MKT332-TMA - SUMMER 2022 (KSA) Q-1
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ARAB OPEN UNIVERSITY FACULTY OF BUSINESS STUDIES MKT332
Service Marketing (MKT332)
Summer 2021/2022
(KSA)
(TMA)
Please read these instructions carefully, and contact your tutor if you require any further clarifications. You should submit your completed assignment to your tutor to arrive no later than the cut-off Date: As announced on LMS (cut-off date to be communicated by deanship).
Please use standard A4 size paper for submitting the hard copy of your TMA. Your name, personal identifier, course and assignment numbers must appear at the top of each sheet. A
soft copy of your TMA must be uploaded to the university Moodle within the indicated cut-
off date. The hard and soft copies must be identical. Please leave wide margins and space at the end of each sheet for tutor comments. It is better to use double spacing so that you can easily handwrite corrections to your drafts and tutors have space to include their feedback on the script. Start each question in the assignment on a new page. Any extended text should ideally be word-processed, but, diagrams and accompanying notes may be hand drawn and hand written and on an A4 paper.
Completing and sending your assignments
When you have completed your TMA, you must fill in the assignment form (PT3), taking care
to fill all information correctly including your personal identifier, course code, section & tutor, and assignment numbers. Each TMA and its PT3 form should be uploaded on the AOU
branch Moodle within the cut-off date. Late submissions require approval from the branch course coordinator and will be subject to grade deductions. All assignments are treated in strict confidence. If you feel that you are unable to meet the cut-off date of the TMA 1
because of unusual circumstances, please contact your tutor as soon as possible to discuss a
possible extension to the cut-off date.
Plagiarism
The Arab Open University Definitions of cheating and plagiarism
According to the Arab Open University By-laws, “The following acts represent cases of cheating and plagiarism:
Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation.
Verbatim copying of material from the Internet, including tables and graphics.
Copying other students’ notes or reports.
Using paid or unpaid material prepared for the student by individuals or firms.
Utilization of, or proceeding to utilize, contraband materials or devices in examinations.”
Penalty on plagiarism
The following is the standard plagiarism penalty applied across branches as per Article 11 of
the university by-laws:
1)
Awarding of zero for a TMA wherein more than 20% of the content is plagiarized.
2)
Documentation of warning in student record.
3)
Failure in the course to dismissal from the University.
All University programmes are required to apply penalties that are consistent with the
University by laws. Examples of Plagiarism
Copying from single or multiple sources; this is where the student uses one or more of the
following as the basis for the whole, or a good part, of the assignment: 1.
Published or unpublished books, articles or reports
2.
The Internet
3.
The media (e.g.TV programmes, radio programmes or newspaper articles) 4.
An essay from an essay bank
5.
A piece of work previously submitted by another student
2
6.
Copying from a text which is about to be submitted for the same assignment
Question:
To prepare this TMA, students should evaluate the relative importance
of the Customer gap in a specific service industry from customers’
perspective. Service industries are those industries that render
services as their core product. For example, this might include airlines
and travel services, healthcare (dental and orthodontic; optometry and
ophthalmic; radiology and diagnostic laboratories; midwifery, ante-
natal and post-natal care, or any other appropriate service); education
(nursery and kindergarten; schools, colleges or universities)
commercial or personal banking; courier and package delivery
services.
Detailed TMA:
Theoretical component constituting 80% of the TMA mark. In this part,
students should discuss service Customer gap and relevancy of these
components in different contexts, or types of services. Students are
expected to go in-depth to discuss how customers’ profiles, different
purchase situations, service type can affect the relative importance of
Customer gap .
The empirical investigation should be conducted using either
quantitative (survey/ questionnaire) or qualitative (interviews) research
methodology. The minimum requirement for a survey using a
questionnaire is 20 respondents, while 3 to 5 respondents in case of
interviews. The investigation should have the following components:
Guidance & Structure:
Introduction
10 marks
The introduction should include the industry and type of service selected and the potential service gap identified.
Review of theory
20 marks Summarise the current state of knowledge about the service customer gap based on a review of appropriate academic articles (900 words +/-10%). Students should use academic references to support this part.
Questionnaire design/interview protocol 20 marks Based on your understanding of the topic, identify the questions you will ask in your questionnaire/interview (150 words). An appendix including the questionnaire/ interview 3
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questions and contacts should be attached to the written research. Data analysis 20 marks
Analyse the data you have gathered using techniques appropriate for quantitative or qualitative data (250 words). Justification of the technique used and outcome of results should be shown in the research. Conclusions
30 marks
Interpret the results of your investigation and reach conclusions to present (500 words). In this part you are expected to provide applicable recommendations to service providers for better positioning. Total
100 marks
Answer
Marketing Mixes for Services
Introduction:
Knowing the nature of services is crucial to grasping the unified framework for service promotion. According to Wolak, Kalaftis, and Harris, the following are some of the defining features of services:
The intangible nature of the service makes it difficult for prospective buyers to know exactly what they would be receiving.
The provision of the service and its receipt by the consumer take place simultaneously (inseparably) (e.g. throughout an internet search or a legal consultation).
People are the key to heterogeneity (variability) services, and people are inherently diverse. People's responses to the same question are likely to vary depending on who you ask (or even
by a similar person at different times). In order to improve performance, it is crucial to minimize existing performance gaps (through coaching, standard-setting and quality assurance).
Unused perishable capacity cannot be stored for later use. For example, empty seats on one aircraft cannot be moved to another flight, and quiet periods at the reference desk cannot be pooled until demand rises.
Each of these elements is important in advertising a service.
The Marketing Remedy for the Services
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Extending the 4Ps
An additional component of the 4Ps strategy, the services marketing mix is an expansion of that strategy. Product, promotion, value, and location are all necessary, but the 7Ps mix now also includes "people," "physical evidence," and "procedure." Considering the closeness of the relationship between service providers and their clients, the transparency of the service process, and the fact that the production and consumption of a service often occur simultaneously, it is clear why an expansion is necessary. Although it is possible to discuss people, physical evidence, and procedure within the 4P framework (for example, people may be thought of as part of the product offering), this expansion enables a more in-depth examination of the promotional components essential for successful services marketing.
1.
Product
When it comes to services, the final output is ephemeral, varied, and subject to degeneration. Also, its output and intake can't be separated. Therefore, it is possible to tailor gifts to each individual customer's requirements, and the value of the one-on-one interaction with the customer is emphasized. However, if the level of personalization is too high, the service's reliability and consistency might be jeopardized. Therefore, service provision requires careful
preparation.
2.
Pricing
Ratings of items tend to be more volatile than service prices. Unlike the latter, which can be priced by just factoring in the staple pricing, services include additional costs like labour and overhead that must be accounted for.
3.
Place
Delivery of a service occurs simultaneously with its creation; it is not a tangible product that can be stored or moved. Providers of services should give careful consideration to the physical location at which their offerings are delivered. Superior to the outskirts of town, a nice dining establishment is ideally located in a bustling, upscale market. A resort is more suitable for a rural setting, apart from the hustle and bustle of a city.
4.
Promotion
Given the ease with which a given service may be copied, it follows that promotion plays a vital role in distinguishing one service from another in the buyer's mind. Companies that offer
similar services, including airlines, banks, and insurance agencies, all spend a lot of money on marketing. This may be especially important in a competitive market if service providers' offerings are mostly interchangeable.
5.
People
5
People are a service delivery technique since the quality of the service is dependent on the quality of the provider. Maximum value for a facility is determined by the quality of its food and service offered. In a similar vein, you'll see this in banks and stores as well. Thus, many businesses now place a premium on providing customer service training for their staff.
6.
Process
In order to guarantee a consistent quality of service for customers, it is essential to have a well-defined procedure for providing services. Most businesses have a service blueprint that outlines the service delivery process in minute detail, down to the service script and acknowledgement words to be used by employees.
7.
Physical proof
Due to the ethereal nature of services, most service providers incorporate some tangible elements into their offerings to improve the customer experience. Many hair salons provide comfortable seating and reading material for customers while they wait for their turn, such as magazines and sofas. Similarly, restaurants put a lot of effort into the design and décor of their establishments to provide their customers something real and unique.
SIVA: resolution, Incentive/Information, Value, and Access:
Introduction
In a free market economy, a company can stay in business only if it produces goods and provides services that consumers want and need. Consequently, establishing customer need is
vital for a business future viability and revenues.
Many organisations currently have a client emphasis (or market orientation) (or market orientation). This indicates that the company's efforts and offerings are tailored to meet the needs of its customers. this may be conjointly termed S.I.V.A., or resolution, info, Value, and
Access. Generally, there are unit 3 ways of achieving this:
The customer-centric method, the market-shift spotting strategy, and the product-
development based strategy.
S.I.V.A. is often recognised to be a systematic method of customer-centric advertising
(Solution, Info, Value, Access).
Market-Based Strategies
All strategic advertising decisions in the consumer-driven methodology are based on what the
customers want. The results of market research are used to determine whether or not to implement a plan. Every part of a market offering, from the location to the type of goods offered, is determined by what clients are looking for. In most cases, the buyer is the starting point.
6
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This strategy is predicated on the idea that there is no use in investing in research and development (R&D) on products that nobody wants. Despite their scientific advances, many products throughout history have been deemed commercial failures.
S.I.V.A. is commonly accepted as the formal framework for the present-day customer-
focused advertising (Solution, Info, Value, Access). This method is essentially the same as the four PS, but with a new name and somewhat altered wording in order to better cater to the
needs of the customer.
The Shiva Model
The S.I.V.A. Model is an alternate demand/customer-focused approach to the standard "four Ps" (product, price, location, and promotion) of marketing mix. The idea is to recycle the four
P's in a way that is consistent with modern advertising contexts, in which the power to construct brands has transferred from businesses to communities.
When collecting information from customers, the following questions are essential:
Exactly what is it that the customer wants?
And what is it that they don't like?
Just how are we going to make things better?
Are they getting what they need and want?
In other words, how much are they willing to spend?
Is ease of access crucial?
Putting items in sets: yes or no?
What role does after-sale support play?
Methods for gathering customer opinions include:
Directly questioning customers about their experiences at the point of sale appears to be a successful strategy since it allows businesses to collect information while customers are actively engaged in the shopping process.
Distribute short surveys (about a page) that ask relevant questions to your target audience and
solicit responses. These will be sent to customers who have given their express consent to be contacted through email or postage paid postcards.
Using focus groups, businesses may get feedback from a wide range of consumers on a number of issues affecting their operations. Using this method rather of filling out a form has the potential to elicit more in-depth replies than the standard "check the box" approach. To get to the root of any issues with your product or with your customers, nothing beats a face-
to-face focus group or one-on-one interview.
7
Certain surveys will be performed over the phone. This results in additional private spoken contact between the customer and service provider.
Thanks to technological advancements, it is now much simpler for businesses to get consumer feedback, whether through the use of virtual online communities or private client panels. Several firms are constructing their own private online panels of consumers to provide them unrestricted access to their target market on an ongoing basis in response to the proliferation of technology in the marketplace and the consumer's way of living. Customers are compensated for their time in return for their candid reviews and suggestions. Customers are more likely to go into detail about their positive and bad experiences with a company on community blogs and message boards.
Instant feedback
Several companies have implemented feedback loops recently, allowing them to collect information on employees' areas of competence. Among the most prominent bus companies in the UK is National categorical, which has encouraged its customers to text while travelling. This is useful because it provides businesses with the opportunity to enhance customer service prior to a customer defecting, hence increasing the likelihood of a customer returning.
References
Gummesson, E., "Exit Services Marketing- Enter Service" in Michael Baker and Susan Hart (editors), The Marketing Book, 6th edition, Butterworth-Heinemann, 2008, pp 451-471
Lovelock, C. and Gummesson, E., "Whither Services Marketing?: In Search of a New Paradigm and Fresh Perspectives", Journal of Service Research, vol 7, no. 1, 2004, pp 20-41
Lovelock, C. and Wirtz, J., Services Marketing: People, Technology, Strategy, p. 14, 7th ed., Upper Saddle River, New Jersey, Prentice Hall. 2011
Zeithaml, V.A, Parasuraman, A. and Berry, L.L., "Problems and Strategies in Services Marketing," Journal of Marketing, Vol. 49, No. 2, 1985, pp. 33-46
Lovelock, C. and Wirtz, j., Services Marketing: People, Technology, Strategy, 7th ed., 2010, Chapter 2
Lovelock, C., "Classifying Services to Gain Strategic Insight," Journal of Marketing, vol. 47, Summer, 1983, pp 9-20
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