Page 185 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes  The new product development process includes these steps: idea generation, idea screening,
business analysis, product development and testing, test marketing and commercialization.
Though service operation includes the entire service process, the major concern is the

service delivery. Customers tend to perceive the service delivery system as part of the
service itself.
A service organization’s decision-making process is also part of the service delivery process

and is actually the precursor to all processes.
Blueprint maps the entire service delivery process. To facilitate maximum satisfaction to

the customers, more inputs were added to the service delivery. Service evolved from very
simple steps to complex processes, and there arose a need for the marketer to get a ‘bird’s
eye view’ of the whole process.

There are alternative ways to develop service blueprints. Instead of going by the service

manager’s own experience and knowledge of service delivery, an alternative way to
develop a blueprint would be to start from consumer scripts.
9.7 Keywords

Augmented Product: intangible features associated with the product
Cannibalization: a brand eats into the market of another of the same service firm
One-sided Blueprint: maps the process from management’s point of view

Rapid Penetration: combining low price and high promotion of new services
Rapid Skimming: combining high price and high promotion
Service Mix Depth: no. of items in a product line
Service Mix Width: different business propositions or different business lines

Service Product Line: closely related offers, targeted at the same type of customers
Slow penetration: combining low price with low promotion of new services
Slow Skimming: combining high price with low promotion of new services
Two-sided Blueprint: considers both employee and customer views of how events occur

9.8 Review Questions

1. “Offer can be a good or a service or a combination of both”. Explain the statement with
examples.
2. Discuss Theodore Levitt’s Product theory in relation to the hospitality industry.

3. Consider any one service firm in the banking industry and discuss its entire product
range.
4. “It is important for the service marketer to study the varying patterns of sales growth over
the lifetime of the offer”. Why? Explain in context with any service industry of your
choice.

5. Suppose you are the marketing manager of a financial services firm. What strategies
would you adopt at various stages of PLC of the insurance services provided by your
firm?

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