Service Marketing

1
Service Marketing

• Class 2
• Managing Service Encounters

2
Chapters 2 3

• Managing Service Encounters

3
Selected Ways of Classifying Services

• Degree of tangibility of service processes
• Who or what is the direct recipient of the
  service process
• The place and time of service delivery
• Customization versus standardization
• Nature of the relationship with customers
• Extent to which demand and supply are in balance
• Extent to which facilities, equipment and people
  are part of the service experience

4
Understanding the Service Act-- Four Types of
Service Processes
5
Implications of Different Service Processes

• Identifying Service Benefits
• Design of Service Factory
• Alternative Channels of Service Delivery
• Information Technology
• Balancing Supply and Demand
• People as a Part of Service Production

6
High-Contact and Low-Contact Services

• High Contact Services
• Customers visit service facility and remain
  throughout service delivery
• Active contact between customers and service
  personnel
• Includes most people-processing services
• Low Contact Services
• Little or no physical contact with service
  personnel
• Contact usually at arms length through
  electronic or physical distribution channels
• New technologies (e.g. Web) help reduce contact
  levels

7
Levels of Customer Contact with Service
Organizations
Emphasizes encounters with service personnel
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Emphasizes encounters with equipment
8
Three Overlapping Subsystems within the Service
System

• Service Operations (front stage and backstage)
• Where inputs are processed and service elements
  created.
• Includes facilities, equipment, and personnel
• Service Delivery (front stage)
• Where final assembly of service elements takes
  place and service is delivered to customers
• Includes customer interactions with operations
  and other customers
• Service Marketing (front stage)
• Includes service delivery (as above) and all
  other contacts between service firm and customers

9
Service Marketing System - High Contact Service
(e.g., Hotel)
Service Delivery System
Other Contact Points
Service Operations System
Backstage
Front Stage
(invisible)
(visible)
10
Service Marketing System -Low Contact Service
(e.g., Credit Card)
Service Operations
System
Other Contact Points
Service Delivery System
Advertising
Mail
Market Research
Surveys
The
Technical
Self Service
Customer
Core
Random Exposures
Equipment
Facilities, Personnel
Phone, Fax,
Word of Mouth
Web site etc.
Front Stage
Backstage
(visible)
(invisible)
11
Service as Theater

• All the worlds a stage and all the men and
  women merely players. They have their exits and
  their entrances and each man in his time plays
  many parts
• William Shakespeare
• As You Like It

12
Service Delivery as a Theatre Performance

• In high-contact environments, service delivery
  consists of a performance--may be quite
  theatrical
• Service dramas unfold on a stage--settings may
  change as performance unfolds
• Many service dramas are tightly scripted
• Front stage personnel are like members of a cast
• Like actors, employees may wear special costumes,
  speak required lines, behave in specific ways
• Support comes from a backstage production team