the good
itself. For example, they suggest that a pharmaceutical provides medical services, a
razor provides barbering services, and computers provide information and data
manipulation services. Although this view is somewhat abstract, it suggests an even
broader, more inclusive, view of the meaning of service.

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Service Planning Business

Football coaching service- if you want to be a great coach of, we’ve got some tips
to help you. In this section you will find advice on planning, preparing, conducting
and evaluating your training session to further improve your skills as football coach.

Be organised – plan > prepare . conduct > Evaluate

i.Plan – define your football coaching plan not for just the next football coaching
session but for the coming weeks. Your plan should include what it is you want to
achieve by the end of the period. This will help you make your session progressive
from week to week by building on the knowledge and experienves your players have
gained over time.

When planning your football coaching sessions, try and keep them fun and involve
all of the players all of the time, preferably in small groups so they get plenty of
touches.

Make the content of each football training drill progressive, for example in the first 10
minutes you might work on a particular football technique. Typically, this would be
unopposed to allow the players to master the technique. In the second phase you
might want to progress the football drill to create a game like situation with conditions
that make the drill progressively more difficult. Lastly, a small sided match where
players can employ what they’ve learnt in a game environment.

ii.Prepare – Research your football training sessions and put together a drill that fits
in to your football coaching plan. The plan for your football drill should include:

 Key objectives of the drill, ie what do you want to achieve by the end of the
session ?
 Football equipment requirements
 Action plan from last session
 Warm up activities
 Set up instructions
 Technical football information / football coaching tips
 Cool down activities

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With your football coaching plan memorised, you should aim to arrive for the football
training session well in advance, your jobs may include :

 Running through the football training session with your assistants

 Putting up the goals
 Marketing out the football training area with cones
 Pumping the balls up
 Splitting the bibs
 Checking over the playing surface for dangerous objects
 Distributing balls around the football training area

iii.Conduct – Now you have planned and prepared your football coaching session
it’s time to start your football drill. Let your players know what you will be working on
in the football training session and what is expected of them.

When talking to your players, make sure their backs are to the sun and they are
looking away from any distractions. Deliver your instructions and commands in a
short, precise way and involve players in your demonstrations. Once the players
understand the drill, get them started and take yourself out of the football training
area observe the behaviour and attitude of the players.

Be adaptable in your approach.If the football drill is not working, don’t hesitate to
change it for the better. This could include making the drill harder or easier to suit
your player’s needs by adding. Switching or removing players or increasing /
decreasing the size of the football training area. Use your football coaching
knowledge and imagination to adapt the drill to suit your team’s specific needs. You
time with your players is limited so use it effectively.

iv.Evaluate – Evaluating your football coaching session will help you improve on
areas of personal weakness and form part of your action points for the next football
training session. This is a vital process if you want to improve as a coach in football.
For example, were the key objectives met, was the organisation of the football
training session good, did players understand your instructions clearly and easily.
Also, use those around you for feedback – how did they think the football training
sessions went ?

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Your guide to football training

As a football coach your football training sessions will be one of the most important
times of the week. Football training is where you get your players ready for your next
game and where you help mould them in to better players. You will normally only get
one football training sessions a week which lasts for one hour so you have to make
the most of it.

Football training is also a time where you have to get important information over to
your players like details for the next game, where you are going to meet and what
time you are going to meet, that’s if you’re not using the canyouplayfootball.com
personal football organiser.

If the weather is good, football training in the summer is a good test as the players
will also have the heat to deal with during pre-season training which will help them
get fit and lose any extra pounds as they sweat through pre-season fitness regimes.
It will get colder as autumn draws in and in the few weeks before you switch over to
Astroturf you will also have to deal with fading light which will get even earlier each
week leaving you with little football training time or having to train in the dark.

When planning always have short term and long term goals. Each football training
session needs to be used to get ready for the next game but you also need to
develop your players towards a long term goal of the level you want them to be it.
Each football training exercise you do should be geared towards achieving those
goals. You need to be prepared to adapt throughout the season when you notice
things your team needs to work on the team as a whole be sure to look at every
player individually as each player will have different needs and different things they
need to improve on. As well as having football drills for the whole team you need to
also design individual football training exercises for different players or different sets
of positions as there are things the goalkeeper needs to learn which the midfield
don’t and so on.

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Understanding Customer Buying Behaviour

Value Proposition

You have indentified your customer. Now you must answer the question: What
influences your customer? Why does a customer select a particular product ? how
can you predict which product the customer will buy?

Customer attitudes, uintentions,needs,emotions,self-image,moods,and values all

exert major influences on their choice of product, they go through certain stages
before making a decision. First, there a recognition of need. What occurs to initiate a
need? When does a customer say, “I want something”?, second there is an
information search. Where does the customer look for information?, third is the
evaluation of alternatives. In evaluating different choices,which criteria do your
customers use?, the fourth stage is the actual choice.What determines the selection
among the alternatives?

Finally, there are the feelings the customer has after the purchase is made.”Did I
make the right decision?” at each stage,several factors affect the customer’s choice.
You need to identify which are the most important and exert the greatest influence
on the customer’s choice.

The Evidence of Service

Because service are intangible, customer are searching for evidence of service in
every interaction they have with an organization.Depicts the three major categories
of evidence as experienced by the customer:people,process,and physical evidence.
These categories together represent the service and provide the evidence that
makes the offering tangible. Note the parallels between the elements of evidence of
service and the new marketing mix elements presented.

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Product and service features

Customer satisfaction with a product or service is influenced significantly by the

customer’s evaluation of product or service features, for a service such as a football
coaching, important features might include the fields area,access to spaces
facilities,restaurants,room comfort and privacy,helpfulness and courtesy of staff. In
conducting satisfaction studies, most firms will determine through some means what
the important features and attributes are for their service and then measure
perceptions of those features as well as overall sevice satisfaction.Research has
shown that customers of services will make trade-offs among different service
features depending on the type of service being evaluated and the criticality of the
service.

What is customer satisfaction ?

In addition to a sense of fulfilment in the knowledge that one’s needs have been
met, satisfaction can also be related to other types of feelings,depending on the
particular context or type of service.For example, satisfaction can be viewed as
contentment more of passive response that consumers may associate with services
they do not think a lot about or services that they receive routinely over time.
Satisfaction may also be associated with feelings of pleasure for services that make
the consumer feel good or are associated with a sense of happiness. For those
services that really surprise that consumer in a positive way,satisfaction may mean
delight. In some situations, where the removal of negative leads to satisfaction, the
consumer may associate a sense of relief with satisfaction. Finally, satisfaction may
be associated wuth feelings of ambivalence when there is a mix of positive and
negative experience associated with the product or service.

Although consumer satisfaction tends to be measured at a particular point in time

as if it were static,satisfaction is a dynamic,moving target that may evolve over time,
influenced by a variety of factors.Particularly when the service experience takes
place over time,satisfaction may be highly variable,depending on which point in the
usage or experience cycle one is focusing on.

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Revenue model

Price as an Indicator of Service Quality

One of the intriguing aspects of pricing is that buyers are likely to use price as an
indicator of both service costs and service quality, price is at once an attraction
variable and a repellent. Customers use of price as an indicator of quality depends
on several factors, one of which is the other information available to them. When
service cues to quality are readily accessible, when brand names provide evidence
of a company’s reputation, or when the level of advertising communicates the
company’s belief in the brand, customers may prefer to use those cues instead of
price. In other situation, however, such as when quality is hard to detect or when
quality or price varies a great deal within a class of services, consumers may believe
to that price is the best indicator of quality. Many of these conditions typify situation
that face consumer when purchasing services. Another factor that increases the
dependence on price as a quality indicator is the risk associated with the service
purchase. In high-risk situations, many of which involve credence service such as
medical treatment or management consulting, the customer will look to price as a
surrogate for quality.

Because customers depend on price as a cue to quality and because price sets
expectations of quality, service prices must be determined carefully. In addition to
being chosen to cover costs or match competitors, prices must be selected to
convey the appropriate quality signal. Pricing too low can lead to inaccurate
inferences about the quality of the service. Pricing too high can set expectations that
may be difficult to match in service delivery.

Time Costs

Most services require direct participation of the consumer and this consumer real
time: time waiting as well as time when the customer interacts with the service
provider. Consider the investment you make to training,see match, not only are you
paying money to receive these service coaching,but you are also expending time.
Time becomes a sacrifice made to receive service in multiple ways. First because
service providers cannot completely control the number of customers.

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The Role of Nonmonetary Costs

Economists have long recognized that monetary price is not only sacrifice
consumers make to obtain services. Demand, therefore, is not just a function of
monetary price but is influenced by other costs as well. Nonmonetary costs
represent other sources of sacrifice perceived by consumers when buying and using
a service. Time costs,search costs, and psychological costs often enter into the
evaluation of whether to buy or rebuy a service and may at times be more important
concerns than monetary price. Customers will trade money for these other costs.

Market Opportunity

a. Intergrating Goals and Objectives

To march forward into the future, we must set objectives that mesh with the goals
we want to achieve. For example, a promotion goal of increasing the market’s
awareness of the product’s image must be integrated with promotion objectives that
specify developing an effective brochure or flyer by the end of the year and selling
ten percent more services within six months.

Our task now is to integrate the marketing goal we want to achieve next year with
the how much,what, and when required to achieve it. Use the worksheets in the
appendixes to record the objectives that will lead us to our marketing goals.

b. Planning For Specific Strategy

Using our company’s strengths to take advantage of the opportunities in the

marketspace is good straregy is concerned with where a company should be headed
in the future and the major moves to be taken to ensure its success. There are many
opproaches strength to help evaluate opportunities.

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 Market attractiveness is the appeal of the product to potential customers. How big
is the market? Is it growing? What image does the product convey? Is the market
changing its values and attitudes toward the product? How would a change in
technology affect the product of services.

Business strength is our company’s position within the market. What is our market
share? Do we charge more,less,or a similar price to that of our competition? Are
customer perceptions easily influenced by a change in price? What level of service
do we provide? How does it compare and how important is service to product sales?
Are we in a position to react quickly and effectively to competitiors’ challenges? How
well do we really know our customer? Is high turnover a problem with our sales
assistance?

To determine where market opportunities exist, evaluate each services separately

for its market attractiveness and business strength as either strong, medium, or
weak. When there are many strong factors in both categories, then there are many
opportunities in the market-space for the service.

c. Evaluating Alternatives

Once we have selected a market to serve, we must then decide if we will serve
one segment of the market or a combination of segments. Market segmentation
recognizes that, within a market, there are differences among potential customers. In
segmenting, we divide the market into homogeneous submarket and tailor our
marketing mix to appeal only to that segment. The strategy is to offer a unique
appeal and to establish our company as distinct from its competitors.

In appealing to a combination of segments, we can build up the size of our target

market. A combination offers a marketing mix with general appeal rather than having
product different marketing mix for each segment. The strategy is not to satisfy
everyone but to satisfy enough people to make a profit. Combination works best
where there is little product differentiation. Lightbulbs, for example, are perceived as
virtually the same no matter what the brand name.

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Competitive Enviroment

a.Type of Competition

From an economist’s point of view, there are five different types of competition.
Defending on the type of product that provided, must consider more than whether
another company offers a similar product and service to the same type of costumer.

a. (i). Monoploy (one firm)

A pure monopoly is only one firm providing a product or service. In many
countries, the postal service or utility companies represent a typical monopoly.
With little or no competition,such firms may charge a high price with little
advertising and a minimum amount of service. In most countries,monoplies
are regulated.
Competition in monopolies is concerned with maintaining the public interest
and maintaining a reliable service at a reasonable price,this prevents negative
public reactions that could lead to political interference or deregulation.
A partial monopoly exists when a firm gains an advantage through a patent,
license, or economy of scale. For example, sales of suntan lotion have
increased due to concern about harmful radiation. As a result of the high
demand for safe suntan lotion, the company that makes the patented
chemical Parsol 1789 has been able to secure a price advantage because
their products block ultraviolet “A” and ultraviolet “B” rays, which are said to
contribute to premature aging and skin cancer. In such a situation, the first
company to come out with the product or service gains a competitive
advantage.
b. (ii). Competition-Based pricing
The competition – based pricing approach focuses on the prices charged by
other, firms in the same industry or market. Competition-based pricing does
not always imply charging the identical rate others charge but rather using
others’ prices as an anchor for the firm’s price. The approach is used
predominantly in two situations (1) when service are standard across
provides, such as in the dry cleaning industry,and (2) in oligopolies with a few
large service providers,such as in the airline or rental car industry.

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Competitive Advantage
Special Challenges in Competition-Based Pricing for Services
Competition-based pricing, commonly practiced in good firms, can be
difficult for service firms. Small firms may find it difficult to charge tha same
prices that larger service firms charge and make margins high enough to
remain in business. Many mom-and-pop service establishments dry
cleaning,retail, and tax accounting, among others cannot deliver services at
the low prices charged by chain operations.
Further, the heterogeneity of services across and within providers makes
this approach complicated. As an example, banks offer many different types
of accounts and services that differ from each other. To try to determine how
a competitive bank prices for individual accounts and may differ in features
and costs and whether those prices give sufficient margins and profits can be
difficult. Only in very standardized services that a bank provides, such at ATM
surcharges, can banks benefit from competitive prices. In 2007, Bank of
America made headline by raising ATM withdrawal charges for noncustomers
to $3 per withdrawal. Other banks like Citi, Chase, Wachovia and Wells Fargo
did not immediately match the increase, but did comment that they review
what their competitors do in setting prices.

Examples of Competition-Based Pricing in Services Industries

Prices signalling occurs in marks with a high concentration of sellers. In
type of market, any price offered by one company will be matched by
competitors to avoid giving a low-cost seller a distinct advantage. The airline
industry exemplifies price signalling in services. When any competitor drops
the price of routes, others match the lowered price almost immediately.
Going-rate pricing involves charging the most prevalent price in the
marketspace. Rental car pricing is an illustration of this technique (and also an
illustration of price signalling, because the rental car market is dominated by a
small number of large companies). For years the prices set by one company
(Hertz) have been followed by the other companies. When Hertz instituted a
new pricing plan that involved “no mileage charges, ever” other rental car
companies imitated the policy.

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Marketing in the business system-customer acquisition and retention

Traditionally, competition for customers is defined as arising from other firms in

the industry, which make products or provide services similar to those of the
company. This industry perspective is irrelevant when the company’s focus is on
solving customer problems. Customers are interested in what they buy, not whether
the buyer belongs to a particular industry. Competitors should be identified,
therefore, from the customer’s viewpoint. In this view of the business system, banks
and software companies, though from separate traditional industries, could be
competitors in supplying customers with added-value products and services like e-
money and smart cards. Similarly, banks and insurance economics viewpoint,neither
would consider the other as competitors. Increasing industry convergence and the
breakdown of traditional industry boundaries mean that the traditional view of
competition is becoming less relevant (Hamel and Prahalad 1994,p.45)

A similar situation arises on the supply side; firms compete with the company in
attracting the resources of suppliers. Competition for suppliers frequently crosses
traditional industry and international boundaries. Listening to and working with
suppliers are just as important as listening to customers (Brandenburger and
Nalebuff 1996). Many companies now recognize the importance of working with
suppliers, acknowledging that they are equal partners in the creation of value within
the business system. In this view of business system, supplier relations are just as
important as customer relations. Both share the common goal of increasing wealth.
Both create value and provide access to markets,technology and information. In the
traditional view of thebusiness system company serves customers and depends on
suppliers for essential raw materials and other inputs.

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Market Strategy

(a).Advertising

Advertising can encourage immediate buying action and generate traffic for retail
purchase by attracting new dealers,distributors, and customers. It delivers useful
information to customers,encourages them to try out a new product, and provides
with an ongoing contact thet may serve to maintain interest sfter sales bu confirming
customers’ purchase decisions. It promotes new uses and features of
product,creates a company personality, and encourages product loyalty. Advertising
can also complement salespeople”s objectives and presentations and may even help
open doors for them.

(b).Product differentiation strategies

In contrast the organization that bases its competitive strategy on differentiation

attempts to offer products and services which are unique or superior to those of
competitors. Product differentiation is a business strategy whereby organizations
attempt to gain competitive advantage by increasing the perceived value of their
products relative to those of rival companies or provides of substitutes. BMW, for
example attempts to differentate its car from Nissan’s cars through sophisticated
engineering and performance. McDonald's attempts to differentiate its food service
from the fast food sold by locally owned, single-outlet fast-food stores by selling the
same food, at the same quality, at the same prices and in the same way in all of its
outlets throughtout the world.

Differentiation is a strategy favourd during the emergence of a product life cycle

when innovation attracts customers whose present value oh having new products
and services outweights the cost of waiting. Differentiation also works in mature
markets as market growth may be rejuvenated when new technology replaces old
technology in well-known standardized products.

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(c).Media Selection

Which media are used by target audience,

newspaper,television,radio,magazine,intrenet,email,or direct mail ? What are the
advantages and disadvantages of each medium ? What type of media mix is
appropriate for the product ?

This need to answer these question as you explore the possibilities for advertising
the product. For example, you own a convenience store, most of your customers
come from your immediate neighbourhood, so the best medium could be the
community newspaper. If you are selling heavy machinery to a contractor, you may
want to use magazine ads or direct mail.

Futther, to make s strong impression, you must have the right balance between
reach and frequency. Reach is the total number of individuals exposed to your
message. Frequency is the number of times each person is exposed to your
message. If you have a small target market, frequency is more important than reach.
Talevision is a very expensive means of advertising, but has a high reach, while
radio is less expensive and has a high frequency. What counts is the cost-per-
thousand to the right audience rather than the total cost.

(d). Internet Strategy

The explovise growth of internet initiatives has resulted in a variety of Web

strategies which may impact the business and marketing strategies of existing firms,
and lead to the formation of new business designs. Its consider the reason why the
Internet is a major force for change, and discuss alternative internet strategies for
existing companies and new business venture.

Major Force for Change

The Internet era provides a new way of developing relationships between end
user customers, value-chain members, and alliance partners. The Web offers a
compelling opportunity to enhance one-on-one relationship. These impressive
knowledge systems enable organizations to link pricing,product,drsign and
promotion information with suppliers and customers.

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 Various strategic initiatives are altering the basic processes underlying business
transactions. The reverse auction is illuswtrative. The reverse designation is because
prices are being bid downward rather than upward. Suppliers of business-to-
business companies have the opportunity via the Internet to offer competing bids to
the customer. At the end of the process the low bid obtains the sale. Other Web-
based initiatives are impacting buying processes. The effects can be dramatic. Major
corporate buyers like Boeing and Motorola have warned that suppliers not making
the transition to Web-Based commerce may find themselves locked out of their
businesses. The Covisint online exchange , formed by General Motors, Daimler-
Chrysler, and Ford and now including other auto manufacturers, already links tens of
thousand of suppliers to these major customers,and is seen as a prototype for other
“industry-led” online exchanges.

It is apparent that the Internet has a pervasive potential for change that is likely to
impact a wide range of products and businesses. The challenge for existing
businesses is how to capture the advantages of the internet without damaging
important existing relationships. Avon Products Corp.’s challenges in sustaining its
direct sales model while pursuing an Internet strategy are illustrative. In 2000, after
115 years of selling to the consumer at home. Avon changed its strategy and took its
products into department stores and shopping malls for the first time.

(e) Channel Choice

Choosing the proper distribution depends on the type of selling performed by the
sales force, the type of customers called on, operating issues, type of product or
service sold, areas requiring control, and capital/costs.Review these each year to
see what has changed and if these changes require an adjustment in your choice of
distribution channels. Many of these issues are interrelated and repetitive.

Certain types of selling lend themselves to company direct sales people, others to
an indirect sales organization or a channel partner. Long sales cycles with a great
deal of consultative selling to first-time or one-time systems buyers lend themselves
to a direct sales organization. Most sales managers choose hybrid sales
organizations by deaggregating the demand generation tasks. For example, lead
generation might be most efficiently performed by an outside direct-mail house or a
Website, and qualifying these leads might lend itself to an independent telesales

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organization. However, once you indentify qualified leads,those with major potential
require a visit from a direct company salesperson,while those with less potential can
be seen by an indirect channel partner salesperson.

Customer needs and channel function requirements must be analyzed to

determine the proper channel choice. This could vary by market segment, which
means you may use a company direct sales force for original equipment
manufacturers and stocking distributors for the replacement market. A situation
where customers require one-stop shopping for a basket of products/services when
you only provide a few products/services, or small lot sizes when you only provide
large sizes calls for choosing a channel partner who better meets the customers
requirements. Similarly, customers may insist on certain after-sale services,such as
engineering,warranty,logistics or transportation,which can be more efficiently
provided by a channel partner.

Organizational Development

a). Organization

Need a well-organized, focused selling program to accomplish the marketing

objectives, not just a verbal presentation by the sales force, everyone involved in the
business participates in the selling program. How the staff communicates, their
personal appearance, the office atmosphere, and the reception area, fo example, are
all critical to the marketing and selling planning.

b). Office location

The outlet should be located where it is convenient to the customer. If dealing

with businesspeople, they are comfortable in the downtown area. If cater to middle-
class families, a suburban location is best. The location should be consistent with the
customer’s self-image.

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c). Reception

All the staff should be presentable, whether they deal up front with accounts or
are involved behind the scenes. They should be able to speak in a pleasant and
capable manner. Service or referral should be prompt. Avoid connecting customers
to the wrong extension or putting them on hold.

d). Layout and decor

Interior design and decor conveys cues to the customers. Using the appropriate
furniture and style, and complement or cater to customers’ self-concepts. Details
such as plants, lighting, color, seating, and spatial arrangements all need to be
integrated to convey an image consistent with the company goals.

e). Dress code

A few seconds after meeting with employees, potential customers confidently

from judgments about the business, Although first impressions can be wrong, they
often persist even in the face of contrary evidence. Clothing is an important source of
information during this process. Generally speaking, wear clean, quality clothing that
fits properly. When in doubt, make the conservative choice.

f). Expert opnions

Its can gather valuable information about the product by speaking with various
professionals. For example, suppose just invented a new exercise hand weight.
Then ask aerobics instructors, sports medicine doctors, physiotherapists, athletes,
bodybuilders, and athletic trainers for their opnions on the product’s usefulness,
appearance, desirability and design.

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g). Questionnaires

A questionnaire provides a standardized format for asking questions and makes

analyzing the results easier. Multiple choice or yes/no questionnaires are well-suited
to gathering information on desired product features, media effectiveness (tracking),
sales promotion effectiveness, preferred services, and favoured distribution systems.

Before preparing a questionnaire, consult a book on questionnaire design: there

are many dos and don’ts. Choice of words, the type and sequence of questions and
the available answers all influence the quality of the research. The questionnaire
should be simple and ask only pertinent questions.

Equally important is the sample size and choice. The sample design determines
how many people are interviewed, who is interviewed, and how they are selected.
Results from a poor sample are not going to help you. The questionnaire can either
be used by an interviewer at a shopping mall, on a street corner, or in your store, or
it can be mailed to a select group of people. Sometimes its may have to provide
incentives such coupons, free samples, or gift certicates to entice people to respond
to the questionnaire.

h. Network Organizational structures

There are a wide variety of contemporary organizational structures. Many of them

do not have common labels or names. This is in part because many of thme have
their essence not in organizational charts but in the configuration of organizational
units and activities, consequently, one logical way of addressing these forms is by
utilizing a concept you were introduced to in the previous chapter that is, the value
chain. Much of what managers are doing in contemporary structures is reconfiguring
the firm’s value chain in an effort to gain cost savings and specialization benefits,
and improve integration and coordination.

While it might be slightly oversimplified, often these contemporary structures are

referred to as network structures. However, even if we adopt this term, it is too
genetic to reflect the variety of structures. At a minimum we should not think of one
generic network structure. Rather, we should think of a “Low Networked” to “High

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Networked continuum. At the low “networked” end would be structures in which the
quantity and magnitude of externally networked activities is limited. That is, a firm
would own and execute most of its primary and support value chain activities and
network with outside organizations for only a limited number of more minor value
chain activities. At the high “networked” end of the spectrum would be structures in
which the quantity and magnitude of externally networked activities is nearly
unlimited.

Management team

Managerial Qualities

Pedler et al (1986) suggest, on the basis of their extensive research, that there
are 11 qualities or attributes that are possessed by successful managers:

1. Command of basic facts

2. Relevant professional knowledge
3. Continuing sensitivity to events
4. Analytical,problem-solving and decision/judgement-making skills
5. Social skills and abilities
6. Emotional resilience
7. Proactivity
8. Creativity
9. Mental agility
10. Balanced learning habits and skills
11. Self-knowledge

Studies carried out on the qualities displayed by successful top managers as quated
by Rosemary Stewart (1967) show a number of common characteristics,such as:

Willingness to work hard

Perseverance and determination
Willingness to take risks
Ability to inspire enthusiasm
Toughness

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Managerial Effectiveness

As a manager and a leader you will be judged on not only the results you have
achieved but the level of competence you have attained and applied in getting those
results. Competence is about knowledge and skills-what people need to know and
be able to do to carry out their work well.

Also be judged on how you do your work-how you behave in using your
knowledgw and skills. These are often defined as ‘behavioural competences’ and
can be defined as those aspects of management behaviour that lead to effective
performance. They refer to the personal characteristics that people bring to their
work roles in such areas as leadership, team working,flexibility and communication.

Many organizations have developed competency frameworks which define what

they believe to be the key competencies required for success. Such frameworks are
used to inform decisions on selection,management development and promotion.
Importantly, they can provide the headings under which the performance of
managers and other staff is assessed. Managers who want to get on need to know
what the framework is, and the types of behaviour expected of them in each of the
areas it covers.

Management Style

In today’s environment, you need both a mix of leadership and effective

management style. Leadership seeks opportunities, management solves problems. If
leadership is to provide the map,then management must do the driving. Leaders
favors innovative solutions to problems and take risks. Leaders work well in flat,
organic organizations that encourage individual participation. Manager favour control
and proven means to problem solving and decision making. The manager’s rational
approach favors traditional that encourage uniform and reliable work.

Most people have both leadership and managerial capabilities. To have either is
neither good nor bad: both are a means to improved performance. In any
organization, some individuals have a higher number of leadership characteristics,
while others do better with managerial skills. This gives rise to the variety of
management styles within an organization. The best management style is one that
capitalizes on market needs.

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The Distinction Between Management And Leadership

Manager have to be leaders and leaders are often, but not always, managers. But
a distinction can made between the processes of management and leadership.
Management is concerned with achieving results by effectively
obtaining,deploying,utilizing and controlling all the resources required, namely
people, money, information, facilities, plant and equipment. Leadership focuses on
the most important resource, people. It is the process of developing and
communicating a vision for the future, motivating people and gaining their
commitment and engagement.

The distinction is important. Management is mainly about the

provision,deployment,utilization and control of resources. But where people are
involved and they almost always are , it is impossible to deliver results without
providing effective leadership. It is not enough to be good manager of resources, you
also have to be a good leader of people.

Managing Duality

Management needs to provide organizational structure and resources, and at the

same time give employees the flexibility that promotes creative solutions. Structure
needs to provide direction without preventing individuality. People want to do their
own thing and still be part of something bigger. Managing is the ability to balance
that duality.

Employees are no longer willing to salute.Most employees want a voice in their

job and to feel they are contributing to a company’s ability to operate. Every day your
employees come into contact with customers to solve their problems. A company
that listens to its employees and acts on their suggestions gains a competitive edge
and enhances employee morale and motivation.

Where does your company stand on management and leadership? The questions
on the following pages can help you analyze your needs.

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Summary

The stage for further learning about services marketing by presenting information on
changes in the world economy and business practice that have driven the focus on
service: the fact that services dominate the modern economies of the world; the
focus on service as a competitive business imperative;specific needs of the
deregulated and professional service industries; the role of new service concepts
growing from technological advances; and the realization that the characteristics of
services results in unique challenges and opportunities. The chapter presented a
broad definition of services as deeds, processes , and performances, and it drew
distinctions among pure services, value-added services, customers service, and
derived service.

Conclusion

Buildings on this fundamental understanding of the service economy. The key

characteristics of services that underlie the need for distinct strategies and concepts
for managing service businesses. These basic characteristics are that services are
intangible,heterogeneous,produced and consumed simultaneously, and perishable.
Because of these characteristics, service managers face a number of challenges in
marketing,including the complex problem of how to deliver quality services
consistently. These ended by describing two themes that provide the foundation for
future. The expanded marketing mix for services; and customer focus as a unifying
theme. The remainder of the text focuses on exploring the unique opportunities and
challenges faced by organizations that sell and deliver services and on developing
solutions that will help you become an effective champion and manager.

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