Fasna K P
Presentation by ,
What is a product ??
An article or substance that is manufactured or refined for sale.
Ex : iPods', furniture, etc..
Every product or service has a purpose.
Products are tangible, they can be seen and touched, felt or
There will be time gap between production and consumption of
Types of products
What is a Service?
A service is something someone can do for money.
Ex : workers
They are not tangible.
A major part of service marketing depends on the relationship
the marketer/ seller is able to establish with the customer.
Types of services
The nature of the service providing process
The subject of the service
The nature and function of the service
The company class
Difference between products and
Concrete Activity or process
Product and distribution of goods
is separated from consumption.
In services, production,
distribution and consumption is
The core value of products is
produced in the factory
Services is produced in the
Can be stored Impossible to store
Transfer of ownership of goods
from the manufacturer to the
dealer to customer.
Can have access to the service
but cannot own it.
Products ma or may not be
Have to be availed within time
Include intermediaries Offered directly through various
Reach customers through
various distribution channels
Have to be availed at service
Easier to market More difficult to market
More control over quality Less control over quality
Quality is an investment Quality dictated by budget
You must solve pain in a
Customer decides what they
Requires upfront capital Can be started with least capital
Difference in managing a product
business and a service business
1.WHO COMES TO WHOM
Products are transported to through distribution channels
Services are location-based
2.STANDARDIZATION OR CUSTOMIZATION
Customers like many of their products to be standardized
Customers want most of their services to be customized.
Quality of product within itself is embedded at the time of manufacture.
Qualities that people expect from service includes customization and
The products are tangible and can be inspected / sampled before
Service on the other hand is experiential and sometimes based on a
Is scaled up by expanding the manufacturing capacity , distribution
and sales reach, and access to more customers.
(To be continued..)
It needs a supply of trained service providers and this involving either
poaching people from the competitors, induction, training and
A product can be an asset that builds the wealth.
A service cannot be owned as is always shown as an expense.
7) THE SOURCE OF VALUE
The quality of the products depend on how materials are chosen and
(To be continued..)
The quality of the service depends on how the service providers are
selected, trained and motivated.
8) THE ROLE OF SENIOR MANAGEMENT
The process of creating a market-driven design in a product business
involves many months of work by expert manpower and managers
before the product is produced.
The same process of creating a market driven design needs to
happen in front of the customer in few minutes in services.
9) THE POSITION OF THE CUSTOMER
The customer is outside the manufacturing process.
(To be continued..)
(To be continued..)
In the service business the customer is inside the business.
10) THE ROLE OF STANDARDIZATION AND MECHANIZATION
Frequently standardizes its products. Mechanization is used
extensively in the processes.
Asking customers on-line what they desire and then the company
tries to deliver it in an individualized manner in real time.
What is service quality ??
Service quality is a comparison of expectations with
A business with high service quality will meet customer needs
whilst remaining economically competitive.
Improved service quality may increase economic
Five essentials for improving
HOW TO IMPROVE SERVICE
QUALITY AT YOUR
1. Learn to listen to your customers first
2. Look at all complaints about your service as an
opportunity to improve.
3. Establish an environment where great service is recognized
and rewarded and poor service is challenged and rectified.
4. Have weekly fun staff meetings where both the good and
bad service elements are discussed.
5. Ensure that your staff feel they are an important part of your
6. Lead by example
7. Do things regularly to improve the workplace
Happy staff = happy customers
8. Give your staff a reason to come to work with a
big smile on their face and a great attitude
The service quality model highlights the main
requirements for delivering high service quality.
It identifies 5 gaps that causes unsuccessful delivery.
This aim may be achieved by understanding and improving
operational processes; identifying problems quickly and
systematically; establishing valid and reliable service
performance measures and measuring customer satisfaction
and other performance outcomes.
Service gap model
Company’s perceptions of customer expectations
• Inadequate marketing research orientation
• Lack of upward communication
• Insufficient relationship focus
• Inadequate service recovery
Translation of perceptions into service
Management perceptions of customer
• Poor service design
• Absence of customer-defined service
• Inappropriate physical evidence and
• Poor human resource policies
• Failure to match supply and demand
• Customer not fulfilling their roles
• Problems with service intermediaries
designs and standards
External communications to
Lack of integration of marketing
Inadequate management of customer
Inadequate horizontal communications
Closing the gaps
Gap 1: Learn what customers expect
Gap 2: Establish the right service quality
Gap 3: Ensure that service performance meets
Gap 4: Ensure that delivery matches promises
• Use research, complaint analysis,
• Increase direct interactions
between managers and
• Improve upward communications
• Act on information and insights
Closing gap 1: Learn what
Top management commitment to providing service quality
Set, communicate, and reinforce customer-oriented service
Establish challenging and realistic service quality goals
Train managers to be service quality leaders
Be receptive to new ways to deliver service quality
Standardise repetitive tasks
Closing gap 2: Establish the
right service quality standards
Gain employee acceptance of goals and
Measure performance of service
standards and provide regular feedback
Reward managers and employees for
achievement of quality goals
Service Quality Awards
Attract the best employees
Select the right employees
Develop and support employees
– train employees
– provide appropriate technology &
– encourage and build teamwork
– empower employees
– internal marketing
Closing gap 3: Ensure that
service performance meets
Retain good employees
Measure and reward service quality
Develop equitable and simple
You are a
Seek input from operations personnel on what can be done
• real employees, real customers, real situations
Seek input from employees on advertising
Gain communications between sales, operations and
Internal marketing programs
Closing gap 4: Ensure that
service delivery matches
Ensure consistent standards in multi-site
In advertising, focus on service
characteristics that are important to
Manage customer’s expectations
What are realistic expectations?
Explain industry realities
Tiered service options
Offer different levels of
Service - user pays
Why do we
ServQual - five dimensions of service quality
reliability, responsiveness, assurance, empathy
Gaps model of service quality
Identify the gaps
Reasons for the gaps
Closing the gaps
Measuring customer satisfaction & service quality