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; Lffler et al, 2008; Lffler, 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 customers 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

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 processpeople processing in this instance

Customers rolewhat 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
Schedulinghow long the room may be used before another payment
becomes due

Service levelwhat 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.