SERVICE MARKETING

ASSIGNMENT: 01

Submitted to:

Sir Samar Rahi

Submitted by:
Muhammad Bilal Tahir
M20MBA104
MBA (2 years) Section B Morning
Semester 1
HAILEY COLLEGE OF BANKING & FINANCE
 Case no 1
Suvillian auto word
Answers no 1
The method of marketing vehicles differs from the method of marketing services. Car marketing
can be achieved in the conventional fashion. Marketing automobiles is combined with the
marketing mix, which attempts to monitor the four Ps (Product, Place, Price, Promotion).
Automobiles are physical goods that are distributed in units. The processes of manufacturing a
car and consuming or using a car are separate Marketing a car service, on the other hand,
requires the 7Ps (Product, Place and Time, Price, Promotion and Education, Physical
Environment and People). Because of the people aspect, service industries face more obstacles
than product industries. Marketing a car typically focuses on the consumer's purchasing process,
which includes a purchase and the transfer of ownership of the vehicle:

 Intangibility
It is simple to sell a car. Since the commodity can be seen, touched, and felt. It can be used to
demonstrate the functionality of the goods. It is difficult to see how to sell a service. The
product's quality can be easily assessed. It is an intangible commodity, making it difficult for
consumers to imagine what would happen. It is unable to depict the characteristics of the items.
Service quality cannot be measured. In comparison to products (goods), which can be created
and processed before being purchased and consumed later, services are generated and consumed
concurrently.
In the case of a car service, technicians (people) perform the various service tasks (conditioning
of steering and suspension, oil change, and so on) in an efficient (process) to ensure the delivery
of qualified service. In exchange, consumers pay a premium for the additional value provided by
the various components of the operation, such as the technicians' expertise and the use of
specialized equipment. or tools, service time and much more.
It is possible to own it and then resell it to another faction. It focuses on the purchasing and
selling prospects of consumers who make a purchase in order to obtain ownership of the product.
It has a fast response.
Another distinction between selling a car and marketing a service is that the latter cannot be
inventoried, which can lead consumers to wait or opt out of the service. Furthermore, marketing for
a car and marketing for a service involve different people with differing skill sets. One individual
will be knowledgeable about the car industry, while the other will be concerned with customer
satisfaction.
Answer no 2

Compare and contrast Sales Department

Products:

Sales department in Auto word engaged the customers and influence to buy the product. They
are offering the new car models according the customer demand and provide alternative to buy
new one- or second-hand models. Sales department encourage revenue of company. On the other
hand, the Service Department of Auto world is accountable for the servicing, repair and
maintenance of the cars. They are also accountable for answering the quires of the customers and
entertaining the concerns and problems of the customers. There are few concern a service
department should look upon

Place

It’s a front end process new Ford vehicles and pre-owned or traded vehicles that they refurbish in
the service department. Eye-catching site in convenient location. Extensive advertising and
promotions to attract car buyers. 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. But
on the other hand The building of the Service Department was not in good condition. Service
building is greasy and hidden behind showroom. Service writers work in cramped room with
peeling paint. Different types of Machines were available for repairing cars but labor was
limited.

Price
In marketing department price is not hard In service department price is hard to determine
predict

Promotions:
In sales department High-polished new cars on In service Modern, well-maintained equipment in
display service bays

The company invests heavily on promotions and No promos were mentioned in the case regarding its
giving deals to induce buyers. service center.

Process and people

The sales department is referred to as the "front end." The sales department is made up of a
manager, seven salespeople, one office manager, and a clerk. The sales department sells both
new and used vehicles. When opposed to the Service Department, the layout of the sale
department was superior. They are in charge of educating the customer about the car in which
the customer is interested.
The services department is referred as “back end” supervisor, nine machines, and two service
writers for unpaired and maintenance and Call Up customers for repair estimates. They are
responsible for answering the quires of the customers and entertaining the concern and problems
of the customers. Customer makes appointment to service their cars. Employees of the services
department must possess higher technical knowledge. Customer satisfaction is harder to attain
while purchase of service. Services should provide according to the customer needs.

Other factors of sales and services department

 Problems with inconvenient service time for customers

 Waiting area/ cue
 Services measures
 Not so good attitude of service department
Answers no 3
Both the sales and services department always work for customer satisfaction. Both departments
do it with their great quality and smooth service experience. There must have a customer-
oriented strategy. Operating an automobile sales and service dealership and operating health care
services have many similarities, though have many differences. As health services is basically
depending on only service while automobile industry is based on both product and service.
Health care centers and car sales and service dealership both are concerned with Service
Department.

 Both solve customer problems and complaints.

 Work for the betterment of their clients.
 Maintain potential customers.
 Both hired skilled person.
 Both sector assure their reliability, goodwill, management in an efficient way and
maintain cordial relations.
 Both the department does it with their great quality product and smooth service
experience.
 Provide a good quality product and best quality service
Answers 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 use

CASE 2
four customers in search of solutions
Answer no 1:
Geographical segmentation:
According to the information provided we see many opportunities to segment the
telecommunications market. These possibilities are as follows
 Customers who make call in Southeast Asia
 Internationals call to Mexico or in South America
 Customers who make call in United States
 Company can segment customers depending on the call destination either it is local,
national or international
 Depending on the issue of the user like there is mistake by the company or it is a
technical mistake
 Depending on value added services with or without additional services

Usage:
• Winston Chen pays top 2% telephone bill.
• Marie Portillo pays average telephone bill (50% higher and 50% lower).
• Eleanor Vanderbilt pays in top 10% of all household subscriber.
• Richard Robbins pays bill 75% of household subscriber
Time:
• Winston Chen calls weekdays evening and daily calls to Kingston around midday.
• Marie Portillo and Eleanor Vanderbilt calls anytime in a day.
• Richard Robbins calls locally and other states usually at evenings.
Answer no 2:
Complaint 1: the problem of WINSTON CHEN was the amount of his telephone bill. He was
convinced that he has been overcharged and requested for an adjustment. Company should
review the bill by the concerned department. If there are any miscalculations that need to be
adjusted.

Complaint 2: MARIE PORTILLO receives a busy signal and missed several important calls.
This may be because of the large frequency of the calls or the company has less servers.

Complaint 3: ELEANOR VANDERBILT receive a series of obscene telephone calls and

seems to be the same person each time. It can be resolve by simply blocking the number or
blacklist the number.

Complaint 4: RICHARD ROBBINS phone line has been making strange humming and
crackling noises making it difficult to hear what the other person is saying. It may be due to the
outdated and faulty answering machine. It can be resolve by simply replacing the machine.

Answer no 3:
There are several marketing opportunities for the telephone company. These are as follows
 Some customers call to USA and Mexico. So there will be attractive pricing packages for
those type of customers.
 Dedicate lines and servers for customers so they never miss a call
 There should be a number blocking feature for the obscene call
 Offer special prices for international calls
 Special packages for those customers who obtain additional services
 Case no 3
Dr. BECKETTS DENTAL HOSPITAL
ANSWER NO 1
Product:
She provides high quality to her patients and modified products. She wanted to offer highest
level of dental care rather than being a low provider. As she stated in her mission statement,
“Provide superior dentistry in an efficient, profitable manner within the confines of a caring,
quality environment”.
 She supposed to provide those products that the quality difference visible to their patients
which they can realize and discover that it is worth to pay. They are assuming that the
actual service covers the full range from dental check-up, cleaning, tooth extraction,
reconstruction, etc.

Place:
 Dr. Beckett chose a good location that was easily accessible by her clients. Her clinic is
located in the busy Northern California region.
 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, but was critical to differentiate her services
according to her.

Price:
 HMO dentists would not be able to offer certain services that provide better quality care
because there were too expensive. So Dr. Beckett had decided to choose the opposite
direction and focused on quality to justify the relatively higher pricing.
 To support the move, the new office contains state of the art facilities, an updated modern
design, educate patients about their treatment and several value added service.
 They were mostly white-collar customers who have the capacity to pay and see the value
of having beautiful and well maintained teeth.

Promotion
  The dental office has been in the business for 22 years now and has generated a customer
base of 2,000 active patients simply through positive word of mouth from patients who
tried the service.
 She has such a positive impact in the market that there is no need to advertise through
tradition medium. Although in order to capture wider customer base, Dr. Beckett need to
develop formal promotion strategy.

Process
 She set standardized routine procedures so that error was reduced and all patients would
receive same level of care.
 Each procedure is timed everyone in the team worked very hard to meet the scheduled
time.
 Customers are also not allowed to wait for more than 20 minutes.
 All the staff members ready to substituted for each other when necessary or In order to
run things smoothly they helped with those tasks that are not in their description.
 Appointments automatically scheduled every six months.
 Cancellations are also filled in to maximize capacity.
 All new patients were required to have an initial exam so Dr. Beckett could do need
assessment and educate them about her services.

Physical Environment
 Dr. Beckett wants to move in bigger space where she promotes her services effectively.
This new place was designed according to Dr. Beckett personality and values as well as
aim to provide a pleasant place of work not only for customers but for her staff as well.
 The investment also was worth it since the physical place is the first thing that customers
will see when they visit the dental office.
 There was a balance between operations and design of clinic which distinguish this place
from their competitors. Waiting area filled with modern furniture, walls covered with art,
classical music played in the background which lightens the environment, play area for
children. These were all aimed at providing a superior and pleasant dental experience
minimizing the unpleasant feelings of going to dentist.
 The certificate diplomas prominently display at her office from various programs which
adds credibility.

People
  Dr. Beckett wisely choses the staff members and separate them according to their
functions.
 Dr. Beckett wanted to keep her employees at the same level. She valued friendship with
staff members and understood that their team work will play vital part in delivery
services.
 This is very important for a service company to make their employees happy at their
work place because it could translate good service as well.
 Beyond financial Dr. Beckett provided her employees with many opportunities to
enhance their skills by attending classes and workshops.
 She also rewarded their hard work by giving incentive and go on trips to relax their mind.
 There was also open communication and staff gives inputs and suggestions on how
service can be improved.

Answers no 2
 Most people dislike going to dentist or felt it was an inconvenience and come up with
negative attitude.
 Dental procedures were often painful for patients.
 Most of the time patients fell anxious and uncomfortable.
 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.
Answers no 3

 The initial exam by Dr. Becket who provides education & counseling to patients adds a
personal touch and adds credibility to the service.
 The office videos staff tried to provide some information’s through showing the patients
educational about different dental procedures, and also brochures were available.

 They can make a website with before and after pictures and also send email regarding
information to take care of their teeth after treatment, inform about upcoming promotions

 Thank you is giving to those patients who referred other patients. This is a little way of
showing your patients that you acknowledge and appreciate their contribution in the
growth of the venture.

 A gift bag to give to patient after they had their teeth cleaned which contain a toothbrush,
toothpaste, mouthwash etc.

 Patients serve with coffee or tea in waiting area and photo album with picture of staff and
their families which gives home like feeling to their patients hanging in the waiting area.
 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.

Answers no 4
 Patients know the procedure before they get treated.
 They make appointment for dental care. Patients should be kept waiting no longer 20
minutes.
 They provide a modern and comfortable environment for their patients, such as: classic
music, offer coffee, follow up calls.
 When the parents are getting treated, there's a room for their children to play in.
 Dr. Beckett and her employees talk with the patient about ways of getting better
outcomes of the treatment.
 There’s a steady flow of patients and reservation is efficient as well.

Enhancement in service delivery:

 To expand the existing customer base, they can launch a customer loyalty and referral
program that rewards frequent customers and those who will bring in their friends to the
dental office. Points can be recorded and entitle them to some free dental service once a
certain level is reached.
  Hire and train a couple of more dentists to accommodate more customers. This would
shorten waiting time for patients too.
 Focus on customer satisfaction because patient consider going to the dentist as a grudge
task. So it is important to know that single disappointing experience in a single step may
not significantly reduce the strength of the business relationship if the customer's overall
perception of quality remains high. They have to make sure that every process is aligned
and will not provide confusion.
 Dr. Beckett should work on adversity her services. In order to capture wider customer
base, she need to develop formal promotion strategy.

My dental clinic always makes wait longer than Dr. Beckett's, and also they care more about the
quality than my clinic. Staffs were not well trained and they don’t know about how to treat their
patients. Surrounding environment is also not up to the mark. Every time I visit to my dentist, I
sensed some unpleasant smell which makes my condition worse.

Issues in Dr. Beckett’s Clinic:

 High price on high quality, but with competitions that provide same service with
lower price may be hard to maintain.
 Her patients were white color and the other was coming inconstant.
 She did not have a business knowledge (cost, profit)
 She the only dentist working and other blue color.
 She does not a promote herself, people know her by word of mouth.
 Appointment delay.

Advices to Dr. Beckett:

 Dr. Beckett should provide services which are fast and not very costly which insurance
can cover so every can enjoy her services.
 She should do some market research and gain some knowledge how to run her business
more effectively.
 She should advertise herself in a border way.
 Selecting and training employees and creating a culture within the dental clinic can
empower and can lead to increased employee satisfaction and employee competence.
This will result in superior service delivery and customer satisfaction and loyalty.
 She should review all the nice features that they are offering and identify which are value
adding and which are simply nice to have and would not matter to customers if taken out.
A simple way to find out is to do a simple survey with customers e.g. those waiting for
their turn to get serviced. This way they can get possible saving on maintenance and
operations.