Service Management

By
Venkatesh.N
By
Venkatesh.N
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.

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
Supply chain management
Characteristics of services
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

Product And Service Marketing Mix

Differences B/W Goods and Services
Goods / Services

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
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.