Introduction

In starting a business one question that usually comes to our mind is which area should develop
first, marketing and product/services are the areas that we should consider in creating a good
business. And management skills and decision making skill are the skills that we need acquire
as manager. Quality service will lead to business success, customer satisfaction is one of the goal of a
business entities. “Customer satisfaction and service quality are one of the basic opportunities which
help to run, to improve business and profit of the company, and especially save the loyalty of its
customers. Good service is a result of organized corporate culture, which can be considered as a kind of
social culture in general”. (Archakova 2013)

Background

Career Circle was founded in 2004, located at greater New York City area with a population of
of 1.65 million with the age bracket 15-24 years old. A coaching class started by Prof. S. Dutta
that offers all kinds of all types of competitive examinations. Prof. S. Dutta has already a
marketing plan for her business but his friend Prof. Shyamsunder have an opinion with regards
to her plan with the business, her opinion is that she should be spending on the classroom
infrastructure and have competitive salaries a quality teaching staff rather to an impressive
marketing plan. Prof. S. Dutta should decide whether of this area she should improve first, its
either Advertising or Quality service.

The term “service quality” is frequently used by both academicians and practioners. However, it
is never defined in a way which could guide management decisions; too often the term quality
is used as if it were a variable itself, and not a function of a range of resources and activities.
To state that service firms, for instance, will have to develop the quality of their services to be
able to compete successfully in the future is meaningless, unless one can: (1) define how the
service quality is perceived by the consumers; and (2) determine in what way service quality is
influenced. (Gronroos, 1984) the quality of service will be subjective and it will depend on the
teacher and how the students perceived quality education.

The Problem:

1. Which area should develop first?, Advertising or Quality

2. Lack of knowledge is the business.
Alternatives:

1. Create and an extensive marketing plan

According to (Tellis, Fornell)”The relationship between advertising and product quality
has been a controversial topic in the literature because of conflicting empirical evidence
and divergent theories about advertising's effects. The authors present an integrative
theory based on consumer response to advertising and the costs of producing quality
products. The theory posits that the relationship between advertising and quality is
stronger when (1) quality is produced at lower cost and (2) consumers are less
responsive to advertising. Such a scenario is more likely during the latter stages of the
product life cycle. An empirical test supports this argument.” The company with better
product or services produce are more into advertising to raise awareness since it is in
the early stage of PLC(Product life cycle),

Even thou we need to develop a good marketing plan, the quality of service should
polished first to ensure an excellent service to our client for us developed a reputation
and trust.

2. Hire a Management Consultant.

The most common, reason that companies hire consultants is to gain
access to a specialized skill set that might not exist in house. By engaging a
consulting firm, you get access to a group of professionals that has skills
ranging from Lean Six Sigma process design to finance organization
structures. These highly specialized people would not only be expensive to
hire for, but the company might not have enough work to keep said
 employees busy year round. But, thanks to consultants, companies can
bring in that skill set on demand when they need it. (Nuth, 2019)

Hiring a management consultant can be expensive, since you’re starting a

business your funds may relatively small also.

Proposed solutions:

Follow Prof. Advice to developed classroom infrastructure and hire a quality teaching staff to
develop the foundation of a professional coaching institutions. Creating a good relationship with
your employees and develop employee satisfaction is one of the factor of a good business.
Training and development of the teaching staff can significantly develop the brand and trust to
their clients. And word of mouth can be the best type marketing tools that can be used since
the business is the starting, it is also cheap and a very effective type of marketing.

“The idea that some organizations provide customers with high-quality service over time by
reinvesting in the inputs responsible for generating the initial success, i.e., in various aspects of
the internal working environment”, (Rosenzweig, Queenana and Kelley 2019) “Originality/value
by expanding the boundaries of previous conceptual and empirical models investigating Service-
Profit Chain”. (Rosenzweig, Queenana and Kelley 2019) “It is effective to invest on employee
satisfaction to improve customer satisfaction and also the company profit”. (Netemeyer et.al.
2010). Better employee satisfaction will significantly increase also in customer satisfaction, it’s a
domino effect in satisfaction from the management down to the customer

According to a Nielsen study, 92% of consumers believe suggestions from

friends and family more than they do advertising - this stat alone solidified the
word of mouth use case.
References:

https://www.google.com.ph/publicdata/explore?ds=kf7tgg1uo9ude_&met_y=population&idim=
state:36:06&hl=en&dl=en. Accessed 2019

The Relationship between Advertising and Product Quality over the

Product Life Cycle: A Contingency Theory
Gerard J. Tellis, Claes Fornell 1988

https://www.themuse.com/advice/good-to-know-why-companies-really-hire-consultants. Accessed 2019

Nielsen Global Trust in Advertising report, 2015

Asya Archakova 2013 Service Quality and Customer Satisfaction. Case study: Company X.