Professional Documents
Culture Documents
Service Marketing Unit 4
Service Marketing Unit 4
Job Characteristics
Skill variety Task identity Task significance Autonomy Feedback Empathy
Customers
Firm
Personnel
Increasing Control
For the firm For the customer
Types of Conflict
Employee-Organization Conflict
Two-boss dilemma
1. Instruct employees in policies and goals of firm. 2. Empower employees. 3. Support employees decisions.
Employee-Employee Conflict
1. Lack of clear communication. 2. Lack of chain-of-command. 3. Conflict of personalities. 4. Competition for customers. 5. Difference in perceived work loads.
1. Determine cause of conflict. 2. Gather information. 3. Explore solutions. 4. Involve each person in a resolution plan. 5. Follow-up.
Customers Conflicts
Customer-Customer Customer-Role Customer-Organization Customer-Employee
1. Provide instruction. 2. Analyze policies. 3. Negotiate. 4. Instruct in roles. 5. Educate new customers. 6. Teach people skills to employees.
Jim Collins
Preliminary stage Identification of vacancy Develop job profile Consider internal sources Consider using specialist recruitment agency Advertise - internally and externally Process applications Screen applications for shortlist
Selection stage Arranging interviews; venue, timing, date Determine process for selection; formal/informal interviews use of preselection test, presentations Conducting interviews Testing Offer / Acceptance Formal appointment Follow-up stage Induction Training Ongoing staff development and appraisal
Customer participation in the process Location of service delivery The service itself High-contact or low-contact services Degree of standardization Complexity of the service
Spectrum of Service Processes - The Service Process Matrix Degree of interaction and Customization Low High
Service Factory Airlines Low Transportation Hotels Resorts and recreation Mass Service Retailing Wholesaling High Schools Retail aspects of commercial banking
Service Transactions
There are 3 types of interactions between customers and service firms
Customer goes to the service provider (or intermediary) Service provider goes to the customer Interaction at arms length (via the Internet, telephone, fax, mail, etc.)
Channel Options
Service Location
Proximity Image Parking facility
Convenience
Accessibility to other services
Competitive advantage
Often intermediaries provide wider choice of services including that of the competitors. They offer advice to the customers and guide them to choose the service that matches their need. E.g. Tour operators and financial service agents.
Intermediaries provide after sales support to the customers making the service more accessible. E.g. An insurance agent who gives advice about making a claim and handles much of the paper work involved in making the claim.
ICICI Prudential Life Insurance has discovered an innovative way to distribute its products and services to potential customers in Mumbai. The company found that over 2 lakh people employed in offices in Mumbai get their lunch from the Dabbawallahs who have a wide distribution network that is extremely reliable. The company sends around 50,000 direct mailers to officegoers in Mumbai by hanging a mailer to the handles of meal dabbas. The distribution of these mailers is timed perfectly- they are distributed around the end of the financial year when most of the employees are thinking of aving on tax and planning to invest in some financial policies. The first line of the mailer aims to attract the customers. It reads, Yes! I want to save more tax and add to my retirement savings. Interested customers are required to fill in the forms and mail them to the company specifying a time and date convenient for them to interact with the companys agent. Further, the company has also tied up with Dominos Pizza and BPCL loyalty-card holders in some cities to expand its distribution network.
Key Function
Gathering and distributing marketing research about the environment
Matching
Negotiation Physical Financing Risk Taking
SE RV IC E PR O VI D ER
FRANCHISEES
E- CHANNELS
AGENTS
BROKERS
C U S T O M E R S
Direct Distribution
Direct distribution of services takes place when a service provider directly delivers the services to the customer without any intermediaries in the process. Advantages Control Healthy customer relationships Flexibility and confidentiality Disadvantageous Financial risk Lack of knowledge
Franchising
Franchising:
A contractual arrangement where a wholesaler or retailer (the Franchisee) agrees to make some payment and to meet the operating requirements of a manufacturer or other franchiser in exchange for the right to use the firms name and to market its goods or services
Franchising
Franchising is the most often used channel for the distribution of services. It is like the retail selling of services. The franchisers are authorized to distribute services to the end customers, on behalf of the service principal. Agreements and contracts are essential documents in franchising.
Franchising
Advantages
Franchisor
1. Capitol for growth 2. Faster growth 3. Additional management 4. Additional income 1. Lower potential profits 2. Controlling service quality 3. Controlling firm image
Disadvantages
Franchisee
1. Lower risk 2. Established brand name 3. Successful business plan 4. Expert assistance 1. Franchisee fees 2. Lack of freedom 3. Controlled by franchisor
Advantages Low selling and distribution cost Specialized skills and knowledge of the agents and brokers Wider representation in the market Customer choice
Electronic Channels
Service companies that adopt electronic channels for distribution do not require direct interaction with customers.
Advantages
Lower costs Increased customer convenience
Telephone and television have been the original channels of distribution through the electronic media;
New additions to this distribution channel include the Internet, which has come to play a very powerful role.
Disadvantages