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Master of Business Administration- MBA Semester 4 MK0015 – Services Marketing and Customer Relationship Management 4 Credits (Book ID: B 1328

) Assignment Set -1 (60 marks) Name Course Roll No LC Name LC code : : : : : KUMAR BHASKAR MBA- 4TH SEM 521106645 ZITE 01904

Q.1. Discuss briefly about customer retention strategies in Customer relationship management . Answer: Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace. Maintain a Database: If you don’t keep track of who your customers are, how can you be sure that you are earning their repeat business? It is vital to keep a database of customer details, including (if possible) their names, contact information, and purchase history. This database will become an invaluable tool in recognizing who your most valuable customers are and how to get in contact with them. Stay in Touch: No matter how happy your customers are with your business, they can be courted by more aggressive salesman and special offers. Make sure you maintain your relationships by staying in touch with your customers. You can use newsletters or e-mail lists to stay in touch and to let customers know about your new products or sales. For repeat customers and large accounts, the personal touch is best. Call and e-mail to check in to find out if your company can provide any services or to find out if past purchases are living up to expectations. For very high-end clients, a personal dinner is a nice touch. Remember: You don’t have to keep in touch just to try to sell them something. Customers appreciate the ongoing communication and businesses that are also willing to listen.

For example. Service rates are often variable and depend on the nature and type of service as well as on customers who may either not entirely use the service or pay only for the service rendered to him/her. Complaints also show you how can improve your product or service so that you can win over new customers. However.2. must have guarantee. Always welcome complaints and other feedback as a chance to grow.Welcome Complaints: Customer complaints might seem like a death sentence that means you have lost their business forever. bulk discounts. payment modes and so on. These do not have to be significant discounts or expensive gifts: Even small gestures make a big impression. No amount of programming or special discounts will entice customers to buy an inferior product or to pay for bad service. For example. price is fixed for services and depends on the service provider and service delivery. or even a special gift. your customers will want to return to do business with you. Do a Good Job: This is the easiest and most obvious customer-retention strategy there is: Offer the best product or service that you can. The cost strategy includes discounts and offers. When the person comes out. Explain briefly the 7P’s of marketing mix Answer: The 7P’s of service marketing mix are: · Product: This should provide value to the customer though it need not be a tangible product. Loyalty Programs: Many businesses offer loyalty and rewards programs to entice customers into repeat business. product prices include recommended prices to end-user customers. These can be discounts or point accrual programs based on the amount purchased or the quantity of items purchased. . combo offers. Usually. However. · Price: In service marketing. the degree of association may vary. features and so on. For the product to be successful in the market it must be of a good quality. when a person goes to a beauty saloon. cash/seasonal/festival discounts. have a brand name. Always offer the highest-quality product or service that you can. if a person buys a movie ticket. Pricing needs to o be competitive and must necessitate profit. A product as a whole is a combination of service element as well as physical product element. and your business will draw in customers. Q. complaints are really an opportunity to win your customer’s loyalty by showing them that you are committed to customer service and to providing the best product. Every good is associated with a service component as is every service with a physical good. credit terms. distributor's trade prices. he may not wait till the whole movie is complete to come out. ideally he/she should be satisfied with his/her transformed appearance. Other value-added options for your customers include special promotions for repeat customers. the expertise of beauticians is a service where as the instruments. cosmetics and tools used would be goods. If you do this.

services provided by satellite TV packages is at customer’s home where as a tour package requires customer to make the travel effort. In service marketing. For example. service providers should ensure that it helps in providing efficient service to the customers without causing any disturbance or delays. Usually adopted promotion techniques include advertising. certain things can add to the experience of service such as complimentary items offered during service. In service marketing. employees. cooks.2 shows the direct and indirect distribution of product. and management. Consumers will make perceptions based on their sensory abilities of the service provision. distributors are better known as service providers. · Process: Process refers to the systems used to assist the organisation in delivering the service. cancellation. customers also have an active role in the service delivery. Pamphlets and brochures that create product awareness. delivery boys and of course the customer who has to provide correct details about his address. home delivery of restaurant food requires the involvement of people – order takers. This is called as personalised or privileged or customised services. A service delivery process must assist in raising service quality/standards and reduce service gaps or customer wait. · People: People include the customers. This happens through various channels like internet.· Place: This means where and when the customer buys and consumes the product or service. packaging. and retail traders. Any process whether it is electronic. comfortable and friendly environment that may give aromatic smell of specialised cuisine . it depends on where and how service is delivered to the customer. · Promotion: This includes adopting various ways to communicate to the customer regarding the product offers of the company. matrimonial agencies and sites provide personalised services to their customers. Mot often. Service marketing even caters to individual customers and designs offers that are tailor made. and word-of-mouth. For example. direct marketing. pick-ups. physical evidence serves as a proof of service experienced. parcel handlers. customer goes to the service provider or service provider delivers service to customer’s location. Travel operators should establish a proper process or a system for advance bookings. and emergencies during travel so on. Since services are basically intangible. This also includes communicating about the advantages of a product or a service than speaking about its features. publicity. which will have an impact on the organisations perceptual plan of the service. displays. Customers should look forward for such experience and benefit from service. A good service provider should ensure that the service as well as its experience delights the customers and not just satisfies him/her. wholesale. dishes ordered and pay the bill immediately at delivery. It is the place where the customer purchases the product and the manner in which product reaches out to the particular place. sales promotions. For example. if you walk into a fine restaurant your expectations are of a clean. For example. An essential ingredient to any service provision is the use of appropriate staff and people. · Physical evidence: In service marketing. mechanical or manual. For example. In service marketing. The figure 3. exhibitions. drop.

Service development and testing: This is the step where product prototypes are constructed and customer acceptance is tested. 5. ideas from employees and customers. revenue projections. The new service developed should align itself with the strategic vision and mission of the organisation. cost analyses and operational feasibility are assessed at this stage. Market testing: This is the stage where market acceptance is evaluated by introducing the new service in a test market. The new services might be offered to . or other factors. Brainstorming.Explain the implementation. learning about competitors are the methods used for idea generation. It is in this step that the service is refined and service blueprint is drawn out. 2. Demand analysis. Due to the nature of services. New service strategy development: A product portfolio strategy and defined organisational structure for a new product or service development is critical for the success of an organisation. Idea generation: Generation of new ideas is the next step in the process. A new service strategy could be defined in terms of markets. capabilities.Q. and growth plans of the organisation need to be considered while developing new types of services. This step presents unique challenges due to the intangible nature of service and the fact that the production and consumption is simultaneous. For a tangible product. Implementation: the different development stages involved in implementation. Business analysis: Estimating the economic feasibility and potential profit implications form a part of the next step after development. The growth efforts of the organisation must also be considered while developing the new service. lead user research. Describing an intangible service in concrete terms is difficult. which include: 1. profit criteria.3. 2. places complex demands on this phase of the process. forming the product description and drawings and presenting it to customers would be the next step. 3. it is difficult to test services in isolation. time horizon for development. A new service can be developed by first reviewing this vision and mission. 4. types of services. The new service strategy screen screens the idea developed at this phase. Service concept development and evaluation: The development phase begins once the idea is regarded to fit both the business and new service strategies. stages in new service development and its Answer: Stages in new service development are as follows: 1. vision. These challenges can be addressed by involving all those who are involved in the new service in this step of the process. The goals. Service being intangible. Business strategy development or review: Every organisation has a unique vision and mission.

3. Commercialisation: The service goes live and is introduced in the marketplace in this stage of the process. Hence it is necessary to evaluate the changes so as to improve service quality. It is the difference between the expectations of the customer and the understanding. GAP 2. Service never remains the same. Each GAP occurs due to the inconsistencies and discrepancies in the quality management process. The provider gaps include GAP 1. Most of the organisations fail to meet the client expectations due to their lack of understanding of those aspirations. the firm has regarding those expectations. Post introduction evaluation: At this point. 4.employees and their families for a time to assess their responsiveness to variations in the marketing mix. it shows the perception gap and summarise the contributory elements. GAP 4 and GAP 5. Excellent internal marketing will contribute significantly to the success of the new service.4. Q. Discuss the GAP Model briefly. This model is based on a substantial research performed by several service providers. GAP 3. This step involves the building and maintaining acceptance of the new service in the market. The provider gaps are those that happen within the organisation. the information gathered during commercialisation of the service can be reviewed and changes made to the delivery process. or marketing mix variables on the basis of actual market response to the offering. . staffing. As in the Gronroos model. Answer: The GAP model: This model offers an incorporated view of the relationship between the customer and the company.

GAP 3: Gap between service quality specification and service delivery: may arise pertaining to the service personnel. incapability or unwillingness to meet the set service standard.5.Discuss about the marketing of services in Banking sector. Q. GAP 2 : Gap between management perception and service quality specification: this is when the management or service provider might correctly perceive what the customer wants. This could arise due to there being poor training. Airline industry. Hospitality sector. The gap arises when these assumed expectations are not fulfilled at the time of service delivery. GAP 5: Gap between expected service and expreanced service: the gap arises when the costumer misinterprate the service quality. .GAP 1 : Gap between consumer expectation and management perception: arise the management or service provider does not correctly perceive what the customer wants or needs. GAP 4 : Gap between service delivery and external communication: consumer expectations are highly influenced by statements made by company representatives and advertisements. but may not set a performance standard.

NABARD (National Bank for Agricultural and Rural Development). SIDBI (Small Industries Development Bank of India). For example IDBI (Industrial Developmental Bank of India). · Branding: Branding plays an important role in the marketing of the company and its product or service. and competitive analysis are the techniques used for the marketing planning so that the marketing can generate the desired results. So it is of paramount importance to maintain the brand value and put effort in the brand management. As SBI. Airline industry: The Indian Aviation sector is one of the fastest growing aviation industries in the world.Answer: Banking sector: Marketing banks is a combination of functions for providing services to satisfy customers’ financial needs and wants. · Commercial banks: It consists of all those banks that provide banking services to the people and normally charge for the services that they provide. benchmarking. They are further categorised in two as nationalised banks and private banks. · Cargo service includes air transportation of cargo and mail. GoIndigo airlines. Kingfisher airlines. Air Cargo Express. It differentiates the company and its services from the competitors. · Non scheduled transport service includes charter operators and air taxi operators.and EXIM bank (Export and Import bank of India). Aryan Air. Marketing strategies employed by the aviation industry are: · Marketing planning: Marketing analysis. For example Pawan Hans. There main focus is to help the industries to develop by lending them money. Short term credits are provided by the State Cooperative Banks like Uttar Pradesh cooperative Bank Ltd and District Central Cooperative Banks. Banking services is the creation and delivery of financial services appropriate to meet customer's needs. . more effectively and efficiently keeping in view the objectives of the bank. The aviation sector is witnessing strong competition as the numbers of operators are rising. As seen in figure. Marketing these services play an important role as they provide revenue to the bank. For example Indian Airlines. Air Charters India. ICICI BANK etc · Co-operative banks: These banks are also formed with the help of the government. It can be broadly divided into the following main categories: · Scheduled air transport service includes domestic and international flights. they provide the long term and short term credits to customers. · Development banks: the role of these banks is to provide the capital raising services to the industries. For example QuickJet.

They are tying up with leading corporate houses to provide them the hospitality services to them. They have split there hospitality services into two segments mainly in luxury segment under the brand name Taj and budget hotels under brand name Ginger hotels. Marketing of the Hospitality Services: Hospitality sector includes all those services related to hotels. the retailer Big Bazaar uses the positioning line “Is se sasta aur achha kahin nahin”. but the consideration for this strategy is the competence of the retailer to continue being a cost leader. Large chains are being established and same quality is maintained everywhere.Write a short notes on: A. lodges. so that they can reach customers quickly and provide them with the promised quality of services. Obviously. The reach of internet is very large and deep and as most of the banking services are online. Pricing strategies of service: The different strategies that are used for pricing of a service: · Mark-up pricing: The mark-up pricing strategy can be employed for services that cannot be differentiated. the hospitality sector is working on new marketing strategies. the idea of savings convinces huge segment of customers. it is not possible to differentiate the service provided by BESCOM for Bangalore. Emergence of the brand Incredible India.6.· Communication strategy: communicative strategies to customers should be clear and with motive. If any other retailer competes this . Even restaurant chains like Nirula’s are getting huge amount of success by delivering the promises they made. For example. · Value for money pricing: In India. Now. · Online marketing: Online marketing is one of the premier marketing media for every organisation for its marketing needs. Increase in the income of the Indian family. Q. They are using marketing media very effectively. The growing economy of India is also helping the hospitality sector to grow at rapid pace. Earlier. Increase in numbers of foreign visitors. restaurants. The main reasons for the growth of the Indian hospitality sector are due to: • • • • Increase in foreign direct investment. Hotels are specialising in the quality of the services they are offering. marketing strategies are also changing. It should deliver what the company wants to deliver to its customer without any ambiguity. so the airlines are also getting online to attract maximum customers towards them. and bars. We can take the example of Taj group of hotels. hospitality sectors were keener on building brand recognition that attracted those customers who were willing to pay. which means nowhere else you will get such better and cheaper offers. As the numbers of players in the field of hospitality sector are increasing.

The customer needs to find out when and where he wants to go. What level of comfort he desires. For Amtrak it is clearly most effective for a customer to get the tickets from the QuickTrak machine. The third and last is viewing the customer as competitor. The last and most ineffective way for Amtrak is if the customer makes his purchase at the ticket booth at the train station. Therefore it is advisable to involve the customer. By answering the critical factors we can see that there is a way that the customer can be seen as a competitor. Roles played by the customers during service delivery: There are three types of roles for the customer in the service delivery process. The train is one and others might be going by car or taking a airplane. a contributor to quality and satisfaction or a competitor in the service delivery process. This leads to the second customer role. There are few different options. B. For the service Amtrak expects the customer to take part as a productive resource in the service delivery process to gain a better. Amtrak needs to employ people to sit behind the counter and help the customer. · Image value pricing: This is a very popular method of pricing the offering the same products at lower prices owing to the price sensitivity of the customers. few employees are needed to send the tickets to the customers’ address. The customer will be more satisfied if they think that they have done their part in the service delivery. There is simply no labor involved other than that of the customer himself. This method enables to charge premium price for the product. If he wants to eat on the train. shaving foams. what he wants to eat. This brings also the risk of complaints and lowering the customers’ perception of the service delivery. The second best way for Amtrak is if the customer orders his tickets online. This way. The customer can also has to contribute to the quality and satisfaction. For example: The prices charged by Gillette for its razors. they would make quick exits to go and buy from the new cost leader. By online and QuickTrak purchases the customer is fully involved. The customer can be a productive resource. These are all examples of decisions that the customer is involved in. and after shaves are more than its competitor’s price. They totally depend on the person behind the ticket booth and blame that person for any mistakes. The customers’ ultimate goal is to get from point A to point B. . Although the customer still needs to provide the cashier with the necessary information.