7 PS OF SERVICE

MARKETING
PROCESS
PROCESSES
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One of the 7Ps of Service marketing

Services are processes which are marketed
Airline markets the process of transportation
Restaurant markets process of meal preparation &
presentation

IMPORTANCE OF SERVICE
PROCESS
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Goods - manufacturing takes place in factories in the
absence of customers
Process within the factories are in the domain of
operations and customer doesnt come in contact with
them
Services - customer is part of processes
One bad process leads to bad service experience

Front end
process
Back end
process
SERVICE PROCESS
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Service experience - passing through a series of
predetermined stages involving activity/interaction
Air service - ticket booking ,check-in, security check,
boarding, being seated in plane, meal service, collection
of luggage etc.

Goods are differentiated on the basis of their attributes.
Service firms use processes to create differentiation in
their service products.
Air Deccans no frill service
Jet Airways high class service

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Visible services - check-in, security check & physical
transfer of passengers to the airplane
Invisible services - refreshment procurement process,
aircraft preparation service

People processing processes - security check
Information processing processes - Ticket booking
Material processing - luggage transfer, meal service

PROCESS ANALYSIS
UNDERSTANDING SERVICE PROCESS
VARIETY IN PROCESS
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Specifies whether the process has a standardized or flexible
sequence of events

Has implications on cost, complexity and flexibility
Runner Repeaters Strangers
Runner
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Standardized operation

Found in high volume operations

Lead to tight process control and automation

Allows high efficiency

Mass Service
EXAMPLE OF TRAIN RESERVATION
SYSTEM
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Repeaters
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Complex and occur less frequently

Result of expansion of services

Handles variety

Require process adjustment in an existing runner setup

Service Shop
EXAMPLE OF LUXURY
HOTEL
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Strangers
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Non-standardized process

Difficult to forecast demand and resource requirements

Occur least frequently

Added during addition of new services

Professional Service





Different process types are appropriate for different
Volume-Variety combinations
Volume Low High
V
a
r
i
e
t
y

L
o
w

H
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g
h

Strangers
Repeaters
Runners
Service process
types
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Deviating from the natural diagonal on the
product-process matrix has consequences for
cost and flexibility
Professional
service
Service
Shop
Mass
service
None
None
Less
process
flexibility
than is
needed so
less cost
More
process
flexibility
than is
needed so
high cost
The natural line of fit of
process to volume/variety
characteristics
Service operations
process types
Variety
Volume
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THE SERVICE PROCESS
MATRIX
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Low volume
Low
standardization
INCREASING VARIETY
Low volume
Multiple
Services
Higher volume
Few major
Services
High volume
High
standardization
SERVICE CHARACTERISTICS
INCREASING VOLUME
Customer
service
branch
Investment
banking
Bank call
centre
Credit card
processing
J umbled
flow
(job-shop)
Disconnected
line flow
(batch)
Connected
line flow
(mass)
Smooth
flow
(Continuous)
P
R
O
C
E
S
S

C
H
A
R
A
C
T
E
R
I
S
T
I
C
S

Random
flow
(project)
VALUE ADDITION IN
PROCESS
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Identifying which part of the process is most important to customer

Subjective as based on the context of service

Segregation of frontline and backroom process
TASK ALLOCATION
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Depends on the value focus of the service process

Varies depending on the service concept
SERVICE PROCESS
DESIGN
INTEGRATING MARKETING WITH
OPERATIONS

INTEGRATING MARKETING WITH
OPERATIONS
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Service process needs to be designed with the
customers in mind
Along with what is delivered, how it is
delivered too has relevance
Poorly designed service may lead to poorly
perceived quality
Operations led service design considerations
often ignore customers
PROCESS DESIGN IN SERVICES
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Marketing and operations must communicate
and collaborate in process design
Operations tend to focus on the needs of the
providers
Customer-centric processes create a satisfied
customer
A service system uses materials, equipments,
people and information
DECISIONS IN SERVICE
PROCESS PLANNING
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Primary Technology
Conversion Process
Specific Equipments
Process Flow
People
Service Location
Facility Layout
Organizational Culture
PROCESS TYPES IN SERVICE
OPERATIONS
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Line or Flow
Operations in pre-
determined sequence
Adopted in goods
manufacture
Logical sequencing of
service activities
Co-ordination between
stages is important
Most convenient for a
standardized output
Job Shop
Combination of activities
and sequence determined
by the service desired
Labour intensive process
Flexibility in terms of the
variety offered
Appropriate for
customized service
Limits the employment of
specialists
SERVICE-PROCESS MATRIX
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Services differ with respect to their products
and character
Opportunity to transfer managerial know-how
and skills between services
Common set of problems demand similar
responses
Two dimensional matrix by Roger Schmenner
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Low High
Service Factory Service Shop
Airlines Hospital
Trucking Auto repair
Hotels Other repair services
Resorts/recreation
Mass Service Professional Service
Retailing Physicians
Wholesaling Lawyers
Schools Accountants
Retail banking Architects
D
e
g
r
e
e

o
f

L
a
b
o
r

I
n
t
e
n
s
i
t
y
Degree of Interaction and Customization
L
o
w
H
i
g
h

SERVICE-PROCESS MATRIX:
CHALLENGES
.

Low Labor Intensity Challenges:

Capital Decisions
Keeping up with Technology
Managing Demand
Scheduling service delivery
Low Interaction/ Customization
Challenges:

Differentiating in market
Making service warm
Managing physical
surroundings
Developing operating
procedures
High Labor Intensity Challenges:

Hiring workers
Training workers
Developing methods and controls
Assuring employee welfare
Controlling distant operations
Starting new units
Managing growth
High Interaction/
Customization Challenges:

Managing costs
Maintaining quality
Reacting to customers in
process
Managing people in
process
Gaining employee loyalty
Service Factory
Low labor, low
interaction/customization
Service Shop
Low labor, high
Interaction/customization
Mass Service
High labor, low
interaction/customization
Professional Service
High labor, high
interaction/customization
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CASE STUDY: MUMBAI
DABBAWALAS
Bombay Dabbalawas: An Overview
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Dabbawalas: An Overview



Standard Operating Procedures
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Collect, Transport and Distribute
5000 Dabbawalahs: 30 customers/Dabbawalah
Zoning System approach
Each zone served by a team of 20-25 dabbawala
Team leader, Mukadam
Self administered work units with common
agenda
3 hierarchies: 5000 workers, 800 mukadams and
a small number in Executive committee

The System: Secrets of
Success
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Committed Workforce
Strong social bond
Extensive railway system
Coding System



The System: How it operates?
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Dabbas
collected
from
customer
homes,
taken to
railway
station
Dabbas
sorted at
station
Dabbas
loaded on
wooden
trays
Majority of
trays
destined for
the city
area
Dabbas
returned to
households
in evening
THANK YOU