GOOD AFTERNOON, DOC AND EVERYONE!
We are the group 4, composed of
Kristal Lux Baybayan,
Brian Duela
Gabriel Fabian
Michelle Ocampo-Urieta,
Wilbert Rico Pinpin,
Joshua Philip Vino
we will discuss the 4th module of our course entitled “Designing & Managing Services”
Before we proceed with the discussion of different topics, lets identify the different
learning objective of this module
Our discussions will address the following questions:
1. How can services be defined and classified, and how do they differ from goods?
2. What are the new services realities?
3. How can companies achieve excellence in services marketing?
4. How can companies improve service quality?
5. How can goods marketers improve customer-support services?
As companies find it harder to differentiate their physical products, they
turn to service differentiation, whether that means:
1. on-time delivery,
2. better and faster response to inquiries, or
3. quicker resolution of complaints.
Top service providers know these advantages well and also how to create memorable
customer experiences.
It is critical to understand the special nature of services and what that means to
marketers, our discussions will systematically analyze services and how to market them
most effectively.
The first topic entitled: The Nature of Services will be discussed by Mr. Joshua Philip
Vino and Ms. Michelle Ocampo-Urieta,
Achieving Excellence in Services Marketing
A. Marketing excellence in services requires excellence in three broad areas:
external, internal, and interactive marketing. these broad ideas are also
referred to as the three types of marketing in service industries
I. External marketing - Marketing from the company to the customers
Describes the normal work of preparing, pricing, distributing, and
promoting the service to customers.
Service firms use external marketing to achieve many aims such as:
Creating awareness.
Setting price expectations.
Setting service level expectations.
Informing customers if any prerequisites that must be in place
before they can use the service.
II. Internal marketing - Marketing from the company to the employees
Describes training and motivating employees to serve customers well.
Internal marketing involves motivating employees to work as a team to
make customers satisfied.
Key components of internal marketing include:
Motivating employees
Teaching customer satisfaction techniques
Communicating company goals regularly
Management of change
Training staff on how to use the company’s services
Good pay and working conditions
III. Interactive marketing - Marketing between the customers and the
employees.
Describes the employees’ skill in serving the client.
Clients judge service received from the provider by its :
1. technical quality - This means that the actual outcome of the
service encounter is technically acceptable to customers. In
other words, the customers receive what they perceive as the
outcome of the process.
2. functional quality – this is the manner how the service is
delivered to the client/customers.
Interactive marketing is important because it establishes both short-
term and long-term satisfaction. That is, if the customer is satisfied
with the service they received in the short-term, they are more likely to
be satisfied over the longer term.
B. Technology and Service Delivery
Technology can be used to enhance customer experience in stores.
Technology has made work much easier from customer interaction to services
delivery.
I. Technology occasionally has unanticipated benefits.
Sometimes technology used by a service firms produce un
unanticipated benefits to its customers.
These are unintentional or unexpected benefits received by the
customer, it can add value to the provided service and it can produce
customer satisfaction.
Companies must be mindful when adapting the latest technology to
their operation.
II. Companies must avoid pushing technological efficiency so hard,
however, that they reduce perceived quality.
Companies nowadays tries to maximize the benefits of technology to
its operation.
But sometimes it can produce a negative outcome that could lead to
the dissatisfaction of the customers.
Example:
Some companies installed programs that automatically respond
to the queries and or complaints of the customer.
These programs are built to be helpful, to answer customers’
questions, and to save company’s time and money.
But auto responses can also become a nuisance in certain cases
because not every single question can be answered by program.
III. Companies must incorporate the proper safeguards and reassure
customers about their efforts.
It is important to protect the information of each customer. When a
firm show their customers they care, protect and secure their personal
information, it can increase customer’s confidence to the firm.
Different banks introduce on line banking.
C. Best Practices of Top Service Companies
Service businesses that are well-managed and achieve marketing excellence
have common in terms of the following:
I. Strategic Concept:
Top service companies are “customer obsessed.” They have a clear
sense of their target customers and their needs and have developed a
distinctive strategy for satisfying them.
II. Top-Management Commitment:
Management's commitment to quality is critical because it provides
the resources for implementing and maintaining the management
system, which includes all quality-related processes.
III. High Standards:
The best service providers set high quality standards. The purpose of
setting high standards is to provide good quality and accurate work.
IV. Profit Tiers:
Firms most of the time identified who among their customer spend a
lot to purchase their service or product.
Firms have opted to pamper big spenders in order to keep their
business for as long as feasible, with this, customers in high-profit
tiers get benefits and advantages over those in lower-profit tiers.
Example: SM offers two types of membership the regular SMAC and
the SMAC-Prestige. SMAC-Prestige members enjoy more benefits that
the regular one, such as access to SM lounge, higher discount and
priority lane. If SMAC-Prestige members wanted to continue enjoying
these benefits they must spend more money.
V. Monitoring Systems:
Top firms audit service performance, both their own and competitors’,
on a regular basis because service firms can prevent making bad
business judgments by keeping an eye on their competitors.
Service firms can benefit from their failed moves and strategies. After
determining where they went wrong, the firm now will make every
effort to avoid making the same mistakes and to do everything
correctly.
VI. Satisfying Customer Complaints
Getting bad reviews and complaints from the customers is not all that
bad for the business especially if it handled correctly.
Firm can use the customer complaint to detect a problem to their
service, internal operations or employees, investigate that problem,
and improve it to prevent more complaints.
D. Differentiating Services
Customers who perceive a service to be uniform are more concerned with the
price than with the provider, therefore, service providers must constantly
differentiate their brands in order to avoid being perceived as commodities.
Providers can distinguish their service offerings in a variety of ways,
including by utilizing people and processes that create value.
Service differentiation is important because a firm's distinctiveness is linked to
client‐perceived value, competitive advantage, and a target market focus.
High levels of service quality drive differentiation which can operate as a
competitive advantage for firms.
1. Service Options
a. Primary service package – these are services a customer
expected to receive.
This is a bundle of services that are sold together as a unit by a
company.
b. Secondary service package - these are the additional services
introduced by the firm for the customer outside the primary
service.
2. Innovation is as vital in services as in any industry.
Service innovations ensure and enhance the utility, performance, and
apparent value of an offering.
Customers will be intrigued by a service provider that provides new
ideas on a regular basis, and they will be one step ahead of their
competition.
The next topic will be discussed is Mr. Wilbert Pinpin