1. 1st Chapter
SERVICE MANAGEMENT
By
By
Venkatesh.n
Venkatesh.N
koshys college

2. Service
>A service is an action of doing something to some one
which is essentially (purely) intangible…
>“Service is an act or performance offered
by one party to another that is essentially
intangible and does not result in the
ownership of anything.”

4. What is Management

Management is an individual or a group of individuals that
accept responsibilities to run an organisation. They Plan,
Organise, Direct and Control all the essential activities of
the organisation. Management does not do the work
themselves. They motivate others to do the work and coordinate (i.e. bring together) all the work for achieving the
objectives of the organization.

Management brings together all Six Ms i.e. Men and
Women, Money, Machines, Materials, Methods and
Markets. They use these resources for achieving the
objectives of the organisation such as high sales, maximum
profits, business expansion, etc.

6. What is service management

A structure basic of supply chain management that
connects actual company sales and the customer.
The goal of service management is to maximize
service supply chains as they are typically
more complex that the supply chain of finished
goods. The purposes of service management is to
reduce high costs by
integrating products and services and
keep inventory levels smaller.

7. Supply chain management
Supply chain management is a total system
approach to managing the entire flow of
information, materials, and services from
raw -materials suppliers through factories
warehouses to the end customer

8. Contd…..
A supply chain is the system of organizations,
people, activities, information and resources
involved in moving a product or service
from supplier to customer.
Supply chain activities transform raw
materials and components into a finished
product that is delivered to the end
customer.

9. Supply chain
Supplier
Manufacturer
Distributor
Retailer
Customers

10. Supply chain management

11. Classification of service
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It is required to design & apply marketing techniques to
completely satisfy the customer & increase profit &
identify new emerging services
Classification can be done on the following basis
Classification by industry
Classification by target effect
Skill level of service provider (professional/Non
professional)
Labour intensiveness(people-based/ equipment-based)
Degree of customer involment

12. Classification of service
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Marketable vs unmarketable service
Producer service and consumer service
The level(degree) of service in the
product
Ex:-pure service(teaching)
Independent serviceadded to the
product to make the product more
attractive.
Degree of consumer participation

13. Classification by industry
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Entertainment industry
Education
Telecommunication
Transportation
Public utilities
Government services
Health
Hospitality industry
Business services

14. Classification by target effect
Based on degree of customer involment
People processing:- service aimed at physical care
Ex:-health care, clinics, restaurants, hospital, hair
stylist, fitness centers.
 Mental Stimulus processing:- services aimed at
mind of customer Ex:-education, information,
entertainment, consulting, psychotherapy.
 control processing:- Service aimed at physical
possession & tangible assets Ex:- repair &
maintance, Laundry, repair Services, House
cleaning services


15. Contd….
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Information processing:- service for
tangible assets Ex:- banking legal
consultation, brokerage , financial
service.
Skill level of service provider:Teacher
Doctor
Engineer
Accountant

16. Lobour Intensiveness
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Mechanic
Electrician
Labour
Plumber
Artisan

17. Degree of customer contact

High degree (every day)-TV
channels, Mobile etc…..

Moderate Degree(regular)- teacher,
barber, washer man etc…

Low degree(occasional)-priest, doctor
etc…

18. Layman or layperson :-(a professional person)

21. Characteristics of services

22. Characteristics
Intangibility:
It cannot be taste, feel & smell before they are bought
unlike physical product. The intangibility creates a
feeling of uncertainty about the outcome of service.
Inseparatebility:
Services cannot be separated from the services
provided (we cannot separate the service from the
product) in fact the product delivers consumption of a
service.
Variability:
Services of highly variable. It is almost impossible to

23. Contd….
Customer participation:
Service product is not a one side activity customer
are core product of services. The product quality of
services greatly depends upon the ability, skills and
performance of the employees as well as the
activity and performance of the customer.
No ownership
here we cannot transfer ownership from one
person to other person that particular service
belongs to particular
person because its purely
intangible
Pershability They cannot be stored

24. Goods
/ Services

25. Service encounter
A service encounter is a period of time during
which customer interact directly with a
service. It is also called as "Moment of
Truth“
Service
encounters
are
transactional
interactions in which one person (e.g., a
vendor, office clerk, travel agent) provides a
service or good (e.g., a product, an
appointment, airline tickets) to another
person.

26. Service blueprint
The blueprint is an operational tool that describes
the nature and the characteristics of the service
interaction in enough detail to verify,
implement and maintain it.

27. Blue print

33. 

Steps in developing service blue
print
Step 1:- identify the process to be blueprinted-
in this stage the company should clearly mention the
service process that should be blueprinted(it means the
company should have a clear picture of the objective
behind blueprinting)once the purpose is clear , the other
requirements can neatly be arranged.
Step 2 :- identify the customer or customer segmentidentifying customer segment is a very important aspect of
service blueprinting . the content of the service delivery
system and condition of facilities are largely dependent on
the selected customer segment

34. 
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Step 3:- Map the process from the customer point of
-view
As we said earlier , the service blueprint aims at providing
maximum customer convenience and satisfaction. This
point should be kept in mind at all the level of service
designing process.
Step 4:- Map the contact employee actions, onstage and
back stage
the design should be describe in detail and
responsibilities for all the individuals involved in the
service delivery system(there must not be any changes
in the statement of roles and responsibilities if
necessary the employee should maintain a record)

35. 
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Step 5:- link customer and contact persons activities
to need support functions
each performed activity is expected to produce some
value to the customer . If any of the activities are not
adding any value to the customer, they will be treated
as unnecessary such kind of things we have to remove.
Step 6:- Add evidence of service at each customer
action step
it is necessary to illustrate to the customer what he sees
and receives at each stage of customer encounter and
experience.(this can be done through photos or videos.
This helps customer in knowing the expected service
and the service received by him.

36. GAP Model

37. The GAP Model
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The Service Quality Model, also known as the
GAP Model, was developed in 1985.
It highlights the main requirements for
delivering a high level of service quality by
identifying five ‘gaps’ that can lead to
unsuccessful delivery of service.

40. o
o
o
GAP 1: Gap between consumer expectation and
management perception(awareness): arises when the
management or service provider does not correctly
identify what the customers wants or needs.
GAP 2 : Gap between management perception
and service quality requirement: this is when the
management or service provider might correctly perceive
(identify) what the customer wants, but may not set a
performance standard.
GAP 3: Gap between service quality requirement and
service delivery: may arise pertaining to the service
personnel. This could arise due to there being poor
training, incapability or unwillingness to meet the set
service standard

41. 
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GAP 4 : Gap between service delivery and external
communication: consumer expectations are highly
influenced by statements made by company
representatives and advertisements. The gap arises when
these assumed expectations are not fulfilled at the time of
service delivery.
GAP 5: Gap between expected service and experienced
service: this gap arises when the consumer misunderstand
the service quality.

42. Product And Service Marketing Mix

47. Product
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Goods/service manufactured by organizations
for the end-users are called products/Services
Products can be of two types - Tangible
Product and Intangible Product (Services)An
individual can see, touch and feel tangible
products as compared to intangible products.
A product in a market place is something which
a seller sells to the buyers in exchange of
money.

49. Good example:- here you can see both product as well as service
(tangible and intangible) Once you open the saving account , current
account, or demat account you will receive a card documents from the
bank that is tangible and once u started doing transaction (receiving
service from the bank )that is intangible.
Bank will be providing life insurance(product) bond that bond itself
tangible and later you will be receiving service that is intangible

50. Price

it is a key element of the marketing mix. All the
other elements represent costs—for example,
expenditure on product design
(product),advertising and salespeople
(promotion), and transportation and distribution
(place). Marketers, therefore ,need to be very
clear about pricing objectives, methods and the
factors that influence price setting

52. Place refers to the location where the products are
available and can be sold or purchased. Buyers can
purchase products either from physical markets or
from virtual markets. In a physical market, buyers
and sellers can physically meet and interact with
each other whereas in a virtual market buyers and
sellers meet through internet.

54. Promotion

Promotion refers to the various strategies and ideas
implemented by the marketers to make the end - users
aware of their brand. Promotion includes various
techniques employed to promote and make a brand popular
amongst the masses.

Promotion can be through any of the following ways:
Advertising
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Print media, Television, radio are effective ways to entice
customers and make them aware of the brand’s existence.
Billboards, hoardings, banners installed intelligently at
strategic locations like heavy traffic areas, crossings,
railway stations, bus stands attract the passing individuals
towards a particular brand.

55. Contd…
Taglines also increase the recall value of the brand
amongst the customers.
Word of mouth

One satisfied customer brings ten more customers along
with him whereas one dis-satisfied customer takes away ten
more customers. That’s the importance of word of mouth.
Positive word of mouth goes a long way in promoting
brands amongst the customers.

56. People
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People - The individuals involved in the sale and
purchase of products or services come under
people.
Peoples are the ultimate users of product/service
Here service provider can get feedback about
the banking service and there is chance of re
design the service or modify to fulfill their need
and attract the more number of customer.

57. Process
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Process - Process includes the various
mechanisms and procedures which help the
product to finally reach its target market
Service process is the way in which a service is
delivered to the end user
Process is something related to
How do people consume service
What process do the have to go through to
acquire the service

58. P.Evidence
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With the help of physical evidence, a marketer
tries to communicate the USP’s(unique selling
propositions) and benefits of a product to the end
users.
Ex:-if a customer is going to meet bank employ to
know about the home loans while explaining a
service provider will be showing some broachers ,
Documents, bonds , company website , these are
all physical evidence.

60. Managing the service sector
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Service marketing focus on selling the service in the best
interest of users/customers, marketing a service is meant for
marketing something intangible. It is marketing a promise.
Service management includes formulation of a sound mix
for marketing, such as
product,price,place,promotion,people,proces and physical
evidence.
The aim of service management is:
To understand the utility (usefulness) the customer receive
by consuming or using the service offered by the
organization

61. Contd….
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To understand how the organization( personnel,
technology, physical resources ,system and customer) will
be able to produce and deliver this utility.
To understand how the organization should be developed
and managed so that intended(future) quality can be
achieved.
To make the organization function so that this quality can
be delivered on a continuous basis

62. Functions of service management
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Marketing objectives:- the marketing objectives may be
short term or long term. They have to be in
coherence(unity) with the organizational goals
Planning:-after setting objectives the organization should
plan to achieve those objectives. This includes sales
forecast, marketing programmes and marketing strategies
Organizing:-the organizing functions involves structure of
marketing organization, duties responsibilities and powers
of various members of the marketing organization
Coordination :-it involves coordination of among various
activities such as sales forecasting, product planning ,
product designing and development, transportation,
warehousing etc..

63. 
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Directing:-Direction In marketing management refers to
the development of new markets, employee
communication, motivation and control of employees.
Control;- Controlling refers to the effectiveness with which
the marketing plan is implemented.(it involves purpose of
standards , evaluation of actual performance and adoption
of corrective measure).
Staffing:-the marketing manager coordinates with human
resource manager to hire the staff with the desired capacity.
(here in this step the company is recruiting the employees
to a particular job to run marketing actives)
Analysis and evaluation:-marketing management involves
tha analysis and evaluation of the productivity and
performance of each employees.

64. What is Customer Loyalty?

Customer loyalty is all about attracting the right customer,
getting them to buy, and buy in higher quantities and bring
you even more customers. However, that focus is not how
you build customer loyalty.

In short, you build customer loyalty by treating people how
Marketing Plan
they want to be treated. Does your marketing plan include
strategies and tactics for customer loyalty & customer
retention?

66. You build loyalty by…
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keeping touch with customers using email marketing,
thank you cards and more.
treating your team well so they treat your customers
well.
showing that you care and remembering what they like
and don’t like.
You build it by rewarding them for choosing you over
your competitors.

67. 
“The function of business is to
attract and maintain customers.”

68. Why Do You Want Loyal Customers?
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?
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?
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?
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?

69. Contd….

70. Measurements
Customer Satisfaction
“I expected…I got it”
Customer Loyalty
“I got more than I expected”
C

71. People don’t quit organization
they quit BOSSES!

72. Perceived Value
Defined by your customer

74. Differences B/W Goods and Services