Internal Assessments

Program – MBA Program

Subject – Marketing Of Services

Semester - 3

Assessment Type – (Subjective Assignment)

Total Marks - 100

Guidelines:

 The response sheet should be in word format which should be uploaded in

the learning management system
 A plagiarism check should be done by student through plagiarism tool
provided in the learning management system
 Permissible plagiarized limit is 10%. Response sheet found with plagiarized
content above 10% would not be evaluated for the said assessment.
 The said assignment is for 100 marks with 5 questions each. (20 marks per
questions)
 Passing criteria is 50% for every assignment.

Questions:

1. Explain nature of services. What are various forms of nature of services?

Nature of Services:
The nature of services refers to the characteristics and features of services
that distinguish them from tangible goods. Services are intangible and are primarily
focused on delivering value through interactions and experiences with customers.
Unlike physical products, services cannot be touched, stored, or possessed.

It needs to be understood that services are different from products and this
difference warrants a change in the way services are marketed. Services are
intangible, perishable, and inseparable from the provider, and highly variable each
time they are delivered. These characteristics of services must be thoroughly
understood so that appropriate operations and marketing structures are created to
be able to produce and sell services profitably. Various forms of the nature of
services can be described through the following dimensions:
1. Intangibility
2. Inseparability
3. Perishability
4. Variability
5. Heterogeneity
 6. Customer Participation

Intangibility:
Customers cannot see, taste, or touch pure services prior to purchasing them.
A service is a deed, performance, or effort. Services are experiential by nature.
Evaluating a service prior to purchasing it is difficult for a customer; yet the quality
must be assessed before the act of purchase. One cannot decide whether a vacation
would be enjoyable or not before going on it. It is not possible for patients to know
for sure whether they would be cured until they have been operated upon. For some
offerings such as getting a car serviced, its tangible nature makes it difficult for the
service to be evaluated even after being consumed. Therefore, the service provider
must utilize tangible cues to indicate service quality. For instance, travel agencies
could display photographs of the destinations, show testimonials from satisfied
clients, and provide details of the kind of entertainment they offer. Similarly, garages
could provide checklists of operations performed in the course of a particular
service. The main task is to give evidence of service quality by providing tangible
cues for an otherwise intangible offering, so that customers can evaluate the quality
of services before purchase. A restaurant may thus convey quality by creating a great
ambience, a clean kitchen, well-dressed and well-mannered staff, good table layout,
great aroma of food to convey quality. Cues must be provided by all service
organizations to give customers an opportunity to judge the quality of the service
offerings pre-purchase.

Inseparability:
Services involve simultaneous production and consumption. Service providers
form an important element of the service and play a significant role in satisfying
consumers. The way a service provider conducts himself has a critical influence on
the business being repeated beyond the service task's technical efficiency. In the
eyes of the consumer, the provider, like the insurance representative or the doctor,
is the organization. Rewarding the frontline staff, training, selection, etc. are of great
importance in the achievement of service quality.
In services, individual providers such as doctors in medical services are better
assurance for the customer than the service facility itself. Customers trust the
individual service provider. It is important that individual service providers are
promoted, and their achievements are given wide publicity.

Presence of other consumers:

The service may be consumed while other consumers are present. Potential sources
of nuisance such as noise must be identified by service providers and proper
arrangements made to prevent conflict among the customers. Hence, the service
provider should target the right segment so that only the customers seeking similar
benefits interested in the offering. Customers may stay together in the service
facility for long periods of time, and they can be a big nuisance for each other. If
customers do not like the company of other customers, they will discredit the service
provider. A service provider should be very careful about who he takes as his
customer if he does not want to invite the wrath of other customers in the facility.
The marketing mix should be so adjusted that it is attractive to customers who want
to enjoy the service in a similar way.

Variability:
It is difficult to standardize the provision of services. Service providers with
varying skills and attitudes conduct their services at several different locations so
that the service is produced and consumed at the same time. Unlike physical
products, it is not possible to quality check a service fault such as rudeness and
correct between the processes of production and consumption. Since service quality
is variable, it becomes important to rigorously select, train and reward the staff of a
service firm. The emphasis of training should be on the standard of behavior
expected of the employees when they deal with customers. In this regard, firms
should develop and put in place some kind of evaluation system that enables the
customers to report their evaluation of the personnel to the organization.
But the variability of services has a silver lining too. Service providers can anticipate
the precise requirements and moods of the customers as they start interacting with
them. An empathetic service provider will ensure that he customizes his service and
his behavior according to the requirement and mood of the customer. In fact, a
service provider can publicize his ability to customize services for his customers. The
problem of variability can be tackled with the help of service standardization, which
can be achieved by using reliable equipment such as vending machines and ATM
instead of people. The efficiency and reliability of the equipment must be taken care
of. The service demand and supply must be matched. When an individual service
provider fails to perform his task, the customer takes it out on him and the provider
has an opportunity to placate him. But when equipment like an ATM does not work,
the customer straightaway believes that the service is not good and may stop going
to the service provider without any hint. Whenever equipment is being used to
provide a service, the service provider should ensure that it is working to the
satisfaction of customers availing the services.

Perishability:
Services cannot be stored for the future and hence their consumption cannot
be deferred. Therefore, once a certain supply of services such as number of rooms
on a hotel premises or number of seats in an airline have been created, there must
exist adequate demand for them. Another problem involves having to cater to peak
demand at the time of insufficient supply.
A key marketing task is to provide incentives when demand is low. Deep discounts
should be offered to entice customers when the service facility is underutilized.
Service facilities incur huge, fixed costs while the variable cost of serving a customer
is low. So even if customers are acquired by offering heavy discounts, they may still
be profitable for the service provider.
It is possible to vary supply by using part time employees at the time of peak
demand. In this case too, pricing and promotion play a very important role.
Customers should be encouraged to avail the service at non-peak hours by charging
them lower fees at these hours. It is important to remember that since services
cannot be inventoried for future use, matching supply and demand becomes very
important. Extra demand results in customers walking away without availing the
services, and low demand results in the service provider not being fully utilized.
Leading to loss of revenue and profit in both cases. Service providers should use
promotion and pricing to shift demand from peak periods to non-peak periods to
balance demand and supply.

 Shifting employees to tasks having higher demand is facilitated by multi-

skilling.
 Customers could be encouraged to participate in the process of production,
as in the concept of self-service.
 It may be possible to smoothen demand by means of differential pricing for
customers with proper seating and free refreshments.
 Service providers may also use a reservation system to balance demand and
supply.

2. What are the ways in which a company can effectively use their marketing mix?

A company can effectively use their marketing mix by considering and

strategically managing the four key elements: product, price, promotion, and place
(distribution). Here are some ways to leverage each element effectively:

Product:
 Conduct market research to understand customer needs and preferences,
ensuring the product meets those requirements.
 Differentiate the product from competitors by emphasizing unique features,
quality, or design.
 Continuously innovate and improve the product based on customer feedback
and market trends.
 Develop a strong brand identity and align the product with the brand image.
Price:
 Determine a pricing strategy that aligns with the target market and product
positioning (e.g., premium, competitive, or value pricing).
 Conduct a thorough analysis of costs, competitors' pricing, and customer
perceptions of value.
 Offer pricing incentives such as discounts, bundles, or loyalty programs to
attract and retain customers.
 Monitor and adjust prices based on market conditions and customer
demand.
Promotion:
 Develop a comprehensive promotional plan that utilizes various marketing
channels such as advertising, public relations, direct marketing, and digital
marketing.
 Identify the target audience and tailor promotional messages to resonate
with their needs and preferences.
 Utilize social media platforms, content marketing, influencer partnerships,
and other relevant channels to engage with the target audience.
 Measure and analyze the effectiveness of promotional activities to optimize
marketing campaigns.
Place (Distribution):
 Determine the most appropriate distribution channels to reach the target
market efficiently (e.g., direct sales, retailers, wholesalers, online platforms).
 Establish strategic partnerships with distributors or retailers to expand the
product's reach.
 Ensure availability and accessibility of the product by managing inventory and
logistics effectively.
 Offer convenient purchasing options, such as online ordering, delivery
services, or brick-and-mortar locations, depending on customer preferences.
 It's important to note that the marketing mix should be dynamic and
adaptable. Companies should continuously monitor market trends, consumer
behavior, and competitors' strategies to refine their marketing mix and
maintain a competitive edge.

3. How is customer engagement achieved through employee engagement?

Customer engagement can be achieved through employee engagement by
recognizing the vital role employees play in delivering exceptional customer
experiences. Here's how employee engagement can contribute to customer
engagement:

Positive Employee Attitude: Engaged employees who are satisfied, motivated, and
aligned with the company's values and goals are more likely to exhibit a positive
attitude toward customers. They genuinely care about customer satisfaction and are
enthusiastic about helping them. This positive attitude creates a welcoming and
friendly environment, enhancing the overall customer experience.

Product Knowledge and Expertise: Engaged employees are more likely to be

knowledgeable about the products or services they offer. They stay up-to-date with
the latest information, features, and benefits. When employees are well-informed
and can effectively communicate product details, they can answer customer
questions, make relevant recommendations, and provide a personalized experience,
leading to increased customer engagement.

Empathy and Understanding: Engaged employees are empathetic and genuinely

interested in understanding customers' needs and challenges. They actively listen,
show empathy, and demonstrate a willingness to help. By connecting with
customers on an emotional level and demonstrating genuine care, employees can
build trust and create meaningful relationships, thereby enhancing customer
engagement.

Problem Resolution and Proactive Assistance: Engaged employees take ownership

of customer issues and proactively seek solutions. They are empowered to make
decisions that benefit the customer, which reduces response times and improves
problem resolution. By going above and beyond to address customer concerns or
anticipate their needs, engaged employees can foster loyalty and increase customer
engagement.
Consistency and Reliability: Engaged employees understand the importance of
delivering consistent and reliable experiences. They strive for excellence in every
customer interaction, ensuring that customers receive the same high level of service
consistently. This reliability builds trust and confidence, encouraging customers to
engage with the company repeatedly.

Brand Advocacy: Engaged employees are more likely to become brand advocates.
When employees are passionate about their work and believe in the company's
mission, they naturally share positive experiences and promote the brand. This can
attract new customers and reinforce engagement among existing customers who
value the authentic recommendations and experiences shared by employees.

To foster employee engagement and, subsequently, customer engagement,

organizations should focus on creating a positive work culture, providing regular
training and development opportunities, recognizing and rewarding employees'
achievements, and actively seeking and valuing employee feedback. By prioritizing
employee engagement, companies can create a ripple effect that positively impacts
customer engagement and ultimately drives business success.

4. What is service life cycle concept? Explain in detail

The service life cycle concept is a framework that helps organizations
understand and manage the stages and processes involved in delivering services to
customers. It provides a structured approach to plan, design, deliver, and improve
services throughout their entire life cycle. The service life cycle typically consists of
five stages: service strategy, service design, service transition, service operation, and
continual service improvement. Let's explore each stage in detail:

Service Strategy:
The service strategy stage involves defining the organization's service offerings and
aligning them with business objectives. Key activities include understanding
customer needs, identifying target markets, conducting market research, and
developing a service strategy that differentiates the organization from competitors.
This stage also involves defining service-level agreements (SLAs), financial planning,
and assessing the resources required to deliver the services effectively.

Service Design:
In the service design stage, the focus is on creating and designing services that meet
customer requirements. This involves translating the service strategy into tangible
service offerings. Key activities include defining service portfolios, designing service
packages, determining service levels, establishing processes, and developing
supporting documentation. Service design also includes considerations for service
availability, capacity, security, and continuity.

Service Transition:
Service transition involves planning and managing the implementation of new or
changed services. It ensures that services are delivered successfully from the design
stage to the operational environment. Key activities in this stage include service
testing, creating service transition plans, training employees, managing
organizational change, and transferring services to the service operation stage.
Service transition also involves managing risks and addressing any issues that may
arise during the transition process.

Service Operation:
The service operation stage focuses on delivering services as per the agreed-upon
SLAs and meeting customer expectations. It involves managing day-to-day service
operations, resolving incidents and service requests, and maintaining service
performance. Key activities include managing service desk operations, monitoring
and reporting on service performance, managing IT infrastructure, handling service
disruptions, and ensuring efficient service delivery.

Continual Service Improvement (CSI):

The continual service improvement stage is an ongoing process that seeks to
enhance the quality and efficiency of services. It involves identifying areas for
improvement, analyzing data and performance metrics, and implementing changes
to optimize service delivery. Key activities in this stage include conducting service
reviews, identifying improvement opportunities, implementing corrective actions,
and measuring the impact of improvements on service performance. CSI ensures
that services evolve and adapt to changing customer needs and market dynamics.

Throughout the service life cycle, organizations should focus on customer

engagement, feedback, and satisfaction. They should also adopt a proactive
approach to identify and address issues, adapt to changing business requirements,
and continually improve their services to stay competitive in the market.

It's worth noting that the service life cycle concept is closely aligned with IT service
management (ITSM) frameworks such as ITIL (Information Technology Infrastructure
Library). These frameworks provide detailed guidance and best practices for
managing services effectively and efficiently throughout their life cycle.

5. What is the significance of recruitment in hospitals?

Recruitment plays a crucial role in hospitals for several significant reasons:

Ensuring Sufficient Staffing: Hospitals require a diverse range of healthcare professionals,

including doctors, nurses, technicians, administrative staff, and support personnel, to
provide quality healthcare services. Effective recruitment practices help ensure that
hospitals have an adequate number of qualified and skilled staff members to meet patient
needs, maintain operational efficiency, and deliver timely and effective care.

Quality Patient Care: Recruitment directly impacts the quality of patient care in hospitals. By
hiring competent and experienced healthcare professionals, hospitals can enhance patient
safety, improve clinical outcomes, and provide a positive patient experience. Skilled doctors,
nurses, and support staff contribute to accurate diagnoses, effective treatments, and
compassionate care, ultimately leading to improved patient satisfaction and health
outcomes.

Specialized Expertise: Some medical conditions and procedures require specialized

knowledge and skills. Recruitment allows hospitals to attract and hire healthcare
professionals with expertise in specific fields or disciplines. This ensures that patients have
access to specialized care and advanced treatments, such as cardiac surgery, neurology,
oncology, or pediatrics. The presence of specialized professionals enhances the hospital's
capabilities and reputation in delivering comprehensive healthcare services.

Innovation and Research: Hospitals often serve as hubs for medical research, innovation,
and technological advancements. Effective recruitment practices enable hospitals to attract
talented individuals with a passion for research, thereby fostering a culture of innovation.
Researchers, scientists, and clinicians can collaborate on cutting-edge projects, clinical trials,
and breakthrough treatments, leading to advancements in medical knowledge and improved
patient care.

Staff Retention and Engagement: Recruitment is not solely about hiring new staff; it also
plays a role in retaining and engaging existing employees. Hospitals with effective
recruitment strategies can create a positive work environment, provide growth
opportunities, and offer competitive compensation and benefits. This helps in attracting and
retaining top talent, reducing turnover rates, and maintaining a skilled and committed
workforce. Engaged and satisfied employees are more likely to provide quality care,
contribute to a positive workplace culture, and enhance the hospital's reputation.

Meeting Workforce Diversity and Inclusion Goals: Recruitment practices in hospitals can
contribute to achieving diversity and inclusion objectives. By actively promoting diversity in
the recruitment process, hospitals can create a workforce that reflects the diverse patient
populations they serve. This fosters cultural sensitivity, improves communication, and
enables the provision of patient-centered care that respects and understands different
cultural backgrounds and perspectives.

In summary, recruitment is essential in hospitals as it ensures adequate staffing levels,

promotes quality patient care, facilitates access to specialized expertise, drives innovation
and research, enhances staff retention and engagement, and supports diversity and
inclusion. By prioritizing effective recruitment strategies, hospitals can build strong
healthcare teams that deliver excellent care and contribute to the overall success of the
institution.