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Service Mktg Questions

Service Mktg Questions

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Published by jayeshvk
Service Marketing questions with answers
Service Marketing questions with answers

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Published by: jayeshvk on Nov 25, 2008
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05/13/2013

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SERVICES MARKETING
CHAPTER – 1
INTRODUCTION TO SERVICES MARKETING
1.What is ambush marketing? Identify instances where it has been used.Ambush marketing involves the situation where a firm who is not an official sponsor of an event markets goods or services through reference to the event or through using participants of the event. Although answers will vary, most instances of ambushmarketing involve sporting events. For example, businesses may make reference to alocal college's mascot in their advertisements or point-of-purchase displays. Thesereferences normally increase if the local team becomes involved in an important gamesuch as a state or national title.2.Cite examples of the differences between marketing products and marketingservices.Answers will vary, but most will focus on the idea that products can be seen and touched prior to purchase whereas services cannot. Students may also point out that many servicesrequire the consumer to be present when the service is performed while products can bemanufactured and sold at a later time. To illustrate the differences, you may ask studentsto discuss the process they use in purchasing a pair of shoes compared to purchasingdental services or a haircut.3.Identify the role of services in the economy in terms of the gross domestic product,number of jobs, and importance to the economy.In the United States, services account for approximately 79% of the GDP or $6.95trillion. In terms of employment, services account for almost 77 % of the totalemployment. In terms of future impact, services will furnish approximately 12.9 millionnew jobs which will account for 91% of the growth. The largest growth will be thetransportation industry, warehouse and storage industry, communication’s industry, eatingand drinking establishments and computer and data processing.4.List the reasons for the growth of the services sector.The growth in the service sector is primarily due to the shift from a manufacturing-basedeconomy to a service economy and the shift to an information age because of theinvention of computers and telecommunications. Other causes include an aging population, longer life expectancies, increased leisure time, higher per capita income,increased time pressure, more female workers in the workforce, changing social andcultural values, and advances in technology.
Services Marketing Q & A By S.John Manohar 
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5.Identify the unique characteristics of services and give examples of each.The unique characteristics of services include intangibility, perishability, inseparability,and variability. Although examples will vary, it is important for students to realize thatthese characteristics are on a continuum and not absolute. For example, some servicessuch as legal services are more intangible than a restaurant. The same is true for  perishability. Entertainment services are highly perishable. Performances are held atspecific sites and at specific times, while other services are less perishable because theyinvolve goods with the services. Some services such as entertainment services are highlyinseparable. Production and consumption occur simultaneously. However, video andaudio recording technology has made it possible for consumers to watch or listen tosomeone perform at a point after it is produced. If the service is highly dependent onhumans to perform the service, then it usually contains a high degree of variability.Performers such as the Grateful Dead discussed in the first illustration file would have ahigh degree of variability.6.What are the marketing implications of the characteristics identified in Question 5?The unique characteristics of services makes the marketing of them more challenging.Services that are highly intangible will need to make the service more tangible toconsumers. They can do this by stressing tangible cues in their promotions. Serviceorganizations need to realize that consumers will often ask others for recommendations.The image of the firm and word-of-mouth communications become more critical. Interms of perishability, firms will have to carefully plan production to match demand. If customers are present during the service process, the physical facility and its capacity become an important marketing element as well as the human element. As with perishability, inseparability requires a careful management of supply and demand toensure a profitable operation. From a marketing perspective, this may involvemanipulating demand or supply to ensure peak operating efficiency. For variability,marketers have to be concerned about the operation of the firm and that it providescustomers with a consistent level of service quality. These characteristics of servicesrequires a close working relationship between the marketing department and those performing the service.7.Identify the six levels of the classification system for services and identify concernsmarketers would have at each classification level.Level one is the nature of the organization. The purpose, structure, and type of organization will have a major impact on the promotion strategy. For example, non-profitorganizations may focus its promotional effort on the donors rather than the users of theservices. The strategic approach the firm will use to market itself will vary depending onthe purpose, structure, and type of organization.Level two is the nature of the service while level three deals with the customerelationship. The classification at these two levels will impact an organization's operation,efficiency, productivity, distribution, and personnel. For example, if customers must be present for the service, then the efficiency and productivity would be impacted. Theservice operation and personnel have to be planned allowing for the presence of the
Services Marketing Q & A By S.John Manohar 
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customer. The distribution options would be affected. Managing supply and demand tomatch the firm's physical capacity is critical since work cannot be hatched or performedlater. Managing supply and demand will become more difficult if an informal relationshipis used rather than a formal relationship.Level four deals with the level of demand. Marketers not only must be concerned aboutdemand but also about supply and capacity. If demand exceeds supply or capacity, thefirm is adversely affected. Managing these elements become more difficult in situationswhere demand fluctuates widely and the causes of the fluctuation are out of the control of the customer. In such situations, marketers can do little to modify the demand pattern.Level five involves the service package. Classification here impacts a service'sdistribution, differentiation strategies, efficiency, productivity, staffing, promotion, and pricing. If goods are offered as part of the service or through the service, managing productivity normally is easier. Services that involve a high level of customization will beconcerned about staffing and the impact customization will have on efficiency.The last level deals with the delivery method. This classification affects the distributionstrategies that can be used. Facility design and operations are also of concern.8.Classify a tax service that prepares taxes for both individuals and businesses usingthe service classification scheme and identify marketing concerns identified by theclassification.At level one, the tax service serves both persons and businesses, is a for-profitorganization, and is privately held. By serving both markets, different promotionalappeals will have to be developed. At level two, nature of service, the tax service is a pure service, directed at things, and has a high level of merchantability. Since it is a pureservice, issues such as intangibility and perishability will be of concern. Having a highdegree of merchantability allows the firm to enhance its efficiency since the customer does not have to be present. In terms of customer relationship, level three, the tax servicehas both an informal and formal relationship and the customer must start and finish theservice. Business customer relationships will tend to be formal and contractual whileindividuals will tend to be informal. Operations are a concern since the tax service will probably use a different operational process for the two types of customers. Pricing theservice will be of concern since the expectations and the relationships will vary. It mayeven be necessary to have different personnel for the two types of customers sincedifferent expertise may be required.At the fourth level, demand sometimes exceeds capacity and the degree of fluctuation iswide. During tax season, demand normally exceeds supply while the rest of the year thefirm may have excess capacity. Managing this supply and demand situation is a major concern for the marketer. Since demand cannot be shifted to a slower period, themarketer will have to look at ways of either decreasing demand or increasing supply. Atlevel five, the service package, the tax service offers multiple services, is defined by boththe situation and time, has a low degree of equipment base, a medium level of customization, and medium degree of durability. Offering multiple services createsconcerns of efficiency, staffing, and productivity. Corporate customers may havecontracts while individual customers often ask the firm to do a specific transaction, such
Services Marketing Q & A By S.John Manohar 
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