Industrial Unit 1 PDF

Industrial UNIT 1 1. What are services ? Services → that complement the company's regular actions.actions, processes and executions ▪ They are not only provided by service companies (utilities, hotels, banks or hospitals), IT IS ALSO A part of the offerings of many of the producers of manufact...

Industrial UNIT 1 1. What are services ? Services → that complement the company's regular actions.actions, processes and executions ▪ They are not only provided by service companies (utilities, hotels, banks or hospitals), IT IS ALSO A part of the offerings of many of the producers of manufactured goods, such as automobile or computer manufacturers (like SAV offers services) 2. Diff between service and customer service Service (the services strat/company) Customer service the development of all the service provided to support the those actions that aim to ensure a high level performance of the companies' core of efficiency in the development of the products (provided by a department or by company's activity, and therefore establishes employees selected for this task)= the goal is a set entire company. to help the customer and create a good relationship with him 3. Service mktg VS product mktg Products Service Tangible (perceptible par le toucher) Intangibles because services are performances or actions Services cant be inventoried Services cant be legally patented Services cant be demonstrated immediately and are not easy to talk about with customers. Difficulty in designing communication campaign or pricing Standardized Heterogenous = Services can never be alike  Employees are the services (people’s perf can depend of a lot of things like the ability and staff willingness to meet the needs of customers) Customer are never the same = no the same service/reaction can be applied It’s the result of the interaction between customer and employee =it’s a challenge for organizations or individuals to ensure a service of the same form and quality Production separated from consumption = Simultaneous production and consumption = goods are first produced and then sold and services are first sold and then produced and consumed consumed simultaneously Impossible to mass-produce services !!! Service quality and customer satisfaction depend on what happens in real time, including the actions of employees and their interaction with customers. Service design and delivery requires that the customer is involved and specifies the conditions under which he/she would like the service to be provided Non perishable = they can be inventoried in Perishable = services cannot be preserved, stored, the warehouse, resold the next day, or even resold or returned by the consumer.They have a returned when the customer is not satisfied limited duration Anticipating demand and creative planning for capacity employment are important areas of decision and challenge to have robust recovery strategies in place for when things don't turn out right (as we cannot return it) 4. Service mktg Implementation models : Service mktg triangle The service marketing triangle is a model that illustrates the implementation of the service strategy in a company, involving customers, employees, and the company itself. Between the three vertices of the triangle (customers, employees and company) there are three types of marketing that must be carried out conveniently for the service to work: - External Marketing = formulatin the promise : ➔ The company makes promises to its customers regarding what they can expect to receive and how it will be delivered ➔ Traditional marketing activities (ad, sales, special promotions, pricing) facilitate this kind of activity. ➔ Service employees also communicate and help to place customer expectations ➔ The relationship is exposed to a weak start when there is a tendency to overpromise - Internal Marketing = facilitating the promise : ➔ it consists of the ability of the company to fulfill the promises it had previously made ➔ to fullfil the promises they must have the skills, abilities, tools, and motivations to deliver the service ➔ as long as suppliers aren't recruited, trained, and provided with the appropriate internal tools and systems, and rewarded for good service, promises can go unkept ➔ recognizing a close link between employee satisfaction and customer satisfaction. - Interactive Marketing = delivering the promise : ➔ promises that are made must be fulfilled ➔ Interactive marketing represents the most critical activity, from the customer's point of view. ➔ to offer a service that is adapted to the needs of each customer and that allows generating or increasing the confidence they have in the company. ➔ the subjectivity in the valuation of the service. Each customer will value, depending on their personal needs and concerns, differently the service provided by the company. ➔ Every time the customer interacts with the organization,promises are kept or broken and the reliability of the service is tested With technology in the center = marketing can be the result of the interaction that occurs, in real time, between customers, suppliers and technology with the production of the service. ➔ Real-time interaction: Technology allows for instant interaction between customers, employees, and the company, facilitating interactive marketing.  ➔ Instant feedback: Consumers are increasingly using digital media to share their experiences, which influences company reputation and brand management. ➔ Need to adapt: Businesses need to integrate technology resources to meet customer expectations and effectively manage interactions, making digital presence mandatory rather than optional. !!!! It’s vital for an organization to manage its positioning in digital media directly and indirectly!!! Marketing mix (service version) - the strategies of the four Ps are applied to services,they need to be modified (adapted) Service mix 7P Product Price Place Promotion People -Employees (recruitment, training, motivation, rewards...)-Customer (education, training...) -all human actors who play a role in service delivery and who influence buyer perceptions Physical evidence -Establishment design.-Team.-Signage.-Employee clothing.-Other tangibles (business cards) -the environment in which the service is delivered and in which the company and the customer interact -it incorporates all tangible representations, including brochures, letterheads, business cards, report formats, signage and equipment, and the facilities and environment of the service Process -Flow of activities (standardized, customized)-Number of steps (simple, complex)-Customer involvement. -the procedures, mechanisms, and flow of activities necessary for the provision of the service, i.e., the performance of the service and the operating systems. -Each of the steps of the service delivery or operational flow experienced by the customer will provide evidence to judge the service. Service Quality Gap Model