Activity 13:

1. What is meant by “distributing services”? How can an experience or something intangible be distributed?

The distribution sector provides the necessary link between producers and consumers, within and across borders. The efficiency of the sector is crucial to ensure that consumers have access to a wide variety of goods at competitive prices. Thus distributing services is nowadays a facility. The industry is highly dynamic and changing rapidly, as for the product, services has to be deliver to customers, fastly.

Distribute services means to distribute a competence, some factors may indicate us the efficiency of the services. The way the information gets to the customer, the quality and efficiency of the information.

Distributing an information, in other words an intangible product is equal important than distributing a product. For instance, the information given on the webpage of a Hotel, is the service, and satisfactions of customers pass by the good flow of information.

2. Why is it important to consider the distribution of core and supplementary services both separately and jointly? 

It is important because the supplementary services are the consequence of the core distribution. When a product is delivered, the service is the following step after the purchase. Distribution of core and supplementary services are effectively close. The last one is supporting the first one, the inverse not.

3. What risk and opportunities are entailed for a retail service firm in adding electronic channels of delivery by

a) paralleling an existing channel involving physical stores, or b) replacing the physical stores with a combined Internet and

call center channel? Give examples.

By adding electronic channels, the opportunities would be more about the production. In the case of an internet/calling center the services would be reevaluate.

Both have some advantages, it depends mainly of the situation of the company. Mainly, nowadays companies need a good internet services, because almost every product that may be sold in a shop, can be sold as well by internet.

For example, the offered service by all automobile companies. Today we can customize our future car directly by internet, adding options, and any type of personalization. After that the purchase sill is maid directly in the shop.  4. Why should service marketers be concerned with new

developments in mobile communications?

Because communications are the channel in which basic products would be converted in complex ones. Service marketers should always try to keep up to date with the developments in order to use them for their purposes.

5. What marketing and management challenges are raised by the use of intermediaries in a service setting?

First of all intermediaries simplify the delivery of a service in local scenarios But on the other hand, sometimes it can happen that costs get highered. It seems to be critical, that intermediaries are existing in order to add value, not only for decreasing distance to the market.

6. What are the key drivers for increasing globalization of services?

Globalization has affected all facets of the world economy. This includes services, which in most economies are the single largest contributor to economic growth and employment.However, despite its importance to national output, the impact of globalization on services is only recently receiving the attention of researchers and policy-makers.The aim of this paper is to provide a succinct survey of the process of globalization as it impacts upon the service economy. Specifically, the first section of the paper provides a brief overview of the increasing globalization of service industries by summarizing the available evidence on international services trade and investment levels.This is followed by a section examining the basic economics of the global market, in particular the frictions that prevent price equalization across borders. This theoretical discussion leads into an analysis of the factors that both facilitate and limit increased globalization of the services sector. Particular attention is paid to reduced technical constraints affecting services trade, coupled with the barriers arising from policyimpediments to services trade and investment.

Finally, the implications of increased globalization of services trade and investment are examined. The potential economic gains are considerable. But, there will also be losers from the globalization process. These groups will need to be compensated in the context of lowering the policy barriers to globalization.

7. How does the nature of the service affect opportunities for globalization?  

There are four broad groups of industry globalization drivers – market, cost, government and competition. Together, these four sets of drivers cover all the major critical industry conditions that affect the potential for globalization. Drivers are primarily uncontrollable by the worldwide business. Each industry has a level of Globalization potential that is determined by these external drivers. Globalization is defined as a process of economic integration of the entire world through the removal of barriers to free trade and capital mobility, as well as through the diffusion of knowledge and information. It is a historical process moving at different speeds in different countries and in different sectors. One of the results is that firms, whose output was previously significantly more limited by the size of their domestic market, now have the chance to reap greater advantages from economies of scale by "going global." Global firms rely on technological innovation to enhance their capabilities. In this sense, technology is both driven by and is a driver of globalization, so that it is possible to speak of the new "technologically driven character" of the global economy.The Market Convergence of lifestylesDrivers Cost or Economic drivers are: & Growth of global andIncreased travel creating global consumer, taste, regional channels, Establishment of world brands, Push to develop global advertising, Shortening product life cycle, Continuing push for economies of scale. Accelerating technological innovation, Advances in Increasing cost of producttransportation, Emergence of NIC and development.

8. Identify three situations in which you use self-service delivery. For each situation, what is your motivation for using this approach to delivery, rather than having service personnel do it for you?

SELF-SERVICE DELIVERY USED

MOTIVATION

ATM 24h available; More service locations --> faster to reach

PAYING THE PURCHASE AT E.G. Ikea OR Carrefour

Speeding up shopping

SHOPPING/ PRODUCT INFORMATION/ CONSULTATION

If a customer researches about a product in the internet (discussion forums, blogs, product descriptions,...) he/she gets a broader information base, which is normally less influenced by sales forces.

9. Think of three services that you buy or use either mostly or exclusively via the Internet. What is the value proposition of this channel to you over alternative channels

Exclusively via Internet: Booking of accommodations and purchase/ reservation of tickets for train,

airplane, events or cinema. I prefer this way of service delivery as I have a broader comparison and I can identify the lowest price, more easily.

Mostly: News/ Information. Motivation for using online services are their easy availability,

they are free of charge and more current.

Purchase of electronic devices. Due to lower prices and wider product offering, I like to purchase through internet shops.

10. Select two business format franchises other than food service, choosing one targeted primarily at consumer markets and the other targeted primarily at business-to-business markets. Develop a profile of each, examining their strategy across each of the 8Ps and also evaluating its competitive positioning.

BtoC franchise:

Aral AG was founded in 2002 and is a company owned by BP which sells petroleum products in Germany in more than 2.500 petrol stations.

Product Elements:Core products: petroleum products (diesel, gasoline, lubricants, natural gas, hydrogen, fuel oil)Supplementary service elements: Shop, Bistro, Car-cleaning park, tire pressure

Place and Time:Place: 2500 gasoline stations in Germany, in all areas, all products are sold in physical

channel but information-services are available online or through hotlines as well. Time: 16-24h a day

Price and Other User Outlays:Compared to competitors, high price/ high quality positioning.Aral Card: Bonus system for cheaper gasolineWaiting time: Waiting time depends on current gasoline price, but due to still high price positioning never really long queues.

Promotion and Education:Promotion and advertising through radio and tv-spots and sponsoringIn Germany it is common to have self service at gasoline stations, but at Aral, they started to serve gasoline again personally.Their branding is pretty good, Aral is well known brand with a high profile. Also their corporate-brand-sound is well known and recognized.On their homepage they inform about a lot things more or less connected to driving a car and teach their customers how to drive more ecological.

Process:Involvement of customer is high, as he/she needs to go to the gasoline station, needs to go to the desk to pay, needs to checks tire air pressure by him/her self.The degree of automation is low, there are no gasoline machines where you can just pay at a machine.

Physical Environment:All Aral gasoline stations have nearly the same corporate design (colors, shop-design, architecture,...)Staff wears working standard uniform.They have no common location rules, on where the gasoline station needs to be placed.

People:Staff appears mostly friendly.

Productivity and Quality:High quality products especially the lubricants. Otherwise the main core products have the same quality in the field of every gasoline station.

BtoB franchise: BONUS building care

Started in 1996 by Arleen Cavanaugh, BONUS BUILDING CARE has grown rapidly to become an emerging leader in the commercial cleaning franchise industry:

Product Elements:Core products: Cleaning ProceduresSupplementary service elements: Customer Service and communication programs

Place and Time:Place: 

They clean retail stores, medical facilities, office buildings, restaurants, government buildings, movie theaters, simply all businesses must be cleaned.

Locations: Atlanta, Georgia Austin, Texas Birmingham, Alabama

Knoxville, Tennessee Little Rock, Arkansas Lexington, Kentucky

Charlotte, North Carolina Chicago, Illinois Cincinnati, Ohio Columbia, South Carolina Columbus, Ohio Dallas, Texas Fort Worth, Texas Greenville, South Carolina Houston, Texas Indianapolis, Indiana Kansas City, Kansas

Louisville, Kentucky Memphis, Tennessee Miami, Florida Minneapolis, Minnesota Nashville, Tennessee Northwest, Arkansas Oklahoma City, Oklahoma Orange County, California San Antonio, Texas St. Louis, Missouri

Tulsa, Oklahoma Time:

Talking about the cleaning services, customer receives a cleaning schedule customized for their facility. Usually there are Nightly Cleaning Procedures and also there are permanent Customer Service and communication programs. There is an opportunity of servicing daytime, afternoon or evenings working, full-time or part-time. 

Talking about the franchise owners, they start part-time, keeping their regular jobs. They work evenings and weekends, setting their own times. When their business grows large enough, many have decided to go into it full-time. Others have started full-time while others keep it only as an extra income.

Price and Other User Outlays:The BONUS BUILDING CARE franchise is a low investment opportunity offering a managed growth in a recession-resistant business.

"Being in the right place at the right time and getting in on the ground floor can secure your future. Some commercial cleaning franchisors boast about their industry rankings and where they say you fit in. But buying a franchise is not just a matter of investing your money and fitting in...it is an investment of your hopes and dreams. At BONUS you're not just a number...at BONUS we don't want you to be in the business of cleaning, we want to help you build a cleaning business."

The BONUS BUILDING CARE plan is built on:

Lower franchise down payment costs Lower initial commercial cleaning franchise start-up costs Lower fees for new accounts A simplified franchise agreement Focused, effective training for your commercial cleaning franchise

Promotion and Education:TRAINING:

Once you have become a franchisee, you must successfully complete training and the other pre-opening steps before you are eligible to provide services on any client's premises. The home study section of training complements and strengthens the hands-on part of the training course and is geared to enable a franchisee to understand the course material sooner and progress through it at a faster pace. A proficiency examination is given at the end of training and, after obtaining a more than eighty percent proficiency rating, the franchisee is awarded a certificate of authorization in the BONUS BUILDING CARE franchise business.

COMMENCEMENT OF SERVICE TO ACCOUNTS:

After required pre-opening steps have been taken and other preliminary procedures completed, the franchise owner will be equipped and ready to begin service to accounts. All franchisees are required to pledge their dependability and honesty to their clients and agree to service their accounts, without fail, to the best of their ability on a schedule determined by the client.

Process:Each BONUS BUILDING CARE customer receives a cleaning schedule customized for their facility. The cleaning schedule can be designed to fit the needs of the customer`s workplace no matter how unique it may be.

Physical Environment:EQUIPMENT LEASING:

In order to be effective in the business, they offer a proper janitorial equipment. BONUS offers each franchisee the opportunity to lease-purchase quality, commercially rated, earth friendly janitorial equipment. BONUS has selected a leading manufacturer in the commercial janitorial equipment industry to provide durable, long lasting equipment. With no qualifying financing, the franchise owner is able to lease-purchase the equipment needed to provide superior and efficient services. The payments are deducted from the franchisee's revenue each month and can be found on the detailed and easy-to-read Monthly Revenue Statement. 

People:Nightly Cleaning Procedures are conducted by:

Insured, bonded security conscious cleaning crews Trained personnel equipped with commercial equipment Inspected by our operations staff for quality insurance

Productivity and Quality:BONUS BUILDING CARE has solutions to any cleaning problem you may have and would like the opportunity to provide you with a fully customized cleaning program for your workplace. Night after night they take great pride in providing only the best in service.

Decades of experience in the cleaning industry has prepared the management at BONUS BUILDING CARE to customize a program of cleaning that will effectively manage and perform the cleaning tasks required in the customer`s workplace.

Source: www.bonusbuildingcare.com

11. Select three different service industries. For each, what do you see as being the most significant of the five industry drivers as forces for globalization and why?

 Banking industry: Influenced primary by Market DriversIncreasingly service sector businesses are focusing on the idea of the “knowledge economy,” by understanding what their customers want and how to deliver it quickly and efficiently.

One good example of this is the banking industry which has gone through enormous changes in recent years. Using information and communication technology, banks have vastly reduced the number of staff they need. Many banks and building societies have merged to form much “leaner” businesses capable of extracting more profit from a wider customer base. Key to this process has been gaining information about customers and constantly providing them with new products.

 Wholesale and Retail Trade Industry: Influenced primary by Cost  Drivers

Globalization has lead structural changes in the companies, which include changing formats at shop level, the vertical integration of wholesale and retail activities, and processes of horizontal concentration.

While retailers are internationalizing their own operations through the setting up or acquisition of outlets and distribution systems abroad,they are also increasingly globalizing their sourcing,

Increasingly, it is not only manufacturers and traders but also retail groups which import their own goods from developing, and usually also from transforming countries. Almost all of the bigger groups now have buying offices in Hong Kong, and frequently in numerous other countries, which are responsible for sourcing especially private labels but also many other products. 

Travel and Tourism Industry Sector: Influenced primary by Government DriversTourism is one of the fastest growing sectors of the global economy and developing countries are attempting to cash in on this expanding industry in an attempt to boost foreign investment and financial reserves. While conceding that the uncontrolled growth of this industry can result in serious environmental and social problems, the United Nations contends that such negative effects can be controlled and reduced.

Travel and tourism has emerged as one of the world's most centralized and competitive industries, and hardly any other economic sector illustrates so clearly the global reach of transnational corporations . Over recent years, the industry has increasingly pressured governments around the world to liberalize trade and investment in services and is likely to benefit tremendously from the General Agreement on Trade in Services - a multilateral agreement under the World Trade Organization .

MARKETING AND COMMUNICATIONS OF US ECONOMYQUESTION

Week 2

 

Is it possible for an economy to be entirely based on services? Is it a sign of weakness when a national economy manufactures few of the goods that it consumes?

What are the main reasons for the growing share of the service sector in all major economies of the world?

What is so distinctive about services marketing that it requires a special approach, set of concepts and body of knowledge?

Consider quick-service restaurants such as KFC, McDonalds or even Starbucks coffee shops. Would you classify them as a good or a service? Why?

Demonstrate your understanding of backstage and frontstage in a service operations system.

 

 

Week 3

Explain Hofstede’s four key cultural dimensions and show how these dimensions may impact on service firms dealing with a range of consumers from a variety of cultures importing to South East Asia.

Explain why services tend to be harder for customers to evaluate than goods. Describe four ways in which a management consultancy firm might reduce the risk

perceptions of a new client: Describe the differences between high-contract & low-contract services, and

explain how the nature of the customer’s experience may differ between the two.

Week 4

 

Why is market segmentation and selective targeting particularly important to service organisations?

 

What should a service provider aim to achieve through positioning?

What are the managerial benefits of positioning maps?

 

Are there any limits to the number of market segments that a service provider can create and target? What are these?

 

Week 5

Why is it frequently necessary for service firms to develop a portfolio of service offerings?

Distinguish between core, facilitating and supporting services, and potential value afforded by each.

What is the role of service branding?

 

Week 6

 

What is meant by ‘distributing services?’ How can an experience or something intangible be distributed?

What are the different options for service delivery? For each of the options, what factors do service firms need to take into account when using that option?

What are the key factors driving place and time decisions of service distribution?

What marketing and management challenges are raised by the use of intermediaries in a service setting?

How does the nature of the service affect the opportunities for globalisation?

Week 7

 

Why is the pricing of services more difficult compared to the pricing of goods

 

Of the different types of costs explained in this chapter, which are likely to be the most significant in a service setting. Why?

 

In what ways can price capture and communicate value in services.

 

 

Explain hot flexible capacity might be created in each of the following situations.

A)    Tax Accountant

B)     Hairdresser

C)     Office cleaning service

D)    Interflora franchise

Select a service business and describe in detail how it handles customer waits. How might it improve its systems to increase the customer experience?

 

Week 8

 

Why is the marketing communications mix larger for service firms than that for goods firms?

What are the four key challenges or issues in service communications and how can they be overcome?

Why permission is based marketing gaining so much focus in service firms communications strategies?

 

 

 

Week 9

 

Distinguish between hard and soft service standards? Spell out the guidelines for effectively designing and implementing a customer

service strategy. Select an organisation and map customers touch points or specific encounters in

the overall customer experience? Think of an organisation in which you have worked which had a very good or poor

organisational service culture? Describe the factors that contributed to the shaping of that organisational culture. Which factors do you think contributed most. Why?

 

Week 10

 

Select a bad and a good waiting experience and contrast the two situations with respect to the aesthetics of the surroundings, diversions and other people waiting?

 

Week 11

 

Describe the casual link between customer satisfaction and a firms financial performance.

Explain the zone of indifference. Under what conditions is this zone likely to be widest?

Explain the key drivers of e- service quality.

 

Week 12

Why is target marketing the right customer so important for successful customers relationship management?

Explain why is more profitable to retain existing customers than continually to try to attract new ones.

Demonstrate your understanding of switching barriers (COST)

SOLUTION

Week 2 

Is it possible for an economy to be entirely based on services? Is it a sign of weakness when a national economy manufactures few of the goods that it consumes?

An economy entirely based on services can exist for short period only but cannot sustain for a longer time. No it is not a sign of weakness if the national economy manufactures few of the goods it consumes. For an economy to sustain for a longer period it should have both export and import in a proper balance and services cannot be exported they can be outsourced as in case of U.S. economy.

What are the main reasons for the growing share of the service sector in all major economies of the world?                                                                                            The growing share of service sector in the major economies indicates development and rise in the GDP of the country, the main reason behind it is that now people are moving towards service sector.(Ghosh 2009)

What is so distinctive about services marketing that it requires a special approach, set of concepts and body of knowledge?                                                                   The most distcint thing about service marketing is that you hav eto sell something which is perishable, intangible and can be just felt . they are performance or deeds which cannot be defined that si why they need special approach.

Consider quick-service restaurants such as KFC, McDonalds or even Starbucks coffee shops. Would you classify them as a good or a service? Why?                    Quick service restaurants are clear example of a service as providing customers their favourite food in the ambience they like is providing intangible service. Here the product is the experience of eating the quality and special food is the service they provide.(Ghosh 2007)

Demonstrate your understanding of backstage and front stage in a service operations system.                                                                                                                                    Services represent the front stage interactions and the manufacturing and production is considered the backstage in service operations system. Fronts stage represents the interaction a customer or the consumer has with the service and backstage is that part of the service which the consumer can’t see.

 

 

Week 3 Explain Hofstede’s four key cultural dimensions and show how these dimensions

may impact on service firms dealing with a range of consumers from a variety of cultures importing to South East Asia.                                                                      Hofstede’s four key cultural dimensions is a model of cultural dimensions where he collected and analysed cultural data from over 40 countries of IBM and identified four dimensions which helped in distinguishing one culture from another. These dimensions are:                                                                                             Power/ Distance( PD) : South East Asian markets are considered High PD so the firm over here will acknowledge the leaders power and for every answer we need to get in touch with top management

Individualism  (IDV) : In case of South East Asia they have low IDV , which means they will show respect for age and wisdom and will suppress feelings and emotions to work in harmony. They will accept changes very slowly and will carry on respecting their traditions.

Masculinity (MAS): In South EastAsia there are high MAS so the people out here will expect the male and female roles to be different. The men in the firm will be suggested to avoid emotions while decision making.

Uncertainty/ Avoidance Index (UAI)           :  In South East ASIA they show high UAI which means they have very formal business code of conduct and many rules and regulations. They require and anticipate structured performance and growth.

Explain why services tend to be harder for customers to evaluate than goods.       It is harder to evaluate services than goods because they are intangible, and it is tough to judge the experience and outcomes which are the products here in case of service industry.(Introduction to services marketing 2009)

Describe four ways in which a management consultancy firm might reduce the risk perceptions of a new client:

By doing SWOT analysis of the market and educating the new client about it.               Guaranteeing safe returns on investment to the new client.

Associating with experienced and skilled manpower in the same arena.

Giving best customer support whenever the client needs regarding follow ups etc.

Asking the client to make investments on basis of gradual returns.

Describe the differences between high-contract & low-contract services, and explain how the nature of the customer’s experience may differ between the two.

High contact services where the service provider has maximum contact with the customer or direct contact like hair dressing or banking etc.

Low contact where the service provider has minimum contact with their customer like radio services or remote fixing of softwares.

In both the cases the customers experience is different in both the cases because in high contact the customer experiences the service directly mostly within the premise of the organization and has opportunity to give feedback immediately and there is scope for improvement for the service provider, but in case of low contact since the services are provided without any close contact with consumer the feedback or the response takes time to reach service provider. (Services Marketing 2010)

Week 4 

Why is market segmentation and selective targeting particularly important to service organisations?                                                                                                Market segmentation and selective targeting is very important to service organizationsbecause the services is such a product which are designed to satisfy exclusive needs of particular segment of market . Every service cannot be utilised by every customer so they need to be targeted to their niche market for better penetration.

 

What should a service provider aim to achieve through positioning?                      The service provider should aim at getting an established place in the market andtry to maintain it for long term through positioning by using its distcint products or services.(Service Marketing 2010)

What are the managerial benefits of positioning maps?                                           A service provider should aim at communication about the service and testing new service through effective positioning. Positioning helps in creating impact of the target consumers. The managerial benefits of positioning maps are that they help in analysing   the overall strategic assessment of the service organization in any given environment.(Services Marketing 2010)

 

Are there any limits to the number of market segments that a service provider can create and target? What are these?                                           Yes there are limits to the number of markets a service provider can create and target. The reason being there are three levels of market segmentation in service industry and they are: ( Introduction to  services marketing  2009)

1. First level segmentation: demographics and psychographics2. Second level segmentation: desired benefits3. Third level segmentation: Behaviour

 

Week 5 Why is it frequently necessary for service firms to develop a portfolio of service

offerings?

It is necessary for the service firms to develop a portfolio of service offerings very frequently because the features which are used in every service industry are customer needs and satisfying their requirements and the needs keep in changing frequently. So to stay in competition they need to keep up breast with the changing needs. Moreover the perish ability of the services needs them to think of different portfolios with time.

Distinguish between core, facilitating and supporting services, and potential value afforded by each.                                                                                                        Core Services: core service is the product whose main aim is to satisfy the basic needs of the consumer                                                                supportingservices: These are the benefits which can be added to give more value for the same service to the customer.                         Facilitating services: Intangible aspects of the services which help the core service are facilitating services and they help in augmenting the core services.            (Services Marketing 2010)

What is the role of service branding?                                                                        It helps in revealing real needs of customer by using and integrating new technologies.

 

Week 6

 

What is meant by ‘distributing services?’ How can an experience or something intangible be distributed?                                                                                          Distributing services means using three more P’s to provide the services to the customer like People ( companies invest in people by training etc.), Process (developing process to reduce errors and human involvement for greater customer satisfaction) and creating physical evidence for service ( like TV commercials for leisure trips etc.). These experience scan be distributed using physical evidences like TV commercials or brochures which mentionedand depict about the services.

What are the different options for service delivery? For each of the options, what factors do service firms need to take into account when using that option?

Different options for service delivery are:

sales promotion

Publicity and public relation

Direct marketing

Personal selling and

Advertising

While using these options the service firm needs to keep in mind that since services cannot be inventoried so they should be increased during lean period and decreased during peak time. There should be reduction in the role of intermediaries and service personnel and the customer should be involved as a co-product.(Introduction  to service marketing 2009)

What are the key factors driving place and time decisions of service distribution?                                    Relationship Marketingis the best way which influences the place and time decision of service distribution.( Waheed 2007)

What marketing and management challenges are raised by the use of intermediaries in a service setting?                                                                                                    Use of intermediaries in a service setting curbs direct contact with the customer and the intermediaries might not be able to convey the service or product in a better manner like the service provider.(waheed 2007)

How does the nature of the service affect the opportunities for globalisation?       If the services are like speciality coffee experience given by Starbucks then they have great scope for globalization , because if the service has wider scope and caters to the need of various markets worldwide it will flourish globally but if the services are market specific then there can’t be any globalization scope.

Week 7 

Why is the pricing of services more difficult compared to the pricing of goods     the pricing of services is difficult as compared to pricing of goods because they have to consider factors like differential pricing, discount pricing, cross leader pricing and offs set pricing.(Waheed 2007)

 

Of the different types of costs explained in this chapter, which are likely to be the most significant in a service setting. Why?

The most significant costs in service settings are non monetary costs as time cost, search cost, psychological cost and convenience costs.

In what ways can price capture and communicate value in services.

Price can capture and communicate value in services by using techniques like competitive pricing strategies. Price matching or price bidding is other means by which we can show value to the customer.

 

Explain hot flexible capacity might be created in each of the following situations.

A)   Tax Accountant : Through increasing value using consumer referrals and long term value of customer

B)    Hairdresser: enhancing the skills of the employees and giving added values like a head massage with hair cut etc.

C)    Office cleaning service: Making it right on time and right the first time approach can be used to create flexibility. Dual shifts can be used for clearing the office at night and in the day too.

D)   Interflora franchise: By adding home delivery service on time or within few hours for various occasions we can create flexibility out here.

Select a service business and describe in detail how it handles customer waits. How might it improve its systems to increase the customer experience? Starbucks coffee is a great example of service business for specialty coffee. It handle sits customer wait by training its employees to be very customer friendly , Then they have kiosks for music and downloading their favourite music CD’s or iPhone tunes can be downloaded while the customer is waiting for their order to be served. Secondly they have ventured into books and CD’s sales which keep the customers busy while they are waiting for their service delivery.

They can improve their customer experience by keeping books because coffee is mostly accompanied with a book or latest newspaper or magazines. OS they can add them in the shop to handle their customers waiting time.(Bechmann 2010)

 

Week 8 

Why is the marketing communications mix larger for service firms than that for goods firms?

It is larger because there are three more additions which are necessary for service industry and they are People, Process and Physical evidence for process.

What are the four key challenges or issues in service communications and how can they is overcome?                                                                                                                  Not wide scope for promotion as the services is promoted while they are delivered to the customer. This can be tackled by adding effective promotional short term techniques so that at the point of contact with customer itself the promotion can be done.

Services are intangible so they cannot be shown to the consumer, but it can be handled by making them experience them of in the form of TV commercials or brochures.

Handling the customers wait period before delivering the service, but by reducing the delivery time we can entertain the customer and tell them about the services.

Packaging a service is very critical, but it can be handled in better way like McDonalds does it by giving new dimension to packaging of services.

Why permission is based marketing gaining so much focus in service firms communications strategies?                                                                                       The reason why permission marketing is gaining popularity in service firms is because it is not just about informing the customer , but it is about education and the customer does not feel interrupted or bothered like in case of mass marketing etc.

 

 

Week 9 

Distinguish between hard and soft service standards?                                              Hard service standards are where the service firm is very pushy about selling its services. Soft service standards are where they ask for customers views and recently permission promotional marketing has been introduced which means they ask the customer whether they are comfortable to listen to them or not.

Spell out the guidelines for effectively designing and implementing a customer service strategy.                                                                                                         Generation of an Idea

Screening

Testing the concept

Business analysis &Design of service

Test marketing

Infrastructure development

Service launch

Select an organisation and map customers touch points or specific encounters in the overall customer experience? Find a Starbucks—à Met by staff–àlisten to the music–àwait in line–àcheck the pricing—à do the selection–àorder-à pay–àwait for coffee–à find the milk-àlook for chair–à find the chair-à sit and tastethe coffee-àsenses the atmosphere-àfinds something to read-àgoes to the toilet–à leaves … no one says goodbye.(Bechmann 2010)

Think of an organisation in which you have worked which had a very good or poor organisational service culture? Describe the factors that contributed to the shaping of that organisational culture. Which factors do you think contributed most? Why?

The organization which has very good service culture is Convergys for which I worked. The factors which contributed to the organizational culture were the treating of employees as their customer, giving those added benefits and programs during the whole year to boost their morale and trips organized by office to take employees for excursions etc. The factor which contributed most was the involvement of the employee on each and every level of the organization, which gave them the feeling of empowerment and work satisfaction.

Week 10 

Select a bad and a good waiting experience and contrast the two situations with respect to the aesthetics of the surroundings, diversions and other people waiting? Bad waiting experience is waiting for the turn to send a speed post in post office. Here the government buildings are in bad shape and the employees are busy talking to each other and discussing their personal matter. Even the fans and coolers are not working ,so standing and waiting for hours together to send  letter is painful.

A good waiting experience is at McDonalds where there is proper ambience. The air conditioners are working, the toilets are clean to support the customerand if we have to wait the kids can enjoy in the play area and the cleanliness can be found everywhere.

 

Week 11 

Describe the casual link between customer satisfaction and a firm’s financial performance.                                                                                                              If the customer will be dissatisfied firstly he will stop buying the services which will affect the financial performance of the organization, moreover he will spread bad word of mouth promotion so no new customers will be coming.

Explain the zone of indifference. Under what conditions is this zone likely to be widest? It is the zone of indifferencereferred by famous management guru Chester Bernard according to which organizations can function on the unique concept of authority where the individuals work in an environment and accept the orders

without questioning the authority. The zone is supposed to be widest when the organization follows the autocratic approach. (Fredericks 2011)

Explain the key drivers of e- service quality.                                                            Service Discovery

Service Brokering

Service Negotiation

Service Mediation

Service Billing

Service Payment

Service Composition

Service Security

 

Week 12 Why is target marketing the right customer so important for successful customer’s

relationship management?                                                                                         Target marketing is very essential for customer relationship management because it helps in developing repeat selling opportunities and through word of mouth they spread good words about the company. It helps in developing structural attractiveness for the organization. Thusincreasing the growth potential for the company.

Explain why is more profitable to retain existing customers than continually to try to attract new ones.                                                                                                                It is profitable to retain old customers than attracting new ones because the old ones will go for repeat buying and they will increase the revenue for the company. Moreover they will provide free word of mouth publicity for the company. It is easier to retain old customers by strengtheningand establishing relationship with them as compared to attracting new ones.

Demonstrate your understanding of switching barriers (COST)                              Switching barriers o the switching costs is the real or perceived costs that are incurred by the organization when changing suppliers and are not incurred if the supplier remains the same.Since the switching costs directly affect the market share so none of the companies want to lose their customers to their competitors.This means if the customer is buying your product today, then all other things remaining the same the customer is likely to buy your product tomorrow also. That is why many companies follow the strategy of Bargain and then rip off strategy in pricing pattern where switching cost exists.( Fletcher 2003, p 9)

 

 

 

 

 

 

References

Bechmann, S. 2010, Service Design & Service Branding, slideshare.net,viewed on 21 october 2011,http://www.slideshare.net/bechmann63/service-design-service-branding

Fletcher, A. 2003, Switching Costs, Economic Discussion Paper 5, part One: Economic models and policy implications, Office of Fair Trading, London, p 9).

Fredricks, L. 2011, The agony of Indifference discovered, Gem State Writers.

Ghosh, S. 2009, Services Marketing Session 1, slideshare.net,viewed on 21 october 2011,http://www.slideshare.net/shantanughosh123/services-marketing-1972131

Introduction to Services Marketing 2009, chapter 1, Sideshare.net, viewed on 21 october 2011, http://www.slideshare.net/rockinglucky87/intro-to-service-marketing-presentation?src=related_normal&rel=3084087

Waheed, U. 2007, Services Marketing , Sideshare.net, viewed on 21 october 2011,http://www.slideshare.net/ch_paki/services-marketing.

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