Service Management Marketing

Running head: Service Management Marketing
Service Management Marketing
Essay
System04104
2/15/2019

Service Management Marketing
1
Introduction
This essay is based on the three techniques of service management called service concept,
understanding customer types, and fifth gap of GAPs model, which is customer expectations
and perception. These techniques have been discussed under three points; purpose,
application, and limitations. These techniques, ideas, and theory play an important role in the
service organisation and determine the service development and new service design that meet
the customer needs and their requirements.
Service Concept
Purpose
Service concept is the key factor in managing service operations and plays a critical role in
managing business operations. Service concept plays a key role in the design and
development of service operations and determines the quality of service standards in service
organisations. According to the Johnster, Clarke, and Shulver (2012), service concept is a
shared and articulated understanding of the service provided to the customer and service
received by the service provider. The service concept also shows what a customer expects
from the service organisation and what the organisation provides for the customers. The
service concept helps a service organisation what needs to be done to fulfil customer
expectations. The service concept also helps to gain a competitive advantage over the
competitors and it also helps in increasing the revenues and customers base by improving the
sophisticated customer service.
Application
Service concept helps an operation manager to assess the service strategy of the service
business organisation. The Service Concept also helps in creating new ideas in order to
develop business organisation and service operations. The service concept helps in
developing new services or design new services (Flint and Woodruff, 2014). The service
concept is an important way of capturing the nature of a service that helps the customer to
know about the service, which they are getting from the service organisation, and it also helps
the staff of the organisation to know and understand what they are providing to their
customers. Service concept is a fundamental and core element of service innovation and

Service Management Marketing
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development that helps in service design (Jhandir, 2012). Most of the authors refer to service
design is a central component in designing the services and a key stage in the process of the
new service design process.
Limitations
One of the major limitations of service concept is that it does not take into consideration
external factors such as what is happening in the outside of the organisation. It means it
ignores those factors, which belongs to the macroeconomic environment. Although, service
concept is the only tool which helps a business to determine the required change in the
service processes in a service provider, the ignorance of external factors may be considered
as its one of the big drawback (Kindström, Kowalkowski, and Sandberg, 2013). Another
limitation of the service concept that it does not consider the change management activities
that play an important role in a service organisation.
Understanding customer types
Purpose
Understanding customer types enable a service provider or service-oriented business
organisation to identify the different types of customers and that is associated with the firm
and need the service of the organisation (Deng, Lu, Wei, and Zhang, 2010). These customers
also include internal and external customers such as employees of the organisation and target
audience as well. Furthermore, it also enables the organisation to identify the loyal customers,
which add value to the organisation, and demographics of the customer helps in which age or
gender of the customer more attracted towards the business organisation and suitable for the
business. To identify and understand the customer types helps an operation manager to
understand the need of their customers in order to maximise the organisational profit.
Application
Understanding the customer types helps the business to spread the business among the people
and compete with other players in the same industry in the market. Understanding customer
types help a business organisation to grow and succeed and it also leads to financial success.
Understanding customer types help the business organisation to gain lots of profitability in
the business operation and providing good services to the customers (Mauri, Minazzi, and
Muccio, 2013). The organisation can also diversify its service types according to the need of