Service marketing

Core product and supplementary services

-Core product is the central component of the services meanwhile supplementary services is the added value to the core product.
-For example the core product of AIRASIA is to provide transportation services and the supplementary services is to provide customers with Food and beverages.

Supplementary services

1. Facilitating elements
-Absolutely essential to an operation. Without facilitating service, delivery of the core benefit becomes impossible.

Facilitating services

1. Information
-Regarding the service that they provide.
-Example: Tune Hotel provide the information regarding their service such as available rooms, price, discount and others.

2. Order- Taking
-can be made through internet to make it easier and faster for both customer and supplier.
Example: after the customer check the room availability, they make reservation through internet to book the room.

3. Payment
- Customer may pay faster if you create simple transaction for them.
Eg: Tune Hotel provide payment by credit card to their customer so that they will book and pay through internet only.

4. Billing
- After customer make reservation and payment, they will be provide by bills as a prove of their payment.
Eg: Tune Hotel give the customer bills after they make payment.

 Enhancing Element
-Add value to the service.
-Not necessary to have but its fine to have to give better service.
Eg: Spa is not necessary to a hotel, but it can be use to enhance the service and at the same time will differentiate with other competitors.

1. Consultation
- Consist of immediate advice from a knowledge person in respond to the request.
Eg: hair stylist will advice their customer regarding style that suit with their face if the customer ask for suggestion.

2. Hospitality
- Customer deserve to be treated as welcome guest when using their service.
Eg: Tune Hotel staff will greet their customer when the customer enter their premises.
“ Welcome to Tune Hotel”, “Have a pleasant day”.

3. Safekeeping
-Provide place for the customers to keep their stuff in secure condition.
Eg: Car park provided by Tune Hotel to their customer.

4. Exceptions
-Service that fall outside the routine service delivery which is special request, problem solving, handling of complain and restitution.
Eg: Tune Hotel provide complain or suggestion box at the lobby to ensure their customer can make suggestion or complain of their service.

Development of new services

1. Major service innovations
-New core product for market that have not been previously define.
Eg: eBay launch of online auction services.

2. Major process innovation
-Using new processes to deliver existing core product in new ways with additional benefit.
Eg: MAS introduce online ticketing to their customer to save customer time and offer lower price.

3. Product-line extensions
-Addition to current product lines by existing firm.
refers to the corporate activity whereby companies introduce new products, new product variants or product improvements by leveraging the brand equity of the existing parent brand.
Eg: When Starbucks decided to launch its line of bottled cold coffee called Frappucino (a mixture of coffee, water, milk and different syrups), the logic used was to leverage the very strong equity of the Starbucks brand in gaining wide spread acceptance for the new product line

4. Process-line extensions
-New ways of delivering existing products, either with the intent of offering more continence and attract new customers.
Eg: MAS introduce internet retailing through Malaysiaairline.com to compete with Airasia.com

 5. Supplementary service innovation
-Adding new facilities and enhancing service elements to an existing core service or improving and existing supplementary services.
-Eg: Getaran Jiwa Restaurant, this restaurant theme design based on our legendary P. Ramlee to keep customer entertain with classic environment, pictures, music, furniture that make customer remember our late legendary actors. 

6. Service improvement
- Involve modest changes in the performance of current products.
- Eg: Mc Donald provide 24 hours service for their customers.

7. Style changes
-No changes in either processes or performance but often create excitement and may serve to motivate employees.
-Eg: Court mammoth repainting their building with new color to motivate employees and to create excitement.

Three factors that contribute most to success in developing new product 

1. Market synergy
-Consistent with traditional successful new product development practice, successful new services have higher levels of market synergy.
-Market synergy requires
-a superior product
-a good fit with the existing image of the company
-a strong understanding of the consumer's wants and needs and how the purchase decision is made
-a strong consumer need for the product
-a high growth market
-branch efforts which are supportive of the new service.


2. Organizational factors
- Commitment is a comprehensive variable refers to organizational members being committed to task effectiveness and being committed to tasks as well as to each other.

3. Market research factors
-Regarding internal success factors, evidence has been found that the amount and quality of conducted market research, the development speed, technological advantage and synergy between the new service and the organization contribute to the success of financial service innovations

Thank You..