Services Marketing

CASE 1: Sullivan Ford Auto World (Christopher Lovelock)

Submitted by:
Angelica Borres
Janica Camana

Submitted to:
Ms. Evangeline Reyes

1.) How does marketing cars differ from marketing service for those same vehicles?
Marketing cars is different from the manner of marketing services. Cars
are marketed in the traditional way of marketing which attempt to control
the 4Ps (Product, Place, Price, Promotion). The cars are tangible
products that are being sold in unit. The process of production and
consumption are separated. On the other hand, marketing a service for a
car includes the 7Ps (Product, Place and Time, Price, Promotion and
Education, Physical Environment and People). Marketing a car will most
probably focus on the buying of the consumer, involving money, to take
ownership of the good. In service, money, time and effort are exchange for
labor or skills, but the ownership of the goods is not in the picture.
Marketing a car is easy because its tangible. Through pictures and
visuals, customers can already see the features of the product. On the
other hand, service is intangible making it hard for the customers to
visualize what will actually happen if they avail the service. Another
difference of marketing a car from marketing a service is that, the latter
cannot be inventoried, which may cause customers to wait or not to avail
the service anymore.
2.) Compare and contrast the sales and service departments at Auto World.
SALES DEPARTMENT
- The Sales Department in Autoworld is responsible for entertaining the
customer and persuading them to buy. They are also responsible for informing
the customer about the car that the customers are interested too. They are also
responsible for giving alternatives to the customer who werent able to buy brand

new cars wherein they offer the pre-owned ones. But usually they were
persuaded to buy brand new ones
-Attractive Showroom
SERVICE DEPARTMENT
- The Service Department is responsible for the repair and maintenance of
the cars. They are also responsible for holding or entertaining the concerns and
problems of the customers.
-Poor appearance of service department
-Problems with service / inconvenient service time for customers
-Poor waiting area
-Services procedures are not customer oriented
-Not so good attitude of service department
3.) Prepare a flow chart of the servicing of a car that requires repair or maintenance.
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4.) What useful parallels do you see between running an automobile sales and
service dealership and running health care services?
Both the sales and service department should make the customers
satisfied with their products. No matter what type of business or industry
you are in, its very essential and important that you give the best service
to your customer. Automobile sales and service dealership and running
health care services have many similarities, having a customer oriented
strategy that would benefit all of the stakeholders
5.) What advice would you give to Carol Sullivan Diaz?
She can appoint Larry Winters as a new manager. He can manage the
change system since he was once a leading sales rep in Auto World. He
has strong managerial capabilities. Or she could also hire both financial

and service manager to handle the financial assets and service

department. In this way not all the responsibility for the company is on her

shoulder.
For more efficient reason she might train her sisters to be on the position

so that the profits will still be within the company

Renovate the service department.
Train the service staff.
Make a customer oriented service department
Make use of the technology for client records and service writing
Improve the service delivery system
Advertising and marketing tools and promotions should be efficiently use