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Marketing management

Marketing Management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making International marketing highly significant and an integral part of a firm's .[1] Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business' size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product [2] To create an effective, cost-efficient Marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate.[3] In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning.

Contents

1 Structure o 1.1 Marketing strategy o 1.2 Implementation planning o 1.3 Project, process, and vendor management o 1.4 Organizational management and leadership o 1.5 Reporting, measurement, feedback and control systems 2 See also 3 References 4 Further reading 5 External links

Structure

Traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, and (so-called "3Cs" analysis). More recently, it has become fashionable in some marketing circles to divide these further into certain five "Cs": Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context.

Department analysis is to develop a schematic diagram for , breaking down the market into various constituent groups of customers, which are called customer segments or market segmentations. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the segments: demographic, psychographic, geographic, behavioral, needs-benefit, and other factors may all be examined. Marketers also attempt to track these segments' perceptions of the various products in the market using tools such as perceptual mapping.

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In company analysis, marketers focus on understanding the company's cost structure and cost position relative to competitors, as well as working to identify a firm's core competencies and other competitively distinct company resources. Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also conduct periodic audits to assess the strength of its and sources of brand equity.[4]

The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be performed if such products exist.

Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, chain analysis and others.[5] Depending on the industry, the regulatory context may also be important to examine in detail.

In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive and product differentiation, degree of , historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct (alternately ) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.

Marketing strategy

If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals.

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To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions: 1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably.[3] In fact, a commonly cited definition of marketing is simply "meeting needs profitably." [6]

The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, non- targeted customers. In some cases, the firm may go so far as to turn away customers who are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons.

In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products.[7] For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance."

Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage.[8] The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers.[7]

Implementation planning

Marketing plan

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The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical to strategic.

After the firm's strategic objectives have been identified, the selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: , , Place (i.e. and channels), and .

Taken together, the company's implementation choices across the 4Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm's marketing and financial objectives.

In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes:

An executive summary Situation analysis to summarize facts and insights gained from market research and marketing analysis The company's mission statement or long-term strategic vision A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved Implementation choices for each element of the marketing mix (the 4Ps)

Project, process, and vendor management

Once the key implementation initiatives have been identified, marketing managers work to oversee the execution of the marketing plan. Marketing executives may therefore manage any number of specific projects, such as sales force management initiatives, product development efforts, channel marketing programs and the execution of and campaigns. Marketers use a variety of project management techniques to ensure projects achieve their objectives while keeping to established schedules and budgets.

More broadly, marketing managers work to design and improve the effectiveness of core marketing processes, such as , , , and pricing. Marketers may employ the tools of business process reengineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly.

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Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasing department on the procurement of these services.

Organizational management and leadership

Marketing management may spend a fair amount of time building or maintaining a marketing orientation for the business. Achieving a market orientation, also known as "customer focus" or the "marketing concept", requires building consensus at the senior management level and then driving customer focus down into the organization. Cultural barriers may exist in a given business unit or functional area that the marketing manager must address in order to achieve this goal. Additionally, marketing executives often act as a "brand champion" and work to enforce standards across the enterprise.

In larger organizations, especially those with multiple business units, top marketing managers may need to coordinate across several marketing departments and also resources from finance, research and development, engineering, operations, manufacturing, or other functional areas to implement the marketing plan. In order to effectively manage these resources, marketing executives may need to spend much of their time focused on political issues and inte- departmental negotiations.

The effectiveness of a marketing manager may therefore depend on his or her ability to make the internal "sale" of various marketing programs equally as much as the external customer's reaction to such programs.[6]

Reporting, measurement, feedback and control systems

Marketing management employs a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers – in the marketing department or elsewhere – to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost- efficient manner.

Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Recently, some software vendors have begun using the term "marketing operations management" or "marketing resource management" to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems.

Measuring the return on investment (ROI) of and various marketing initiatives is a significant problem for marketing management. Various market research, accounting and financial tools are used to help estimate the ROI of marketing investments. Brand valuation, for example, attempts to identify the percentage of a company's market value that is generated by the company's brands, and thereby estimate the financial value of specific

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investments in brand equity. Another technique, integrated marketing communications (IMC), is a CRM database-driven approach that attempts to estimate the value of marketing mix executions based on the changes in customer behavior these executions generate.[9]

Product marketing

Product marketing deals with the first of the "4P"'s of marketing, which are Product, Pricing, Place, and Promotion.

Product marketing, as opposed to product management, deals with more outbound marketing tasks. For example, product management deals with the nuts and bolts of product development within a firm, whereas product marketing deals with marketing the product to prospects, customers, and others. Product marketing, as a job function within a firm, also differs from other marketing jobs such as marketing communications ("marcom"), online marketing, advertising, marketing strategy, etc.

A Product market is something that is referred to when pitching a new product to the general public. The people you are trying to make your product appeal to is your consumer market. For example: If you were pitching a new video game console game to the public, your consumer market would probably be the adult male Video Game market (depending on the type of game). Thus you would carry out market research to find out how best to release the game. Likewise, a massage chair would probably not appeal to younger children, so you would market your product to an older generation.

Contents

1 Role of product marketing 2 Product marketing vs. product management 3 Qualifications 4 See also 5 References

Role of product marketing

Product marketing in a business addresses five important strategic questions:[1]

What products will be offered (i.e., the breadth and depth of the product line)? Who will be the target customers (i.e., the boundaries of the market segments to be served)? How will the products reach those (i.e., the distribution channel and are there viable possibilities that create a solid business model)? At what price should the products be offered? How will customers be introduced to the products (i.e., advertising)?

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Product marketing vs. product management

Product marketing frequently differs from product management in high-tech companies. Whereas the product manager is required to take a product's requirements from the sales and marketing personnel and create a product requirements document (PRD),[2] which will be used by the engineering team to build the product, the product marketing manager can be engaged in the task of creating a Marketing Requirements Document (MRD), which is used as source for the product management to develop the PRD.

In other companies the product manager creates both the MRDs and the PRDs, while the product marketing manager does outbound tasks like giving product demonstrations in trade shows, creating like hot-sheets, beat-sheets, cheat sheets, data sheets, and white papers. This requires the product marketing manager to be skilled not only in competitor analysis, market research, and technical writing, but also in more business oriented activities like conducting ROI and NPV analyses on technology investments, strategizing how the decision criteria of the prospects or customers can be changed so that they buy the company's product vis- a-vis the competitor's product, etc.

One issue that faces Product Marketers is that they are chartered with developing much of the content for the various constituents (sales, marcom, customers, blogs, etc.). Creating content tends to be given more value than the actual research and thinking that is behind all the content.

In smaller high-tech firms or start-ups, product marketing and product management functions can be blurred, and both tasks may be borne by one individual. However, as the company grows someone needs to focus on creating good requirements documents for the engineering team, whereas someone else needs to focus on how to analyze the market, influence the "analysts", and understand longer term market direction. When such clear demarcation becomes visible, the former falls under the domain of product management, and the latter, under product marketing. In Silicon Valley, in particular, product marketing professionals have considerable domain experience in a particular market or technology or both. Some Silicon Valley firms have titles such as Product Marketing Engineer, who tend to be promoted to managers in due course.

The trend that is emerging in Silicon Valley is for companies to hire a team of a product marketing manager with a technical marketing manager. The Technical marketing role is becoming more valuable as companies become more competitive and seek to reduce costs and time to market. Another trend is to have one Product Marketing Manager per group of Product Managers. This is the model that leads to the issue of PMMs being pressured to write content instead of connecting with the market.

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Qualifications

The typical education qualification for this area of business is a high level Marketing or Business related degree, e.g. an BBA , MBA, not forgetting sufficient work experience in related areas. As a key skill is to be able to interact with technical staff, a background in engineering or computing is also an asset.

References

1. ^ This is described in further detail by S. Wheel right and K. Clark in Revolutionizing Product Development (1992), p. 40-41; at the beginning of the section titled "Product/Market Planning and Strategy".

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Distributor Retailer

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Distribution (business)

Physical distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.

The other three parts of the marketing mix are product, pricing, and promotion.

Contents

1 The distribution channel o 1.1 Channels o 1.2 Channel decisions 2 Managerial concerns o 2.1 Type of marketing channel o 2.2 Channel motivation o 2.3 Monitoring and managing channels 3 See also 4 References o 4.1 Specific types of distribution 5 External links

The distribution channel

Chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user.... This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

Channels

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers, Retailer (also called dealer or reseller), who sells to end customers Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc.

If we mention in a single sentense the distribution channel is nothing but it is a process of transfer the products or servises from Producer to Customer or end user.

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There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.

Channel decisions

Channel strategy o Gravity & gravity o Push and Pull strategy Product (or service)

Cost Consumer location

Managerial concerns

The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be market-oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier:

Channel membership Channel motivation Monitoring and managing channels

Type of marketing channel

1. Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. 2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product. 3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'.

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Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a compensation is offered to the distributors' sales personnel, so that they are tempted to push the product. Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customers and prospects. these channels show marketing strategies of an organisation. Effective management of distribution channel requires making and implementing decision in these areas. 1-Recruiting 2-Training 3-Motivating 4-Servicing 5-Compensating 6-Evaluating and replacing channel members.

References

Richard E. Wilson, 'A Blueprint for Designing Marketing Channels', (www.chicagostrategy.com, 2008) Julian Dent, "Distribution Channels: Understanding and Managing Channels to Market" (Kogan Page, 2008) William D. Perreault, Jr. et al., 'Basic Marketing: A Marketing Strategy Planning Approach', (McGraw-Hill, 16th ed., 2008) Louis W. Stern et al., 'Marketing Channels', (Prentice-Hall, 7th ed., 2006) P. Kotler, 'Marketing Management' (Prentice-Hall, 7th ed., 1991) G. Lancaster and L. Massingham, 'Essentials of Marketing' (McGraw-Hill, 1988)

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service

key characteristics

1. Intangiblity

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Service (economics)

A service is the intangible equivalent of a good. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyers willingness to pay for it. Public services are those society pays for as a whole through taxes and other means.

By composing and orchestrating the appropriate level of resources, skill, ingenuity, and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying stock (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition which has equally few physical restrictions. Many so-called services, however, require large physical structures and equipment, and consume large amounts of resources, such as transportation services and the military.

Providers of services make up the tertiary sector of the economy.

Contents

1 Service characteristics 2 Service definition 3 Service specification 4 Service delivery 5 The service-goods continuum 6 List of economic services 7 See also 8 Finding related topics 9 References 9.1 Regarding Service Characteristics

Service characteristics

Services can be paraphrased in terms of their generic key characteristics.

1. Intangiblity

Services are intangible and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, tasted or heard. Thus, there is neither potential nor need for transport, storage or stocking of services. Furthermore, a service cannot be (re)sold or owned by somebody, neither can it be turned over from the service provider to the service consumer nor returned from the service consumer to the service provider. Solely, the service delivery can be commissioned to a

Page 12 2. Perishability

3. Inseparability

4. Simultaneity

5. Variability

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service provider who must generate and render the service at the distinct request of an authorized service consumer.

2. Perishability

Services are perishable in two regards

The service relevant resources, processes and systems are assigned for service delivery during a definite period in time. If the designated or scheduled service consumer does not request and consume the service during this period, the service cannot be performed for him. From the perspective of the service provider, this is a lost business opportunity as he cannot charge any service delivery; potentially, he can assign the resources, processes and systems to another service consumer who requests a service. Examples: The hair dresser serves another client when the scheduled starting time or time slot is over. An empty seat on a plane never can be utilized and charged after departure. When the service has been completely rendered to the requesting service consumer, this particular service irreversibly vanishes as it has been consumed by the service consumer. Example: the passenger has been transported to the destination and cannot be transported again to this location at this point in time.

3. Inseparability

The service provider is indispensable for service delivery as he must promptly generate and render the service to the requesting service consumer. In many cases the service delivery is executed automatically but the service provider must preparatorily assign resources and systems and actively keep up appropriate service delivery readiness and capabilities. Additionally, the service consumer is inseparable from service delivery because he is involved in it from requesting it up to consuming the rendered benefits. Examples: The service consumer must sit in the hair dresser's shop & chair or in the plane & seat; correspondingly, the hair dresser or the pilot must be in the same shop or plane, respectively, for delivering the service.

4. Simultaneity

Services are rendered and consumed during the same period of time. As soon as the service consumer has requested the service (delivery), the particular service must be generated from scratch without any delay and friction and the service consumer instantaneously consumes the rendered benefits for executing his upcoming activity or task.

5. Variability

Each service is unique. It is one-time generated, rendered and consumed and can never be exactly repeated as the point in time, location, circumstances, conditions, current configurations and/or assigned resources are different for the next delivery, even if the same service consumer requests the same service. Many services are regarded as heterogeneous or lacking homogeneity and are typically modified for each service consumer or each new situation (consumerised). Example: The taxi service which transports the service consumer from his home to the opera is

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different from the taxi service which transports the same service consumer from the opera to his home - another point in time, the other direction, maybe another route, probably another taxi driver and cab.

Each of these characteristics is retractable per se and their inevitable coincidence complicates the consistent service conception and makes service delivery a challenge in each and every case. Proper service marketing requires creative visualization to effectively evoke a concrete image in the service consumer's mind. From the service consumer's point of view, these characteristics make it difficult, or even impossible, to evaluate or compare services prior to experiencing the service delivery.

Mass generation and delivery of services is very difficult. This can be seen as a problem of inconsistent service quality. Both inputs and outputs to the processes involved providing services are highly variable, as are the relationships between these processes, making it difficult to maintain consistent service quality. For many services there is labor intensity as services usually involve considerable human activity, rather than a precisely determined process; exceptions include utilities. Human resource management is important. The human factor is often the key success factor in service economies. It is difficult to achieve economies of scale or gain dominant market share. There are demand fluctuations and it can be difficult to forecast demand. Demand can vary by season, time of day, business cycle, etc. There is consumer involvement as most service provision requires a high degree of interaction between service consumer and service provider. There is a customer-based relationship based on creating long-term business relationships. Accountants, attorneys, and financial advisers maintain long-term relationships with their clientes for decades. These repeat consumers refer friends and family, helping to create a client-based relationship.

Service definition

The generic clear-cut, complete and concise definition of the service term reads as follows:

A service is a set of singular and perishable benefits

delivered from the accountable service provider, mostly in close coaction with his service suppliers, generated by functions of technical systems and/or by distinct activities of individuals, respectively, commissioned according to the needs of his service consumers by the service customer from the accountable service provider, rendered individually to an authorized service consumer at his/her dedicated trigger, and, finally, consumed and utilized by the triggering service consumer for executing his/her upcoming business or private activity.

Page 14 1. Service Consumer Benefits

2. Service-specific Functional Parameters

3. Service Delivery Point

4. Service Consumer Count

5. Service Delivering Readiness Times

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Service specification

Any service can be clearly, completely, consistently and concisely specified by means of the following 12 standard attributes which conform to the MECE principle (Mutually Exclusive, Collectively Exhaustive)

1. Service Consumer Benefits 2. Service-specific Functional Parameters 3. Service Delivery Point 4. Service Consumer Count 5. Service Delivering Readiness Times 6. Service Support Times 7. Service Support Languages 8. Service Fulfillment Target 9. Service Impairment Duration per Incident 10. Service Delivering Duration 11. Service Delivery Unit 12. Service Delivering Price

The meaning and content of these attributes are:

1. Service Consumer Benefits describe the (set of) benefits which are triggerable, consumable and effectively utilizable for any authorized service consumer and which are rendered to him as soon as he trigger one service. The description of these benefits must be phrased in the terms and wording of the intended service consumers.

2. Service-specific Functional Parameters specify the functional parameters which are essential and unique to the respective service and which describe the most important dimension(s) of the service scape, the service output or the service outcome, e.g. maximum e-mailbox capacity per registered and authorized e-mail service consumer.

3. Service Delivery Point describes the physical location and/or logical interface where the benefits of the service are triggered by and rendered to the authorized service consumer. At this point and/or interface, the preparedness for service delivery readiness can be assessed as well as the effective delivery of the service itself can be monitored and controlled.

4. Service Consumer Count specifies the number of intended, clearly identified, explicitly named, definitely registered and authorized service consumers which shall be and/or are allowed and enabled to trigger and consume the commissioned service for executing and/or supporting their business tasks or private activities.

5. Service Delivering Readiness Times specify the distinct agreed times of every day of the week when

the described service consumer benefits are

Page 15 6. Service Support Times

7. Service Support Languages

8. Service Fulfillment Target

9. Service Impairment Duration per Incident

10. Service Delivering Duration

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o triggerable for the authorized service consumers at the defined service delivery point o consumable and utilizable for the authorized service consumers at the respective agreed service level all the required service contributions are aggregated to the triggered service the specified service benefits are comprehensively rendered to any authorized triggering service consumer without any delay or friction.

The time data are specified in 24 h format per local working day and local time, referring to the location of the intended and/or triggering service consumers.

6. Service Support Times specify the determined and agreed times of every day of the week when the triggering and consumption of commissioned services is supported by the service desk team for all identified, registered and authorized service consumers within the service customer's organizational unit or area. The service desk is/shall be the so called the Single Point of Contact (SPoC) for any service consumer inquiry regarding the commissioned, triggered and/or rendered services, particularly in the event of service denial, i.e. an incident. During the defined service support times, the service desk can be reached by phone, e-mail, web-based entries and/or fax, respectively. The time data are specified in 24 h format per local working day and local time, referring to the location of the intended service consumers.

7. Service Support Languages specifies the national languages which are spoken by the service desk team(s) to the service consumers calling them.

8. Service Fulfillment Target specifies the service provider's promise of effectively and seamlessly delivering the specified benefits to any authorized service consumer triggering a service within the specified service times. It is expressed as the promised minimum ratio of the counts of successful individual service deliveries related to the counts of triggered service deliveries. The effective service fulfillment ratio can be measured and calculated per single service consumer or per service consumer group and may be referred to different time periods (workday, calendar week, work month, etc.)

9. Service Impairment Duration per Incident specifies the allowable maximum elapsing time between

the first occurrence of a service impairment, i.e. service quality degradation, service delivery disruption or service denial, whilst the service consumer consumes and utilizes the requested service, the full resumption and complete execution of the service delivery to the content of the affected service consumer.

10. Service Delivering Duration specifies the promised and agreed maximum period of time for effectively rendering all specified service consumer benefits to the requesting service consumer at his currently chosen service delivery point.

Page 16 11. Service Delivery Unit

12. Service Delivering Price

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11. Service Delivery Unit specifies the basic portion for rendering the defined service consumer benefits. The service delivery unit is the reference and mapping object for the Service Delivering Price, for all service costs as well as for charging and billing the consumed service volume to the service customer who has commissioned the service delivery.

12. Service Delivering Price specifies the amount of money the service customer has to pay for the distinct service volumes his authorized service consumers have consumed. Normally, the service delivering price comprises two portions

a fixed basic price portion for basic efforts and resources which provide accessibility and usability of the service delivery functions, i.e. service access price a price portion covering the service consumption based on o fixed flat rate price per authorized service consumer and delivery period without regard on the consumed service volumes, o staged prices depending on consumed service volumes, o Fixed price per particularly consumed service delivering unit.

Service delivery

The delivery of a service typically involves six factors:

The accountable service provider and his service suppliers (e.g. the people) Equipment used to provide the service (e.g. vehicles, cash registers, technical systems, computer systems) The physical facilities (e.g. buildings, parking, waiting rooms) The requesting service consumer Other customers at the service delivery location Customer contact

The service encounter is defined as all activities involved in the service delivery process. Some service managers use the term "moment of truth" to indicate that defining point in a specific service encounter where interactions are most intense.

Many business theorists view service provision as a performance or act (sometimes humorously referred to as dramalurgy, perhaps in reference to dramaturgy). The location of the service delivery is referred to as the stage and the objects that facilitate the service process are called props. A script is a sequence of behaviors followed by all those involved, including the client(s). Some service dramas are tightly scripted, others are more ad lib. Role congruence occurs when each actor follows a script that harmonizes with the roles played by the other actors.

In some service industries, especially health care, dispute resolution, and social services, a popular concept is the idea of the caseload, which refers to the total number of patients, clients, litigants, or claimants that a given employee is presently responsible for. On a daily basis, in all those fields, employees must balance the needs of any individual case against the needs of all other current cases as well as their own personal needs.

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Under English law, if a service provider is induced to deliver services to a dishonest client by a , this is an offence under the Theft Act 1978.

Service-Goods continuum

Service output in 2005

The service-goods continuum

The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point.[citation needed] Most products fall between these two extremes. For example, a restaurant provides a physical good (the food), but also provides services in the form of ambience, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods — like water utilities which actually deliver water — utilities are usually treated as services.

In a narrower sense, service refers to quality of customer service: the measured appropriateness of assistance and support provided to a customer. This particular usage occurs frequently in retailing.

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List of economic services

In 2005, USA was the largest producer of services followed by Japan and Germany, reports the International Monetary Fund. Services accounted for 78.5% of the U.S. economy in 2007[1], compared to 20% in 1947.

The following is an incomplete list of service industries, grouped into rough sectors. Parenthetical notations indicate how specific occupations and organizations can be regarded as service industries to the extent they provide an intangible service, as opposed to a tangible good.

business functions (that apply to all organizations in general) o consulting o customer service o human resources administrators (providing services like ensuring that employees are paid accurately) childcare cleaning, repair and maintenance services o janitors (who provide cleaning services) o gardeners o mechanics construction o carpentry o electricians (offering the service of making wiring work properly) o plumbing death care o coroners (who provide the service of identifying cadavers and determining time and cause of death) o funeral homes (who prepare corpses for public display, cremation or burial) dispute resolution and prevention services o arbitration o courts of law (who perform the service of dispute resolution backed by the power of the state) o diplomacy o incarceration (provides the service of keeping criminals out of society) o law enforcement (provides the service of identifying and apprehending criminals) o lawyers (who perform the services of advocacy and decision making in many dispute resolution and prevention processes) o mediation o military (performs the service of protecting states in disputes with other states) o negotiation (not really a service unless someone is negotiating on behalf of another) education (institutions offering the services of teaching and access to information) o library o museum o school

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entertainment (when provided live or within a highly specialized facility) o gambling o movie theatres (providing the service of showing a movie on a big screen) o performing arts productions o sexual services o sport o television fabric care o dry cleaning o Self-service laundry (offering the service of automated fabric cleaning) financial services o accountancy o banks and building societies (offering lending services and safekeeping of money and valuables) o real estate o stock brokerages o tax preparation foodservice industry personal grooming o hairdressing o manicurist / pedicurist o body hair removal o dental hygienist health care (all health care professions provide services) hospitality industry information services o data processing o database services o Interpreting o Translation risk management o insurance o security social services o social work transport Public utility o electric power o natural gas o telecommunications o waste management o water industry

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References

CIAWorld Factbook:https://www.cia.gov/library/publications/theworldfactbook/fields/2012.html

Regarding Service Characteristics

Athens University of Economics and Business: An Introduction to - s. http://www.aueb.gr/users/esaopa/courses/part2.pdf

Valerie Zeithaml, A. Parasumaran, Leonhard Berry (1990): Delivering Service Quality, ISBN 0- 02-935701-2,

The Free Press Valerie Zeithaml, A. Parasumaran, Leonhard Berry (1990): SERVQUAL - s. http://www.12manage.com/methods_zeithaml_servqual.html

Sharon Dobson: Product and Services Strategs.http://busfac32.cob.calpoly.edu/presentations/Sharon_Dobson/Ch08.ppt

John Swearingen: Operations Management - Characteristics of services - s. http://online.uis.edu/spring2002/bus322/lectures/chap01/sld040.htm

James A. Fitzsimmons, Mona J. Fitzsimmons: Service Management - Operations, Strategy, Information Technology - s.

o http://www.belkcollege.uncc.edu/mjkhouja/02%20Nature.ppt o http://www.amazon.com/Service-Management-Operations-Information- Technology/dp/0073122580

Russell Wolak, Stavros Kalafatis, Patricia Harris: An Investigation Into Four Characteristics of Services - s. http://members.byronsharp.com/empgens/emp1.pdf

Sheelagh Matear, Brendan Gray, Tony Garrett, Ken Deans: Moderating Effects of Service Characteristics on the Sources of Competitive Advantage - Positional Advantage Relationship - s. http://smib.vuw.ac.nz:8081/www/ANZMAC2000/CDsite/papers/m/Matear1.PDF

Robert Johnston, Graham Clark: Service Operations Management - Improving Service Delivery, ISBN 1405847328 - s. http://www.amazon.com/Service-Operations-Management-Financial- Times/dp/1405847328/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1223813905&sr=1-1

Pascal Petit (1987). "services," The New Palgrave: A Dictionary of Economics, v. 4, pp. 314-15.

Alan Pilkington, Kah Hin Chai, “Research Themes, Concepts and Relationships: A study of International Journal of Service Industry Management (1990 to 2005),” International Journal of Service Industry Management, (2008) Vol. 19, No. 1, pp. 83-110.

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