Week 4 - Week 4 notes PDF

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Week 4 notes...

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Week 4 Flower of service - Core product is based on the core set of benefits and solutions delivered to customers. - The petals represent supplementary services.

Order taking

Consultation

Two roles of supplementary services  Facilitating supplementary services ― either needed for service delivery, or help in the use of the core product  Enhancing supplementary service ― add extra value for the customer Facilitating supplementary services Information – First petal  customers often require information about how to obtain and use a product or service  Lack of/confusing Information can cause customer frustration (negative emotions), dissatisfaction, and damage to the company (e.g., property) & customers  Make your website easy to navigate ! Order-Taking – second petal  Customers need to know what is available and may want to secure commitment to delivery. The process should be fast and smooth

Several company use self-services technology or automated answering machine to minimize cost.  Reservations represent a special type of order taking that entitles customers to a specific unit of service. Billing – third petal  Bills should be clear, accurate and intelligible Payment – forth petal  Customers may pay faster and more cheerfully if you make transactions simple and convenient for them.  Several service organisations prefer their customers not to use real money while spending time at their property 

Supplementary Services: Enhancing Elements Safekeeping  Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site  E.g. hotels with kids club, valet parking Hospitality  the act of being friendly and welcoming to guests and visitors  Customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests (e.g., greetings, food & beverage, waiting facilities, transportation,…)  E.g. being greeted accordingly in stores Consultation  Value can be added to goods and services by offering advice and consultation tailored to each customer’s needs and situation  E.g. banking – conversations are tailored to your needs and wants

Branding Service Products and Experiences • Most service organizations offer a line of products rather than just a single product.

Branded House:  A company applies its brand (corporate) name to multiple offerings in often unrelated fields.  For example: Virgin mobile v virgin Australia Subbrands:  Corporate or the master brand is the main reference point, but the product itself also has a distinctive name.  E.g. thai air has different names for class of flights, thai royal silk for business, thai royal first for first class Endorsed Brands:  The product brand dominates but the corporate name is still featured.  E.g. startwood hotels House of Brands:  Each of product brands is actively promoted.  E.g. Woolworths, big w Four key ways to build strong brands  Dare to be different  Determine your own fame  Make an emotional connection  Internalize the brand Building Brand Equity (what are the factors that contribute to brand equity?) Brand equity: The degree of marketing advantage that a brand has over its competitors

New Service Development (6 Categories of New Servies) Why do a company need to create new services? - To expand business - To keep up with changing consumer behaviours - To secure the competitive advantage - To strengthen brand positioning

A Hierarchy of New Service Categories 1. Style changes  The simplest type of innovation  Visible changes in service design or scripts 2. Service improvements  Modest changes in the performance of current products 3. Supplementary service innovations  Adding new facilitating or enhancing service elements 4. Process-line extensions  Alternative delivery procedures (e.g., home delivery) 5. Product-line extensions  Additions to current product lines 6. Major process innovations  Using new processes to deliver existing products with added benefits 7. Major service innovations  New core products for previously undefined markets

Success Factors in New Service Development Market synergy  Good fit between new product and firm’s image/resources  Advantage vs. competition in meeting customers’ needs Organizational factors  Strong interfunctional cooperation and coordination  Internal marketing to educate staff on new product and its competition Market research factors  Scientific studies conducted early in development process  Product concept well defined before undertaking field studies

CH5: Distributing Services through Physical and Electronic Channels What is distributed? (core and supplementary services)  Information and promotion flow » Information and promotional materials » Relate to information and possibly consultation petals  Negotiation flow » An agreement on the service features and configuration, and the terms of the offer (e.g., sell a reservation or a ticket). » Relate to order taking and potentially billing and payment petals  Product flow » Relate to the remaining petals and core service. » Many services (i.e., people or possession processing) require physical facilities for delivery....