Marketing of Services
. Marketing & Services
To comprehensively review and apply a service blueprint, it is necessary to define what is known as a service, what services marketing is, what the services marketing mix is and therefore, what marketing is and what the marketing mix is.
.1 What is a service?
A service can be simply defined as,
"...any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything," Kotler et al (1996:935).
However, a more detailed definition of a service can be found. A service is,
"...an essentially intangible benefit, either in its own right or as a significant element of a tangible product, which through some form of exchange, satisfies an identified need," Palmer (1998:2).
Services,
"...include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentially tangible concerns of its first purchaser," Quinn et al (1987:50).
Basically, services are actions, procedures and feats carried out by the company on the behalf of the customer that provide the customer with an intangible benefit in exchange for money.
.2 Marketing & the Marketing Mix
The official definition of marketing is as follows:
"Marketing is the process of planning and executing the conception, pricing promotion, and distribution ideas, goods and services to create exchanges that satisfy individuals and organisational objectives," American Marketing Association as cited by Peterson (1987:4).
Initially developed by Professor Neil Borden in 1965, the marketing mix is a set of tools utilised by companies to improve its offer to the customer. Borden (1965) proposed that there were twelve dimensions of marketing, however, McCarthy condensed the model so that it became known as the 4P's: Product, Place, Price and Promotion (Lauterborn, 1990:26).
The Product is the good or service, which, the company offers to consumers (Kotler et al, 1996:96). The Place is the form of access, which, consumers may have to the product (Palmer, 1998:9). The Price is the cost of the product to the consumers, solely in terms of money. The Promotion is the communication sent from the company to the consumers informing them about their product (Kotler et al, 1996:96-7).
The 4P's model was altered by Brunmer in 1989 and became the 4C's: Customer value (to replace product), Cost to the customer (to replace price), Convenience for the buyer (to replace place) and Communication (to replace promotion) (Lauterborn, 1990:26).
Many writers of marketing theory have made further amendments. Nickels & Jolsen (1976) added Packaging as a fifth P and Mindak & Fine (1981) suggested Public Relations (PR) as a fifth P even though it is a part of the promotional mix. Other writers such as Christopher, Payne & Ballantyne (1991) and Booms & Bitner (1981) believed that People and Process should be considered as two more P's, Booms & Bitner (1981) also thought that Physical Evidence should be added while Christopher, Payne & Ballantyne (1991) thought that Customer Service should be included (Zeithaml & Bitner, 2000:18, Kotler et al, 1996:97, and Palmer, 1998:8-9).
As it is, the 4P's remains the most widely known and commonly used marketing concept in marketing theory.
Therefore, the marketing mix is known as:
· Product
· Place
· Price
· Promotion
.3 Services Marketing & the Services Marketing Mix
Services marketing is defined as a,
"...marketing activity which is focused on providing an identifiable service, rather than the generality of marketing decisions for tangible products of which service is just one element," Palmer (1998:3).
Due to writers' additions to the marketing mix, Palmer (1998:8-9) states that the marketing mix is comprised of 7P's and 1C: Product, Place, Price, Promotion, People, Physical Evidence, Process and Customer Service. However, Zeithaml & Bitner (2000:18) suggest that this is in fact, the expanded marketing mix for services marketing.
Therefore, the services marketing mix is known as:
· Product
· Place
· Price
· Promotion
· People
· Physical Evidence
· Process
· Customer Service
People are all the human individuals involved in the delivery of the ...
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Due to writers' additions to the marketing mix, Palmer (1998:8-9) states that the marketing mix is comprised of 7P's and 1C: Product, Place, Price, Promotion, People, Physical Evidence, Process and Customer Service. However, Zeithaml & Bitner (2000:18) suggest that this is in fact, the expanded marketing mix for services marketing.
Therefore, the services marketing mix is known as:
· Product
· Place
· Price
· Promotion
· People
· Physical Evidence
· Process
· Customer Service
People are all the human individuals involved in the delivery of the service to the consumer, both the employees (recruiting, training, motivation, rewards and teamwork) and customers (education and training) (Zeithaml & Bitner, 2000:19).
"Physical evidence is the environment in which, the service is delivered; where the company and customer interact," Zeithaml & Bitner (2000:20).
Processes include how the service is provided, how the company delivers it to the customer. For example, some restaurants may expect customers to collect their meal from a counter and to clean up their own mess whereas; others will wait on the customer 'hand and foot' (Palmer, 1998:10).
Customer service is,
"...the total quality of the service as perceived by the customer," Palmer (1998:10).
2. A Service Blueprint
To fully explain and illustrate the creation and development of a service blueprint, it is necessary to define what is meant as a service blueprint, identify all the different elements and components of a service blueprint, record how to build a service blueprint and provide examples of a service blueprint.
2.1 A Service Blueprint Defined
It is important that the company who is providing a service understands how the different dimensions of the service relate to each other (Palmer, 1998:64). Shostack (1984) developed a framework to illustrate just that. This framework is called a service blueprint and is often used as a guide for solving problems and overcoming obstacles that occur due to insufficient support functions (Palmer, 1998:64).
A service blueprint can be defined as,
"...a picture or map that accurately portrays the service system so that different people involved in providing it can understand and deal with it objectively regardless of their roles or their individual points of view," Zeithaml & Bitner (2000:206).
A service blueprint illustrates the whole service by highlighting how the company delivers the service to the customer, the interactions between the customer and employee and the visible aspects of the service. A service blueprint also divides all aspects of the service into a process; a set of tasks which have to be carried out in a particular order, and shows how a customer sees the service being performed (Zeithaml & Bitner, 2000:206).
A service blueprint indicates where there are gaps in the service (failures) and identifies where allowances can be made and how repeat action can solve the problem of customer dissatisfaction (Palmer, 1998:65).
It is essential that marketing, operations management and humans resource management concentrate on the activities that deliver the service to the customer (Palmer, 1998:65).
"The important point is that it [the service blueprint] should form a shared and agreed basis for action which is focused on meeting customers' needs effectively and efficiently," Palmer (1998:66).
2.2 The Elements & Components of a Service Blueprint
Palmer (1998:64) suggests that the customer blueprint has three primary dimensions:
· All the main functions needed to create and deliver a service are identified as well as the company who is offering the service.
· The timing and sequencing of activities are illustrated.
· For every activity, a level of quality that must be maintained is identified though; allowances are made as long as customers' are not aware of the reduction in quality.
The key elements of a service blueprint are customer actions, employee actions both onstage and backstage, and support processes (Zeithaml & Bitner, 2000:206).
Customer actions include the phases, choices, activities and interactions that the customer will be a part of as they buy, use and assess the service. Onstage employee actions include all the activities of the employee that the customer witnesses. Backstage employee actions include all the activities of the employee that the customer doesn't witness. Support processes include all activities, which are carried out to support the employee in delivering the service to the customer (Zeithaml & Bitner, 2000:206-7).
In a service blueprint, there are three main zones of action divided by three horizontal lines: the line of interaction, the line of visibility and the line of internal interaction (Zeithaml & Bitner, 2000:207 and Palmer, 1998:64).
The line of interaction relates directly to the interactions between the customer and the employee/company. The line of visibility is the dividing line between what the customer can see and what they can't see when the service is being delivered (Zeithaml & Bitner, 2000:207). The customer is typically involved in those activities of which they are aware and not involved in those activities of which they are unaware (Palmer, 1998:64). The line of internal interaction splits the activities of the employees and the support activities (Zeithaml & Bitner, 2000:207).
At the top of every service blueprint, physical evidence of the service is noted (Zeithaml & Bitner, 2000:209).
2.3 How to Build a Service Blueprint
To build a service blueprint Zeithaml & Bitner (2000:212-3) suggest following these six steps:
· Identify the Service Process to be Blueprinted
Decide what service it is you intend to blueprint, on what level and in how much detail.
· Identify the Customer or Customer Segment Experiencing the Service
Decide whether you intend the blueprint to focus on a particular customer or a particular group of customers.
· Map the Service Process from the Customer's Point of View
This involves illustrating the choices and actions of the customer as they buy, use and assess the service.
· Map Contact Employee Actions, Both Onstage & Backstage
This involves drawing the lines of interaction and visibility then identifying the interactions between the customer and employee and all the visible and invisible employee actions.
· Link Customer & Contact Person Activities to Needed Support Functions
This involves drawing the line of internal interaction and linking the employee actions to the support processes.
· Add Evidence of Service at Each Customer Action Step
This involves showing evidence of the service that the customer sees and receives at each point of the service experience.
2.4 Examples of a Service Blueprint
The following example is a fairly simple service blueprint illustrating the purchase of a cup of tea in a café:
Source: Palmer (1998:65).
The following example is a more detailed service blueprint illustrating an overnight hotel stay:
Source: Bitner (1993:363).
3. Service Blueprints for a Burger King Restaurant
3.1 A Service Blueprint for a Burger King Restaurant
The first part of the service blueprint for a Burger King Restaurant depicts the customer as arriving at the Burger King Restaurant; the first physical evidence they come in contact with is the shop exterior.
Support Contact Person Customer Physical
Processes (Backstage) (Onstage) Evidence
The second part shows the customer waiting in the queue, looking at the menu board and finally, reaching the menu board. The physical evidence, which the customer comes into contact with at this stage, is the shop interior, the menu board and lastly, the counter. The contact person of Burger King is the counter staff. The contact person performs certain onstage activities in this part: they greet the customer and ask them what they would like to order suggesting current promotions.
The third part shows the customer ordering the food being in contact with the counter and the till. The contact person of Burger King is still the counter staff. They take the order and put it through the till. This order goes through the EPOS system of the till and to the kitchen computer system; this is a support process.
The fourth part depicts that the food is being prepared by the kitchen; another support process.
The fifth part illustrates that at this stage, the customer makes the payment. The contact person of Burger King onstage is the counter staff. They process the payment, give the customer the receipt and then prepare the tray with napkins, cutlery and condiments. The physical evidence here is the counter, the till, money, the receipt and the tray with the napkins, cutlery and condiments. The contact person of Burger King backstage replenishes the napkins, cutlery and condiments supply. Meanwhile, the support process is the dishwasher washing trays to replace ones in use.
The next phase shows the customer as waiting on the order. The contact person of Burger King is the counter staff still. Onstage, they collect the food and drink and backstage, shout to the kitchen what food items are being taken and will need replaced. Often, at this point the counter staff will also tell the kitchen to hurry up. The physical evidence here is the drink dispenser, heated holding tray, fry station and tray with the napkins, cutlery and condiments. The support process is the kitchen working to replacing taken food items. Often, at this point the kitchen will have to speed up their working pace.
The seventh phase shows the customer receiving the order. The contact person onstage wishes the customer 'Enjoy your Meal'. The physical evidence in this part is the complete order. The support process, which is more or less ongoing, is the management and supervisors making up the rota and re-ordering the stock.
The second last stage depicts the customer as going to the table to sit down. The contact person at Burger King onstage, here is the dining area (D/A) staff. They continually clear and clean the dining area. The physical evidence in which, the customer comes into contact with is the table and chairs, food appearance and the tray with the napkins, cutlery and condiments.
The final phase shows the customer eating the meal. Again the contact person at Burger King onstage is the dining area (D/A) staff. They clear the table once the customer finishes. The physical evidence here is the food.
The service blueprint for a Burger King Restaurant highlights that a major problem the company has in delivering the service to the customer lies in the interaction between the counter staff and the kitchen staff, seen in phase six.
Often, when a Burger King Restaurant is busy, the counter staff have to shout through to the kitchen staff what food items they are taking from the heated holding tray, which must be replaced by the kitchen staff. At peak times, certain levels of food items must be present in the heated holding tray to cope with demand in an attempt to keep the service efficient - it is a fast food company after all.
As counter staff have to shout to kitchen staff for replacements, customers are frequently left waiting for their 'fast food'. The kitchen staff are then thrown into confusion and have to speed up the pace simultaneously listening to counter staff, supervisors and other members of the kitchen staff and checking the kitchen computer system, which lets them know what is being ordered. The present kitchen computer system is linked to the tills and is best effective in letting kitchen staff know of any 'specials' being ordered (specials are for example, a cheeseburger with no mustard and extra onions). It makes for a very hectic work environment and increases levels of employee irritability and thus, customer dissatisfaction.
Despite the obviousness of this problem in service delivery and thus, customer satisfaction, Burger King are yet to devise a system, which lets the kitchen staff know the quantity of food items in the heated holding tray and thus, what they need to work to replace.
3.2 An Improved Service Blueprint for a Burger King Restaurant
The improved service blueprint for a Burger King Restaurant shows a change in the sixth phase of the service blueprint.
Service Contact Person Customer Physical
Processes (Backstage) (Onstage) Evidence
The improved service blueprint shows the customer waiting on the order. The onstage contact person of Burger King is the counter staff. They collect the food and drink. As they collect the food they press an appropriate button(s) on the heated holding tray. This goes through to the kitchen computer system and notifies them of which food items need to be replaced; this is the support process. The physical evidence here is the drink dispenser, heated holding tray, fry station and tray with napkins, cutlery and condiments.
The improved service blueprint for a Burger King Restaurant depicts the use of an addition to the kitchen computer system.
As mentioned, presently the system's only advantage is that it allows the kitchen staff to cope with demand for 'specials'.
The new improved system has a link to the heated holding tray or to an electronic board near the heated holding tray if the first option is not technologically possible or if it would be considered as hazardous.
Every time someone from the counter staff took a food item or food items from the heated holding tray they would press the appropriate button on the heated holding tray or electronic board as many times as necessary. For example, if a member of the counter staff took two cheeseburgers and one chickenburger they would press the cheeseburger button twice and the chickenburger button once. The buttons could even be colour coordinated so that they matched the packaging of the food items. This would increase the ease with which, counter staff could use the system particularly, when it is busy. For example, the cheeseburger button could be yellow to match the packaging, the hamburger button could be red to match the packaging and the veggie whopper button could be green to match the packaging.
Once a member of the counter staff has pressed the appropriate button(s) the necessary amount of times, the system is linked through to the kitchen computer and shows on the screen how many of what food items are in the heated holding tray thus, allowing the kitchen staff to see what they need to work towards replacing.
This addition to the kitchen computer system reduces the amount of time the customers are waiting for their fast food. It reduces the wildness of the working environment and thus, employee stress, which in turn improves the behaviour of counter staff towards customers. Overall, it increases the efficiency and effectiveness of the whole service delivery.
