Service Offering
Service Offering
Chapter 3: Concepts:
Core and Supplementary
Elements
Planning and Creating Services
Service Vehicle
Frequency
In-flight
Transport Service
Pre- &
Postflight
Service Food &
Drink
Key
Tangible Elements
Marketing Positioning
(weighted toward evidence)
Intangible Elements
Source: Shostack
Augmenting the Core Product
Delivery Concept
Supplementary Nature of for Core Product
services offered Scheduling
Process
and delivered
Reservation
Cashier Valet
Parking
Business
Reception
Center
A Bed for the
Room Night in an
Service Elegant Private Baggage
Room with a Service
Bathroom
Wake-up Cocktail
Call Bar
Internet Entertainment/
Sports/ Restaurant
Exercise
What Happens, When, in What Sequence?
Time Dimension in Augmented Product (Fig 3.3)
Reservation
Parking Get car
Check in Check out
Internet Internet
Use
internet
room USE GUESTROOM OVERNIGHT
Porter
Pay TV
Meal
Room service
Maid Makes
Breakfast
up Room
Prepared
Simple Flowchart for Delivery of a
Possession-Processing Service
Possession Processing – Repair a DVD Player
Payment Consultation
Exceptions Hospitality
Safekeeping
KEY:
Facilitating elements
Enhancing elements
Not every core product is surrounded by
supplementary elements from all eight clusters
What
Supplementary People-processing and high-contact services tend to
have more supplementary services
Services
Should Be Market positioning strategy helps to determine which
supplementary services should be included
Offered
Firms that offer different levels of service often add
extra supplementary services for each upgrade in
service level
The Flower of Service:
Facilitating Services—Information
Customers often require information
about how to obtain and use a
product or service.
Examples of elements:
Core
Directions to service site
Schedule/service hours
Prices
Conditions of sale
Usage instructions
The Flower of Service:
Facilitating Services—Order Taking
Customers need to know what is
available and may want to secure
commitment to delivery. The
process should be fast and
Core smooth.
Examples of elements:
Applications
Order entry
Reservations and check-in
The Flower of Service:
Facilitating Services—Billing
“How much do I owe you?”
Bills should be clear,
Accurate, and intelligible.
Periodic statements of
account activity
Machine display of amount
due
The Flower of Service:
Facilitating Services—Payment
Customers may pay faster
and more cheerfully if you
make transactions simple
and convenient for them.
Core
Examples of elements:
Examples of elements:
Customized advice
Personal counseling
Management consulting
The Flower of Service:
Enhancing Services—Hospitality
Customers who invest time and effort in
visiting a business and using its services
deserve to be
treated as welcome guests—
after all, marketing invited them!
Greeting
Waiting facilities and amenities
Food and beverages
Toilets and washrooms
Security
The Flower of Service:
Enhancing Services—Safekeeping
Customers prefer not to worry about
looking after the personal
possessions that they bring with
them to a service site.
Core Examples of elements:
“Branded House”
“House of Brands”
e.g., Virgin Group
e.g., P&G
A Hierarchy of innovations
deliver existing products
with added benefits
New Service
Categories Product-line extensions Additions to current
product lines
Alternative delivery
Process-line extensions procedures
Addition of new
Supplementary or improved
facilitating or
service innovations enhancing
elements
Visible changes
Style changes in service design
or scripts
• Service processes affect not only customers, but
also cost, speed, and productivity with which
desired outcome is achieved
• Reengineering involves analyzing and redesigning
Reengineering processes to achieve faster and better performance
• Running tasks in parallel instead of sequence
Service can reduce/eliminate dead time
• Examination of processes can lead to creation of
Processes alternative delivery methods that constitute new
service concepts
• Add/eliminate supplementary services
• Resequence delivery of service elements
• Offer self-service options
• Services can be built around rentals: Alternatives to
owning a physical good and/or doing work oneself
• Customers can rent goods—use and return for a
fee—instead of purchasing them
• Customers can hire personnel to operate own or
Physical Goods rented equipment
• Any new durable good may create need for after-sales
as a Source Of services now and in future—possession processing
New Service • Shipping
• Installation
Ideas • Problem-solving and consulting advice
• Cleaning and maintenance
• Upgrades
• Removal and disposal
Creating Services as Substitutes for
Owning and/or Using GoodsRent(FigUse3.10)of a Physical
Own a Physical Good Good