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.
a)
b)

What risk and opportunities are entailed for a retail service

firm in adding electronic channels of delivery by
paralleling an existing channel involving physical stores, or
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 policy
impediments 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-tobusiness 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 gasoline
Waiting 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 sponsoring
In 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 Procedures
Supplementary 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
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

Knoxville, Tennessee
Little Rock, Arkansas
Lexington, Kentucky
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 handson 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 leasepurchase 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 Drivers

Increasingly 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 Drivers
Tourism 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 ECONOMY
QUESTION
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 Hofstedes 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 customers 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
cant see.

Week 3

Explain Hofstedes 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.
Hofstedes
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 customers 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 psychographics

2. Second level segmentation: desired benefits
3. 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 Ps
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 cant 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 CDs or iPhone tunes can be downloaded while the customer is
waiting for their order to be served. Secondly they have ventured into books and
CDs 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
Met by stafflisten to the musicwait in linecheck the pricing do the
selectionorder- paywait for coffee find the milk-look for chair find the
chair- sit and tastethe coffee-senses the atmosphere-finds something to readgoes to the toilet 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 firms 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 customers
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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