Marketing of Services - Course Outline 2015-2

Post-Graduate Diploma in Management-Full Time

(PGDM-FT)

Area: Marketing

Course Title – Marketing of Services

Course Faculty:

Name: Dr. Tripti ghosh sharma Contact: Email: [email protected] Office: 0120-300-2273 Student Meeting Hour: Friday 3p.m.-5p.m. or with prior appointments

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mailto:[email protected]

Course Description:

Service industries dominate the economic landscape of most countries and contributes over 60% of GDP in India. Services products and marketing has certain key differences from organizations producing and marketing tangible dominant products. This course helps understand how service marketing systems operate and addresses other service-related issues such as service design, process management, capacity management, customer relationship management. The theme of this course is that services marketing differs in many important respects from tangible product centric businesses, requiring a distinctive approach to planning and implementing marketing strategy. We stress the importance of understanding service organizations on their own terms, then devising marketing goals and strategies accordingly.

The course explores the dimensions of successful service firms. Outstanding service organizations are managed differently. Managerial actions are based on totally different assumptions and conceptual frameworks. The results show not only in terms of performance but also in the enthusiasm of the employees and quality of customer satisfaction. Beginning with the service encounter, service managers must blend marketing, technology, people, and information to achieve a distinctive competitive advantage. This course will study service marketing from an integrated viewpoint with a focus on customer satisfaction. The material will integrate operations, marketing, strategy, information technology and organizational issues. Because the service sector is the fastest-growing sector of the economy, this course is also intended to help students discover entrepreneurial opportunities.

Learning Objectives:

This course endeavors to develop students with the following specific learning objectives - 1. To develop an understanding of service management thinking.2. To study "breakthrough" services in order to understand the operations of successful

service firms that can be benchmarks for future management practice.3. To develop an understanding of marketing strategies in different service sectors.4. To develop an awareness of the opportunities for leveraging information technology

and human resources for enhancing service firm’s competitiveness.5. To appreciate the organizational significance of managing the service encounter to achieve internal and external Customer satisfaction.6. To understand the dimensions of service growth and expansion both domestically and internationally.

Pedagogy:

The pedagogy will be primarily case based class discussion supplemented with lectures, experience sharing, real life case discussion, assignments on sectors and industry/research based projects. The course is focused on strategic issues with cases as the primary vehicle for learning. In addition to the reading materials, cases will be distributed in the class before the start of the course and if required from time to time. Students are expected to prepare, analyze and participate in class discussion. Total 16 sessions of 1 hr 15 minutes each would be conducted.

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Course Requirements:

i. Since much of the course material requires class discussion, it is important that you are prepared for the class and present and defend your ideas. Preparation for class includes having read the assigned material.

ii. The class will be divided into a number of groups and each group will have 10 students. For all group assignments, each group will submit its recommendations/solutions meeting the deadlines specified by the faculty. Late submissions will not be accepted.

iii. Class participation will be based on the value you add to the class through your questions, statement, and comments. It is the quality of these that is more important than the quantity.

iv. Mobile phones shall strictly be switched off before the start of each session. Silent mode is not permissible to ensure focused learning. Laptops/tablets can be used by the students in the classroom only upon the instruction of the faculty.

Evaluation

Company report : 20% Sectoral Report : 30%Case study assignment : 20%End Term : 30%

Specific Assessment Method Weight Intended Objectives to be Assessed1 2 3 4 5 6*

Company report 20% √ √ √ √ √ √Sectoral Report 30% √ √ √ √ √ √Case Study Assignments*(4x5) 20% √ √ √ √ √ √End Term Examination 30% √ √ √ √ √ √

*AACSB AOL-Sub Goal (4.2) to be assessed in the course: “Demonstrate informed strategic capabilities through application of conceptual knowledge with applied orientation in both local and global context.”

Group Project

Instructions for Company Report:

By the end of the second session you are required to select a company/ Unit from the service sector with a domestic focus and submit group member’s names and Project title to the course instructor. Data for the project may be collected from primary or secondary sources. A strong conceptual and analytical focus is required. Any falsification of data will invite strong disciplinary action. The following questions need to be answered in the report to be submitted at the end of the course. You have to find the dilemma against the following framework:

1 A general overview of the industry, service concept, major trends and structure. 2 Identify and describe the major competitors in terms of their service positioning and marketing mix. 3 How is the market segmented and who are the target customers for the selected firm/unit?

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4 Describe the service product using the service design framework. 5 What are the brand elements? 6 Describe major services offered by the firm, the firm’s service line, pricing strategy, communication mix and distribution channels used? 7 What are the opportunities for revenue management? Make recommendations 8 Map the service process. Examine the process flow; what is the throughput time, cycle time, theoretical and actual capacity and capacity utilization? What are the marketing implications of the same? 9 Identify the bottleneck in the process. Suggest how to overcome the same. 10 Are demand and supply matched? Describe the demand management strategy used by the firm? Evaluate and make recommendations 11 What’s the customer lifetime value (CLV). How can it be used for marketing decisions? Make specific recommendations for marketing based on CLV. 12 Describe employee roles in the service delivery process and how these roles impact the service customer’s experience. Identify and discuss employee and customer scripts. 13 What is the marketing strategy of the firm? Suggest what the future marketing strategy should be to meet the firm’s objectives.

The entire report must be in the range of 20-25 pages. The Final Report format is subject to change depending on the sector specific requirements that need to be incorporated and highlighted so as to improve the understanding of supply chain management. Please use Summer Project Guidelines as Style Manual for writing the report. Grading of the report will be done on the strength of the analysis and explanation therein

Sectoral Report (Guidelines to be mailed separately)

Case Study Assignment

Case Study can revolve around one or more issues related to services marketing and management practices of any one Indian player in the ‘Sector’ under study. Typical area(s) on which the case should focus on would be discussed in the second session. The case should clearly highlight the imperatives driving the marketing initiatives, benefits envisaged and methodology followed.

Recommended Text Book

← Christopher H. Lovelock and Jochen Wirtz (2011), Services Marketing: People, Technology, Strategy, seventh edition. Upper Saddle River, NJ: Prentice Hall. (CL)

Other Reference Books

1 Valerie A. Zeithaml, Mary Jo Bitner, and Dwayne D. Gremler (2009), Services Marketing: Integrating Customer Focus Across the Firm, Fifth Edition, New York: McGraw-Hill/Irwin.

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Journals

← Harvard Business Review ← Sloan Management review ← Journal of marketing ← Journal of services Research ← Journal of services Marketing ← IJSIM: International Journal of Services industry Management ← JSM: Journal of Services Marketing

Course Outline: Session/Module/Reading Material

Sessions 1 & 2: Introduction to distinct aspects of Services & Consumer Behavior in Services

The session would look into the competitive trends in the new millennium and would discuss definition of

service, the evolution of services as value contributors, contribution of the service sector in emerging

economy, the characteristics of services, differences in goods vs. services marketing, Goods Service

continuum, and 7P’s of services marketing mix. It further focuses on consumer behaviour in services: how

consumers seek, choose, purchase, experience, and evaluate services. The session would describe how

consumers judge goods versus services in terms of search, experience, and credence criteria.

Chapters- CL-Ch 1 &2 Readings:

o Levitt; Marketing Product intangibles and intangible Products, HBR May June 1981

o Gronroos; A Service orientated approach to marketing of services, EJM,1978 o Parasuraman, Zeithaml, Berry; Understanding Customer Expectations of service,

SMR Spring 1991 Sector Spotlight : TBD

Case: TBD

Sessions 1 & 2 (150 minutes)20 minutes 20 minutes 20 minutes 30 minutes 60 minutes

Introduction and course overview

To look at the competitive trends and unique characteristics of Services

To comprehend the different stages of consumer decision making behavior in Services

Sector discussions Case discussion

Sessions 3 & 4: Developing Service Products & Positioning Services

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This session discusses flow of service used in planning of product in service sector. Also discussed would be

branding of the service product for service performance, sources of customer expectations of service. The discussion

would also focus on underlining the search for competitive segmentation, positioning and targeting in the case of

services.

Chapters- CL-Ch 3 & 4 Readings:

o Scheuing, Johnson: A proposed model for new service development, JCM o Berry: Cultivating Service Brand Equity, CL-Pages-207-216o Fisher: Durable differentiation strategies for Services, JSM 1991

Sector Spotlight : TBD

Case: TBD


To understand the core and supplementary services using ‘Flower of Service’ framework

Branding and New Service Development.

To understand the relevance of Segmentation, Targeting and Positioning of Services using positioning maps

Sector discussion Case discussion

Sessions 5 & 6: Distributing Services & Pricing and Revenue Management

This session identifies the primary channels through which services are delivered to end customers and

their benefits and challenges. It also would outline the strategies that are used to manage service delivery

through intermediaries. This session identifies the electronic channel through which services are delivered

to end customers. Further the session provides a basis for understanding what influences pricing of

service. Different pricing methods and strategies used in service sector are discussed.


o Compers: A Note on Franchising, HBSP Noteo Kimes and Chase, The Strategic levers of Yield Management, CL-pp-205-212


Case: TBD

Sessions 5 & 6 (150 minutes)

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20 minutes 20 minutes 20 minutes 30 minutes 60 minutes

To identify the varied channels of Services delivery and strategies as to their management through intermediaries.

To discuss the important factors influencing pricing and revenue management decisions

To analyze different pricing methods and strategies in Services


Sessions 7 & 8: Promoting Services & Managing Service Processes

This session discusses the key service communication challenges. It presents specific strategies for

addressing service intangibility, managing promises, and managing service expectations, educating

customers and managing internal communications. The session further 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 service customers

effectively to increase satisfaction, quality and productivity.


o Chase: Where does the Customer fit in a service operation, HBR 1978


Case: TBD


To deliberate on the key Service Integrated Marketing Communication challenges given their unique characteristics

To illustrate the importance of Service Blueprinting

Discussion on the instrumental role of customers in Service Process Design.


Sessions 9 & 10: Managing Demand and Capacity & Service Environment

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These sessions would explain the underlying issue for capacity constrained services: lack of inventory

capability. It lays out strategies for matching supply and demand through shifting demand to match

capacity or by adjusting capacity to meet demand. It further explains the profound impact of physical

evidence, particularly the servicescape, on customer perceptions and expectations. It illustrates the

differences in types of servicescapes, the roles played by the servicescape, and the implications for

strategy.


o Shemwell, Cronin: Service Marketing strategies for coping with demand supply imbalances, JSM 1994


Case: TBD


To understand the underlying issue of capacity constrained organizations

To understand the strategies for demand management in Services

To discuss the profound impact of physical evidence and servicescape on consumer expectations and perceptions.


Sessions 11 & 12: Managing the People Advantage

This session demonstrates the importance of creating a service culture in which providing excellent

service to both internal and external customers is a way of life. It discusses the strategies for creating

customer oriented service delivery through hiring the right people; developing employees to deliver

service quality, providing needed support systems, and retaining the best service employees.

Chapters- CL-Ch 11 Readings:

o Chan et al; In search of sustainable competitive advantage: Impact of organizational culture, competitive strategy and Human Resource Management practices on firm performance, IJHRM


Case: TBD

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To demonstrate the importance of creating a service culture.

Role of Service culture in providing excellent service both to internal and external customers.

Role Play Sector discussion

Case discussion

Sessions 13 & 14: Service quality and productivity

This session shows how marketing research information can and should be used for services. It also

describes the strategies by which companies can facilitate interaction and communication between

management and customers. The session introduces students to the framework of GAP model of service

quality, and the multidimensional scale to capture customer perceptions and expectations of service

quality: SERVQUAL. Productivity issues are also discussed.

Chapters- CL-Ch 14 Readings:

o A. Parasuraman, Valarie A. Zeithaml, and Leonard Berry, “SERVQUAL: A Multiple Item Scale for measuring Consumer Perceptions of Service Quality”, Journal of Retailing, 1988

Sector Spotlight :TBD

Case: TBD


To understand the implications of Service quality and gaps therein.

Measuring Quality in Services

Measuring Productivity in Services


Sessions 15 & 16: Review of Course.

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Marketing of Services - Course Outline 2015-2

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