MODULE 1

Module Overview
In this module,
Lesson 1: Marketing Means Change
Lesson 2: Service Marketing and
Management
Lesson 3: Service Marketing and Physical
Goods Marketing
 In this module focuses mainly on the knowledge
needed to implement service strategies for
competitive advantage across industries.
 The primary objective of this module is to
provide in-depth appreciation and
understanding of the inherent and unique
challenges in managing and delivering quality
services.
 In the process, a “state-of-the-art” service
management thinking and customer-oriented
mind-set among service marketing practitioners
are developed, hence orienting them to the new
era of engagement in service marketing.
At the completion of this module, you
should be able to
1. Identify how marketing has changed
over the years
2. Define the basic principles of services
marketing
3. Identify the principles of product
marketing and traditional services
marketing
4. Determine the principles of traditional
services marketing
Objectives
1. Discuss marketing based on the needs
of consumer
2. Adopt a growth mind set and apply a
forward-thinking perspective
 Introduction
The marketing world is experiencing an
evolution like never before its history, with
new channels emerging even before the
marketers can grasp and implement
functional programs for the previously
popular channels. Such as changes have
been constant throughout the history of
marketing, and for a company to survive,
it should adapt to the changing market.
In 1960, Harvard Business School’s retired
professor of marketing, Theodore Levitt,
wrote an article in the Harvard Business
Review entitled “Marketing Myopia”
(Armstrong. 2011). According to him,
industries have undergone steady growth, or
a boom in the market at one point in time.
Following the growth is a vicious cycle called
marketing myopia which many business
experience. Since there is a constant growth
in the industry, managers tend to falsely
assume that the growth of their business will
be constant and assured.
 What is marketing?
The meaning of the term “marketing” has
evolved over time. Today, marketing is
based generally or providing continual
benefits to the customer, following a
transactional exchange. The Chartered
Institute of Marketing defines marketing
as “the management process responsible
for identifying, anticipating, and satisfying
customer requirements profitability.”
Marketing involves the coordination of
four elements called the 4Ps of marketing
1. Identification, selection, and
development of a product
2. Determination of its price
3. Selection of distribution channels to
reach the customer’s place
4. Development and implementation of a
promotional strategy
 Business are Changing
 Marketing and the way business are run
are changing underlying all these is the
fact that it is the people who are
actually changing. As employees, team
members, managers or basically
individuals focused in making money
observing and working with influencing
human behaviour, people still have a
choice.
Thus marketing also means changing
people’s behaviour. Compared with the
newspapers and other sources, the
Internet has a bigger impact on
consumer’s behaviour. A study entitled
“Counting on the Internet” was conducted
research in 2002. Based on the result, the
researchers have concluded that (1) most
expect to find key information online; (2)
most find the information they seek; and
(3) many now turn to the Internet first.
 When e-mail was first utilized in the
workplace, it required a change in the
employee’s behaviour.
 The shift was gradual, but employees
have made the transition successfully.
 Today, the first thing people do when
they come to the officer or even wake
up in the morning is to check their e-
mails.
The five most important Business Changes Coming
in 2020 and how you should lead through them
1. Flatter organizations will dominate.
If you insist on making all the decisions in your
company, you are leaving yourself open to faster
moving rivals. How so? More companies are
pushing key decisions down the organization to
people with greater knowledge of the facts than
top executives. In so doing, they’re taking out
layers of management. As they make moves like
launching new products that give more bang for
the buck-to-win your customer, your company will
lose market share. To stay in the game, your
company must build a flatter organization.
 2. Older workers will change the face of
business-again
The nearly 79 million member baby boomer
generation is aging. Some of them may be
your employees-hanging on their jobs
because they need the money or because
they enjoy work. Others may be looking to
be hired by your company or represent a
growing part of your customer base. If you
employ baby boomers, you ought to decide
what you can do to harness the benefit of
their experience and networks.
 3.China will no longer be lowest-cost labor source.
The China’s population is aging the country is
responding with a change in its dominant mode of
competing. Instead of being seen as the place for low-
cost manufacturing labor, China is shifting to
industries whose products and services command
high prices and wide profit margins because they use
high technology talent as their competitive weapons.
 4.New Technologies will play a larger role
in business
New technologies could be both an
opportunities and a threat to your
business. But figuring out which
technologies will help you and/or impede
the achievement of your business.
Consider these seven technologies likely
become more significant in the coming
decade:
A. 3-D printing which can print a coffee
cup, help robots construct new buildings
and create fingers for those who lack
them.
 
B. Nanotechnology which could print
human skin or replacement heart valves
 C. Mobile apps which continue to
transform industries ranging from taxis to
mining and agriculture
 
D. Mobile payments-which will be the
focus of a battle among banks, credit card,
telecommunications and software
companies
 E. Entertainment –Apps and connected
machines will transform the battle for the
attention of consumers seeking
entertainment
 
F. Social media will continue to challenge
organizations seeking to attract the most
profitable customers and the most
talented employees
G. Big Data will generate insights that help
companies who can harness its power to
identify new products and services and
provide better customer service.
 5.Worker retraining is a must
Before you incorporate new technologies
and ways of working into your
organizations, you must make sure your
workers have the skills they need to take
advantage of their benefits and sidestep
their pitfalls. To do that, train your workers
through the most effective blend of in-
person and online courses.
 Other Types
 
Service quality can help companies attract more
customers to the business through Offensive Marketing.
This type of marketing involves the deliberate attack of
one company on another in terms of market share,
reputation, and price premium. A company gains
reputation and through that reputation, that company
obtains higher market share and the ability to increase its
prices more than what its competitors charge for services.
Offensive marketing happens when one company employs
strategies to directly take away the market share of
another company. Customer defection or customer churn
is a common occurrence in service business.
 
Attracting a new customer is five times as
costly as retaining an existing one. Consultants
who have focused on these relationships assert
that customer defections have a stronger effect
on company profits than on market share scale,
unit’s costs, and other factors associated with
competitive advantage. How then can
defection prone customers be identified? The
strategies on customer retention are covered
by defensive marketing. In contrast to offensive
marketing, defensive marketing involves in
protection of the market share at hand from
current and future competitors.
Direct Marketing is a type of marketing
that aims to retain customers and
strengthen relationships with them. It is
distinct from transactional marketing
which is a term used to describe the more
conventional emphasis on acquiring new
customers rather than n retaining existing
ones.
Service marketing is a type of marketing
that involves the promotion of economic
activities offered by a business to its
clients. It includes the process of selling
professional services such as
telecommunications, health treatment,
finance, hospitality, car rental, air travels,
etc.