Lecture 8 Flashcards
What are the four basic strategic elements?
Product, price, place, and promotion
What are the 8 P’s of service management?
People
Physical evidence
Promotion and education
Process
Productivity and quality
Place and time
Price and other costs of service
Product elements
What does People describe?
It describes the nature of personal interaction between customers and employees during a service. This includes technical skills, communication skills, and interpersonal skills
What does Physical Evidence describe?
This is meant to insure a good physical impression by maintaining the appearance of the building, interior, furnishing, staff members, cleanliness, printed material… etc.
What does promotion and education describe?
It describes the effectiveness of a firm’s marketing strategy and the educational nature of them to introduce new customers to the company
What does Process describe?
It describes the implementation of the effective process. In other words the method and sequence in which service operating system
What does Productivity and Quality describe?
It describes the productivity of the firm and the quality of the products they produce
What does Place and Time describe?
It describes the importance of the time factor and how customers have to be physically present to receive service from organizations.
What does the Price and other costs of service describe?
It describes the management responsibilities that are not limited to the traditional pricing tasks of establishing the selling price to customers, setting trade margins, and establishing credit terms
What does the Product Elements describe?
It describes the features that must be selected for both the core product and the bundle of supplementary services elements surrounding it
What is the service sector?
The service sector is remarkably diverse. It comprises a wide array of industries that sell to individual consumers and business customers, as well as to government agencies and nonprofit organizations
What is the service industry in governments?
Offer services through courts, employment services, hospitals, loan agencies, military services, police and fire departments, postal service…
What is the service industry in the private non-profit organization?
Offer services through museums, charities, churches, colleges, foundations and hospitals.
What is the service industry in a large number of business organizations?
Offer services - airlines, banks, hotels, insurance companies, consulting firms, law practices, real estate firms
What is a service?
A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
What is a good?
Is described as objects and things
What is a service?
Is described as deeds, efforts and performances
What is a product?
Is described as either a good or a service
What are manufacturing strategies for service firms?
Just like manufacturing businesses, services firms use marketing to position themselves strongly in the chosen target market
What is the service-profit chain?
Successful service companies focus their attention on both their employees and customers
They understand the service-profit chain, which links profits with employee and customer satisfaction
What are the 2 links of service chains?
Satisfied and loyal customers: satisfied customers who remain loyal, repeat purchase, and refer other customers
Internal service quality: superior employee selection and training, a quality work environment, and strong support for those dealing with customers
What is internal marketing?
Means that the service firm must effectively train and motivate its customer-contact employee and all the supporting service people to work as a team to provide customer satisfaction
What is interactive marketing?
Means that perceived service quality depends heavily on the quality of the buyer-seller interaction during the service encounter
How can firms manage service quality?
One of the major ways a service firm can differentiate itself is by delivering consistently higher quality than its competitors do.
