Service Marketing

• Session - 3
o The Service Triangle Management Model
o The Service Triangle Marketing Model

• Book- C Bhattacharjee
The Service Triangle management Model

• Need to understand models to understand what changes are

taking place in service industry, what are their implications
and how to manage them.

• Main two Models:

A. The Industrial management model
B. The Market-Focused Management model
A. The Industrial Management Model

This model believes in generating revenue and reducing

cost just as manufacturing process or manufacturing
company. Ignores the importance of individuals (Internal
customers) and their work satisfaction.

o Only top management takes decisions and front liners just follow.
o More emphasis on processes, advertisements, sales promotions
etc..
o Even options of cost cutting are used to reduce cost

o Examples: - Banks and insurance company like service industries

- Call centers

 In Short run works but in longer run can create problems if not
B. The Market -Focused Management Model

Focuses more on the internal customer (Frontline

employees). More emphasis on people development,
supporting them, making them grow and moral support

o Believes employees are most important tool and main

differentiator
o Service triangle to understand the relationship amongst 3
groups of the service organisation
 The Service
Strategy

The Customer

The Systems The People

Customer is at the center
6 Relations to be understood
(3) Consistence in strategy and Plan to run routine operations
and to ensure achievement of goal:

Strategy should be made after considering all possible issues

and problems. Once they are done then there should be
consistency n their implementations to give best of services
and avoid day to day operation problems. Repetition of work
or conflicts.

 Example:- Dominos area of free home delivery, time for delivery,

packages, their charges and options decided once are
followed at all branches. Otherwise repetition of work will
happen.
 Axis Bank door step service charges, types of services,
area of service etc.. are also decided at central office only.

Cont…
(4) Impact of system on customer:-

Employees has to be updated about all the changes and

systems related to their work for better and lasting service
experience to customer.

 Example:- What if Dominos staff not aware about new offers

advertised on TV?
 What if Axis bank staff not aware about new interest
rates or services?

 This will result into bad service experience.

Cont…
(5) Importance of System and employee efforts:-

System should help employee in his work and not hinder

him in services.
 Example:- Budget of Training is set by A/c department which
doesn’t know issues related to training. Rather training
department should be made responsible for productivity
and total cost efficiency of their department.

(6) The interaction between the customer and service provider:-

The Moment of Truth (MOT). Company can boast about its

products and services but real difference will be made by
how employees deliver those services.
 Example:- Petrol pumps services
 Company

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Provider Customer
Interactive Marketing
Keeping Promises
The Service Triangle Marketing Model
• Here we will see how service marketing is done. It is all
about “Promises”. In all industries whether product,
manufacturing or services promises are done but specially
in case of services as there is no tangible goods promises
play major role.

• There are 3 entities involved in this process:

1) The Company:
They Manufacture services. They dream about it. Company
conveys the services and their promises to customer to attain their
business goals.
Eg:- - Archies or Fillings gifting services. They make a service and
conveys the same to customer
- Axis Bank, ICICI Bank etc..
2) The customer:
Customer has it’s own desires and goal to attain. They use the
services to fulfill their desires and wants.

Eg:- - People go to Multiplexes to have entertainment

- User of E-banking for hassle free banking experience

3) The Provider:
Provider are internal staff, brokers, agents, distributors, etc.. All
the parties involved in providing services.
Very important link between company and customer.

Eg:- - Movie distributors

- LIC agents
- Balleza saloons
The Service Triangle Marketing Model
• Among these 3 entities 3 types of marketing/
communication takes place.

1) External Marketing:
This is between Company and customer.
Company conveys promises and services to customers. Uses
media, advertisements, corporate communications etc..

2) Internal Marketing:
This is between Company and Providers.
Company provides information to service providers regarding the
services and promises conveyed to customers. Provides
knowledge, training, place to work, and other required support .
3) Interactive Marketing:
This is between Provider and customer.
Providers actually provide services to customers. They represent the
company. They take instant feedback from customers. They keep
promises.

In majority of the cases today, companies also take feedback

from providers. It helps in improving services.
Company

Ad
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Tra

Agents Customer nts

Selling of policies and
renewals collections