GIVING A SHAPE TO THE SERVICE

Giving a shape to the service is the next task. In order to carry it out, the service marketer must have a good grasp of the following ideas.

Service benefits:
Earlier, we mentioned that service marketers must thoroughly understand the nature of the service. What we mean is that the service marketer must be clear about the service benefits involved in the concerned case. Service benefit simply means customer benefit resulting from the service. It is bedrock of any service product.

Service Expectation:
Service expectations refer to the service benefits, which customers seek from the service. Service marketers must be clear about the benefits customers seek from the service. The whole service concept has to be based on the benefits customers seek and which the marketers is willing to provide.

Service offer:
Service offer means the bunch of benefits that is offered by the firm in the service. The service marketer has to decide what benefits should be put into the service package. Obviously, this decision has to stem from the customer service expectation (what benefit do customers seek from the service?). The success of a service depends on how closely the services offer matches the service expectation.

Service elements are just an elaboration of service offer. Conversely, service elements collectively constitute the service offer. The term service offer denotes the various service benefits that are to be passed on to customers. Usually, service elements in a service offer will consist of tangible as well as intangible components.

Service form explains in what way (or how) the service is to be provided.

Service level/quality/standard explains what quality and how much of service is to be provided. Deciding unambiguously the service level/quality standard which the firm would commit in its service offer is an important part of giving a shape to the service.

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In India too, the service sector has been emerging as the dominant component of the economy. Agriculture and industry are growing at a slower pace, while services are growing more rapidly. Share of services in the country’ GDP has increased from 36 percent in 1980-81 to 44 per cent in 1997-98. In the latter year, the share of services was in fact, just 25 per cent in 1955-56. It increased to 40 per cent in 1987-88 and 46 per cent 1999-2000.

It seems that the notion that the majority of the people need only roti, kapda and makan has to be given up. Even the poor seem to need and be availing of several services, especially the ones like education, entertainment, information and healthcare. The middle class and the affluent are, of course, availing of a much larger variety of services, including dining out, and travel.

Certain types of services have been growing particularly rapidly. Higher education services is one example. Health care is another. Financial services is yet another. Health care has, in fact, become the fastest growing sector of the economy, growing at a compound rate of 26 per cent annually between 1993-2000. Entertainment too is now among the fastest growing sectors. Spending on hotels and restaurants has grown at a compound rate of 18 per cent. Services backed by technology and equipment, like vending machines, coffee and sandwich dispensing machines, computerized patient history records, etc., have also registered good growth.

COMPONENT TASKS IN SERVICE MARKETING


UNDERSTANDING THE NATURE OF THE SERVICE

As a starting point in understanding the nature of the service, the marketer should figure out what exact need is met by the services. It gives the basic clue to its nature. It gives the basic clue to its nature. Some services are directed at people while others are directed at goods, through in the final analysis both aim at satisfying people. For example, entertainment is directed at people while dry-cleaning is directed at goods (clothes). Again, out of the services directed at people bodies, those directed at people’s minds, and those directed at their bodies as well as minds. An analysis from this angle will give some additional clues on the nature of the services.

UNDERSTANDING THE CUSTOMER AND HIS EXPECTATION OF THE SERVICE

Services marketers must understand the customers well and correctly size up their expectations of the service. For this, they must obviously carry out a thorough customer analysis. The important point is that customer analysis in a service context involves first-hand and not second-hand knowledge about the customers. The sales and service staff must be encouraged to make plenty of personal contacts with the customers and gather relevant first-hand data on their requirements/expectations of the service.