Strategic Marketing EBMA 3715 Unit 13 (Chapter 13)

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People, Processes and Physical EvidenceUNIT 13

© The McGraw-Hill Companies, 2009

Very few people viewed finding and using

taxi service as something enjoyable—it was simply

something that they dealt with due to the lack of an

alternative. This poor experience and a perceived

lack of ability to change anything about it created pent up frustration and

demand from consumers who were eager to find anything

better. Uber tapped into that

frustration and demand exceptionally well.

Characteristics of Services (pg. 488)

INSEPARABLE- a customer receives and consumes a product

while the service is performed using the delivery method at the source.

INTANGIBLE- cannot be touched and are therefore not

physical objects.

PERISHABLE- once a service activity has taken place, it will

never be able to be repeated again in the same way.

VARIABILITY- not every service delivery will be identical.

RIGHT OF OWNERSHIP-

a customer does not obtain ownership of a service once it has been bought.

© The McGraw-Hill Companies, 2009

22

INSE

PARA

BILI

TY

Using Technology to

overcome Inseparability

Overcome Inseparability by

TRAINING

© The McGraw-Hill Companies, 2009

26

How doe UFS tangibles their service offering?

Overcome Intangibility by

including tangible

objects and events with photographs

© The McGraw-Hill Companies, 200931 PERI

SHAB

ILIT

Y

© The McGraw-Hill Companies, 2009

33Overcome

Perishability

34

Overcome Perishability

© The McGraw-Hill Companies, 2009

35

Overcome Perishability

Overcome Perishability

© The McGraw-Hill Companies, 2009

37VA

RIAB

ILIT

Y

Using Technology to

overcome Inseparability

39

Clever advertisemen

t for Berlin Zoo which focuses on

the problem of variability in services – if you missed the animals

because they were hiding,

you can always come

back

Variability

People

Process

Physical

Evidence

People

Management

Employees Customers

People

Employing the Right People

EMPO

WER

MEN

T

Four Levels of Empowerment (pg. 493)

Suggestion involvement (suggestion box)

Quality circles (think-tank teams)

Job involvement High involvement (independence to employees)

Creating Service Processes

Formulate steps in the process.

Be aware of inconsistency.

Implement process regulations.

SERVICE BLUEPRINT

Serv

ice B

luep

rint

Used

by

Service Marketers

Creating realistic customer expectationsHuman

ResourcesEmpowering the human element

Operations Management

Rendering the service as promised

System Technology

Providing Necessary tools

© The McGraw-Hill Companies, 200963

Physical Evidence (pg. 497) Tangible representations of the

organisation: Physical facility or building where the service is offered,

signs and equipment, brochures, letterheads, business cards and even billing statements.

Cannot be possessed by customersContributes to the overall ambience of the service environment

Not the true service product but it confirms the existence or completion of a serviceItems that are actually possessed by the client as part of the service

ESSE

NTI

AL

EVID

ENCE

PERIPHERAL

EVIDEN

CE

TWO TYPES OF PHYSICAL EVIDENCE:

ESSENTIAL

EVIDENCE

Esse

ntial

eviden

ce

PERIPHERAL EVIDENCE

PERIPHERAL EVIDENCE

PERIPHERAL

EVIDENCE

PERIPHERAL

EVIDENCE

Dimensions of Physical Evidence

Atmospherics

Design and Layout

Communication

The servicescape framework - vital role in the reactions and behaviour of both employees and customer.

Servicescape

Three responses:

COGNITIVELY based response

appreciating the FUNCTIONALITY of a layout.

EMOTIONALLY based response

the design of the physical environment may take your BREATH AWAY OR MAKE YOU LAUGH.

PHYSIOLOGICALLY based responses

These include the MENTAL AND PHYSICAL REACTIONS of individuals.

COGNITIVE RESPONSE

EMOTIONAL response

Physiological response

Servicescape plays 4 important roles

PACKAGER the customer is given an idea of what to expect by how the service offer is packed.

FACILITATOR assisting both the customer and service employee to make the most of the opportunity.

SOCIALISER it conveys information about the consumer and employee’s expected roles and behaviour.

DIFFERENTIATOR it differentiates the service provider

from its competitors.

There is no point you spend millions on advertising, if your service is poor. An advert will bring the customer to your store- but the SERVICE experience is what will make them

RETURN!

We believe in ironing out any service problems before we conduct an official store opening event/ advertise a new branch. That is why we have a “service practice” period of approximately 3 months- to ensure we

are truly capable of delivering on our promise!

http://stadiumfastfoods.co.za/Virtual-Tour.html

Develop a Service Blueprint for the Stadium Fast Foods.

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