Service Marketing and the General Relevance - Assignment Example

Service Marketing Executive Summary This report discusses important aspects of service marketing and the general relevance that service industry has gained over the years. Some challenges that confront its growth and development have also been highlighted. A recount of experiences with five service providers has been provided inform of service encounter journals. The experiences are real life experiences selected from different service providers from different industries. Areas of improvement are suggested for each case depending on faults that was identified. Finally, an analysis has been presented which represents a summary of what service providers get wrong and that which they usually get right. Introduction Services are valuable activities done that are provided for the sake of bringing satisfaction to their recipient in exchange for compensation (Bruhn & Georgi, 2006). Since they create value, services are bought and sold though they are intangible. Service marketing refers to promotion of activities that entities offer their clients. Global economy, at least in the last few decades, has been largely dependent on services hence the growing interest in promoting its value (Soler, 2005). Service organizations range from huge multinational corporations like airlines, telecommunications and banking to small and medium-sized enterprises such as barber shops, taxis and restaurants among others. Key Theories in Service Marketing Modern managers have made numerous attempts in an effort to improving service delivery of their entities. They have done so by application of the various operations management philosophies such as theory of constraints, six sigma, total quality management, supply chain management among others. The concept of operations management demands that cross-functional process be followed in making decisions. Major areas of business; from marketing to finance, organizational behavior to strategy formulation is majorly based on theory development. Operations management has come in to facilitate the concept of theory building, testing and refinement. Theory building has been noted by scholars as probably the most significant part of operations management. Subsequently, the theory of constraints has popped up as the central theory upon which this whole concept is built (Blackstone 2001). Another strategy that companies have adopted is the online shopping formally known as e-marketing. The e-marketing objective is aimed at modernization of consumer relations management by placing the customers at the center of all marketing operations. That means that all online initiatives are dedicated at providing what the customer perceives as valuable. This is a total marketing perspective. In essence the first stage is ensuring that what the customer needs is availed in the place he/she would most prefer and on time. Market information and real time data is passed to the consumer to guide him/her on the buying behavior. This is with regard to new models, change in prices, branding and such attributes (Weller 2007). Challenges Facing Development of Service Marketing Service industries operate on international scale. This implies that they are susceptible to the same challenges that confront entities due to cross-border operations. Unpredictable political temperatures, unstable global economy and fluctuating rates of currency are among many challenges that confront service marketing. Demand levels at different parts of the world take different trends. Effective supply chain management entails proper anticipation of demand so that the producer can have an objective view on the scale of operations at any one time. Various general and operational environments in different countries differ significantly (Bateson & Douglas-Hoffman, 2002). This attribute presents real challenges to the managers of supply chain management who are forced to craft different strategies for each identifiable region. There are limitations to the extent to which technology can be applied in supply chain management. Some areas simply lack the supporting facilities such as internet connection. Other regions have inherent market limitations that make adoption of such systems inappropriate or cannot simply be sustained. It follows therefore that such companies cannot craft a single corporate strategy for the supply chain management function (Harps, 2000). This necessitates formulation of different strategies for each region which translates to added management costs. The supply chains comprise of many suppliers from different territorial regions and hence apply different currencies. These currencies are susceptible to exchange rate fluctuations. It becomes very difficult to monitor and forecast the trends of various currencies so as to arrange for hedging so as to source supplies at the least cost possible (McColl-Kennedy, 2003). Different countries have different laws and regulations that guide the practice of business. Also, many countries adopt protectionism policies with regard to international trade. Some of these policies hamper the free flow of products or the ease of signing future contracts (Kasper, Helsdingen, & Gabbott, 2006). Journal Entry Form 1 Provider of Service: Shangri-la Hotel (Adelaide) Date: 12/12/2012 Time: 2 pm - 6 pm Type of Service: Restaurant Form of Encounter: In person Circumstances leading to the encounter On this day I joined my friends from Brazil who were celebrating a national day for their country’s independence. I was looking for a good spacious place with quality service that would ensure that my friends get a nice experience of a celebration away from home. Level of satisfaction with the encounter: Terrible Delighted 1 2 3 4 5 Reason for the Feeling: I expected the level of efficiency in the hotel of this caliber to be much high and I was not disappointed in the end. I am usually annoyed by long wait times in smaller hotels and the experience was quite different this day. I enjoyed courteous and attentive waitperson. The food served was not only of high quality but was delivered within reasonable time. Proposed performance level on the side of employee/Areas of Improvement for the firm The firm should ensure that each table is served by an assigned waitperson. Eventually I ended up interacting we a number of them almost not to remember who did what. Such an approach would make it easier for customers to make adjustments to their order when necessary and create a good rapport with one employee. Chances of going back to this service provider Extremely Likely Extremely Unlikely 1 2 3 4 5 Journal Entry Form 2 Provider of Service: community Bank of Perth Date: 02/01/2011 Time: 9 Am – 12 noon. Form of Encounter: Bank How did the encounter take place? Telephone Circumstances leading to the encounter I was desperate to join an It college for evening classes that year. Unfortunately I did not readily have the necessary finances for tuition fees and related paraphernalia. My parents had requested me to approach the bank on belief that it had good education loan packages. I was not in a position to travel to the branch at the time and I could not extract enough information from their website so I decide to call. Having heard of their good reputation from my parents my expectations were really high. However, I was kept waiting and being shifted from one attendant to the other, one department to the other and constantly communication could be lost forcing me to start from zero all over again. I ended up consuming more time than I would probably have spent had I visited their premises. Level of satisfaction with the encounter: Terrible Delighted 1 2 3 4 5 Reason for the Feeling: What could the employee/firm done to increase level of satisfaction? What improvements need to be made to this service? The bank should improve its customer service desk. It should also ensure that all persons who engage with directly with customers are well trained and are conversant with the systems and policies of the bank. The management should do away with bureaucratic procedures and ensure that when a potential customer makes contact he/she should be linked directly to the department of interest. Chances of going back to this service provider Extremely Likely Extremely Unlikely 1 2 3 4 5 Journal Entry Form 3 Provider of Service: K Mart Date: 01/01/2013 Time: 2 Pm – 3Pm. Form of Encounter: retail How did the encounter take place? In person Circumstances leading to the encounter I choose weekends and holidays to do my shopping. K Mart has a super mall close to where I live and I always envied shopping with them. I chose this day to be the day I tried them. K Mart adverts had made me believe that it is a good store to shop and that their prices would not be badly off. Besides this I expected high quality service typical of multinational supermarket. Level of satisfaction with the encounter: Terrible Delighted 1 2 3 4 5 Reason for the Feeling: Being on a public holiday and many students preparing to get back to school, the store was overcrowded with people. Firstly, there were no shopping carts available at the time I stepped in since they were all on use or some had not been returned after use. I decided to walk to the parking lot and pick one for myself, understandably so because K Mart was having a busy day. Unfortunately, the cart was soaked with rain water but there was no alternative. I really struggled to shop, and had to fight my way through people and rowdy children. I had to give way every second and the experience was utterly bad. What could the employee/firm done to increase level of satisfaction? What improvements need to be made to this service? K Mart should increase the number of staff during peak times as well as the number of shopping carts. In the same vein they should create a recreational base for kids rather than have them get to the shopping mall. This would save the space particularly when the store is busy. Chances of going back to this service provider Extremely Likely Extremely Unlikely 1 2 3 4 5 Journal Entry Form 4 Provider of Service: The Skybus Supershuttle Date: 23/11/2012 Time: 11Am – 4 Pm. Form of Encounter: Transport How did the encounter take place? In person Circumstances leading to the encounter I was destined to attend a football batch in Melbourne later that day. I chose this company based on past experience stories from my friends and expected everything to go pretty well. However, the experience went far below expectations. Level of satisfaction with the encounter: Terrible Delighted 1 2 3 4 5 Reason for the Feeling: The terminal was crowded and it was difficult even to locate the bus that I had been assigned. Besides that our take off happened forty five minutes later than was scheduled. That forced to get to the stadium when almost late and had to argue my case our with the gate officials in the stadium. The attendants were rude to me and other customers and were in no mood to answer simple questions. What could the employee/firm done to increase level of satisfaction? What improvements need to be made to this service? Chances of going back to this service provider Extremely Likely Extremely Unlikely 1 2 3 4 5 Journal Entry Form 5 Provider of Service: couriers Please Date: 11/07/2012 Time: 11Am – 4 Pm. Form of Encounter: courier How did the encounter take place? In person Circumstances leading to the encounter I ordered two sets of furniture with the company. Previously having communicated with the manufacturer and made all payments and left them a copy of my agreement with the courier company. We also agreed on the date that they would deliver the items. However, on the material day, they never showed up despite making me to remain in my house the whole day. I made frantic calls but to no avail. The last communication we got with them was the fact that they would communicate to arrange for another date to deliver the items. The guy on the other end of the line sounded apologetic even. I kept my cool and waited for the communication. That never came until some two weeks later when I was attending my classes that I got a call from the attended saying that they had attempted to deliver the items to my home but had found no one. According to them it was my fault and that I would be required not only to make new arrangements for another delivery but pay for the same again. Level of satisfaction with the encounter: Terrible Delighted 1 2 3 4 5 Reason for the Feeling: What could the employee/firm done to increase level of satisfaction? What improvements need to be made to this service? They should upgrade their information systems so that they can get keep proper records of communication with their customers. I did not expect the level of follow up to be as extensive as it was. Though they finally exempted me to make a second payment, I spent a lot of time and money in the follow up and the whole thing was massively frustrating. At some point they could not locate my luggage. There is absolutely no reason that I was supposed to give details of my luggage twice. It is incumbent upon them to have effective record management system which seemed terribly broken. Chances of going back to this service provider Extremely Likely Extremely Unlikely 1 2 3 4 Service Encounter Analysis My intense five encounters with different service providers have enabled me gain some light into my personal desire in service encounters as well as determining what attributes of service providers are satisfying and dissatisfying. Each encounter is judged on the basis of expectations and preconceptions. In general the levels of satisfaction can be said to have varied across service providers and industries. Factors in Satisfaction and Dissatisfaction The experiences have provided a significant basis upon which inferences can be drawn with respect to service qualities that lead to positive or negative feelings. Fundamentally, each service encounter was unique in its way, though similarities were evident among operators in the same industry. Customers will expectedly enjoy atmosphere that is pleasant and inviting. Such would demand comfortable seating, professional employee conduct and processes and procedures that are predictable and less bureaucratic. Location is also an important dimension. A location close to a customer’s living place is admirable than one that is far off. Certain service encounters, on the other hand, are negative and dissatisfying experience. Long waiting lines are obviously undesirable and unnecessary. Rude or/and inattentive attendants leave a very bad taste. Proper service must always go in line with courteous attendants, presumably who are well equipped about their work. Workers such as those experienced at the community Bank of Perth who seem not to understand certain policies leave frustrations to the service recipient. Bad encounters with employees tend to lead to harsh judgment of the entity and its strongly unlikely that the culprit will choose another engagement with the company in future. Contribution of Firm’s Operations to Customer Experiences The manner in which service provider goes about managing daily operations has a great bearing on perception of the customer over the firm (Gabbott & Hogg, 1997). There are three distinguishable factors that were particularly important location, hospitality level accorded to customer and how the provider manages bulk. These are areas that marketing executives need to invest in and ensure that they are streamlined for top quality services for clients. Relationship between Marketing and Operations Word of mouth can be ranked as the most powerful form of persuading a customer to make buying decision though the importance of advertising cannot be underrated. Information from a third party regarding specific experience with a service provider is highly influential towards making a choice of which firm to engage with. One stringent problem that can be noted with the ‘word of mouth’ advertising is the fact that it is highly subjective. Two parties can give completely contrasting information over the same service provider. In essence making a judgment of any experience is dependent on the personality of the customer besides the type of service offered by firm. The link between what is contained in adverts and the reality on the ground are two highly contrasting phenomenon in most cases. Adverts done by K Mart across media platforms almost painted an ideal picture of a shopping store. However, the same cannot be said of the actual experiences with the firm, great level of bias is exhibited in what is put in the adverts. This almost influences one to conclude that advertising campaigns are meant to hide ‘the wrongs’ that are contained within entities. This is quite expected since it is unthinkable that an entity would include its weak points when profiling themselves in advertisements. In the grand scheme of things, first-hand account is the only objective way of rating the services of a firm. References Bateson, J.E., Douglas-Hoffman, K. (2002). Essentials of services marketing – concepts, strategies & cases. Fortworth: The Dryden Press. Bruhn, M. and Georgi, D. (2006). Services marketing: Managing the service value chain. Harlow: Pearson Education. Bitner, Mary Jo, Ostrom, Amy, Morgan, & Felicia, (2008). Service Blueprinting: A Practical Technique for Service Innovation. California Management Review, forthcoming, Spring . Blackstone J.H. (2001). Theory of Constraints – a status Report. International journal of Production report 39 (6) 1053-1080. Gabbott M. Hogg, G. (1997). Services marketing management. London: The Dryden Press. Kasper H., van Helsdingen, P. and Gabbott, M. (2006). Services marketing management: A strategic perspective (2nd ed.) Chichester: John Wiley & Sons. McColl-Kennedy J.R. (2003). Services marketing: A managerial approach. QLD: John Wiley & Sons. Harps L.H. (2000). The Haves and the Have Nots: Supply Chain Practices for the New Millennium. Inbound Logistics Journal. 75-114. Soler L.G. (2005). Retailer strategies in the food marketing chain: introduction to the special Issue. Journal of Agricultural and Food Industrial Organisation, 3, (2) 2-17. Weller S.A. (2007). Fashion as Viscous Knowledge: Fashion's Role in Shaping Trans-National Garment Production,’ Journal of Economic Geography, Vol.1 pp.39–66. Read More