1brand ppt
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Servicesare deeds, processes and performance.
Intangible, but may have a tangible component.
Generally produced and consumed at the same time.
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Service is an act or performance offered by one partyto another . Although the process may be tied to a
physical product, the performance is essentially
intangible and does not result to any owner ship ofany factor of production.
Services are economic activities that create value andprovide benefits for customers at specific times, place.
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Serviceis an activity that has an element of
intangibility associated with it and which
involves the service providers interaction
either with customers or with the property
belonging to thecustomer.
- Adrian Payne
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Philip Kotler ---service is any activity of benefit thatone party can offer to another that is essentially
intangible and does not result in the ownership of
anything. Its production may or may not be tied to aphysical product
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regardless of ththere is a services component to theofferings of all firms
in some cases, a service is the principal purpose of the
transaction, as in the rental of a car, a haircut, orlegal services -- we refer to this as thecore service
in others, service is performed in support of the sale of
a tangible product -- these are referred to assupplementary services
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1. There has been an increase in demand for the services of professionally qualifiedtechnicians with establishment of technical institutes.
2. Communication services like entertainment, education and the right to information
by the public is more important.
3. Due to increasing standards in education there is an increasing demand for
educational services. Primary, secondary, higher secondary schools, junior degree
collgese are the institutes which are in great demand. As the number of students goes
up the demand for private classes, tutions, etc. also increases.
4. Banking services have become necessary to meet financial requirements of the public
and the national industrial sector.
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5. Personal care services are essential to develop potentiality of an individual for a
perfect personality and positive image.
6. Electricity services are required for the benefit of society, industry and so on.
7. With the increasing amount of trade and business, done by road there has been a
demand for transport services which benefits various automobile manufacturers. Largesection of population prefer having their own vehicles, proving a good business
propositions for automatic industry.
8. The tourism has geared itself to make the tourists enjoy the holiday seasons in the
places of their choice and take them away from monotonous existence of cities.
9. Adequate hospital services are essential for the well being of the society.
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10. Hospitality services work on the strategies to satisfy the business class through theirservice in terms of comfort and satisfaction. The above activities have left the
management scientists, professionals and socio-economic thinkers analyze and
understand that managing services need attention, to stay in business.
11. As the natural resources are depleting and need for conservation is increasing we seethe coming of service providers like pollution control agencies, etc.
12. The development in information technology has given rise to services like pager service
PCOs, world wide web etc. Professional requirements need a change when technology
develops and evolves.
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Defining and improving quality
Communicating and testing new services
Communicating and maintaining a consistent image Motivating and sustaining employee commitment
Coordinating marketing, operations and human resource
efforts
Setting prices
Standardization versus personalization
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The services sector has been a major and vital force steadily drivinggrowth in the Indian economy for more than a decade.
The services sector has been growing at a rate of 9.4% per
annum in recent years.
More than half of our GDP is accounted for from the services
sector.
This sector dominates with the best jobs, best talent and best
incomes.
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Affluence: - The increase in per capita income indicates the increase in
service like pest-control, personal security, interior designer, etc.
Leisure time: - People do get some time to travel and holiday and
therefore there is a need for travel agencies, resorts, hotels, and
entertainment. There are others who would like to utilize this time toimprove their career prospects and therefore there is a need for adult
education/distance learning/part time courses.
Life expectancy: - The health programmed have significantlycontributed to an increase in life expectancy given rise to services like
old age homes, nursing homes, health care, etc.
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Working wives: - As more and more women have started working, the
need for day care for children has increased, and so is the care withpacked food and home delivery.
Product complexity: - A large no. of products are now being purchased
in households which can be serviced only by specialized products likewater purifies, micro wave ovens, home computers, etc. which give rise
to the need for services like after sales service agents for durables,
maintenance service providers, etc.
Life complexity: - As the daily routine gets busier, individuals find it
difficult to manage things on their own. Their leads to an obvious need
for tax consultants, legal advisors, property advisers, etc.
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Resource shortage and ecology: - As the natural resources are reducingand need for conservation is increasing, we have seen the coming up of
service providers like pollution control agencies, car, pools, water
management, etc.
New products: - the development in information technology has given
rise to services like PCOs, Pager service providers, Web Shoppe, etc
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Factors Influencing the Growth of
Service Sector
Demographic Changes- Insurance, Banking
Social changes- Hotel, Tourism
Economic changes- Retailing
Technological changes- IT services
Political changes and legal changes - NGO Policy changes-Hospitality
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Services can be classified on the basis of tangibility like
following
-A pure tangible good
-A tangible good with accompanying services
-A major service accompanying minor goods and services-A pure service
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Pure tangible goods Wheat ,sugar, soap, cosmeticetc.Tangible good Accompanied
serviceComputer, cars air
conditioners, machinery-after
sales service
Major service accompanyingminor goods & service
Beauty saloon providingcosmetics
Child care centers providing
baby food.
Pure service Surgery, consultancy teaching
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Intangibility
Heterogeneity
Inseparability
Perishability
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A service is generally not able to be recognized by any of thefive senses, that is, it cannot be seen, touched, smelled, heard, or
tasted.
No impulse purchase.
No one measure the features and quality of the services.
There is no concept of ownership, possession or acquisition for
the customer after the service transaction.
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Services cannot be inventoried
Services cannot be patented
Services cannot be readily displayed or communicated
Pricing is difficult
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Use of tangible clues.assist customer in making service evaluation.
( insurance advt. in media)( ICICI bank --- strong ATM network.)
Use of personal source of information.( due to lack of objective means of evaluation
customer looks to wards friends , family )
offering incentive to existing customers forroping in new customers)
Creation of strong organizational brand.( results in loyalty i.e. Maruti , Sony)
In separatibility 1.Service provider physical connection to service beingprovided.
2.Customers involvement in the service process.3.Involvement of other customer in the service process.
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Of same quality
Goods & servicesAnother difference- un ability to control
the service quality before it reaches the customer.
Service offered by one employee may differ from the other
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Service delivery and customer satisfaction depend on employee
actions
Service quality depends on many uncontrollable factors
There is no sure knowledge that the service delivered matcheswhat was planned and promoted
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Customization. .
Standardization.
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Services are generally created or supplied simultaneously. Theyare inseparable. For e.g., the entertainment industry, health
experts and other
professionals create and offer their service at the same given
time.
Services and their providers are associated closely and thus, notseparable.
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Customers participate in and affect the transaction
Customers affect each other
Employees affect the service outcome
Decentralization may be essential
Mass production is difficult
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Emphasis on selection ,training public contactpersonnel.
Consumer management. ( reservation in restaurant)
Use of multi site locations (ATM , McDonald's..)
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Services cannot be stored, inventoried (saved), resold
or returned.
A bad haircut cannot be returned or resold to anothercustomer.
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It is difficult to synchronize supply and
demand with services
Services cannot be returned or resold
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Creative pricing- (early bird incentive , happy hours ) Demand strategy(reservation system, complimentary system,
development of non peak demand)
Supply strategy. - Part time utilization ,advance preparation of
expansion,
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T R A N S P O R T F A D B S KO E G O D E L L K I T E H J IU A L I G H T Z V N S Q D X NR T A E M R E T A I L I N GI H B A C L R D U N P Q S K KS E E Y O O T U A C V B T D OM A L W O P M C W E B N R T NA L I Q K O H A Q O G W I E GR T N T H U R T F I F X B R DK H G B A N K I N G U Z U S OE C C A T B O O K I N G T X GT A U M B P O N P S T U I C RF R T R A I N O O O L L O M TY E A A L D O I N G G U N N IC O M M U N I C A T I O N J H
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