MANAGEMENT OF SERVICES MARKETING2

8/7/2019 MANAGEMENT OF SERVICES MARKETING2

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PERFORMANCE MEASUREMENTy Performance measurement is commonly used in the case

of products

y In case of services, due to their variable & perishablenature, the performance measurement were not applieduniversally

y However, due to increasing competition in the servicessector, it is becoming essential to have performancemeasurement



PERFORMANCE MEASUREMENTPerformance measurement can be broadly defined as theability to

y

Identify desirable servicey Identify the measures of desirable service

y Identify the key resources to provide the service

y Measure the service performance

y Measure the resource use & expenditure in delivering therequisite service



PERFORMANCE MEASUREMENTy Productivity is the ability of the organization to produce

what the customers want & the ability to use theresources efficiently in order to produce the desirableservice

y Productivity is the measure that tells us about themanner in which resources are being used to producedesirable output

y Eg: No. of buyers / No. of total stores visitors

(Measures to indicate success rate amongst the footfalls)



PERFORMANCE MEASUREMENTy Not all the services are equally amenable to the quantitative

analysis

y

Wherever the quantitative content is higher thanqualitative content, output or efficiency can be effectively measured

y In the case of services that are high in qualitativemeasurements, such standards as number of operations

performed per day, would not be true measures



ASSOCIATED MEASUREMENTSy Efficiency it is the measure of the rate or speed with which the

input is converted into output

y Emphasis is on securing maximum output from the minimumusage of the resources

y This is a purely quantitative measure of performance

y Eg: in the case of retailing, getting highest turnover per sq. m. of shelf space will be a strong measure of its efficiency

y Effectiveness this indicates the extent to which the goal isachieved

y Eg: a management institute can be deemed effective if itmanages to secure high profile & high salary jobs for its students



ASSOCIATED MEASUREMENTS

INEFFECTIVE EFFECTIVE

INEFFICIENT Business dies quickly Business sur vives

EFFICIENT Business dies slowly Business thr ives



HOW TO IMPROVE ORGANIZATIONAL

PRODUCTIVITY?

y Cost of control

y Use of technology y Achieve parity between skills requirements &

availability

y Customer participation

y Husbanding the high profile skills



USE OF TECHNOLOGY FOR PERFORMANCE

ENHANCEMENT & CONTROL

~ Control of services means ability to manage theencounters between the service provider & the customersin a manner that will give greater satisfaction to thecustomer

~ use of technology in the services

--- technology is available on a 24hr, 365 day basis

--- service delivery using technology is always high class

--- running cost of electronic technology are not high

--- processing speeds high



CUSTOMER ENCOUNTER MANAGEMENT

y One of the key areas of control to be exercised in servicedelivery is the management of the customer encounters

Types of encounters:

y Dir ect per sonal encounter

y Eg: doctor sees a patient in dispensar y

yIndir ect per sonal encounter

y Eg: one could get advice on buying/selling of secur ities bysubscr ibing to a new business letter

y C ascade encounter s




Factors Influencing the Encounters:

y Expectations management

y Service delivery rules

y Ambience

y Training

Personal Factors which Influence the encounter:

y Proximity or distance from the customery S ocial or formal distance for business pur poses (1.5-3mts)

y Per sonal distance (0.5-1.2mts)

y Intimate distance (15-50 cms)




y Posture

y The gaze

y The facial expressions

y The voice & tone

The sources of delight & displeasure in an encounter

y The recovery

y Adaptability

y Spontaneity

y Coping

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MANAGEMENT OF SERVICES MARKETING2