Managing Services

What Services have you consumed today?

Service Definitions

Services are deeds, processes, and performances.Valarie Zeithaml & Mary Jo Bitner

A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer.

James Fitzsimmons

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Definition of Service Firms

Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives.

James Fitzsimmons

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Examples of Service IndustriesHealth Care

hospital, medical practice, dentistry, eye careProfessional Services

accounting, legal, architecturalFinancial Services

banking, investment advising, insuranceHospitality

restaurant, hotel/motel, bed & breakfast ski resort, rafting

Travelairline, travel agency, theme park

Othershair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design

Why Service Management?

Why Service Management?

Services dominate U.S. and worldwide economiesService as a business imperative in goods-focused businessesDeregulated industries and professional service needsService management is differentService leads to profits

Examples of Goods Companies that are Expanding into Services

Boeing

Goods Vs. Services

Characteristics of ServicesCompared to Goods

Intangibility

Perishability

SimultaneousProductionandConsumption

Heterogeneity

What do you see as the relationship between service and retail?

Marketing Mix

Traditional Marketing Mix

Elements an organization controls that can be used to satisfy or communicate with customers:

Product Price Place Promotion

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Expanded Mix for Services – The 7 Ps

ProductPricePlacePromotion

PeoplePhysical EvidenceProcess

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Father of the Bride hiring a wedding planner

http://www.youtube.com/watch?v=TFNlqU72wpY

What additional elements of the marketing mix for services do you see here?

Expanded Mix for Services – The 7 Ps

ProductPricePlacePromotion

PeoplePhysical EvidenceProcess

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The GAPS Model ofService Quality