Name: Bhavya Savla

Roll No: 28
Service Marketing Assignment
Name Of Professor: Mr Deepak Asarpota

1: Differentiate beteween the term “Sales” and “Marketing” clearly with a

few examples to prove that you have understood the topic.
BASIS FOR SALES MARKETING
COMPARISON

Meaning Sales refers to the process of Marketing is understanding

selling, whereby product is
offered for sale to the customer
at a certain price and at a given
period of time.
the requirements of the
customers in such a way
that whenever any new
product is introduced, it
sells itself.

Orientation Product-oriented Customer-oriented

Approach Fragmented approach Integrated approach

Focus Company needs Market needs

Related to Related to flow of goods to Related to all the activities

customers. which facilitates flow of
goods to customers.

Duration Short-term Long-term

Objective To instigate shoppers in such a To identify the needs of

way that they turn out as buyers. customers and create
products to satisfy those
needs.

Relationship One-to-One One-to-Many

Target Individual or small group General Public

Scope Selling of the product. Advertisement Sales

Research
 Customersatisfaction After
sales services etc.

Activity Customer driven Media driven

Strategy used Push Strategy Pull Strategy

Process Involves exchange of goods for Entails identifying and

adequate consideration. satisfying customer's needs.

Rule Caveat Emptor Caveat Vendor

Technique Price promotion, Discounts and Customer relationship

Special offers. through integration of
organization with the needs
of customers.

Skills required Selling and Conversational Analytical skills

skills

Aims at Profit maximization through Profit maximization through

sales maximization. increased consumer
satisfaction and market
share.

Example McDonalds sells food, or at

least A food-like substance. Examples include contests,
They target families with kids, coupons, freebies, loss
to get the whole family to come leaders, point of purchase
eat. They offer Happy Meals displays, premiums, prizes,
and playgrounds. Their product samples, and
locations are chosen for rebates
convenience. They distinguish
themselves based on consistency
of menu and food. You can walk
into any McDonalds anywhere
and know the Big Mac tastes
pretty much the same (yum).
They advertise using Ronald
McDonald
2: What is the role of consumer behaviour in retail management? Elucidate with
valid points in detail.

Retail customers have ever more demanding expectations of value, choice,

availability and accessibility of products and services. Finding ways to service
these expectations is forcing the retail landscape to change very rapidly.

Many of these changes are clear and well documented. The dexterity of
customers, with access to e-commerce, social media and mobility enabling them
to seek out the best deals, is forcing traditional bricks and mortar retailers on line
in an attempt to compete with e-tailers with different margin and operational
structures. The power of social media to make or break a brand is forcing retailers
into communication strategies that are interactive and immediate, a far cry from
the traditional communication approach retailers have been used to.

The other reality of the retail landscape is the current economic climate, which is
creating consumers who are happy to wait for special deep discount promotions
to make their purchases. This is forcing retailers into long sale periods, which can
impact the bottom line.

Given these challenges, it can be safely concluded that it is a difficult time to be

a retailer. On the one hand increasing consumer demands are driving significant
strategic decisions around new channels, new business models, new operations
and new communication, on the other, the bottom line is not exactly glowing with
the necessary good news to fund these new directions.

3: Differentiate between “Service failure” and Service recovery”

SERVICE FAILURE SERVICE RECOVERY

A service failure, simply defined, is Service recovery is a company's

service performance that fails to meet a
customer’s expectations. Typically, when
a service failure occurs, a customer will
expect to be compensated for the
inconvenience in the form of any
combination of refunds, credits,
discounts, or apologies. Service failure is
the opposite of customer satisfaction
resolution of a problem from a
dissatisfied customer, converting them
into a loyal customer.[1] It is the action
a service provider takes in response to
service failure
 The major reasons for service failures
include strategy of the management,
leadership quality of managers, and
natural instincts of employees
The goal of service recovery is to
identify customers with issues and then
to address those issues to the
customers’ satisfaction to promote
customer retention.

Service failure is a very common However, service recovery doesn’t just

scenario, but recovering from such happen. It is a systematic business
failures is one of the most challenging process that must be designed properly
tasks that management faces. There is and implemented in an organization
always a hidden opportunity in a service
failure, it just depends on the
management whether it worsens or can
set an example of recovery.

For every service failure there are 4 steps

of service recovery, and they are

Step 1: Apologize and Ask for

Forgiveness

Step 2: Go Over the Complaint with Your

Customer

Step 3: Fix the Problem and Then Follow

Up

Step 4: Document the Problem in Detail

4: Explain the term, Retail audits and Consumer Research through different
tools. Relevant explanations have to be provided
Retail audit is the study of selected retail outlets for collecting data about the
health / visibility of a brand’s products. This is a primary physical research
process, wherein a trained auditor visits the establishment and validates
information such as:

▪ Sales volume
▪ Stock levels (shelf and backstock)
▪ Descriptions of in-store displays and promotional materials
▪ Competitor activity
▪ Planogram compliance (shelf location, number of facings present, number of
SKUs present, missing/inaccurate shelf tags)
▪ Pricing
▪ In-store location of products
▪ Product damage

Consumer research is the practice of identifying the preferences, attitudes,

motivations, and buying behaviour of the targeted customer. Using a variety of
customer research methods to gather this information, shared traits among the
different customer groups are identified and categorized into customer segments
and buyer personas, which are then used to create marketing campaigns targeting
a specific segment or persona.

Consumer research is the key to improving your product and successfully

marketing to customers who want to do business with you. Interviews, surveys,
and other customer research methods are some of your best friends when it comes
to helping your company consistently increase its revenue year on year.

Write short notes on the following:

1: Services Marketing
Service marketing is marketing based on relationship and value. It may be used
to market a service or a product. With the increasing prominence of services in
the global economy, service marketing has become a subject that needs to be
studied separately. Marketing services is different from marketing goods because
of the unique characteristics of services namely, intangibility, heterogeneity,
perishability and inseparability.
The characteristics of a service are:
Intangibility: Services are intangible and do not have a physical existence.
Hence services cannot be touched, held, tasted or smelt. This is most defining
feature of a service and that which primarily differentiates it from a product. Also,
it poses a unique challenge to those engaged in marketing a service as they need
to attach tangible attributes to an otherwise intangible offering
Heterogeneity/Variability: Given the very nature of services, each service
offering is unique and cannot be exactly repeated even by the same service
provider. While products can be mass produced and be homogenous the same is
not true of services. eg: All burgers of a particular flavor at McDonalds are almost
identical. However, the same is not true of the service rendered by the same
counter staff consecutively to two customers.

Perishability: Services cannot be stored, saved, returned or resold once they have
been used. Once rendered to a customer the service is completely consumed and
cannot be delivered to another customer. eg: A customer dissatisfied with the
services of a barber cannot return the service of the haircut that was rendered to
him. At the most he may decide not to visit that particular barber in the future.

Inseparability/Simultaneity of production and consumption: This refers to

the fact that services are generated and consumed within the same time frame.
Eg: a haircut is delivered to and consumed by a customer simultaneously unlike,
say, a takeaway burger which the customer may consume even after a few hours
of purchase. Moreover, it is very difficult to separate a service from the service
provider. Eg: the barber is necessarily a part of the service of a haircut that he is
delivering to his customer.

Types of Services

Core Services: A service that is the primary purpose of the transaction. Eg: a
haircut or the services of lawyer or teacher.

Supplementary Services: Services that are rendered as a corollary to the sale of

a tangible product. Eg: Home delivery options offered by restaurants above a
minimum bill value.

2: Fish Bone Diagram:

The fishbone diagram or Ishikawa diagram is a cause-and-effect diagram that
helps managers to track down the reasons for imperfections, variations, defects,
or failures.

The diagram looks just like a fish’s skeleton with the problem at its head and the
causes for the problem feeding into the spine. Once all the causes that underlie
the problem have been identified, managers can start looking for solutions to
ensure that the problem doesn’t become a recurring one.

It can also be used in product development. Having a problem-solving product

will ensure that your new development will be popular – provided people care
about the problem you’re trying to solve. The fishbone diagram strives to pinpoint
everything that’s wrong with current market offerings so that you can develop an
innovation that doesn’t have these problems.
3: Customer Relationship Management
Customer relationship management (CRM) is the combination of practices,
strategies and technologies that companies use to manage and analyze customer
interactions and data throughout the customer lifecycle. The goal is to improve
customer service relationships and assist in customer retention and drive sales
growth. CRM systems compile customer data across different channels, or points
of contact, between the customer and the company, which could include the
company's website, telephone, live chat, direct mail, marketing materials
and social networks. CRM systems can also give customer-facing staff members
detailed information on customers' personal information, purchase history,
buying preferences and concerns.
Need for Customer Relationship Management

Customer Relationship Management leads to satisfied customers and

eventually higher business everytime.
Customer Relationship Management goes a long way in retaining existing
customers.
Customer relationship management ensures customers return back home
with a smile.
 Customer relationship management improves the relationship between the
organization and customers. Such activities strengthen the bond between the
sales representatives and customers.
Steps to Customer Relationship Management

▪ It is essential for the sales representatives to understand the needs, interest

as well as budget of the customers. Don’t suggest anything which would burn
a hole in their pockets.
▪ Never tell lies to the customers. Convey them only what your product offers.
Don’t cook fake stories or ever try to fool them.
▪ It is a sin to make customers waiting. Sales professionals should reach
meetings on or before time. Make sure you are there at the venue before the
customer reaches.
▪ A sales professional should think from the customer’s perspective. Don’t
only think about your own targets and incentives. Suggest only what is right for
the customer. Don’t sell an expensive mobile to a customer who earns rupees
five thousand per month. He would never come back to you and your
organization would lose one of its esteemed customers.
▪ Don’t oversell. Being pushy does not work in sales. It a customer needs
something; he would definitely purchase the same. Never irritate the customer
or make his life hell. Don’t call him more than twice in a single day.
▪ An individual needs time to develop trust in you and your product. Give him
time to think and decide.
▪ Never be rude to customers. Handle the customers with patience and care. One
should never ever get hyper with the customers.
▪ Attend sales meeting with a cool mind. Greet the customers with a smile and
try to solve their queries at the earliest.
▪ Keep in touch with the customers even after the deal. Devise customer loyalty
programs for them to return to your organization. Give them bonus points or
gifts on every second purchase.
▪ The sales manger must provide necessary training to the sales team to teach
them how to interact with the customers. Remember customers are the assets
of every business and it is important to keep them happy and satisfied for
successful functioning of organization.

4: Characteristics of service
The most important characteristics of services are:

▪ Lack of ownership
▪ Intangibility
▪ Inseparability
▪ Variability
▪ Perishability
▪ User participation

Lack of Ownership
Lack of ownership may be one of the most obvious ones of the characteristics of
service. It refers to the fact that you cannot own and store a service like you can
a product. This characteristic is strongly linked to several other characteristics of
services, such as intangibility, perishability, inseparability.

Inseparability
Characteristics of services include inseparability, which means that services are
produced and consumed at the same time. This also entails that services cannot
be separated from their providers. Contrary to services, physical goods are
produced, then stored, later sold, and even later consumed. Services are first sold,
then produced and consumed at exactly the same time. A product can, after
production, be taken away from the producer. However, a service is produced at
or near the point of purchase. For instance, when visiting a restaurant, you order
your meal, the waiting and delivery of the meal, the service provided by the
waiter/ress etc. All these parts, including the providers, are part of the service and
therefore inseparable. In services marketing, a service provider is the product.

Variability
Variability does also belong to the important characteristics of services. It refers
to the fact that the quality of services can vary greatly, depending on who provides
them and when, where and how. Because of the labour-intensive nature of
services, there is a great deal of difference in the quality of service provided by
various providers, or even by the same providers at different times.

Perishability
Perishability means that services cannot be stored for later sale or use. In other
words, services cannot be inventoried. This is one of the most significant
characteristics of services, since it may have a major impact on financial results.
Doctors or dentists often charge patients for missed appointments because the
service value has foregone. The value existed only at that particular point and
disappeared when the patient did not come. When demand is steady, the
perishability of services is not a problem. However, in case of fluctuating
demand, service firms can have difficult problems. For this reason, transport
companies own much more equipment than they would if demand were even
throughout the day: the demand during rush-hours needs to be served at that
specific time, it cannot be served later or earlier. Consequently, service
companies use various techniques for creating a better match between demand
and supply: Demand shifting.

User participation
Finally, the characteristics of services include user participation. Indeed, users
participate in every service production. Even when the user is not required to be
at a location where the service is performed, users participate in every service
production. A service cannot be separated from its provider, but neither can it be
separated from its user.

5: 7 P’s and its importance

7 P’s
Product
Price
Place
Promotion
People
Process
Physical Evidence

Importance Of 7 P’s

Exchange and progression of goods — Marketing is highly beneficial in

deportation, transaction and progression of goods and services. Products and
services are contrived available to consumers by numerous intermediaries like
wholesalers and vendors. Marketing is profitable to manufacturer and consumers
both.

Rising the living standard — Through the availability of continuous supply of

goods and services to customers at a nominal price, marketing has a significant
role in establishing living standards of the society. Community consists of three
genres of people that are wealthy, middle and poor. All the things which are
accounted by these three classes of society are outfitted by marketing.

Increase in employment — Marketing is a complicated practice involving

numerous people in under one segment. The chief marketing activities include
buying, selling, transporting, storing etc. Every function comprises of different
activities which are performed by a large variety of individuals. Hence it helps in
raising the level of employment. According to the sources almost 40% of the
whole population is reliant on marketing directly or indirectly. The widened role
of marketing has immensely increased the employment level for people.

Opening of income and revenue -Marketing caters various opportunities to bring

in profits in the practice of buying and selling the products and goods, through
slashing time, place and tenure utilities. That income and investment can be used
as profits in future ventures. Marketing must be given the utmost significance, as
the initial and conclusive survival of the company gambles upon the potency of
the marketing operation.

Support for Making Decisions — A businessman goes through several

complications during the process of creation and distribution of goods and
services. He/she requires the exact and relevant information and queries related to
their product and service. Marketing process ease this complexity of businessmen
by forming a direct link between manufacturer and consumer.

Opening of new ideas — Marketing concept is deeply dynamic and progressive.

It has altered and modified several aspects for the better functioning of certain
activities. With the changes in taste and preferences of consumers marketing
accord understanding and apprehension accordingly.

Advancement of Economy — Marketing is considered and characterized as a

wizard that sets the economy whirling. An organized marketing structure helps
the economy to rise and lessens the burden of weaker economy.