Services Marketing Chapter 4: DESIGNING AND DEVELOPING SERVICE OFFERINGS

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56 Terms

1

service design and development process

encompass the strategic and systematic approach to creating, refining, and implementing services to meet the needs and expectations of customers.

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2

service design and development process

this multifaceted process involves various stages from ideation to delivery, ensuring that services are not only effective and efficient but also aligned with customer preferences and organizational goals.

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3

Service blueprinting and prototyping

 play a crucial role in visualizing and refining the service. Service blueprinting maps the entire service process, detailing customer interactions, employee activities, and support systems

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4

prototyping

 allows organizations to test and refine service design concepts before full-scale implementation, identifying potential challenges and improvements.

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Process design

is a pivotal stage where operational workflows and resource requirements are established

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1. Identify Customer Needs

2. Idea Generation

3. Concept Development

4. Service Blueprinting

5. Service Design

6. Service Development

7. Testing and Prototyping

8. Implementation

9. Monitoring and Evaluation

10. Service Launch and Promotion

Key steps involved in the service design and development process:

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 Identify Customer Needs

The process begins by understanding the needs, preferences, and pain points of the target customers. Conduct market research, gather customer insights, and analyze customer feedback to identify opportunities for new services or improvements to existing ones.

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 Idea Generation:

 Generate ideas for new services or improvements based on the identified customer needs. Encourage creativity, brainstorm with cross-functional teams, and explore different possibilities to address customer pain points or create innovative solutions.

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Concept Development

Develop and refine service concepts based on the generated ideas. Define the value proposition, target customer segments, and key features of the service. Create service prototypes or mock-ups to visualize and communicate the concept.

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10

Service Blueprinting

 Create a service blueprint that outlines the end-to-end customer journey and the various touchpoints, interactions, and processes involved in delivering the service. Identify potential bottlenecks, pain points, and opportunities for improvement in the service delivery process

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Service Design

Design the service elements, including the physical and digital components, customer interfaces, service processes, and service delivery systems. Pay attention to factors such as service quality, reliability, responsiveness, and personalization to create a seamless and satisfying customer experience.

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12

Service Development

This may involve developing or acquiring the required technology platforms, training employees, and establishing service delivery processes.

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Testing and Prototyping

Test the service concept and prototype with a small group of customers or in a controlled environment. Gather feedback, evaluate the feasibility, and make necessary adjustments to refine the service design and ensure its effectiveness.

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Implementation

Roll out the service in the market or within the organization. Implement the necessary operational processes, train employees, and establish the required support systems to deliver the service to customers.

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Monitoring and Evaluation:

Continuously monitor and evaluate the performance of the service. Collect customer feedback, measure key performance indicators, and assess customer satisfaction to identify areas for improvement and make necessary adjustments to enhance the service.

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Service Launch and Promotion

Launch the service in the market and promote it to the target customers. Develop marketing and communication strategies to create awareness, generate interest, and drive customer adoption of the service.

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17

Service blueprinting and service mapping

are strategic tools used in service design and development to visualize and understand the end-to-end service delivery process

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18

Service blueprinting and service mapping

These methodologies provide a comprehensive overview of how a service is delivered, encompassing customer interactions, employee activities, and support systems.

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19

Service Blueprinting

 is a systematic and visual technique that allows organizations to map and analyze the entire service delivery proces

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20

Service Blueprinting

It provides a detailed representation of the various components involved, including customer touchpoints, employee actions, physical evidence, and support processes

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21

 Service blueprinting

typically involves horizontal and vertical lines that distinguish between customer actions, frontstage employee actions, backstage support processes, and physical evidence.

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 Service blueprinting

This method helps organizations identify potential bottlenecks, inefficiencies, and points of customer interaction, allowing for a thorough understanding of the service dynamics.

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23

Service Mapping

is a broader term that encompasses various visualization techniques used to depict the elements and interactions within a service ecosystem.

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Service Mapping

These maps aim to capture the customer's perspective and the sequence of touchpoints they encounter throughout their service journey.

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25

Service Mapping

is a valuable tool for aligning internal processes with customer expectations, fostering a customer-centric approach, and identifying opportunities for innovation and enhancement.

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1. Customer Actions
2. Frontstage

3. Backstage

4. Support Processes

5. Physical Evidence

Service Blueprinting Key Components:

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Customer Actions

This component represents the actions and steps taken by the customer as they engage with the service. It includes activities such as making inquiries, placing orders, or seeking assistance.

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Frontstage

represents the visible and interactive elements of the service that the customer directly experiences. It includes customer touchpoints, such as physical or digital interfaces, customer interactions with employees, and self-service options.

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Backstage

component represents the behind-the-scenes processes, systems, and activities that support the delivery of the service. It includes employee actions, service processes, technology infrastructure, and other operational elements

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Support Processes

include the activities and systems that enable the frontline employees to deliver the service effectively. This can include training, information systems, quality control, and other support functions.

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Physical Evidence

refers to the tangible elements that customers encounter during the service experience. It includes the physical environment, facilities, equipment, signage, and other visual cues.

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Service blueprinting

helps identify potential pain points, areas for improvement, and opportunities to enhance the customer experience. It enables organizations to understand the end-to-end service delivery process and make informed decisions to optimize service quality and efficiency.

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1. Customer Journey

2. Customer Touchpoints

3. Channels and Interactions

Service Mapping Key Components:

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Customer Journey

This component represents the step-by-step journey of the customer as they interact with the service. It includes the different stages, touchpoints, and channels the customer engages with, from initial contact to post-service follow-up.

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Customer Touchpoints

are the specific points of interaction between the customer and the service provider. These can include physical locations, websites, call centers, mobile apps, or any other channels through which customers engage with the service.

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Channels and Interactions

represent the different communication channels and modes of interaction available to customers. This can include face-to-face interactions, phone calls, emails, chatbots, social media, or any other means of communication.

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Service mapping

helps visualize the customer journey and identify the key touchpoints where organizations can deliver value and enhance the customer experience. It provides insights into the customer's perspective and helps align service delivery to meet customer needs and expectations.

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Service innovation and new service development

involve the creation and introduction of new or improved services to meet evolving customer needs, enhance customer experiences, and gain a competitive advantage. These processes focus on generating innovative ideas, designing customer-centric solutions, and effectively implementing them.

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Service innovation

refers to the introduction of new or significantly improved services that offer unique value propositions, differentiate the organization from competitors, and address emerging customer demands.

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1. Identifying Opportunities

2. Generating Ideas

3. Evaluating and Selecting Ideas

4. Designing Customer-Centric Solutions

5. Testing and Refinement

6. Implementation and Launch

Aspects of service innovation include:

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Identifying Opportunities

Identify market trends, customer insights, and emerging needs to uncover opportunities for new service offerings. This can involve market research, customer feedback, competitive analysis, and staying updated on industry developments.

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 Generating Ideas

Foster a culture of creativity and innovation within the organization to generate ideas for new services. Encourage brainstorming sessions, cross-functional collaboration, and engagement with customers to generate a diverse range of innovative concepts.

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Evaluating and Selecting Ideas

Evaluate and prioritize the generated ideas based on their feasibility, market potential, alignment with organizational goals, and customer value. Conduct feasibility studies, market analysis, and concept testing to select the most promising ideas.

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Designing Customer-Centric Solutions

concepts by understanding customer needs, pain points, and preferences. Utilize techniques such as design thinking, customer journey mapping, and prototyping to create innovative and user-friendly service solutions.

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Testing and Refinement

Test the new service concept with a small group of customers or in a controlled environment to gather feedback, identify areas for improvement, and refine the service offering. Iterate and make necessary adjustments based on customer insights and market feedback.

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 Implementation and Launch

Develop a detailed implementation plan, including resource allocation, training, technology requirements, and operational processes. Execute the plan and launch the new service, ensuring a smooth transition and effective communication to customers and stakeholders.

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New service development

is the strategic and systematic process by which organizations conceive, design, and introduce innovative services to meet emerging market needs, stay competitive, and drive business growth.

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1. Idea Generation

2. Concept Development:

3. Feasibility Analysis:

4. Business Planning

5. Service Design and Development

6. Testing and Launch

7. Monitoring and Evaluation

Steps involved in new service development include:

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49

Idea Generation

 Generate ideas for new services through various methods such as market research, customer feedback, competitive analysis, and internal brainstorming sessions. Encourage input from employees, customers, and other stakeholders.

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50

Concept Development:

Develop and refine service concepts based on the generated ideas. Define the value proposition, target customer segments, and key features of the new service. Consider factors such as market potential, profitability, and organizational capabilities.

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Feasibility Analysis

Conduct a feasibility analysis to assess the technical, financial, and operational viability of the new service. Evaluate factors such as resource requirements, market demand, regulatory compliance, and potential risks.

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 Business Planning

Develop a comprehensive business plan for the new service, including market analysis, competitive positioning, pricing strategy, marketing and sales plans, and financial projections. Align the business plan with the overall organizational strategy.

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 Service Design and Development:

 Design the service elements. including customer interfaces, service processes, technology infrastructure, and operational systems. Develop prototypes or minimum viable products (MVPs) to test and validate the service concept.

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Testing and Launch

Test the new service in a controlled environment or with a select group of customers to gather feedback and make necessary refinements. Develop a marketing and launch plan to create awareness, generate interest, and drive customer adoption.

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Monitoring and Evaluation

Continuously monitor the performance of the new service by tracking key performance indicators (KPIs), customer feedback, and market response. Evaluate the success of the new service against predefined goals and make adjustments as needed.

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Service innovation and new service development

are ongoing processes that require continuous learning, adaptation, and customer-centricity. By embracing innovation, organizations can introduce compelling services that meet customer needs, drive growth, and stay ahead in a competitive marketplace. 

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