SM Assgn

SM II

Arun Behl

ASSIGNMENT 1

231034

Q1. List the four characteristics of service and discuss how each would impact the marketing of a chain of fitness centers that is being started by six former Olympic athletes. Intangibility-If one develops a unique weight-training or aerobic exercise program, it cannot be patented. Moreover, it could be easily copied by competitors. The service itself is difficult to promote because they can only show the results of using their fitness center. Pricing will also be complex because of the intangibility of service-people have to believe they are getting their money's worth. Heterogeneity-Employees must be carefully trained and even then inconsistency of service is a possibility, especially if an employee has to work overtime. There are many uncontrollable factors that determine the effectiveness of the fitness center, including the motivation level of the customers. There is no way the athletes can be sure customers are receiving the services exactly as they are being promoted-what if an aerobics instructor is sick. Simultaneous production and consumption-Patrons who sign up but don't attend miss the benefits of the program as do patrons who talk others into boycotting instructors who require a full commitment. Employees who are not committed to fitness and miss exercise classes also can cause problems. Perishability-Fluctuating attendance in terms of time of day and day of week will make it difficult to provide the service. If members are not there at the time the class is offered, that class cannot be resold.

2. An airline is concerned with whether its passengers are satisfied with how their luggage is handled before, during and after a flight. With which element of the services marketing mix is the airline concerned? Explain Process – Service process is the way in which a service is delivered to the end customer. Lets take the example of two very good companies – Mcdonalds and Fedex. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes. On top of it, the demand of these services is such that they have to deliver optimally without a loss in quality. Thus the process of a service company in delivering its product is of utmost importance. It is also a critical component in the

service blueprint, wherein before establishing the service, the company defines exactly what should be the process of the service product reaching the end customer. In the situation given above, the airlines is concerned with “Process” as an element of services marketing mix. Because, it is the Process of handling luggage which the airline has to focus upon. 3. How should you explain to a friend that there is more perceived risk with the purchase of a wedding reception caterer for your wedding than for the diamond engagement ring? Ans. A diamond engagement ring is product for whom the stakeholders are few and the risk can be systematically hedged by knowing the choice of the person for whom it is being purchased. But the caterer decision is a one where the general taste of all the invitees is to be considered along with allied services like cutlery, stewards, cooks, chefs, waiters etc. The quality and freshness of the food is of utmost importance. The food should not lack in quantity nor should be wasted much. Also the choice of snacks to soups to croissants to main course should be a diligent decision. It is much more than buying a ring. 4. Jazz wants to have her near-sightedness corrected through laser surgery. She has consulted with two physicians that specialize in the field. Both seem to be highly qualified and respected in the medical profession. The first one she saw had a cluttered waiting room with plastic covered furniture, tile flooring, striped paper on the walls and music broadcast from a local soft rock station. The second waiting area was painted a soft, muted green color, had three large aquariums with gorgeous fish swimming in each, comfortable furniture and soft background music. Given the laser surgeons have equal abilities, which do you think Jazz will use. Why? Ans. To this question I would like to consider myself in place of Jazz because I am in a similar stead. I would prefer the latter surgeon just because passing the eligibility of credentials he is the one who is more organized and will also be more organized in his approach when it comes to a delicate surgery like this. Also he will take proper precautions and due diligence needed for this. Since medical processes are very fragile by nature and there is no chance of negligence and error therefore I would prefer the latter.

5. Provide an example of a service industry where customers are involved in co-production and explain the implications and marketing-related tasks that would be associated with that service. Ans. Co-production is rapidly becoming one of the most talked-about themes in public services and public policy around the world (Bovaird, 2007; nef, 2008; Löffler et al, 2008; Löffler, 2009; Department of Health, 2010). This article sets out what it is, why it matters and its implications for public and social marketing. The movement to user and community co-production harks back to one of the key characteristics of services in the public and private sectors: the production and consumption of many services are inseparable. Quality in services often occurs during service delivery, usually in the interaction between the customer and provider, rather than just at the end of the process. This means that customers do not evaluate service quality based solely on the outcomes (e.g. the success of a medical treatment in a hospital) - they also consider the process of service delivery (e.g. how friendly and responsive were the hospital medical staff and how comfortable was the ward). Motives for increased customer’s involvement in public services:  Improving public service quality by bringing in the expertise of customers and their networks  Providing more differentiated services and more choice  Making public services more responsive to users  Cutting costs  Implications for social marketing 

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The growth of co-production has been rapid and topsy-turvy. It is not surprising that there is still great ignorance of (and even hostility to) the concept. As a radical experiment in policy innovation, it has yet to prove itself. Indeed, this drive towards co-production will come too little if it is not backed up by practical techniques to encourage more people to engage in co-production, to ensure that their efforts effectively increase the outcomes which people experience, and that those engaging in this way feel appreciated for their inputs, so that the approach is sustainable. Social marketing can play a major role in ensuring that each of these drivers works well. Future articles will explore the practical social

marketing approaches which can support co-commissioning, co-design, co-delivery and co-assessment of public services. 6. Explain how the core product, supplementary services, and delivery processes are integrated in the context of an overnight hotel stay. The integration of the core product, supplementary services, and delivery processes: The core product is an overnight rental of a bedroom The delivery processes surrounding this core product are:   

Nature of the process—people processing in this instance Customer’s role—what customers are expected to do for themselves; what the hotel will do for them, such as making the bed, supplying bathroom towels, and cleaning the room Scheduling—how long the room may be used before another payment becomes due

Service level—what level and style of service. Surrounding the core product is a variety of supplementary services. These range from reservations to meals and in-room service elements. Delivery processes must be specified for each of these elements. The more expensive the hotel is, the higher the level of service is required of each element. For example, very important guests might be received at the airport and transported to the hotel in a limousine. Check-in arrangements can be done on the way to the hotel. By the time the guests arrive at the hotel, they are ready to be escorted to their rooms, where a butler is on hand to serve them. Specific design in terms of customer service processes, which is called service blueprinting. 7. Discuss the impacts of the competition globalization driver on people processing, possession processing, and information-based service categories. Give at least one example of a firm that falls into each category. For people processing services, the need for simultaneous production and consumption limits leverage of foreign-based competitive advantage in the front-stage of the service factory, but advantage in management systems can be the basis for globalization. For example, McDonalds restaurants must have a facility to serve customers to compete with restaurants in foreign countries. For possession processing services, the lead role of technology creates the driver for competitors with a technical edge. For example, Singapore Airlines services other carriers’ aircraft abroad. Information-based

competition is highly vulnerable to global dominance by competitors with a monopoly or competitive advantage in information unless restricted by governments. The BBC, Hollywood, and CNN are good examples of firms that fall in this category.