1、1,service mangament2,2,O b j e c t i v e s,why service firms need a service concepthow service firms define a service concepthow service firms implement a service concept and the three steps that make up the implementations process,3,The Service Concept,A service concept is a blueprint that communic
2、ates to employees what service they should give and to customers what service they should expect to receive.,Source: Van Dierdonck, Van Looy and Gemmel, 1998,A service concept is the mental picture that is held by customers, employees and shareholders about the service provided by the organisationSo
3、urce: Johnston et al., 2000.,How ?,4,WHY DO WE NEED A SERVICE CONCEPT?,As with all products, services address a range of different customer needs. As a result, any product should be defined in terms of customer needs.,5,With tangible products these needs are translated into specific (technical) char
4、acteristics and product specifications. Once defined, product development, production and even marketing all focus on these characteristics and specifications. With services, such a natural central and focal point does not exist. This is one of the reasons why in the service sectors it is important
5、to be more explicit about the nature of the product or what we call the service concept.,6,What activity will be contacted with customer in industrial sector ?,The service concept is also important in the management of services because of the extent to which the service delivery system is in direct
6、contact with the customer. What activity will be contacted with customer in industrial sector ?,7,What activity will be contacted with customer in industrial sector ?,In industrial sectors, those who are designing, producing and distributing the product are rarely in direct contact with the customer
7、.,8,The service concept is also important in the management of services. Furthermore, we need to be more explicit about the service concept because of the much greater danger of dilution of the concept.,9,How defining a service concept?,Three questions:What are the important elements of the services
8、 to be provided, stated in terms of results, produced for the customer, for the employee and the company ?How are these elements supposed to be perceived by the target market segment ? By the market in general ? By the employee ? By others ?What effort does this suggest in terms of designing, delive
9、ring and marketing the services ?,10,While it is clear that a service concept needs to address customer needs, it is also important that a service concept in service organizations addresses employee needs.,11,In defining the service concept, we must think in particular about the impact on personnel,
10、 both in terms of skills and personal characteristics:Skills. Staff must be adequately qualified to serve specific customer segments. Investment brokers, for example, do not like to handle routine financial transactions, and, moreover, their time is too expensive for them to perform such tasks.Perso
11、nal characteristics. In the example of ISS, the personal characteristics of the employees will determine whether or not they will be able to function within the organization. Someone who is not able to develop self-respect will possibly have to leave the company.,12,Finally, when defining the servic
12、e concept, the requirements for the other elements of the service system and the perception of these elements by customers and employees must be considered,13,When defining a service concept, a service firm must try to preserve consistency between the front- and back-office elements of the service s
13、ystem.,14,Once the service concept has been defined, it will have a major impact on the components of any service delivery system as one will notice as soon as one starts with implementation,15,IMPLEMENTING THE SERVICE CONCEPT,Given the heterogeneity of the needs of customers and employees and the v
14、ariability introduced through the interaction between customers and employees, implementing the notion of a service concept is a difficult balancing act. To do this successfully, three tasks are particularly crucial: segmenting the market, targeting the various customer segments and designing the de
15、livery system, which includes both operations and technology as well as the role and competencies of employees.,16,Segmenting markets,Since different customers have different needs and expectations, it is essential to analyse the market and to define the different segments that exist.Each segment co
16、ntains customers who have more or less the same needs and therefore can be treated as one single submarket.,17,In the tourist sector, for instance, a segmentation could be based on the purpose of travel business or recreation.,18,In segmenting markets, two broad groups of variables are generally use
17、d:,the benefits sought; andthe customer characteristics,19,Illustration of market segmentation: buyer expectations of various do-it-yourself stores according to the buying situation,20,Targeting market segments,As each segment has significantly different needs, the service offered should be customiz
18、ed for each segment. Competitors who try to be everything to everybody by offering a standardized service concept to all segments will find themselves to be the second best solution for each segment, whenever a more appropriate product is available.,21,In evaluating different markets, the firm must
19、look at two factors: the overall attractiveness of the segment and its compatibility with the organization itself. The attractiveness of a segment depends on its size and on how well it is already being served.,22,Focusing the service delivery system,the consequent implementation of a defined servic
20、e concept targeting a market segment AND fit of the infrastructure and the organisation on the customer needskeeping coherence over the different components of the service system - internal communication -separating front-office and back-officefocused factories,23,The service concept: main ingredients,Figure 2.2 The service concept: main ingredients,24,WHY NOT ALL SERVICE CONCEPTS ARE ALIKE ?,
