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Service Marketing Notes 服務(wù)營(yíng)銷 Dr. FEI xiaoqiang May 24, 2023 What is Traditional Service ? The traditional service – finance, – Logistics – Hospital – Restaurant – Hair styling – Hotel – …… What is service ? Everything can be service ? Even the manufacturer can be work in the service mode, or provide the service to support the product – YuanDa is a air condition provider – Today they provide the temperature solution instead to sell directly the air conditioner ? Service are deeds, processes, performances and experiences Key point, you need to change you mind What is service ? the percentage of the service in GDP – China 30%, plan to increased to 60% in 2023 ? Shanghai, government strategy: developing the service in Finance, Logistic service center and Biomedical technology ? Haier, the service strategy – HK95% – US75% – EU70%80% What is service ? The service is the pany interacting with the customer through process, tech,… to achieve the customer target to improve petition with happy experience ? Service is the major basis of differentiation Service is not servitude ? 服務(wù)不是低聲下氣 ? 服務(wù)是在平等的基礎(chǔ)上的業(yè)務(wù)關(guān)系 The Customer problem: How do I manage my logistic at low cost? Target Improve petition The pany Activity (process, technology,…with customer) Interactivity To achieve Provide happy experience to the customer Meaning of definition of Service 1 1. Product/service itself is not important – What important to customer is the OUTCOME 2. Managers need to find the OUTCOME(hidden need) of the customers IBM: Perceived need Computer Real need Store data Communication Analysis ……. Hidden need Decision making better and faster in order to run pany better Meaning of definition of Service 2 3. Intangible – Service is intangible 4. Change mindset to start to operate in a new model Product centric model ?Sell product ?Oneoff transaction ?Revenue oneoff ?Partial view of customer needs/requirement ?Limited interaction Service centric model ?Solution to a problem ?Continues transaction ?Revenue stream ?Holistic view of customer needs/requirement ?Create customer intimacy VS. Bank is a service centric pany but bank can operate in a product centric model Vice verse also can worakable?every thing can be service! What is service quality ? Customer look quality in 3 angles: – Oute – Interaction – Environment(physical) Sometime Oute , poor Interaction, good Environment, good Customer satisfied But Oute , very good Interaction, poor Environment, poor Customer not satisfied What is service quality ? The pany should provide – Search quality – Experience quality – Credence quality How to change the intangible service into tangible Before ? Search Quality During ? Experience Qaulity After ? Credence Quality Search Quality Experience Quality Credence Quality Are Tangible Service is intangible Change “intangible” to “Tangible” Based in the execution Before, During and After the execution The different view of the service Qaulityfrom customer and the pany From the customer point view, there are 3 points decided the quality of the service ? Result/oute ? Interaction ? Environment(physical) From the pany point of view, there are 5 points can reach the quality service ? Reliability ? Assurance ? Empathy ? Responsive ? tangible Customer role in the service ? Customer can be thought of as “partial employee” ? “to provide the great service experience, provide no service”Ebay Customer are partial of the pany employee ? Customer will be more satisfied – Because they a re part of the work and enjoy the experience they have during the work ? Customer will be less dissatisfied – Because they join the work and take a part of the responsibility ? Reduce the cost – Because they do the contribution Manage the customer(expectation) before/during/after the service ? Reward the customer ? Punish the customer Market Mix for service:7Ps ? Product ? Price ? Place ? Promotion ? People ? Physical evidence ? Process ? Customer requirement ? Customer cost ? Customer con