Manual Marketing of Services.pdf

7/27/2019 Manual Marketing of Services.pdf

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Module Manual:

Marketing of Services

Academic Year: 2013-2014

Course Code: MK-505

Sector Job Profiles in this sector

This course is very useful for

students wanting to join any

Service sector

Customer service Manager CRM managers Back end Manager Front end manager Corporate sales manager


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1.INTRODUCTION TO THE MODULEIn India, over the years, while the field of marketing has assumed a central

role in the management of organizations, there is a general lack of

knowledge amongst students about rising prominence of services marketing.

It is a separate discipline as distinct from conventional goods marketing.

The service sector provides some unique challenges which can be handled in

an altogether different approach. This uniqueness comes from the very

intangible nature of services, which impacts their conception, design,

communication, delivery purchase and consumption. This course commences

the concept of product marketing and culminates with the intricacies of

services marketing.

Learning Outcomes:

By the end of this Course Students will be able to understand :

1. To provide students with a comprehensive understanding of the key issues inmarketing of services.

2. To enhance students' knowledge of services marketing concepts andtheories.

3. To enhance students knowledge of the development of research in servicesmarketing.

4. To enable students to apply the services marketing principles and techniquein services organisations.

2. INTRODUCTION TO THE TUTORS

Area Chair: Prof.Sujit SenguptaIILM, Lodhi Road campus# 9811076737

[email protected]

2.1 Course Tutors

i) Prof Sujit Senguptahttp://iilm.edu/faculty/profiles/sujit-sen-gupta.html

ii) Prof Raghuvansh Mathurhttp://iilm.edu/faculty/profiles/raghuvansh-mathur.html
mailto:[email protected]:[email protected]://iilm.edu/faculty/profiles/sujit-sen-gupta.htmlhttp://iilm.edu/faculty/profiles/sujit-sen-gupta.htmlhttp://iilm.edu/faculty/profiles/raghuvansh-mathur.htmlhttp://iilm.edu/faculty/profiles/raghuvansh-mathur.htmlhttp://iilm.edu/faculty/profiles/raghuvansh-mathur.htmlhttp://iilm.edu/faculty/profiles/sujit-sen-gupta.htmlmailto:[email protected]


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iii) Sonia Takkarhttp://www.iilm.edu/faculty/profiles/sonia-takkar.html

3. MODULE OVERVIEW

1.Introduction to Service marketing2. Briefing about the Group Project

3. Characteristics and Classification of services

4. 8 Ps of services

5. Consumer Behaviour in Various Services

6. Situation discussion on Low cost vs High Cost Service Models

7. Service Encounters and Zone of Tolerance

8. Determining service quality

9 & 10. Service Gap Model & Class exercise on the same and introductionto the case Managing Service Promises: Blue Dart DHL Courier Service

11. Listening to the voice of customer through Fishbone technique

12. & 13 Designing service using Blueprinting technique with an exercise oncase covered in session 10

14. Managing Service Promises- Case Discussion: Federal Express Money

Back Guarantee15 &16 Presentations of service Blueprint & the fail points and followedwith an exercise with case on session 10.

17. Service Recovery with case discussion covered in session 10.

18. Managing Demand & Capacity: Case discussion Accra Beach Hotel

19. Revenue Management

20. Presentation by students on Accra Beach Hotel Managing Demand

& Capacity21. Communication of services

22. Managing Relationships and Building Loyalty

23 & 24.End Term Assessment

4. MODULE PREREQUISITES

Fundamental knowledge of marketing concepts is required. Students will also have

to revise their concepts of market research.
http://www.iilm.edu/faculty/profiles/sonia-takkar.htmlhttp://www.iilm.edu/faculty/profiles/sonia-takkar.htmlhttp://www.iilm.edu/faculty/profiles/sonia-takkar.html


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5. MODULE READINGS

Main Texts

Zeithaml V A, Bitner M.J, Gremler D.D, PanditAjay , Services Marketing,McGraw Hill, 5th Edition.

Kotler, Keller, Koshi, Jha, Marketing Management A south AsianPerspective, Person 13th Edition

Reference Texts

Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, ServicesMarketing, Pearson Education ( LWC}

Nargundkar Rajendra ,Services Marketing , Text and cases, Tata McGrawHill second edition( RN )

Gronroos Christian, 2007, Service Management and Marketing, Wiley-India,3rd edition.

Apte Govind Services Marketing, Oxford Publications. Verma Harsh V, Services Marketing., Pearson Education Bhattacharjee C, Services Marketing, Excel Books

Journals and Online Resources:

Apart from the textbook and the cases suggested, you should regularly consult

service marketing articles in both consumer and commercial media. Newspapers,

current affairs TV programmes (BBC, CNN) and newspapers/magazines such as

Marketing, Marketing Week, The Economist, the Financial Times, Wall Street

Journal and Harvard Business Review all provide a wealth of up to date information

on services marketing issues. The Internet is also full of business information and,

again, both BBC and CNN provide useful sources of data. The Journal of Services

Marketing and Journal of Marketing are appropriate academic publications to read.

1. New Strategies for Todays Customer-Driven Economy by Jan Carlzon(Ballinger Publishing Company)

2. Product Plus Christopher Lovelock (McGraw Hill)3. Christian Gronroos, Service Management & Marketing: Managing the

Moments of Truth in Service

Online Resources:


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Turner, A N Consultancy is more than giving advice Harvard Business Review,

Sept.- Oct 1982 pp 120- 129

6. SESSION PLAN

Session1

Title: Introduction to Service MarketingThis session highlights the basics of service marketing, how marketing of services is

different from marketing of products. The session also looks into the discussion of

various services, the service sector of India.

Learning Outcome: Students will be

sensitized to the basics of Service Marketing.

Session2

Title2: Briefing to Group Project

This session would focus on explaining in detail to students about the airline

industry, the competitors, the kind of strategies being followed. Their group

project will be based on research to be done for the Air Asia entering Indian

marketing and what changes the other airlines will have to do in their service to

face the competition.

Learning Outcome: The students will be exposed to the application of 8Ps in

different stages of PLC.

Session 3

Title : Characteristics and Classification of services

The session highlights the classification of services into four broad categories and

why these four different types of processes often have distinctive implications for

marketing, operations and human resource management.

Essential Reading: Chapter 1, Lovelock, Wiritz, Chatterjee, Services Marketing,

Pearson Publication, Edition 7t


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Learning outcome: This session will help the students to identify the four broad

categories of services and the characteristics services and the distinctive

marketing challenges they pose.

Session 4Title: 8 Ps of Services

This session highlights extended service marketing mix i.e people and process,

physical evidence, productivity & quality. It focus on the importance on role of

service employees since they interact with the customers directly. Students will be

exposed to how service process have to be designed to manage and create the

desired customer experience.

Essential Reading: Chapter 8 & 11,Lovelock, Wiritz, Chatterjee, Services

Marketing, Pearson Publication, Edition 7th.

Chapter 10 & 14, Lovelock, Wiritz, Chatterjee, Services Marketing, Pearson

Publication, Edition 7th.

Learning Outcome: Students would be able to understand the importance of

managing people for service advantage and designing

Session 5

Title : Consumer Behaviour in Service

This session focuses on consumer behaviour in services bringing out the difference

in customers expectations from a high cost & low cost service provider. Also this

session will delce how customers evaluate services in terms of search, experience,

and credence criteria. It also discusses about the difference among consumers

(cultural differences, group decision making) affect consumer behavior and

influence services marketing strategies.

Essential Reading : Chapter 3, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay,

Services Marketing, McGraw Hill, 5th Edition.

Session6

Title: Situation discussion on Low cost vs High Cost Service Models


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The session will have small Caselets that will explain the Low cost & High Cost

service models across airline, hotels, education and many other services. It will

give them an idea of service models operating in the industry.

Session 7

Title: Service Encounters and Zone of Tolerance

This session highlights the sources of customer expectations of service, including

those that are controllable and uncontrollable by marketers. It also focuses on the

zone of tolerance since the services are heterogeneous and performance vary

across providers.

Essential Reading: Chapter 4, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay ,


Learning Outcome: The students will be able to understand the two types of

expectation customers hold ie, desired service and adequate service. They will

also be able to factors influencing customer expectations.

Session 8

Title : Determining Service Quality

This session will discuss about the marketing research information that can be used

for services, it will also discuss about the strategies by which companies can

facilitate interaction & communication between management & customers.

Students will be taught about SERVQUAL, a multidimensional scale to capture

customer perceptions and expectations of service quality.

Essential Reading : Chapter 6, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay ,


Learning Outcome: This session will help students understand the use of marketing

research to understand customer expectations and SERVQUAL tool to capture the

customer perceptions and expectations.


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Session 9 & 10

Title: Service Gap Model

This session would focus on The Gap model which is a useful tool to understand the

service quality of an organization. The model suggests that the most important gap

to be closed is the customer gap (difference between the customer expectations &perceptions) and to close the customer gap , it suggests four provider gaps.

Title: Case Discussion & Analysis of Managing Service Promises

The case will introduce the anguish of a customer who was denied a value-added

service, and whose enquiries led to the exposure of major operational flaws in the

working of a leading and respectable service provider. How do you think the

situation should have been handled, and at which stage, to avoid this? The casediscussion will focus on Service failures & service recovery.

will be introduced and used in subsequent sessions.

Essential Reading:

1. Managing Service Promises: A case study of DHL- Blue Dart courier service2. Chapter 2, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay , Services

Marketing, McGraw Hill, 5th Edition.

Learning Outcome: This session will help students understand the gaps in the

service delivery and how to close the gaps after understanding the factors that

lead to these gaps.

Session 11

Title: Listening to the voice of customer through Fishbone technique followed

with an exercise

This session enlighten the students on how to drill deeper to identify common

causes of quality shortfalls and take corrective actions. The major focus will be on

root cause analysis using Fishbone diagram. A Fishbone diagram on case introduced

in session 10 will be made.


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Essential Reading : Chapter 14, Lovelock, Wiritz, Chatterjee, Services Marketing,

Pearson Publication, Edition 7th

Learning Outcome: Students will learn the key tool to analyze and address

important service quality problems. By the end of this session the students will beable to understand fishbone diagram to identify the causes of quality problems.

Session 12, 13

Title: Designing service using Blueprinting technique

This session illustrates the importance of blueprinting of services and service

process redesign. Role of customers in successful service delivery and co creation

of service experiences. It would also discuss the strategies for involving servicecustomers effectively to increase satisfaction, quality and productivity.

This will address the challenges inherent in service design, the elements of new

service development process. Students will also learn about service blueprinting

which is a tool for depicting the service process, the points of customer contact,

and the evidence of service from the customers point of view.

A Blue print on the case introduced in session 10 will be made. Alongwith this, the

students will be required to prepare a present service blue prints for different

industries

Essential Reading : Case in Session 10

Chapter 9, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay , Services


Learning Outcome: This session will help students understand the concepts of

service blueprinting & will understand how important it is for the service provider

for choosing & implementing high performance service innovations.

Session 14

Title: Case Discussion & Analysis of Managing Service Promises: Federal

Express Money Back Guarantee


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The case discusses the anguish of a Ms Sylvia Cooper a business school professor

who was delivering an executive education seminar for 30 senior managers in a

Fortune 500 company. On the night before her big she showed participants a Tom

Peters video,A Passion for Customers that included a complimentary segment on

Federal express. On the morning of her presentation, she had reason to feekremorse about showing that segment as her parcel from federal express had not

arrived. How do you think the situation should have been handled, and at which

stage, to avoid this? The case discussion will focus on Service failures & service

recovery.

Essential Reading: Federal Express Money Back Guarantee

Session 15 & 16Presentation of Groups on Service Blueprint & the Fail Points

(Part of assessment)

Essential Reading: Chapter 12, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit

Ajay, Services Marketing, McGraw Hill, 5th Edition.

Chapter 13 & 14 , Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay , Services


Learning Outcome: This session will help students understand Importance of

creating the customer oriented service delivery through hiring the right people,

8developing employees to deliver service quality and retaining the best service

employees.

Session 17

Title: Service Recovery

This session will help students understand the reasons and nature of consumer

complaints and why people do and do not complain, what customers expect and

the kind of responses they want when they do complain.

Essential Reading: Chapter 8, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay ,



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Learning Outcome: This session will help students understand the concept of

service recovery & feedback mechanisms, the types of complainers and customer

recovery expectations.

Session 18Title: Managing Demand & Capacity

This session will be discussed with the help of the case study The Accra Beach

Hotel where the sales manager of a Caribbean Hotel wonders whether to accept a

large block booking at a discount rate for a group participating in an international

sporting event. Do the promised publicity benefits justify the risk of turning away

guests from neighbouring segments?

This will help students understand the issue of capacity constrained services andthe implications of labour, time, equipment and facilities constraints combined

with variations in demand patterns. Also they will be explained strategies for

matching & supply and demand through shifting demand to match capacity and

adjusting capacity to meet demand.

Essential Reading:

Case; The Accra Beach Hotel

Chapter 15, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay, Services


Learning outcome: Will enable students to learn and overcome challenges in

mapping demand and capacity in service sector.

Session 19

Title: Revenue Management

Revenue Management involves setting prices according to predicted demand levels

among different market segments. This session explains the concept of price

customization and designing rate fences.

Essential Reading : Chapter 8, Lovelock, Wiritz, Chatterjee, Services Marketing,

Pearson Publication, Edition 7th.


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Learning Outcome: The students will understand how revenue management

increases revenues for the firm through better capacity utilization and reserving

capacity for higher paying segments.

Session 20

Presentation by students on Accra Beach Hotel Managing Demand & Capacity

that will address revenue management and part of assessment

Session 21

Communication of Services

This session highlights the key communication challenges and concepts ofintegrated service marketing communications. It also discuss the ways to integrate

marketing communications in service organizations.

Essential Reading: Chapter 16, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit

Ajay, Services Marketing, McGraw Hill, 5th Edition.

Learning Outcome: The students will understand the need to prepare customers

for the service processes , confirm performance to service standards and

expectations, clarify expectations after the sale, and teach customers to choose

the best times to seek service.

Session 22

Managing Relationships and Building Loyalty

This session focus on the importance of how customer loyalty drives service firms

profitability. It also highlights the factors that cause customers to switch to a

competitor and measures to reduce such switching.

Essential Reading :Chapter 12, Lovelock, Wiritz, Chatterjee, Services Marketing,

Pearson Publication, Edition 7th.

Learning Outcome: The students will understand that the foundation for loyalty

lies in customers satisfaction and various loyalty programmes offered by service


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organizations. They also understand ho to prevent customers from switching o

their competitors.

Session 23 & 24 : End Term Assessment

7. ASSESSMENT PLAN ( 30 Marks)

1. Internal AssessmentGroup Assignment 20%

Group Project 30%

End Term Assessment 50%

7.1 Internal Assessment:

7.1.1 Group Assignment Service Blueprinting ( Session 15 & 16)

Aim. The purpose of this assignment is to provide the students with an opportunity

to integrate and apply the material learnt in this class to the development of a

real-world servicing experience. It will enable the students to develop a thorough

understanding of service blueprinting and to map the service operations of any

firm.

Objectives.

(i) Understand and elucidate the process of service blueprinting.(ii) Employ service blueprinting as tool to analyze the service process of

any company.(iii) Graphically illustrate the process on paper.

Guidelines.

(i) This is a group assignment.(ii) Choose a service provider, or a firm that has a significant service

component.(iii) For this assignment, you may need to visit and observe your chosen

firm.(iv) A complete blueprint of the core service operations of the chosen

firm is to be created. Each blueprint should include the componentsdiscussed in Session 15&16 of the Module. All lines should be labeled

clearly, and arrows should be included in the blueprint to indicatethe order of activities.


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7.1.2 Group Project

The group Project is based on what strategies the companies operating in airline

industry must follow to counter the competition of Air Asia entering India. The

group project will have 10% weightage for peer review to avoid any conflict and

look after free riders. The project should be hand written with a maximum of 3-5

pages of A4 size sheet and should not have any introduction to the company, only

strategy.

RUBRICS Situation Analysis & Group Project

0 1 2 3 4 5

CRITERIA Fail Unsatisfactory Satisfactory Good Very Good Outstanding

F E D C B A

Knowledge &understanding

Nounderstanding of

the topic under

research

Fails todemonstrate

understanding

of topic/area.

Shows a bareunderstanding of

basic

issues/theory

Shows grasp ofbasic

issues/theory

Well informed.Demonstrates

sound

understanding

Demonstrateswell co-

ordinated,

grounded andreasoned

understanding

Application &

Recommendations

No

recommendationsat all

No proper

recommendationsection.

Poor or noattempt at

application of

knowledge.

Recommendations

thin in content.Weak but

satisfactoryapplication of

issues/theory.

Recommendation

attempted butsome points

missing.Reasonable

application of

knowledge tomain

issues/theory.

Cogent and

intelligentrecommendation.

Good applicationof knowledge to

all issues/theory.

Excellent

recommendationsdrawing together

the various pointsmade and adding

an original

perspective.

Presentation Shabby

presentation withfaulty structure

Structure

unclear. Poorlypresented.

Language,grammar &

spelling

Poor

Problems with

structure andpresentation .with

frequent errors ofgrammar

or spelling.

Structure

coherent.Presentation

satisfactory.

Structure

supportsargument

clearly.Presentation

clear &

appropriate.

Structure guides

reader throughargument.

Presentationexcellent.

7.2 End Term exam

The end term assessment would be conducted in the 23 &24 session for a duration

of 1.5 hours. It will be a caselet based assessment so that the examinee can

analyze & apply all the theoretical service concepts taught during the class.

8. CURRICULUM MAP


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Programme Learning Outcomes

Module L1 L2 L3 L4 L5 L6 L7 L8 L9

MOS * * * * * *

L1: An understanding of organizations, their external context and theirmanagement.

L2: An awareness of current issues in business & management which is informed by

research & practice in the field.

L3: An understanding of appropriate techniques sufficient to allow investigation

into relevant business & management issues.

L4: The ability to acquire &analyze data and information.

L5: The ability to apply relevant knowledge to practical situation.L6: The ability to work & lead effectively in a team based environment.

L7: An improvement in both oral & written communication skills.

L8: Be cognizant of the impact of their individual & corporate actions on society

and recognize ethical business practices.

L9: Be sensitive to the social economic and environmental responsibilities of

business.

8.2 Teaching Map

TEACHING MAP

Module T1 T2 T3 T4 T5 T6

MSP * *

T1: Lectures

T2: Seminars/Tutorials

T3: Projects & Presentation

T4: Case Discussion

T5: Guest Lectures/Industrial Visits

T6: Lab Sessions


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8.3 Assessment Map: MOS

ASSESSMENT MAP

Module A1 A2 A3 A4 A5

MSP * * *

A1- Individual assignment/Class Test/case studyA2- Group assignment/ project/business plan

A3- Open book examinations/ case study

A4- Closed book examinations

A5- Group Presentations

Module Grid

Case No. Title Topic Discussed No of

pages

Cases

1 Small Caselet 8ps, Service Gap 1

2. Managing Service

Promises: Bluedart DHL

Service Gap, recovery,

Blueprinting, Fishbone

20

3 Managing Service

Promises: Federal Express

Service recovery 3

4. Accra Beach Hotel Managing Demand &

capacity

5

Manual Marketing of Services.pdf

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