Wksht Chapter 3 Developing Service Concepts – Core and Supplementary Element

Developing redevelopment Concepts Core and Supplementary Element Overview of Chapter 3 * formulation and Creating work * The florescence of function * Planning and stigmatisation profit results * Development of New armed function I.Planning and Creating Services * A serve up proceeds comprises all elements of operate performance, both tangible and intangible, that produce value for customers * The receipts concept is represented by * A ________________ * Accompanied by ________________ ________________ Core Products and Supplementary Services * In mature industries, marrow squash harvest-homes often become commodities * Supplementary serve help to differentiate plaza products and create competitive advantage by * Facilitating use of spirit product (a redevelopment or a good) * Enhancing the value and appeal of the meat product Augmenting the Core Product (Fig 3. 1) * Are secondary run needed to comfort use of core product or simply to add extra appeal? * Shoul d customers be charged separately for each service element? * Or should all elements be bundled at a single price? Designing a Service Concept * ________________ * Central component that supplies the principal, problem-solving benefits customers seek * ________________ * Augment the core product, facilitating its use and enhancing its value and appeal * ________________ * Used to deliver both the core product and each of the subsidiary function Documenting Delivery Sequence Over sequence * Must address sequence in which customers will use each core and supplementary service * Determine approximate length of time needed for each step * Customers may budget a specific amount of time for an activity * Information should reflect good understanding of customers, especially their * ________________ * ________________ * ________________ * doubt Do customers judgeations change during service delivery in light of perceived quality of each sequential encounter? What Happens, When, in What Sequence? Time mark in Augmented Product (Fig 3. 3) Core and Supplementary Services at Luxury Hotel (Offering Much More than Cheap Motel ) flowcharting Service Delivery Helps to Clarify Product Elements * Offers way to understand totality of customers service experience * Useful for distinguishing between core product itself and service elements that supplement core * Restaurants solid food and beverage (core) * Reservations (supplementary services) * Shows how nature of customer involvement with service organizations varies by type of service * mass bear on * Possession touch oning * Mental Stimulus processing * Information processing Defining Core and Supplementary Elements of Our Service Product * How is our core product delimitate and what supplementary elements augment it? * What product benefits create nearly value for customers? * Is our service package differentiated from competition in meaningful ways for target customers? * What are current levels of service on core product and each supplementary element? * Can we charge more for higher service levels?For example * Faster response and execution * Better physical conveniences * Easier access * Higher staffing levels * Superior caliber personnel * Alternatively, should we cut service levels and charge less? Simple Flowchart for Delivery of a ________________-Processing Service (Fig 3. 4) People Processing Stay at Motel Park Car Check In Spend Night in Room breakfast Check Out Breakfast Prepared Maid Makes up Room Simple Flowchart for Delivery of a ________________-Processing Service (Fig 3. 4) Simple Flowchart for Delivery of ________________-Processing Service (Fig 3. 4) Simple Flowchart for Delivery of ________________-Processing Service (Fig 3. 4) II. The Flower of Service (Fig 3. ) How to Determine What Supplementary Services Should Be Offered * Not every core product is surrounded by supplementary elements from all eight clusters * Nature of product helps to determine * Which supplementary services must be offered * Which might usefully be added to enhance value and lighten of doing business with the organization* People-processing and high-contact services tend to have more supplementary services * Market positioning strategy helps to determine which supplementary services should be included * Firms that offer different levels of service often add extra supplementary services for each upgrade in service level Facilitating Services_______________ Customers often require information about how to obtain and use a product or service. Examples of elements * Directions to service site * Schedule/service hours * Prices * Conditions of sale * usance instructions Facilitating Services_______________ Customers need to know what is available and may want to secure commitment to delivery. The process should be fast and smooth. Examples of elements * Applications * Order entry * Reservations and check in Facilitating Services_______________ How much do I owe you ? Bills should be clear, Accurate, and intelligible.Examples of elements * Periodic statements of account activity * Machine display of amount due Facilitating Services_______________ Customers may pay faster and more cheerfully if youmake transactions simple and convenient for them. Examples of elements * Self service payment * Direct to payee or intermediary Automatic demonstration Enhancing Services_______________ Value can be added to goods and services by offering advice and consultation tailored to each customers needs and situation. Examples of elements * Customized advice * Personal centering * Management consulting Enhancing Services_______________ Customers who invest time and effort in visiting business and using its services deserve to be treated as delightful guests after all, marketing invited them Examples of elements * Greeting * Waiting facilities and amenities * Food and beverages * Toilets and washrooms * Security Enhancing Services_______________ Customers pr efer not to worry about looking after the personalized possessions that they bring with them to a service site. Examples of elements * Looking after possessions customers bring with them * Caring for goods purchased (or rented) by customers Enhancing ServicesEXCEPTIONS Customers appreciate some flexibility when they make special requests and expect responsiveness when things dont go according to plan.Examples of elements * Special requests in advance * Complaints or compliments * Problem solving * Restitution Managerial Implications (To bugger off product policy and pricing strategy) * Managers need to determine * Which supplementary services should be offered as a standard package accompanying the core * Which supplementary elements could be offered as options for an extra charge * In general, potents that compete on a low-cost, no-frills basis needs fewer supplementary elements than those marketing expensive, high-value-added services * Each flower petal must receive consistent care and concern to remain fresh and appealing III. Planning and Branding Service ProductsService Products * A product implies a defined and consistent _____________________ and also ability of potent to differentiate its bundle of output from competitors * Service firms can differentiate their products in similar fashion to various models offered by manufacturers * Providers of more intangible services also offer a _______________ of products * Represent an assembly of elements that are built rough the core product * May include certain value-added supplementary services Product Lines and Brands * Most service organizations offer a line of products rather than fitting a single product * They may choose among three broad alternatives * Single punctuate to c everywhere all products and services * A separate, stand-alone brand for each offering * Some combination of these 2 extremes Spectrum of Branding Alternatives (Fig 3. 8) * brand House Sub brands Endorsed Brands House o fBrands Offering a Branded Experience (1) * Branding can be employed at both _______________ and _______________ levels * _______________ brand * Easily recognized * Holds meaning to customers * Stands for a particular way of doing business * _______________ brand * Helps firm communicate distinctive experiences and benefits associated with a specific service concept * Moving toward branded customer experience includes * Create brand portend * Shape actually differentiated customer experience * Give employees skills, tools, and supporting processes to deliver promise * Measure and monitor Offering a Branded Experience (2) The brand promise or value proposition is not a tag line, an icon, or a color or a graphic element, although all of these may contribute.It is, instead, the brass and soul of the brand. Don Schultz IV. Developing New Services A Hierarchy of New Service Categories (1) 1. Major service innovations * New core products for antecedently undefined markets 2. Major p rocess innovations * Using unused processes to deliver existing products with added benefits 3. Product-line extensions * Additions to current product lines 4. Process-line extensions * Alternative delivery procedures 5. Supplementary service innovations * Addition of sassy-sprung(prenominal) or improved facilitating or enhancing elements 6. Service improvements * Modest changes in the performance of current products 7. way changes * Visible changes in service design or scripts Reengineering Service Processes * Service processes affect not only customers, but also cost, speed, and productivity with which desired outcome is achieved * _______________ involves analyzing and redesigning processes to achieve faster and better performance * Running tasks in tally instead of sequence can reduce/eliminate dead time * Examination of processes can lead to creation of alternative delivery methods that constitute invigorated service concepts * Add/eliminate supplementary services * Resequ ence delivery of service elements * Offer self-service ptions Physical untroubleds as a Source Of New Service Ideas * Services can be built around rentals Alternatives to owning a physical good and/or doing work oneself * Customers can rent goodsuse and return for a feeinstead of purchasing them * Customers can hire personnel to operate own or rented equipment* Any new durable good may create need for after-sales services now and in futurepossession processing * Shipping * Installation * Problem-solving and consulting advice * Cleaning and maintenance * Upgrades * Removal and disposal Creating Services as Substitutes for Owning and/or Using Goods (Fig 3. 10) Achieving Success in Developing New Services * Services are not immune to high failure rates that abuse new manufactured products * dot. com companies * In developing new services * Core product is of secondary importance * Ability to maintain quality of the total service offering is key * Accompanying marketing support activ ities are vital * Market knowledge is of utmost importance Success Factors inNew Service Development * _______________ * Good fit between new product and firms image/re ancestrys * Advantage versus competition in meeting customers needs * Strong support from firm during/after launch * Firm understands customer purchase decision behavior * _______________ factors * Strong interfunctional cooperation and coordination * Internal marketing to educate staff on new product and its competition * Employees understand importance of new services to firm * _______________ factors * Scientific studies conducted early in development process * Product concept well defined before undertaking field studies Summary of Chapter 3 Developing Service Concepts (1) * Planning and creating services involve * Augmenting core product * Designing core product, supplementary services, and delivery process * Documenting delivery sequence over time with flowcharts * Gaining insights from flowcharting* Flower of service includes core product and two types of supplementary ervices facilitating and enhancing * Facilitating services include information, put together taking, billing, and payment * Enhancing services include consultation, hospitality, safekeeping, and exceptions * Spectrum of mark alternatives exists for services * Branded house * Sub-brands * Endorsed brands * House of brands * Seven categories of new services * Major service innovations * Major process innovations * Product-line extensions * Process-line extensions * Supplementary service innovations * Service improvements * Style changes * To develop new services, we can * Reengineer service processes * Use physical goods as a source of new service ideas * Use research to design new services * earn success in developing new servicesSummary of Chapter 3 Developing Service Concepts * Planning and creating services involve * Augmenting core product * Designing core product, supplementary services, and delivery process * Docum enting delivery sequence over time with flowcharts * Gaining insights from flowcharting * Flower of service includes core product and two types of supplementary services facilitating and enhancing * Facilitating services include information, order taking, billing, and payment * Enhancing services include consultation, hospitality, safekeeping, and exceptions * Spectrum of branding alternatives exists for services * Branded house * Sub-brands * Endorsed brands * House of brands * Seven categories of new services * Major service innovations * Major process innovations * Product-line extensions * Process-line extensions * Supplementary service innovations * Service improvements * Style changes * To develop new services, we can * Reengineer service processes * Use physical goods as a source of new service ideas * Use research to design new services * Achieve success in developing new services Summary of Chapter3 Developing Service Concepts * Planning and creating services involve * Augm enting core product * Designing core product, supplementary services, and delivery process * Documenting delivery sequence over time with flowcharts * Gaining insights from flowcharting * Flower of service includes core product and two types of supplementary services acilitating and enhancing * Facilitating services include information, order taking, billing, and payment * Enhancing services include consultation, hospitality, safekeeping, and exceptions * Spectrum of branding alternatives exists for services * Branded house * Sub-brands * Endorsed brands * House of brands * Seven categories of new services * Major service innovations * Major process innovations * Product-line extensions * Process-line extensions * Supplementary service innovations * Service improvements * Style changes * To develop new services, we can * Reengineer service processes * Use physical goods as a source of new service ideas* Use research to design new services * Achieve success in developing new services Summary of Chapter 3 Developing Service Concepts * Planning and creating services involve * Augmenting core product * Designing core product, supplementary services, and delivery process * Documenting delivery sequence over time with flowcharts * Gaining insights from flowcharting * Flower of service includes core product and two types of supplementary services facilitating and enhancing * Facilitating services include information, order taking, billing, and payment * Enhancing services include consultation, hospitality, safekeeping, and exceptions * Spectrum of branding alternatives exists for services * Branded house * Sub-brands * Endorsed brands * House of brands * Seven categories of new services * Major service innovations * Major process innovations * Product-line extensions * Process-line extensions * Supplementary service innovations * Service improvements * Style changes * To develop new services, we can * Reengineer service processes * Use physical goods as a source of n ew service ideas * Use research to design new services* Achieve success in developing new services Summary of Chapter 3 Developing Service Concepts * Planning and creating services involve * Augmenting core product * Designing core product, supplementary services, and delivery process * Documenting delivery sequence over time with flowcharts * Gaining insights from flowcharting * Flower of service includes core product and two types of supplementary services facilitating and enhancing * Facilitating services include information, rder taking, billing, and payment * Enhancing services include consultation, hospitality, safekeeping, and exceptions * Spectrum of branding alternatives exists for services * Branded house * Sub-brands * Endorsed brands * House of brands * Seven categories of new services * Major service innovations * Major process innovations * Product-line extensions * Process-line extensions * Supplementary service innovations * Service improvements * Style changes * To develop new services, we can * Reengineer service processes * Use physical goods as a source of new service ideas * Use research to design new services * Achieve success in developing new services