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.

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

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

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

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

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

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

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

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

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