SlideShare a Scribd company logo
1 of 41
Chapter 3: Developing  Service Concepts:  Core and  Supplementary Elements
Overview of Chapter 3 ,[object Object],[object Object],[object Object],[object Object]
Planning and Creating Services
Planning and Creating Services ,[object Object],[object Object],[object Object],[object Object]
Core Products and  Supplementary Services ,[object Object],[object Object],[object Object],[object Object]
Augmenting the Core Product  ( Fig 3.1) Key Tangible Elements Intangible Elements Marketing Positioning (weighted toward evidence) Figure 3.1 Shostack ’ s Molecular Model: Passenger Airline Service Distribution Price Source: Shostack Pre- & Postflight Service Service Frequency In-flight Service Food & Drink Vehicle Transport
Augmenting the Core Product ,[object Object],[object Object],[object Object]
Designing a Service Concept ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Core and Supplementary Product Design: An Integrated Perspective  (Fig 3.2) Scheduling Nature of Process Service Level Customer  Role Supplementary services offered and delivered Delivery Concept  for Core Product
Documenting Delivery Sequence  Over Time ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Core and Supplementary Services at Luxury Hotel  (Offering Much More than Cheap Motel!) Reservation Valet  Parking Reception Baggage Service Cocktail Bar  Restaurant Entertainment/ Sports/ Exercise Internet Wake-up Call Room Service Business Center Cashier A Bed for the Night in an Elegant Private Room with a Bathroom
What Happens, When, in What Sequence?  Time Dimension in Augmented Product  ( Fig 3.3) Before Visit Reservation internet Parking Get car Check in Porter Use room Meal Pay TV Room service Internet Check out Time Frame of An Overnight Hotel Stay (Real-time service use) USE GUESTROOM OVERNIGHT Internet
Flowcharting Service Delivery  Helps to Clarify Product Elements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Defining Core and Supplementary  Elements of Our Service Product ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Simple Flowchart for Delivery of a People-Processing Service  (Fig 3.4) People Processing  –  Stay at  Motel Park Car Check In Spend Night in Room Breakfast Check Out Breakfast Prepared Maid Makes up Room
Simple Flowchart for Delivery of a  Possession-Processing Service  (Fig 3.4) Possession Processing  –  Repair a DVD Player Travel to Store Technician Examines Player, Diagnoses Problem Leave Store Return, Pick up Player and Pay Technician Repairs Player (Later) Play DVDs at Home
Simple Flowchart for Delivery of Mental  Stimulus-Processing Service  ( Fig 3.4) Mental Stimulus Processing  –  Weather Forecast Turn on TV, Select Channel View Presentation of Weather Forecast TV Weatherperson Prepares Local Forecast Confirm Plans for Picnic Meteorologists Input Data to Models and Creates Forecast from Output Collect Weather Data
Weather Forecasting Is a Service Directed at Customers’ Minds  (Fig 3.5)
Simple Flowchart for Delivery of An  Information-Processing Service  (Fig 3.4) Information Processing  –  Health Insurance Learn about Options Select Plan, Complete Forms Pay Customer Information Entered in Database Printed Policy Documents Arrive Insurance Coverage Begins University and Insurance Company Agree on Terms of Coverage
The Flower of Service  (Fig 3.6) Core Information Consultation Order Taking Hospitality Payment Billing Exceptions Safekeeping Facilitating elements Enhancing elements KEY :
How to Determine What Supplementary Services Should Be Offered ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Flower of Service:  Facilitating Services — Information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Facilitating Services — Order Taking ,[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Facilitating Services — Billing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Facilitating Services — Payment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Enhancing Services — Consultation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Enhancing Services — Hospitality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Enhancing Services — Safekeeping ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
The Flower of Service: Enhancing Services — Exceptions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Core
Managerial Implications ,[object Object],[object Object],[object Object],[object Object],[object Object]
Developing New Services
A Hierarchy of  New Service Categories (1)  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Hierarchy of  New Service Categories (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reengineering Service Processes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Physical Goods as a Source Of New Service Ideas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Creating Services as Substitutes for  Owning and/or Using Goods  (Fig 3.10) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Own a Physical Good Rent Use of a  Physical Good Perform Work Oneself Hire Someone  to Do Work
Caterpillar Promotes Its Service Businesses  (Fig 3.11) Reprinted Courtesy of Caterpillar, Inc.
Achieving Success in Developing New Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Success Factors in  New Service Development ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Summary of Chapter 3:  Developing Service Concepts (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Summary of Chapter 3:  Developing Service Concepts (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

Distribution in services
Distribution in servicesDistribution in services
Distribution in services
Prithvi Ghag
 
Consumer behaviour in services
Consumer behaviour in servicesConsumer behaviour in services
Consumer behaviour in services
Prithvi Ghag
 
Mktg 436 - Chapter 11
Mktg 436 - Chapter 11Mktg 436 - Chapter 11
Mktg 436 - Chapter 11
MktgRmx
 
SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...
SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...
SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...
SQAdvisor
 
Service Marketing
Service MarketingService Marketing
Service Marketing
robinslides
 
Chapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue managementChapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue management
Nardin A
 

What's hot (20)

Mktg 436 - Chapter 9
Mktg 436 - Chapter 9Mktg 436 - Chapter 9
Mktg 436 - Chapter 9
 
Mktg 436 - Chapter 3
Mktg 436 - Chapter 3Mktg 436 - Chapter 3
Mktg 436 - Chapter 3
 
Chapter 8-designing-and-managing-services-processes
Chapter 8-designing-and-managing-services-processesChapter 8-designing-and-managing-services-processes
Chapter 8-designing-and-managing-services-processes
 
Distribution in services
Distribution in servicesDistribution in services
Distribution in services
 
Mktg 436 - Chapter 4
Mktg 436 - Chapter 4Mktg 436 - Chapter 4
Mktg 436 - Chapter 4
 
Sm7 ch03positioning
Sm7 ch03positioningSm7 ch03positioning
Sm7 ch03positioning
 
Services Marketing Chapter 1 Understanding Services Marketing
Services Marketing Chapter 1 Understanding Services MarketingServices Marketing Chapter 1 Understanding Services Marketing
Services Marketing Chapter 1 Understanding Services Marketing
 
Positioning Services in Competitive Markets
Positioning Services in Competitive MarketsPositioning Services in Competitive Markets
Positioning Services in Competitive Markets
 
Consumer behaviour in services
Consumer behaviour in servicesConsumer behaviour in services
Consumer behaviour in services
 
Mktg 436 - Chapter 2
Mktg 436 - Chapter 2Mktg 436 - Chapter 2
Mktg 436 - Chapter 2
 
Mktg 436 - Chapter 11
Mktg 436 - Chapter 11Mktg 436 - Chapter 11
Mktg 436 - Chapter 11
 
Sm7 ch01 introduction
Sm7 ch01 introductionSm7 ch01 introduction
Sm7 ch01 introduction
 
SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...
SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...
SQ Lecture Three : Positioning Services & Developing Service Products (Ch 3 a...
 
Service Marketing
Service MarketingService Marketing
Service Marketing
 
Challenges of Services Marketing
Challenges of Services MarketingChallenges of Services Marketing
Challenges of Services Marketing
 
Mktg 436 - Chapter 6
Mktg 436 - Chapter 6Mktg 436 - Chapter 6
Mktg 436 - Chapter 6
 
Service focus and service encounters
Service focus and service encountersService focus and service encounters
Service focus and service encounters
 
Service Marketing
Service MarketingService Marketing
Service Marketing
 
Chapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue managementChapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue management
 
Sm7 ch02consumerbehavior
Sm7 ch02consumerbehaviorSm7 ch02consumerbehavior
Sm7 ch02consumerbehavior
 

Similar to lovelock-ppt-chapter-03

Developing service concepts
Developing service conceptsDeveloping service concepts
Developing service concepts
Prithvi Ghag
 
the nature of services
the nature of servicesthe nature of services
the nature of services
school
 
intro to service marketing
intro to service marketingintro to service marketing
intro to service marketing
rockinglucky87
 
Lovelock ppt chapter_01
Lovelock ppt chapter_01Lovelock ppt chapter_01
Lovelock ppt chapter_01
wickedkhan
 
PMG TAG BPM_presentation
PMG TAG BPM_presentationPMG TAG BPM_presentation
PMG TAG BPM_presentation
Melanie Brandt
 
Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...
Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...
Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...
waqdev786
 
Intro to services
Intro to servicesIntro to services
Intro to services
nupur.r
 

Similar to lovelock-ppt-chapter-03 (20)

Developing service concepts
Developing service conceptsDeveloping service concepts
Developing service concepts
 
Srm m2-product
Srm m2-productSrm m2-product
Srm m2-product
 
Processes services
Processes servicesProcesses services
Processes services
 
BIS10 Service Delivery
BIS10 Service DeliveryBIS10 Service Delivery
BIS10 Service Delivery
 
How to build the business case for Service Catalog
How to build the business case for Service CatalogHow to build the business case for Service Catalog
How to build the business case for Service Catalog
 
Designing and Managing Service Processes.ppt
Designing and Managing Service Processes.pptDesigning and Managing Service Processes.ppt
Designing and Managing Service Processes.ppt
 
Customer Map Journey in IT Industry.pptx
Customer Map Journey in IT Industry.pptxCustomer Map Journey in IT Industry.pptx
Customer Map Journey in IT Industry.pptx
 
Lovelock01
Lovelock01Lovelock01
Lovelock01
 
the nature of services
the nature of servicesthe nature of services
the nature of services
 
Achieving “services” business process excellence: Metrics-driven best practic...
Achieving “services” business process excellence: Metrics-driven best practic...Achieving “services” business process excellence: Metrics-driven best practic...
Achieving “services” business process excellence: Metrics-driven best practic...
 
intro to service marketing
intro to service marketingintro to service marketing
intro to service marketing
 
Lovelock ppt chapter_01
Lovelock ppt chapter_01Lovelock ppt chapter_01
Lovelock ppt chapter_01
 
PMG TAG BPM_presentation
PMG TAG BPM_presentationPMG TAG BPM_presentation
PMG TAG BPM_presentation
 
The IT Service Definition Journey
The IT Service Definition JourneyThe IT Service Definition Journey
The IT Service Definition Journey
 
6 Sigma
6 Sigma6 Sigma
6 Sigma
 
Sm service product_by_an_mba_iv_
Sm service product_by_an_mba_iv_Sm service product_by_an_mba_iv_
Sm service product_by_an_mba_iv_
 
1 service marketing
1 service marketing1 service marketing
1 service marketing
 
Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...
Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...
Oracle Noventum Complimentary Breakfast: Service et Croissance Profitable Nov...
 
Intro to services
Intro to servicesIntro to services
Intro to services
 
Service marketing
Service marketingService marketing
Service marketing
 

Recently uploaded

Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
lizamodels9
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
dollysharma2066
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Sheetaleventcompany
 
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
dlhescort
 
Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...
Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...
Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...
Anamikakaur10
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
amitlee9823
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
lizamodels9
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
amitlee9823
 

Recently uploaded (20)

Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...
Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...
Call Now ☎️🔝 9332606886🔝 Call Girls ❤ Service In Bhilwara Female Escorts Serv...
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLJAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
 

lovelock-ppt-chapter-03

  • 1. Chapter 3: Developing Service Concepts: Core and Supplementary Elements
  • 2.
  • 4.
  • 5.
  • 6. Augmenting the Core Product ( Fig 3.1) Key Tangible Elements Intangible Elements Marketing Positioning (weighted toward evidence) Figure 3.1 Shostack ’ s Molecular Model: Passenger Airline Service Distribution Price Source: Shostack Pre- & Postflight Service Service Frequency In-flight Service Food & Drink Vehicle Transport
  • 7.
  • 8.
  • 9. Core and Supplementary Product Design: An Integrated Perspective (Fig 3.2) Scheduling Nature of Process Service Level Customer Role Supplementary services offered and delivered Delivery Concept for Core Product
  • 10.
  • 11. Core and Supplementary Services at Luxury Hotel (Offering Much More than Cheap Motel!) Reservation Valet Parking Reception Baggage Service Cocktail Bar Restaurant Entertainment/ Sports/ Exercise Internet Wake-up Call Room Service Business Center Cashier A Bed for the Night in an Elegant Private Room with a Bathroom
  • 12. What Happens, When, in What Sequence? Time Dimension in Augmented Product ( Fig 3.3) Before Visit Reservation internet Parking Get car Check in Porter Use room Meal Pay TV Room service Internet Check out Time Frame of An Overnight Hotel Stay (Real-time service use) USE GUESTROOM OVERNIGHT Internet
  • 13.
  • 14.
  • 15. Simple Flowchart for Delivery of a People-Processing Service (Fig 3.4) People Processing – Stay at Motel Park Car Check In Spend Night in Room Breakfast Check Out Breakfast Prepared Maid Makes up Room
  • 16. Simple Flowchart for Delivery of a Possession-Processing Service (Fig 3.4) Possession Processing – Repair a DVD Player Travel to Store Technician Examines Player, Diagnoses Problem Leave Store Return, Pick up Player and Pay Technician Repairs Player (Later) Play DVDs at Home
  • 17. Simple Flowchart for Delivery of Mental Stimulus-Processing Service ( Fig 3.4) Mental Stimulus Processing – Weather Forecast Turn on TV, Select Channel View Presentation of Weather Forecast TV Weatherperson Prepares Local Forecast Confirm Plans for Picnic Meteorologists Input Data to Models and Creates Forecast from Output Collect Weather Data
  • 18. Weather Forecasting Is a Service Directed at Customers’ Minds (Fig 3.5)
  • 19. Simple Flowchart for Delivery of An Information-Processing Service (Fig 3.4) Information Processing – Health Insurance Learn about Options Select Plan, Complete Forms Pay Customer Information Entered in Database Printed Policy Documents Arrive Insurance Coverage Begins University and Insurance Company Agree on Terms of Coverage
  • 20. The Flower of Service (Fig 3.6) Core Information Consultation Order Taking Hospitality Payment Billing Exceptions Safekeeping Facilitating elements Enhancing elements KEY :
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37. Caterpillar Promotes Its Service Businesses (Fig 3.11) Reprinted Courtesy of Caterpillar, Inc.
  • 38.
  • 39.
  • 40.
  • 41.