Service Management

By Venkatesh.N

ByIvan Cavric

Service >A service is an action of doing something to some

one which is essentially (purely) intangible…

>“Service is an act or performance offered by one party to another that is essentially intangible and does not result in the ownership of anything.”

Supply chain management

Supply chain management is a total system approach to managing the entire flow of information, materials, and services from

raw -materials suppliers through factories warehouses to the end customer

Contd….. A supply chain is the system of

organizations, people, activities, information and resources involved in moving a product or service from supplier to customer.

Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer.

Supply chain

Supplier Manufacturer Distributor Retailer Customers

Supply chain management

Characteristics of services

Characteristics Intangibility: It cannot be taste, feel & smell before they are bought

unlike physical product. The intangibility creates a feeling of uncertainty about the outcome of service.

Inseparatebility: Services cannot be separated from the services provided

(we cannot separate the service from the product) in fact the product delivers consumption of a service.

Variability: Services of highly variable. It is almost impossible to have

the same service from the same seller the second time.

Contd…. Customer participation: Service product is not a one side activity customer

are core product of services. The product quality of services greatly depends upon the ability, skills and performance of the employees as well as the activity and performance of the customer.

No ownership here we cannot transfer ownership from one

person to other person that particular service belongs to particular person because its purely intangible

Pershability They cannot be stored

Product And Service Marketing Mix

Differences B/W Goods and Services

Goods / Services

Classification of service It is required to design & apply marketing techniques to

completely satisfy the customer & increase profit & identify new emerging services

Classification can be done on the following basis Classification by industry Classification by target effect Skill level of service provider (professional/Non

professional) Labour intensiveness(people-based/ equipment-based) Degree of customer involment

For a layperson, services are essential intangible.Teir purchase does not result in the ownership of any thing physical.

WHAT ARE SERVICES