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Module Manual Marketing of Services - Marketing Academic Year: 2013-2014 Course Code: MK-505

Sector This course is very useful for students wanting to join any Service/Product sector

Job Profiles in this sector Customer service Manager CRM managers Back end Manager Front end manager Corporate sales manager

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1. INTRODUCTION TO THE MODULE

One of the basic tasks of a company is the marketing of its products and services. The course focuses on the basics product marketing and gradual shift from product focus to service focus. In 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. Critically evaluate the key marketing and customer relationship issues relating to

service industries
2. Understand the key challenges in marketing services. 3. Critically analyze a service business model and design.

2. INTRODUCTION TO THE TUTORS Area Chair: Ms. Ruchi Shah IILM Insitute, Gurgaon # 09811669092 Ruchi.shah@iilm.edu 2.1 Course Tutors i) Radhika Madan radhika.madan@iilm.edu 2 of 21

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3. MODULE OVERVIEW SESSION 1 LECTURE Introduction to Service Marketing (video + Case -Four Customers in search of solutions) Consumer Behavior in Service encounters - (video + Case Starbucks : Delivering Customer service) Developing Services Concepts (self activity of flower of service) Distributing services through physical and electronic Channels (Case - MakeMyTrip.com) Pricing and revenue management (Case The Accra Beach Hotel) Guest Lecture

Educating customers and promoting the value proposition Positioning services in competitive markets (Case Giordano : Positioning for International Expansion) Designing and Managing service process (Blueprinting)

10

Crafting the Service Environment (Case Dr. Becketts Dental Office) Visit to a Hotel

11

12

Visit to a Hotel

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13

Balancing Demand & Productive Capacity

14

Presentations of the Service Blueprint

15

Presentations of the Service Blueprint

16

Relationship Marketing in Services and Building Loyalty Guest Lecture

17

18

Communication of Services (Activity based)

19

Managing People for Service Advantage (Role play / Activity based) Identifying gaps in service Gap model Service Recovery and complaint Handling (Role play) Service Innovation and Design

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End Term Assessment

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End Term Assessment

4. MODULE PREREQUISITES

Fundamental knowledge of marketing concepts is required. Students will also have to revise their concepts of market research. 4 of 21

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5. MODULE READINGS Main Texts Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC} Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay , Services Marketing, McGraw Hill, 5th Edition. Reference Texts NargundkarRajendra ,Services Marketing , Text and cases, Tata McGraw Hill second edition( RN ) Gronroos Christian, 2007, Service Management and Marketing, Wiley-India, 3rd edition. Kotler, Keller, Koshi, Jha, Marketing Management A south Asian Perspective, Person 13th Edition ApteGovind 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) 5 of 21

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3. Christian Gronroos, Service Management & Marketing: Managing the Moments of Truth in Service Online Resources: Turner, A N Consultancy is more than giving advice Harvard Business Review, Sept.- Oct 1982 pp 120- 129

6. SESSION PLAN Session 1 Title: Introduction to Service Marketing This session highlights the nature of services and how they can create value for customers. Also, the expanded marketing mix comprising 8 Ps Essential Reading : Chapter 1, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 4 - 30 Learning Outcome: Students will sensitized to the basics of Service Marketing. They will learn the distinctive marketing challenges in relation to services and the extended marketing mix

Session 2 Title: Consumer Behavior in Service encounters This session would focus on understanding why customers use service and how they choose among competing service suppliers also, how to create satisfied customers and desirable outcomes for the business itself Essential Reading : Chapter 2 , Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 32 - 61 Learning Outcome : The students will be exposed to the four categories of services and the extent of customer contact with the service.

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Session 3 Title: Developing Services Concepts In this session, the nature of service products would be discussed, how to add value to them and how to design them. Essential Reading : Chapter 3 , Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 66 - 97 Learning Outcome : Students would be able to categorize the supplementary services that surround core products and understand how they add value for customers

Session 4 Title : Distributing Services through Physical and Electronic Channels This session would focus on the role that delivery plays in service marketing strategies both locally and globally. Essential Reading: Chapter 4, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 98 - 122 Learning Outcome : Students would understand the implications for a firm of delivering through both physical and electronic channels and also the roles that intermediaries play in distributing services

Session 5 Title : Pricing and Revenue Management The session highlights the role of pricing in services marketing and provides some guidelines on how to develop an effective pricing strategy Essential Reading: Chapter 5, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 124 - 152 Learning outcome: This session will help the students to identify the key ethical concerns about service pricing strategies.

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Session 6 Guest Lecture

Session 7 Title: Educating customers and promoting the value proposition This session highlights the nature of marketing communications for services Essential Reading: Chapter 6, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 154 - 179 Learning Outcome: Students would be able to understand the potential value of the Internet and other new electronic media as communication channels

Session 8 Title : Positioning services in competitive markets This session focuses on the need for focus in a competitive environment and the issues involved in developing a positioning strategy. Essential Reading : Chapter 7, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 180 - 218 Learning Outcome: This session will help students understand the important and determinant attributes in consumer decision making

Session 9 Title: Designing and Managing service processes This session emphasizes the importance for service marketers to understand how service processes work and where customers fit within the operation Essential Reading : Chapter 8, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 222 244 8 of 21

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Learning Outcome : This session will helps students design a service and create a satisfying experience for customers through blueprinting

Session 10 Title : Crafting the Service Environment This session will discuss about the importance of designing service environments to help engineer customer experiences, convey the planned image of the firm, solicit the desired responses from customers and employees, support service operations and enhance both quality and productivity Essential Reading : Chapter 10, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 270 290 Learning Outcome: This session will help students understand the purpose of the service environment and how to design a servicescape model

Session 11 & 12 Visit to a Hotel

Session 13 Title: Balancing Demand and Productive Capacity This session highlights the nature of demand and supply in services Essential Reading: Chapter 9, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 246 268 Learning Outcome: The students will be able to understand the capacity management techniques that are used to match variations in demand

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Session 14 & 15 Group Presentations

Session 16 Title: Relationship Marketing in Services and Building Loyalty This session discusses about the importance for service firms to target the right customers and calculate the lifetime value of its customers Essential Reading : Chapter 12, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 340 370 Learning Outcome: This session will help students understand the strategies associated with the concept of relationship marketing and wheel of loyalty Session 17 Guest Session

Session 18 Title: Communication of Services This session highlights the key communication challenges and concepts of integrated service marketing communications. It also discusses 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 19 Title: Managing People for Service Advantage This session would focus on the people side of service management 10 of 21

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Essential Reading: Chapter 11, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 292 336 Learning Outcome: This session will help students understand the role of teams in service delivery and how they should be created and managed

Session 20 Title : Improving Service Quality and Productivity This session illustrates the challenges involved in improving both productivity and quality which are the key ingredients of the 8 Ps Essential Reading: Chapter 12, Lovelock Christopher, WirtzJochen, ChatterjeeJayanta, 2009, Services Marketing, Pearson Education ( LWC) pp: 398 - 427 Learning Outcome: This session will help students understand the key tools for measuring and improving service productivity

Session 21 Title: Service Recovery and complaint Handling This session will help students learn how to design an effective service recovery strategy Essential Reading : Chapter 13, Lovelock, Wiritz, Chatterjee, Services Marketing, Pearson Publication, Edition 7th pp : 372 - 396 Learning Outcome: The students will understand how organizations institutionalize systematic and continuous learning from customer feedback

Session 22 Title : Service Innovation and Design This session highlights the challenges inherent in service innovation and design Essential Reading: Chapter 9, Zeithaml V A, Bitner M.J, Gremler D.D, Pandit Ajay , Services Marketing, McGraw Hill, 5th Edition. 11 of 21

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Learning Outcome : The students will understand the elements of service innovation and development process

Session 23 & 24 End Term Examination

The visit to the hotel that is planned in session 11 & 12 would be for those students who would have attended 8 classes out of 10 till the 11th session. This criteria has been laid down because only the students who would be regularly attending the classes would be able to benefit from this visit. 7. ASSESSMENT PLAN ( 30 Marks)

1.

Internal Assessment : Class Assignments

50%

2.

End Term Assessment (Open Book Case based)

50%

7.1 Internal Assessment: Class Assignment Service Blueprinting

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) (ii) (iii) Guidelines. (i) (ii)

Understand and elucidate the process of service blueprinting. Employ service blueprinting as tool to analyze the service process of company. Graphically illustrate the process on paper.

any

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(iii) (iv)

For this assignment, you may need to visit and observe your chosen firm. A complete blueprint of the core service operations of the chosen firm is to be created. Each blueprint should include the components discussed in class. All lines should be labeled clearly, and arrows should be included in the blueprint to indicate the order of activities.

7.2

End Term exam

The end term assessment would be conducted in the 23 & 24 session for a duration of 2.5 hours. It will be a case based assessment where the case will be provided 4 days in advance so that the examinee can analyze & apply all the theoretical service concepts taught during the class.

8. CURRICULUM MAP Programme Learning Outcomes Module L1 MPS L2 L3 * * L4 * L5 * L6 * L7 * L8 L9

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

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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 MSP T1 * T2 T3 T4 * T5 T6

T1: Lectures T2: Seminars/Tutorials T3: Projects & Presentation T4: Case Discussion T5: Guest Lectures/Industrial Visits T6: Lab Sessions

8.3 Assessment Map: MMS0

ASSESSMENT MAP Module MSP A1 * A2 A3 A4 * A5 *

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A1- Individual assignment/Class Test/case study A2- Group assignment/ project/business plan A3- Open book examinations/ case study A4- Closed book examinations A5- Group Presentations

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