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