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1、service mangament21O b j e c t i v e snwhy service firms need a service conceptn how service firms define a service conceptn how service firms implement a service concept and the three steps that make up the implementations process2The Service ConceptA service concept is a blueprint that communicate
2、s to employees what service they should give and to customers what service they should expect to receive.Source: Van Dierdonck, Van Looy and Gemmel, 1998A service concept is the mental picture that is held by customers, employees and shareholders about the service provided by the organisationSource:
3、 Johnston et al., 2000.How ?3WHY DO WE NEED A SERVICE CONCEPT?nAs with all products, services address a range of different customer needs.nAs a result, any product should be defined in terms of customer needs.4nWith tangible products these needs are translated into specific (technical) characteristi
4、cs and product specifications. Once defined, product development, production and even marketing all focus on these characteristics and specifications. nWith 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 to be mo
5、re explicit about the nature of the product or what we call the service concept.5What activity will be contacted with customer in industrial sector ?nThe service concept is also important in the management of services because of the extent to which the service delivery system is in direct contact wi
6、th the customer.nWhat activity will be contacted with customer in industrial sector ?6What activity will be contacted with customer in industrial sector ?nIn industrial sectors, those who are designing, producing and distributing the product are rarely in direct contact with the customer.7nThe servi
7、ce concept is also important in the management of services.nFurthermore, we need to be more explicit about the service concept because of the much greater danger of dilution of the concept.8How defining a service concept?Three questions: What are the important elements of the services to be provided
8、, 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, delivering and mark
9、eting the services ?9nWhile 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.10nIn defining the service concept, we must think in particular about the impact on personnel, both in terms o
10、f skills and personal characteristics:nSkills. 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.nPersonal characteri
11、stics. 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.11nFinally, when defining the service concept, the
12、requirements for the other elements of the service system and the perception of these elements by customers and employees must be considered12nWhen defining a service concept, a service firm must try to preserve consistency between the front- and back-office elements of the service system.13nOnce th
13、e 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 implementation14IMPLEMENTING THE SERVICE CONCEPTnGiven the heterogeneity of the needs of customers and employees and the variability introduc
14、ed through the interaction between customers and employees, implementing the notion of a service concept is a difficult balancing act. nTo do this successfully, three tasks are particularly crucial: segmenting the market, targeting the various customer segments and designing the delivery system, whi
15、ch includes both operations and technology as well as the role and competencies of employees.15Segmenting marketsnSince different customers have different needs and expectations, it is essential to analyse the market and to define the different segments that exist.nEach segment contains customers wh
16、o have more or less the same needs and therefore can be treated as one single submarket.16nIn the tourist sector, for instance, a segmentation could be based on the purpose of travel business or recreation.17In segmenting markets, two broad groups of variables are generally used:nthe benefits sought; andn the customer characteristics18Illustration of market segmentation: buyer expectations of various do-it-yourself stores according to the buying situation19Targeting market segmentsnAs eac
