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Managing Services


Any act of presentation/performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.

Distinctive Characteristics of Services

Inseparability Variability Perishability

Distinctive Characteristics of Services

Intangibilityseen, tasted, felt, heard or smell Place

Physical Evidence and Presentation

People Equipment Communication material Symbols Price

Distinctive Characteristics of Services

Inseparability Provider-client interaction,

produced and consumed simultaneously Train more service providers

Distinctive Characteristics of Services

Variability Who, when and where highly variable

How to Increase Quality Control

Invest in good hiring and training procedures

Standardize the service-performance process

Monitor customer satisfaction

Focus: 7Ps in services Marketing or Marketing Mix

Product: Attentive to all aspects of the service performance that have the potential to create value for customers. Place and Time : Decision on place and Time of delivery as well as methods and channels used.

Promotion and Education: providing needed information and advice, persuading target customers of merits of a specific product and encouraging them to take action at specific times.

Communication can be delivered through sales persons and front line staff or through the media such as TV, radio, news papers, magazines, posters etc Promotional events influence brand choice and incentives can be used to attract customers to buy.

Price : Management of all out lays incurred by customers in obtaining benefits from the service product. -Not limited to traditional pricing tasks of determining the selling price to customers , setting margins for any intermediaries and establishing credit terms.

Physical Environment: The appearance of building/office, vehicles, staff members, printed material etc provide tangible evidence of a firms quality

Process: Creating and delivering product elements to customers require the design and implementation of effective processes. People: Many services depend on direct interaction between customers and a firms employees. The nature of these interactions influence the customers perception of service quality.

Service Sectors
Private nonprofit





Effective Customer service recovery

Service recovery is an umbrella term for systematic efforts by a firm to correct a problem following a service failure and retain a customers goodwill. Effective service recovery requires thoughtful procedures for resolving problems and handling disgruntled consumers


Do you think airline with the lowest fare is a leader? What is core need, Service quality augmented product in
Army Religion Institute

Best Practices

Strategic Concept Top-Management Commitment High Standards Self-Service Technologies Monitoring Systems Satisfying Customer Complaints Satisfying Employees & Customers

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