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Language English View all editions Prev Next edition 1 of 2. Content Types text Carrier Types volume Physical Description xxii, pages : illustrations ; 24 cm. Series Issues in organization and management series Issues in organization and management series. Subjects Management. Services -- Marketing. Service industries. Customer service. Service industries -- Marketing. Customer services. Service sector Marketing Overseas item Summary Examines the new rules of service competition that all firms must master if they are to survive.
Service and Relationship Quality. Quality Management in Services. Return on Service and Relationships. Managing the Augmented Service Offering. Principles of Service Management. Managing Service Productivity.
Service Management and Marketing: Customer Management in Service Competition
Managing Marketing or Market-oriented Management. Managing Total Integrated Marketing Communication. Managing Brand Relationships and Image. Notes Later edition has subtitle: a customer relationship management approach. Includes bibliographical references pages and index. Lexington, Mass. View online Borrow Buy Freely available Show 0 more links Set up My libraries How do I set up "My libraries"? Australian Institute of Management. Open to the public Rockhampton Campus Library. Casuarina Campus Library.
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- Service Management and Marketing: Customer Management in Service Competition, 3rd Edition.
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- ISBN 13: 9780470028629.
Open to the public ; Bathurst Campus Library. Wagga Wagga Campus Library. Curtin University Library. Library Services.
May not be open to the public B Edith Cowan University Library. Open to the public. Federation University Australia - Gippsland campus library. Flinders University Central Library. Griffith University Library. Monash University Library. Parliamentary Library. University Library Lismore. The University of Melbourne Library. Barr Smith Library. St Teresa's Library. University Library. University of Western Australia Library. University of Wollongong Library. As vendors' technology features maintenance for other manufacturers' equip- and functions equalized, acquisition costs ment.
Vendors, apparently focusing on market share, Third-Party Independent Service and responded with price reductions further lower- Maintenance Organizations ing already weak profit margins. Since the middle s third-party indepen- dent non-OEM service companies have Customer "Critical Business Functions" grown both in number and scope. Concomitant Many manufacturers' products become an with this phenomenon, buyers and mainte- integral part of a customer's operations, and nance managers have initiated and expanded this is now being taken into consideration in internal cost reduction programs.
These factors buying decisions. For example, just as the have benefited the independent service firms. Customers motivated by the fact that difficult to emulate. Customers' In-House Maintenance Lower profits from product sales and inten- Programs sified service competition suggest that manage- Some companies are taking the service func- ment should move quickly to shore up service tion in-house.
They anticipate significant cost revenue and augment their company's "servic- reductions in performing simple servicing ing relationship" with its customers. We pro- functions equipment moves and routine main- pose the adoption of strategic service manage- tenance while farming out more complicated ment to address these concerns. In some cases, manufacturers are find- ing these customers reluctant to purchase full Strategic Service service contracts on new equipment or to Management renew expiring contracts.
Christian Grönroos | Business Economics | Business
Comprehensive The Concept training allows these companies to handle The concept of strategic service management most routine maintenance chores, sometimes is different from "marketing" service. Companies that "market" service are primarily When customers perform their own service seeking to develop a service division that con- and maintenance, manufacturers are usually tributes to the marketing efforts of the compa- allotted partial service agreements or are ny.
In strategic service management the con- forced to compete on time and material rates. The feel that customer service is their responsibili- corporate focus is on comprehensive customer ty.
This is the ultimate level of servicing and servicing and support integrating the product supporting the customer and requires involve- management, marketing, sales, design, material ment and direction from upper management. This is the highest level of cus- Upper management must focus the corpora- tomer service. When customer sophistica- breadth and scope to customer servicing goals, tion is low and competition is limited, service redirect the company into a strategic servicing restricted to equipment maintenance is gener- o r g a n i z a t i o n , e s t a b l i s h financial s e r v i c i n g ally sufficient.
When competition intensifies objectives, stress high-quality servicing and a n d c u s t o m e r s o p h i s t i c a t i o n r e m a i n s low, support, and stress the need for an ongoing manufacturers should concentrate their service customer-supplier relationship. On the other h a n d , w h e n cus- to build this perspective, management should tomers gain sophistication and competition is conduct an audit of the company's conceptual- limited, manufacturers should focus on cus- ization, orientation, and execution of its ser- t o m e r - o r i e n t e d s e r v i c e , s i n c e t h i s is w h a t vice policies.
However, w h e n competition intensifies and simultaneously customers acquire a high Auditing Company Service degree of sophistication, neither competitive Policies efforts nor customer orientation programs are A thorough audit of the firm's individual ser- sufficient. At this level a manufacturer has to vicing policies within the overall service struc- outdo the competition and also provide quality ture will determine the extent of the efforts service. It should, therefore orient its service to required to adopt strategic service manage- the customer's point of view and fully support ment.
This type of environment calls Exhibit 2 classifies service orientation into for strategic service management.
More with the same fervor that was once enlightened companies have instituted proac- reserved for selling equipment. T h e s e t y p e s of c o n t a c t s m i g h t the inculcation of a synergistic company-wide i n c l u d e remote testing, site i n s p e c t i o n s , or service culture in which all operating and staff advising on service scheduling. They a total strategic service approach. For a singu- should be considered generic, across many lar service policy to be classified as strategic, companies; however, they are not all-inclusive.
If the sion of the firm is strategic service manage- results indicate generic customer per- ment. It is unlikely that proactive category. Either classification is ripe all companies are either proactive or strategic- for management to upgrade the service orienta- oriented. When this level has been If customers perceive service in an industry achieved, Customer servicing and support per- as nongeneric—that is, different depending meate all line and staff organizations and the upon who offers it—and if they rate a specific focus will be on the customer.
Image Obviously, if customers perceive service as Management should audit the "service nongeneric and a company is not a highly image" the firm projects internally to its rated provider, it most likely is traditionally employees and externally to its current and oriented or needs improvement as a proactive potential customers. Image projection involves service supplier and faces an uphill battle. To rate as strategic, there not only must be non- generic customer perception and the company If the firm addresses its service policies only rated highly , the company also needs to have when specifically asked to by a customer, the developed specific strategies that make it better, company is most likely in a reactive mode.
If and these must be part of its service culture. Generally, the firm can use a profit center, contribution cen- ter, or cost center approach. All have been suc- Customers are broadening their pur- cessful in a variety of service firm settings. The chase decision criteria to consider more challenging task for management is to determine whether the service financial mea- the "lifetime" or "life cycle" costs. If results are limit- port the servicing image. Executive speeches, ed to work station level only, service financial product demonstrations, responses to RFPs management should be considered traditional.
Strategic orientation and financial integrity occur when service policies require that finan- Customer Perception cial measurements taken at the customer level As part of the audit, management should at the work centers are linked and have the conduct marketing research to determine cus- same directional impact on all entity or corpo- tomer perception of the company's service rate level financial reports.
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