Description
This presentation is about indian service sector and describes contribution of service sector,8 Ps of service management,services marketing framework
The Indian Service Sector
Indian Economy
•India is one of the fastest growing economy in the world growing at the prosperous rate of 6.1%. •Its current participation in export (service) accounts for 2.45% in the world trade activities. • Contribution of service sector in country’s GDP is 54.6%.
The Service Sector - includes
• Businesses, government agencies, nonprofit organizations. • Organized and unorganized sector. • Companies of any size--from huge global corporations to local small businesses • Limited companies to individual run organizations/set up. • High technology content to very low technology inter- phase organizations. • Jobs range from high-paid professionals and technicians to minimum daily wage earners.
3
Factors Stimulating growth of Service Economy
• Government Policies (e.g., regulations, trade agreements) • Social Changes (e.g., affluent, time poor, seek experiences) • Business Trends – Manufacturers offer service – Growth of retail chains and franchising – Pressures to improve productivity and quality – More strategic alliances – Marketing emphasis by even nonprofit organizations – Innovative hiring practices • Advances in technology especially IT (e.g., speed, digitization, wireless, Internet) • Internationalization (travel, transnational companies) • Impact of other sectors.
4
India 2007-08 – GDP contribution.
Agriculture # 1950-51 1960-61 1970-71 1980-81 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2007-2008 59.19 54.74 48.12 41.82 34.92 34.08 34.17 33.54 32.94 30.58 30.86 29.03 29.03 27.49 18.50
Manufacturing ? 13.29 16.61 19.91 21.59 24.49 23.93 23.74 23.69 24.35 25.47 25.45 25.20 24.51 24.63 26.60
Services* 27.52 28.65 31.97 36.59 40.59 41.99 42.09 42.77 42.71 43.95 43.69 45.77 46.46 47.88 54.90
Changing Structure of Employment with Economic Development
Share of Employment
Agriculture Services
Industry
Time, per Capita Income
Source: IMF
7
Contribution of Service Sector in GDP For Various Countries
Services - GDP contribution – 54.60 %
Sub sectors 1. Trade and hotels, tourism services 2.Transpot, storage and communication. 3. Banking, insurance and other financial services 4. Public administration & defense 5. IT , ITES and other services
GDP contribution
14.3 % 16.0% 9.0% 7.3% 8%
9
Industries in Service Sector
o o o o o o o o o o o o o o Tourism and Travels Hospitality( Hotels, Motels , Resorts). Catering And Restaurant Industry. Consultancy Services. Insurance . Health care and Hospital management. Housing and Construction Industry. Burial permission and dispose off agencies. Communication. Entertainment. Banking Services. Transportation and Logistics. Theme parks. Leisure activities industry.
Continued………
o o o o o o o o o o o Legal Agencies. Maintenance Services. Information Technology Services. Research and Development. Investment Advisers. Accounting and Tax Services. Electricity, Gas and Sanitary Services. Real Estates. Personnel Services. Social Organizations. Other Service Providers.
High growth service industries
• • • • • • • Financial services –banks, insurance . Telecommunications Health services Tourism Travel & transport Information technology Retailing
What is a Service?
• An act or performance offered by one party to another. (Performances are intangible, but may involve use of physical products.) • An economic activity that does not result in ownership • A process that creates benefits by facilitating a desired change in customers themselves, physical possessions or intangible assets
13
Interdependence of Marketing, Operations and Human Resources
Operations Management Customers
Marketing Management
Human Resources Management
14
The “8Ps” of Service Management
• • • • • • • • • Product elements Place, cyberspace, and time Process Productivity and quality Technology and Equipments People Promotion and education Physical evidence/Ambience Price and other user costs
15
SERVICES MARKETING FRAMEWORK
CUSTOMER EVALUATION PRICE DIST PROMO • PRODUCT • PROCESS • TECHNOLOGY& EQUIPEMENTS • AMBIENCE • PEOPLE •RELIABILITY CUSTOMER •RESPONSIVEN ESS. SERVICE •ASSURANCE STANDARDS •EMPATHY •TANGIBILITY
CUSTOMER SATISFACTION/ DISSATISFACTION
CRM
• Service guarantee • Complaint management.
Que uing
(1) Product Elements
All Aspects of Service Performance that Create Value
• • • • • Core product features Bundle of supplementary service elements Performance levels relative to competition Benefits delivered to customers Guarantees
17
(2) Place, Cyberspace, and Time
Delivery Decisions re: Place, Time, Methods, Channels
• Geographic locations served • Physical channels • Electronic channels • Customer control and convenience • Service schedules • Channel partners/intermediaries
18
(3) Process
Method and Sequence in Service Creation and Delivery • Design of activity flows • Number and sequence of actions for customers • Providers of value chain components • Nature of customer involvement • Role of contact personnel • Role of technology, degree of automation
19
(4) Productivity and Quality
Synergy in Value Creation for Customers and the Firm • Achieve productive transformation of inputs to outputs – efficiency (cost control, avoidance of waste) – effectiveness (value added, including quality and timeliness) • Attain customer-defined quality standards – reliability – responsiveness – competence/trust – human dimensions 20 – tangibles
(5) People
The Human Side of the Enterprise • The right employees performing tasks well – job design – recruiting/selection – training – motivation – evaluation/rewards – empowerment – teamwork • The right customers for the firm’s mission – fit well with product/processes/corporate goals – appreciate benefits and value offered – possess (or can be educated to have) necessary skills – firm is able to manage customer behavior for productivity, satisfaction of other customers, employee protection 21
(6) Promotion and Education
Informing/Educating, Persuading, and Reminding Customers • Marketing communication tools – media elements (print, broadcast, outdoor, retail, Internet, etc.) – personal selling, customer service – sales promotion – publicity/PR • Imagery and recognition – branding – corporate design • Content – information, advice – persuasive messages – customer education/training
22
(7) Physical Evidence
Providing tangible evidence of service performances • Create and maintaining physical appearances – buildings/landscaping – interior design/furnishings – vehicles/equipment – staff grooming/clothing – other tangibles • Select tangible metaphors for use in marketing communications
23
(8) Price and Other User Costs
Managing Customer Outlays Relative to Corporate Revenues • • Quoted price level and trade margins Discount terms – time sensitive – volume sensitive – user sensitive Price-setting mechanism – determined by seller – negotiation/barter – auction/reverse auction Credit terms Strategies to minimize other user costs – out-of-pocket financial expenses (e.g., travel, phone) – time investments and mental/physical effort – negative sensory experiences
•
• •
24
9. Technology and Equipments
• Awareness to new and appropriate technology and equipments. • Understand ways in which new technology can alter ways in which service firms do business look from consumer and provider angle (benefits) • Opportunity for creating data bases about customer needs and behavior. • Compatibility with org. structure. • Employee capability. • Competitor standards.
25
doc_884425904.ppt
This presentation is about indian service sector and describes contribution of service sector,8 Ps of service management,services marketing framework
The Indian Service Sector
Indian Economy
•India is one of the fastest growing economy in the world growing at the prosperous rate of 6.1%. •Its current participation in export (service) accounts for 2.45% in the world trade activities. • Contribution of service sector in country’s GDP is 54.6%.
The Service Sector - includes
• Businesses, government agencies, nonprofit organizations. • Organized and unorganized sector. • Companies of any size--from huge global corporations to local small businesses • Limited companies to individual run organizations/set up. • High technology content to very low technology inter- phase organizations. • Jobs range from high-paid professionals and technicians to minimum daily wage earners.
3
Factors Stimulating growth of Service Economy
• Government Policies (e.g., regulations, trade agreements) • Social Changes (e.g., affluent, time poor, seek experiences) • Business Trends – Manufacturers offer service – Growth of retail chains and franchising – Pressures to improve productivity and quality – More strategic alliances – Marketing emphasis by even nonprofit organizations – Innovative hiring practices • Advances in technology especially IT (e.g., speed, digitization, wireless, Internet) • Internationalization (travel, transnational companies) • Impact of other sectors.
4
India 2007-08 – GDP contribution.
Agriculture # 1950-51 1960-61 1970-71 1980-81 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2007-2008 59.19 54.74 48.12 41.82 34.92 34.08 34.17 33.54 32.94 30.58 30.86 29.03 29.03 27.49 18.50
Manufacturing ? 13.29 16.61 19.91 21.59 24.49 23.93 23.74 23.69 24.35 25.47 25.45 25.20 24.51 24.63 26.60
Services* 27.52 28.65 31.97 36.59 40.59 41.99 42.09 42.77 42.71 43.95 43.69 45.77 46.46 47.88 54.90
Changing Structure of Employment with Economic Development
Share of Employment
Agriculture Services
Industry
Time, per Capita Income
Source: IMF
7
Contribution of Service Sector in GDP For Various Countries
Services - GDP contribution – 54.60 %
Sub sectors 1. Trade and hotels, tourism services 2.Transpot, storage and communication. 3. Banking, insurance and other financial services 4. Public administration & defense 5. IT , ITES and other services
GDP contribution
14.3 % 16.0% 9.0% 7.3% 8%
9
Industries in Service Sector
o o o o o o o o o o o o o o Tourism and Travels Hospitality( Hotels, Motels , Resorts). Catering And Restaurant Industry. Consultancy Services. Insurance . Health care and Hospital management. Housing and Construction Industry. Burial permission and dispose off agencies. Communication. Entertainment. Banking Services. Transportation and Logistics. Theme parks. Leisure activities industry.
Continued………
o o o o o o o o o o o Legal Agencies. Maintenance Services. Information Technology Services. Research and Development. Investment Advisers. Accounting and Tax Services. Electricity, Gas and Sanitary Services. Real Estates. Personnel Services. Social Organizations. Other Service Providers.
High growth service industries
• • • • • • • Financial services –banks, insurance . Telecommunications Health services Tourism Travel & transport Information technology Retailing
What is a Service?
• An act or performance offered by one party to another. (Performances are intangible, but may involve use of physical products.) • An economic activity that does not result in ownership • A process that creates benefits by facilitating a desired change in customers themselves, physical possessions or intangible assets
13
Interdependence of Marketing, Operations and Human Resources
Operations Management Customers
Marketing Management
Human Resources Management
14
The “8Ps” of Service Management
• • • • • • • • • Product elements Place, cyberspace, and time Process Productivity and quality Technology and Equipments People Promotion and education Physical evidence/Ambience Price and other user costs
15
SERVICES MARKETING FRAMEWORK
CUSTOMER EVALUATION PRICE DIST PROMO • PRODUCT • PROCESS • TECHNOLOGY& EQUIPEMENTS • AMBIENCE • PEOPLE •RELIABILITY CUSTOMER •RESPONSIVEN ESS. SERVICE •ASSURANCE STANDARDS •EMPATHY •TANGIBILITY
CUSTOMER SATISFACTION/ DISSATISFACTION
CRM
• Service guarantee • Complaint management.
Que uing
(1) Product Elements
All Aspects of Service Performance that Create Value
• • • • • Core product features Bundle of supplementary service elements Performance levels relative to competition Benefits delivered to customers Guarantees
17
(2) Place, Cyberspace, and Time
Delivery Decisions re: Place, Time, Methods, Channels
• Geographic locations served • Physical channels • Electronic channels • Customer control and convenience • Service schedules • Channel partners/intermediaries
18
(3) Process
Method and Sequence in Service Creation and Delivery • Design of activity flows • Number and sequence of actions for customers • Providers of value chain components • Nature of customer involvement • Role of contact personnel • Role of technology, degree of automation
19
(4) Productivity and Quality
Synergy in Value Creation for Customers and the Firm • Achieve productive transformation of inputs to outputs – efficiency (cost control, avoidance of waste) – effectiveness (value added, including quality and timeliness) • Attain customer-defined quality standards – reliability – responsiveness – competence/trust – human dimensions 20 – tangibles
(5) People
The Human Side of the Enterprise • The right employees performing tasks well – job design – recruiting/selection – training – motivation – evaluation/rewards – empowerment – teamwork • The right customers for the firm’s mission – fit well with product/processes/corporate goals – appreciate benefits and value offered – possess (or can be educated to have) necessary skills – firm is able to manage customer behavior for productivity, satisfaction of other customers, employee protection 21
(6) Promotion and Education
Informing/Educating, Persuading, and Reminding Customers • Marketing communication tools – media elements (print, broadcast, outdoor, retail, Internet, etc.) – personal selling, customer service – sales promotion – publicity/PR • Imagery and recognition – branding – corporate design • Content – information, advice – persuasive messages – customer education/training
22
(7) Physical Evidence
Providing tangible evidence of service performances • Create and maintaining physical appearances – buildings/landscaping – interior design/furnishings – vehicles/equipment – staff grooming/clothing – other tangibles • Select tangible metaphors for use in marketing communications
23
(8) Price and Other User Costs
Managing Customer Outlays Relative to Corporate Revenues • • Quoted price level and trade margins Discount terms – time sensitive – volume sensitive – user sensitive Price-setting mechanism – determined by seller – negotiation/barter – auction/reverse auction Credit terms Strategies to minimize other user costs – out-of-pocket financial expenses (e.g., travel, phone) – time investments and mental/physical effort – negative sensory experiences
•
• •
24
9. Technology and Equipments
• Awareness to new and appropriate technology and equipments. • Understand ways in which new technology can alter ways in which service firms do business look from consumer and provider angle (benefits) • Opportunity for creating data bases about customer needs and behavior. • Compatibility with org. structure. • Employee capability. • Competitor standards.
25
doc_884425904.ppt