The text in red is for my own reference
Module 1 : Dushyant : August 14, 2015
If there is a severe financial problem first check if value (willingness to pay) is getting created among the right type of customer. In service business the value is embedded in the encounters. Hence the question is this case was whether the right kind of customers (prepared in the right way and having right expectations) are coming in front of the right kind of service providers (who are prepared for such customers) at the right location under the right servicescape ( interiors, equipment, process ). And classroom is not the only encounter ... outbound / inbound phone calls , business development calls and after training invoicing calls and regular CRM are all planned encounters.
Academic Group 3:
Module 1 : Dushyant : August 14, 2015
If there is a severe financial problem first check if value (willingness to pay) is getting created among the right type of customer. In service business the value is embedded in the encounters. Hence the question is this case was whether the right kind of customers (prepared in the right way and having right expectations) are coming in front of the right kind of service providers (who are prepared for such customers) at the right location under the right servicescape ( interiors, equipment, process ). And classroom is not the only encounter ... outbound / inbound phone calls , business development calls and after training invoicing calls and regular CRM are all planned encounters.
Academic Group 3:
Abhijit Pratap Singh
GautamRastogi
JomsonPerayil
Veerabhathran A
Case Study:
Dilemma at Dushyant Corporate Trainers (DCT)
Mistakes
identified by the group 1 and 2:
Mistakes by Dinesh
·
The Internal
demand is less than expected for Dushyant but the company is primarily formed
to focus on the external business other than AVL’s.
·
The principals
on which DCT is formed are not sound.
·
The DCT is not
based on AVL’s core competencies
·
AVL formed the
company too soon, they should had made a division first to enable slow or
controlled rollout of business.
Mistakes by Dushyant
·
Contract based
Business Development managers may not create effective demand
·
Temporary
trainers may not provide effective offerings by company
·
Dushyant is
good with operation but he may not be the same with management
·
DCT is looking
more towards AVL for business for increasing their topline, they should rather
focus on external business.
·
DCT is
incurring high administrative costs.
A scenario mainly reflects the symptoms, to identify the main
rootcause an analysis is required for value proposition in the business.
Question worth asking for:
1. Value creation: is value being created or
not?
2. Value multiplication / Scaling up /
correction: value is willingness to pay. Is there something offered by DCT what
their customers are willing to pay for?
3.
The value
offered by DCT is targeted to the right customer or not?
4.
Why board
meetings are often high-jacked by financials?
Defining Value creation:
Product
Product
value may be inside the box or may not be
Marketing
mix comprises of Price/Product/ place / promotion- Specs, BOM, QA
Unit could be owned
Service
Embedded
in experience (i.e. people)
Marketing
mix for service comprises of People / process / proof
Service is rented based on: Time& Space
Example of theatre: the seat is rented for a
time to experience the service
Example of power-point and presentation: the
power point is the product whereas the presentation is the service which we
can’t productise
·
Product-isation
of service – bundling services in different format (Audio Visual)
Consuming Service:
Architecture of an encounter
Semis-cape
(space, interior, equipment)
Provider (Employee) Customer
Location
(co-creation)
Semis-cape –
Comfort
equipment: A/C, hot water etc
Operation: computer, projector etc.
Service flower example: main flower, multiple
flower, supporting services
Role
of architecture of service creator is to bring customer in front of right
provider!
Example:
Vehicle loan: interest rate is same not much customisation
(majorly product)
- If you can quickly scale up something: product
Tailored suit: highly customisation (Service)
- If you can’t quickly scale up something: services
- Services are difficult to replicate
- Implies that the provider dependence is high
- Person matter more than product – benefit is
in the person (Brand disassociation)
Product: Quality: Inspect-able
Experience:Pay first thus more reliance on
feedbacks and reviews (word of mouth)
Belief – Balaji temple
Why role of customer
satisfaction:
1.
It’s
a leading indicator of consumer repurchase intentions and loyalty
2.
It’s
a point of differentiation
3.
It
reduces customer churn
4.
It
increases customer lifetime value
5.
It
reduces negative word of mouth
6.
It’s
cheaper to retain customers than acquire new ones
Right questions to
ask:
As
Dushyant: How service encounter is designed?
------------------------------------------------------------------------------------------------------------
Services Marketing
Class Notes for Module 1-Session 2
14/08/2015
Group-4
Compiled By:
Academic Group #4
Abhishek Mehra
(PGPM1114-006)
Jasmeet Singh Suri
(PGPM1114-043)
Nikunj Jain
(PGPM1114-095)
Samita Seth
(PGPM1114-111)
Key Discussions
In continuation from the previous session…
Value creating differs significantly between a product and a service as
outlined in Table-I below:
Product
|
Services
|
The value of a
product is embedded in the physical product
|
The value of a service is embedded in
experience
|
The source of
value of a product is generally in machine
|
The source of value for a service are the
people
|
Products are
made to stock
|
Services are ideally made to order
|
Pricing of a
product is based on units
|
Services are sold in terms of time and
space
|
Products can be
owned
|
Services may either be leased or rented
|
Marketing Mix of
a product includes the 4Ps-Product, Price, Place and Promotion
|
Marketing Mix of a service includes the
6Ps-People, Process, Proof, Price, Place and Promotion
|
May involve
impulsive purchases
|
Services require time for delivery
|
In product
marketing, customers may be given a delivery date estimate
|
Services are created after they are ordered
and delivery times vary
|
Products often
come in a box
|
Services cannot be boxed and are generally
customized
|
Products can be
easily scaled up
|
Services cannot be easily scaled up and are
difficult to replicate
|
Table-I
·
In practical situations, products and services are seldom sold in
isolation- they are bundled together.
·
Manufacturing of services is based on the concept of ‘architecture of
encounter’ as described in Figure-I.
Such an encounter is termed as co-creation since the customer must be
physically present for the encounter to take place.
·
The major responsibility of a service encounter designer is to ensure
that the right customer presents in front of the correct service provider under
the optimum service cape and the right location.
·
A filtration process at both ends of the encounter may often facilitate/
increase the probability ofmeeting the right customer and service provider.
·
The above figure highlights the critical role of the service provider in
the encounter. Service businesses always have a face. Hence, when the face
leaves the firm, the business of clients also often leaves with it.
·
Within the service cape, equipment may be of 2 types:
-Comfort:
for the teaching business, this may include teaching lounges, air conditioners
etc.
-Operating:
Projectors, Laser pointers, mouse/keyboard, PC etc.
·
When a core business is surrounded by several supporting services, the
arrangement is termed as a service flower. In certain business settings, there
may be multiple service flowers. Eg: Within a hospital, there are numerous
departments such as Radiology, Cardiology, Pathology etc. Each department
functions as a standalone service flower.
·
Products comprise of three broad customer qualities:
-Inspectable:
most qualities fall under this category. These qualities can be tested prior to
purchasing. Eg: performance, durability etc.
-Experience:
a customer must pay upfront in order to experience these qualities. Generally
customers rely on word of mouth to gauge experience qualities. Eg: reputation
of a physician
-Belief-
include those qualities which customers trust such as brand name of the
product.
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