Module 1: Sullivan Ford Auto World

 Post by midnight Saturday please.

And do not repeat back the case in the “summary”; tell me
why this case is important in services marketing – what is the
lesson to be learned. And to receive credit this template in
WORD (no images) must be used and not exceed two pages. As well your name must be
added. Once again, if you exceed 2 pages with 10 point text minimum I won’t mark it.

Name: Aryan

Case Summary: (250 words)

Sullivan Ford Auto World, once a beacon in the metropolitan area's automotive landscape, finds
itself in a precarious position following the sudden demise of its charismatic founder, Walter
Sullivan. The baton has unexpectedly passed to his daughter, Carol Sullivan-Diaz, a seasoned
health-care manager facing the daunting task of steering the family-owned dealership through
financial turmoil. Financial troubles loom over Auto World, with a deteriorating financial
situation persisting for 18 months. Declining car sales, influenced by rising interest rates and fuel
prices, add to the challenges. Industry forecasts paint a bleak picture, further complicating
Carol's predicament. In the high-ceilinged showroom, gleaming cars and patriotic pennants belie
the underlying struggles. The sales department, once driven by Walter's promotional fervor,
grapples with a changing market. Carol contemplates strategic shifts, considering cost-cutting
measures and more efficient advertising under the guidance of Larry Winters, the sales manager.
Meanwhile, the service department, Walter's perennially overlooked side of the business,
experiences declining revenues. Outdated manual processes contribute to inefficiencies,
highlighting a need for modernization. Service manager Rick Ober, though technically skilled,
faces challenges in customer relations. As Carol Sullivan-Diaz delves into spreadsheets and
contemplates the future, the case study unfolds, presenting a multifaceted challenge. Auto World
stands at a crossroads, demanding strategic decisions to revive its fortunes and ensure a legacy
beyond its founder's vibrant era.

Answer with reference to course material.

1. How does marketing cars differ from marketing service for those same vehicles?
Differences in Marketing Cars vs. Marketing Service:
 Product Focus: Marketing cars involves highlighting features, performance,
and aesthetics to attract potential buyers. It often involves advertising,
promotions, and test drives. On the other hand, marketing services for
vehicles focuses on reliability, expertise, and customer satisfaction in
repairs and maintenance.
 Emotional Appeal: Car marketing often involves emotional appeals related
to lifestyle, status, and personal identity. Service marketing, especially in
the automotive context, emphasizes trust, competence, and convenience.
 Customer Involvement: Car marketing may involve extensive customer
engagement, such as test drives and customization options. Service

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 marketing relies on the customer's need for maintenance or repairs, which
may not be as voluntary.

2. Compare and contrast the sales and service departments at Auto World.
Comparison of Sales and Service Departments at Auto World:
 Sales Department:
 Involves sales managers, salespeople, office managers, and
secretaries.
 Focuses on selling both new and used vehicles, with an emphasis
on promotions and deals.
 Faces challenges with declining consumer confidence and recent
layoffs affecting the local economy.
 Service Department:
 Comprises a service manager, parts supervisor, mechanics, and
service writers.
 Handles repair and maintenance work, with a service facility not
easily visible from the main highway.
 Faces challenges with low service revenues and a need for potential
improvements in sales volume.

2. What advice would you give to Carol Sullivan-Diaz?

Advice for Carol Sullivan-Diaz:
 Conduct a comprehensive analysis of the service department to identify
areas for improvement in efficiency and sales volume.
 Consider investing in technology to modernize the service work order
process, making it more streamlined and efficient.
 Explore potential cost-cutting measures in the sales department, such as
not immediately replacing the departing sales representative and
optimizing advertising and promotion strategies.
 Evaluate the feasibility of diversifying services offered in the service
department to attract more customers.
 Consider seeking external expertise or consulting services for a fresh
perspective on business strategies.

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4. Define a service.
Definition of a Service:
 A service is an intangible offering provided by one party to another, often
involving a set of activities, benefits, or solutions performed to meet the
needs or desires of the recipient. Services are distinct from tangible goods
and are characterized by intangibility, inseparability, variability, and
perishability.

5. Through its retail stores, Apple seeks to offer both products and services solutions to its
customers. That is, when a person looks to buy an Apple product, both the product and service
are offered by staff at the Apple retail store. Comment on this.
1. Apple's Approach to Products and Services:
 Apple's retail stores aim to provide a holistic experience by offering both
high-quality products and related services.
 The staff in Apple retail stores not only sells products but also assists
customers with technical support, training, and troubleshooting, blending
the product and service aspects seamlessly.
 This approach enhances customer satisfaction, loyalty, and ensures a
comprehensive solution for users' needs, contributing to the overall
success of Apple's ecosystem.

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