1st chapter service management

By
Venkatesh.N
By
Venkatesh.N
Koshys college
1st Chapter
SERVICE MANAGEMENT

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.”

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
co-ordinate (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.

What is service management
 A system integral 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.

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

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.

Supply chain
Supplier Manufacturer Distributor Retailer Customers

Classification of service
 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

Classification by industry
 Entertainment industry
 Education
 Telecommunication
 Finance & insurance
 Transportation
 Public utilities
 Government services
 Health
 Hospitality industry
 Business services

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.
 Possession processing:- Service aimed at
physical possession & tangible assets Ex:- repair
& maintance, Laundry, repair Services, House
cleaning services

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

Lobour Intensiveness
 Mechanic
 Electrician
 Labour
 Plumber
 Artisan

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…

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
have the same service from the same seller the second
time.

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

Differences B/W Goods and Services

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.

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.

Steps in Building a Blueprint
 1.Identify the service process to be blueprinted
 2.Map the service process from the customers
point of view
 3.Map Contact Employee Actions
 –Onstage -Line of External Interaction
 Backstage –Line of Visibility
 – what customers should see and which
employees are in contact with the customers.

Steps in Building a Blueprint
 Map Internal Support activities
 Line of Internal Interaction
 –clarify interfaces across departmental
lines, their interdependencies
 3.Add Evidence of Service at each
Customer Action Step

Benefits of Blue printing
 Provides a customer direction summary –
employees can communicate to–customer
about his needs.
 Identifies Fail points- weak links in the chain of
service activities
 Basis for identifying costs, revenues , capital
investment required
 Facilitates top-down, bottom-up approach to
quality improvements

The GAP Model
 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.

o GAP 1: Gap between consumer expectation and
management perception: arises when the management
or service provider does not correctly identify what the
customers wants or needs.
o GAP 2 : Gap between management perception
and service quality requirement: this is when the
management or service provider might correctly perceive
what the customer wants, but may not set a performance
standard.
o 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

 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 misinterprets
the service quality.

Product And Service Marketing Mix

1st chapter service management

1st chapter service management

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1st chapter service management