SERVICE MARKETING

ASSIGNMENT: 01

Submitted to:

Sir Samar Rahi

Submitted by:
Sittara tanveer
M20MBA083
MBA (2 years) Section B Morning
Semester 1
HAILEY COLLEGE OF BANKING & FINANCE
 Case study 1
Sullivan Ford Auto World:
Answer no 1:
Marketing a car:
Marketing a car is buying and selling of a car their advertisement,
promotions, that attracts customer to buy a car to generate profit

It works on marketing mix and it’s an orthodox way.

Marketing a service:
It is based on relationship and value. It is a form of a product that consists of
activities benefits or satisfaction offered for sale and are essentially intangible and
don’t result in ownership of anything.

Difference
Marketing A car Marketing a Service
4ps
It works on marketing mix consists on 4ps It works on marketing mix consists on 7ps
(Price, place, promotion, product) (process ,physical environment ,people)

Product:
Marketing a car is easy. Because the product
can be seen ,touched or can be experienced
Illustrate the features of the products.
Marketing a services cannot be seen. It’s
an intangible products which making it
tough for the customers to imagine what
actually happens
Not illustrate the features of the products.

Quality of product can be easily measured. Quality of service is not measurable

In marketing a car customer receive product
Price
Pricing strategy is too important factor in marketing mix and the pricing strategy of the car
service differ from the pricing strategy of marketing a car
Place and promotion
Sullivan Ford Auto World is in an excellent
spot, at a suburban highway intersection in a
residential area of the city. This location
provides Auto World with visibility and
proximity to two major markets: motorists
and people.
The process of identifying a market to
promote products with the aim of generating
sales
People and processing
Services are generated and consumed
parallel, as opposed to items (goods), which
can be produced and processed before being
purchased and consumed at a later date.
Ownership
In customer avail value
The service department is situated at the
back of the sales center, allowing
salespeople to refer customers to the
company's service area.
Promotion of services being offered by the
company
In the case of a car service, the technicians
(people) perform the different service tasks
(conditioning of steering and suspension, oil
change, etc.) in an efficient way (process) to
ensure delivery of the qualified service. In
return, the customers pay a price for the
added value by the different things that form
the service such as the skills of the
technicians, the use of specialized
equipment or tools, service time and much
more.
 It can be owned and resold to another party. It is neither owned nor transferred to
another party.

It emphasize on the buying and selling It emphasizes on monetary transactions,

prospects of consumer making transaction ,to time and efforts are exchange for labor
take ownership of the product skills.
But ownership of product is not seem
It has Rapid response It has relatively low response

Question no 2:
Compare Sales and service department:
Sales department Service department

It’s a front end process new Ford vehicles It’s a backend process where
and pre-owned or traded vehicles that they Service Department offers servicing for cars
refurbish in the service department that broke-down and/or need parts replacement.

Eye-catching site in convenient location Same location but service building is greasy
and hidden behind showroom

Extensive advertising and promotions to No mention of advertising, reminders, special

attract car buyers offers to generate service business

Customers can walk-in Customers must make appointments

In the front end department it is a high
ceilinged showroom where latest models of
cars, polished to a high sheen, displayed to
attract prospective buyer.
The back end is quite the opposite with its
cramped room and walls with peeling paint.
There was no mention of chairs or waiting
lounge, customers stood while waiting for their
work orders.

In this department price is not hard predict
At the front end, car salespersons are there to
assist and answer queries of possible
customers that are looking for brand new or
pre-owned vehicles.
In this department price is hard to determine
For the back end, service writers and mechanics
assist customers by coming up with estimates or
quotations for services that need to be done on
the vehicles.

Car Sales or the Front–end team is composed The Service Department is composed of the
of the Sales Manager, 7 Sales People, the Service Manager, Parts Supervisor, 9
Office Manager & the Secretary. Mechanics and 2 service writers.

High-polished new cars on display Modern, well-maintained equipment in service

The company invests heavily on promotions
and giving deals to induce buyers.
Customers can examine the cars (and sit in
them if they wish) while they wait for a
salesperson
bays
No promos were mentioned in the case
regarding its service center.
Customers wait in line for service writers; can
look at file-cabinets and listen to telephones
ringing

Answer no 3:
In both the sales and service department always work for making the customers
satisfied.

Both the department do it with their great Quality product and smooth service
experience. No matter what is the vertical of my business or industry, it’s very
important and significant that I have to provide a good quality product and best
quality service.

Operating an automobile sales and service dealership and operating health care
services have many similarities, though have many differences. As health service is
basically depending on only service while automobile industry is based on both
product and service. In both vertical, there must have a customer oriented strategy

Since it is directed at humans, the quality of service in the health sector must be
mastered. Humans seeking overall fulfillment in their wellbeing receive health care
from professionals in medicine, nursing, pharmacy, and other care providers.

Also remarkable satisfaction is requested by customers who seek car service.

Services address customer’s experience that consists of different elements such as
the quality of the service provided by employees whether health practitioners
(health sector) or skilled workers (auto industry), the reception of customers and
dealing with customer complaints, the facility (health center or auto service
center), time of service, etc. Both service providers must enhance this experience
by improving its corresponding different elements Furthermore building trust and
tight relationship is essential in both sectors. This ensures business sustainability
where existing customers are not just willing to purchase the services again but to
even recommend the service provider. Both service providers need to maintain
strong healthy customer relationships. Customers generally prefer to have a regular
service arage they trust Preventive maintenance & checks ups are a good idea

Answer no 4
I would advise Carol Sullivan to appoint Larry Winters as a new leader. As he can
manage the changed system since he has a great track record in auto mobile sales
industry. He was once a leading sales rep in Auto World. He has strong managerial
capabilities and strong network in the industry. Or she could also hire both
financial and service manager to hold the financial assets and service section. For
more effective motive, she might as well train her sisters to be in the place so that
the profits will still be within the company.

Some other suggestions for her:

• Hire an experienced service management team

• She should get a business partner whom she can trust
• Revamp the service department
• Train the service staff
• Develop a customer oriented service strategy
• Make use of the technology for client records and service writing
• Expand the service delivery system
• Advertising and marketing tools and promotions should be efficiently
used
• Ways of improvement
• Hire well-trained and experienced service management team
• Regain the trust and loyalty of clients by implementing new and
innovative packages
• Enforce the PR department in order to successfully reach the proposed
target markets
• Focus on high quality service assuring reliability of products.
• Areas needing improvement, especially items rated "bad" or "poor"
• Computerization of customer records
• Physical renovation of the area
• Effort to recruit and train better service workers
• Marketing the service department
• Physical renovation of the facility
• Customers introduced to service department when new cars are
purchased
• Reminders to customers when cars are due for service
• Promotional incentives to bring cars in for service
• Handling service customers
 Case # 2
Four customers in search of solutions:
Answer #1
Geographical segmentation:
Winston chens: he calls to countries in south Asia on weekend evenings, almost
daily calls to Kingston around midday and calls to Vancouver, British Columbia
most weekends.

Portillo: most calls are local but occasionally to Mexico and South America

Robbins: Calls are to be made to the United States. Long distance calls within
Canada are made by Chen and Robbins.

I see four segments local calls, international calls, internet modern, home
subscribers. Some calls are day time, evening and weekends.

Type of problems: Chen is concerned about overcharging, Portillo about missed

calls, Vanderbilt about obscene calls, and Robbins about poor sound quality. They
have different problems that the company should solve.

Answer no 2:
 Probably in Winston Chens case the best way is to have a look at the bill
again and make some adjustments if so and reimburse the amount to the
Customer. Try to be assumed to him
 Portillo case seems to be a case of network Problem.
Is there a particular time of day when the busy signals were received by her
callers?
Is there anyone else at that address who could have been using her phone at
those times?
Depending on the response, different solutions may be appropriate she has
no value-added services, she clearly doesn’t subscribe to call waiting
service.
 The best Possible solution for her is to refer her Complaint to the Service
Delivery Department and tell them about this Problem so that they could do
something as soon as possible.
 Mrs. Vanderbilt case is a case of distressed calling as she is being receiving
a series of Obscene telephone calls. The best way to provide her a solution is
by Tracing the Persons number who is being calling her and referring it to
the appropriate authorities.
 Mr. Richard Robbins problem is that his phone line has been making strange
humming and Cracking noises which he thinks is that because of the old
answering machine and which loses messages also. The best Possible
solution for him is to replace the old machine with a new machine so that he
doesn’t face any problem in the near future or check their connection line to
engineer if he is not able to change device

Answer #3
Marketing opportunities are still available in any case, but you must first make the
customer very happy, even if they are moaning about something. Tell them that I
will do my utmost to solve their problems and that I will pursue their case before I
receive a response from my higher authority, and that they should stay calm and
patient because it is not in my possession.

We must do this in order for the customer to feel understood and to want to
continue buying my product; this is a marketing opportunity for my business. We
must also remind them that there could be special pricing options that will
minimize their phone bill if they spend a lot of time with us, as well as discount
plans that would benefit them, such as with international calls.
 Case # 3
Answer no 1:
7ps related to case study with example?
The case addresses 7 P’s in terms of delivering quality service:

Product:
Dr. Beckett's goal is to provide consumers with good dental hygiene for better
trust, which is in line with the company's vision of providing superior quality
dentistry. They have complete range of dental care from teeth cleaning to dental
surgery and implants. The dental service provided is trustful and reliable with extra
facilities. Such as dental check-up, cleaning, tooth extraction, reconstruction, etc.

Price:
Although Dr. Beckett recognized the importance of benefit, she did not want to
sacrifice efficiency, hence the premium pricing strategy. While other dental
providers may have preferred to provide cheaper rates in order to respond to the
trend of decreased health care costs to insurance firms, Dr. Becket chose the
opposite approach and concentrated on quality to justify the comparatively higher
pricing. To help the relocation, the new office features cutting-edge technology, an
improved modern design, and a number of value-added services

white collar employees with the means to pay and who recognize the importance of
getting nice and well-maintained teeth.

She refused to become an HMO provider as she feels that it wouldn’t allow her to
give the quality she aims to deliver, she charges higher fees than competitors, with
better quality

Place:
Firstly, she finds offices space in north California but she didn’t find anything she
liked.
The she Hired an architect from San Francisco to design a contemporary office
building with lots of light and space.

This increased building costs by $100,000 it would be a critical factor in

differentiating her service

Its new office was Scandinavian in design reflecting as Swedish heritage

Promotion:
The dental office has been in operation for 22 years and has built a client base of
2,000 active patients solely by positive word of mouth from patients who have
used the service. There was no need to spend a lot of money on conventional
advertising. Aside from the fact that advertising was not the standard at the time,
margins were also healthy.

• Educational films about different dental procedures

People:
Dr. Beckett clearly cares for the well-being and development of her 7 employees
who work in the "front" and "back" offices. It is important for a service provider
that its employees are satisfied and this will lead to good service. They are granted
monthly bonuses as well as an annual team trip.

Aside from finances, the workforce is constantly provided with opportunities to

update skills through classes and workshops. Clearly, Dr. Beckett recognizes the
importance of her employees in carrying out her company's mission and goals.
There was also open contact, and workers had feedback and suggestions about how
to improve service.

Process:
Overall, the procedure and service are both very friendly. In reality, it is impressive
that Dr. Beckett, after being in the company for over 20 years, thought of
improving the office system. It was redesigned to use structured manual
procedures to minimize error and offer the same quality of treatment to all patients.
Each process is timed, and employees work to meet the deadline. Customers are
therefore not permitted to wait any longer more than 20 minutes
Employees often call patients in advance if they knew there would be a delay.
They also fill in cancellations is maximize the office capacity

Employees could fill in for one another and assist with activities that are not part of
their job description in order to get things done more efficiently.

All new patients must have an initial exam so that Dr. Beckett can determine their
needs and inform them about the service.

Physical environment:
Environment of dental care was pleasant The waiting area had modern furniture
with shades different colors. Walls of dental care beautifully designed, Classic
pleasant background playing for the patient in waiting area, People in waiting area
could have tea or coffee. The treatment areas were both beautiful pleasing. There
was a small meeting room with toys for children and a DVD player where patients
could watch instructional films about various dental procedures. There was
research available to clarify what patients should do to optimize the benefits of
their treatment outcomes.

The seats in the examination rooms were leather-covered and very comfortable.
Each room had a large window that allowed patients to watch birds eat at the daily-
filled feeders. There were also sexy mobiles hanging from the ceiling to distract
patients from any unfamiliar noises or feelings they may be feeling. Headphones
were given available with a wide selection of music.

The entire "back office" staff

(including Dr. Beckett) wore
uniforms in cheerful shades Of
pink, purple, and blue that
matched the office décor. All
the technical equipment
looked
very modern and was spotlessly
clean. State-of-the-art
computerized machinery was
used
for some procedures. Dr.
Beckett's dental degrees were
prominently displayed in her
office, along with certificates
from various programs that she
and her staff had attended to
update their technical skills.
The entire "back office" staff (including Dr. Beckett) wore uniforms in cheerful
shades of pink, purple, and blue that matched the office décor. All the technical
equipment looked very modern and was spotlessly clean. State-of-the-art
computerized machinery was used for some procedures. Dr. Beckett’s dental
degrees were prominently displayed in her office, along with certificates from
various programs that she and her staff had attended to update their technical skills.
The entire "back office" staff
(including Dr. Beckett) wore
uniforms in cheerful shades Of
pink, purple, and blue that
matched the office décor. All
the technical equipment
looked
very modern and was spotlessly
clean. State-of-the-art
computerized machinery was
used
for some procedures. Dr.
Beckett's dental degrees were
prominently displayed in her
office, along with certificates
from various programs that she
and her staff had attended to
update their technical skills.
The entire "back office" staff
(including Dr. Beckett) wore
uniforms in cheerful shades Of
pink, purple, and blue that
matched the office décor. All
the technical equipment
looked
very modern and was spotlessly
clean. State-of-the-art
computerized machinery was
used
for some procedures. Dr.
Beckett's dental degrees were
prominently displayed in her
office, along with certificates
from various programs that she
and her staff had attended to
update their technical skills.

Answer no 2:
Here are some of the reasons so many people hate going to the dentist. Dr. Beckett
has discussed these issues in the case study which includes

Financial costs: Patients can experience financial difficulties, but this is usually
protected by insurance. Only those who come to Dr. Becket's facility pay for any
additional services that are not covered by insurance contributions.

Physical environment: People going to the dentist and feeling painful

sensitivity as a result of tooth extraction and care. Some people go to the dentist
because they are in pain, but many of them report feeling fine after entering the
dentist's office because they are expecting what will be done to their teeth.

Psychological and sensory expectations:

The experience or assumption of going to the dentist incurs unpleasant
psychological costs. The sensory costs are due to the unfamiliarity of the dental
environment. Employees of Dr. Becket attempt to educate them on the imminent
pain and experience.

Time implications: This includes both the waiting time and the service time.
This is minimized by supplying educational literature and VCRs to keep the patient
busy. Simultaneously, the office facilitates early bookings and appointments,
reducing waiting time. Employees work overtime to stop wasting time. All
procedures are also structured to ensure that patients are given equal time,

Patients felt perceived risk (psychological risk, temporal risk, functional risk)
because it relevant to the services that are difficult to evaluate before consumption
and first time users are likely to face greater uncertainty

(Psychological risk) Dr. Beckett tried to reinforce the idea that quality dental care
depended on a positive long-term relationship between patients and the dental
team. She admitted that it could be difficult to maintain the positive attitude all the
time but she makes sure to make their patients as comfortable as possible.

(Temporal risk) office policy specify patients that they no longer wait for 20
minutes and if there would be any delay then staff will inform patients in advance.

(Functional risk) there was small room with toys for children and DVD players that
used to educate patients about their treatment, also the chairs in the examining
room are very comfortable. There was also an attractive mobiles hanging from the
celling to distract patients from unfamiliar sounds. Buckwheat pillows and blankets
for patient comfort during long procedures. Hence she provides high level service
environment architecture. The certificates also help in reducing the risk for
patients, knowing about all of the background of Dr. Beckett and her staff’s
trainings would make them feel safer.

Question 3
Patients felt perceived risk (psychological risk, temporal risk, functional risk)
because it relevant to the services that are difficult to evaluate before consumption
and first time users are likely to face greater uncertainty
  A VCR is also used to show patients educational films about different dental
procedures
 Literature was available to explain what patients needed to do to maximize
the benefits of the treatment
 This indoor marketing style helps the clinic through showing to customers
what treatments they could avail of
 Goodie box was given to patients including toothbrush, toothpaste,
mouthwash and floss
 At the same time, videos and pamphlets with dental literature are also used
to educate the patients.
 Other educative options would include having the patients view the
feedbacks of patients who have succeeded with the dental treatment at the
facility
 To minimize the increasing demand, Dr. Beckett could partner with other
dentists. At the same time, the facility would create a website whereby
feedbacks and important dental materials could be available for potential
employees to read.
 As the patients report to the facility, they take an initial exam with the doctor
to ascertain needs assessment and the available remedy for the problem.

Question no 4

 Dr. Beckett's dental service provides high-quality dental care by delivering

high-level services.
 They have excellent environmental architecture; there is a While waiting,
there is an entertainment room.
 Her goal is to provide superior dentistry in a timely and efficient manner.
within the confines of a caring and quality community, in a profitable
manner the climate
 Magazines, tea & coffee for waiting patients.
 Consultation services so the Doctor and her staff can talk to the patients
about better outcomes of treatment.
 Patient has to schedule for appointment prior to consultation
  It maximizes the office capacity and avoids customer traffic. Since this is a
care service, too much crowd will give impression to the customers that they
will not be given enough attention because of lots of patients
 Patients should be kept waiting no longer 20 minutes without giving option
for rescheduling
 These enhance the service quality of her business because it reduces and
outcome of unsatisfied customers due to long waiting time
 A separate person is responsible for billing and operation budgeting
 Although it is not mentioned in the case, we assume that person who is
responsible for billing is the same person who is doing the billing.
 This setup gives impressions to customers that Beckett’s business operation
is smoothly practiced which enable the clinic to concentrate in its core
service

Question no 5
My experience in a dental facility does not correspond to Dr. Beckett's
environment. My experience was of a poorly managed community with little
workers and no state-of-the-art dental equipment. The rescheduling pattern was
unsuccessful because the dentist was not always available to fix problems.

Even though the office was open on weekends, the few workers did not lose
productivity. There were no set routines, which resulted in longer wait times.

I will use my former dentist's expertise to improve the facility and equip it with
modern tools. Around the same time, in order to compete, the facility must provide
high-quality facilities. I will also recommend that schedules be streamlined and
staff be increased to accommodate the increased demand. There should also be
educational materials available in the facility.

To Dr. Beckett, her service is superb and therefore, I would advise her to seek
partners who would help her reduce the workload and many scheduling options.