Allotted time (hours) Lectures Tutorials 4

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1 Course No: PPM 108 Course title: Marketing of Services Number of credits: Number of lectures: 8 Course coordinator: Dr. Anil Gupta Introduction Today we live in services economy. Apart from contributing significantly to the GDP, services offer exciting and challenging opportunities to B-school graduates. Since services are different from products, the concepts and theories of traditional marketing are rendered inadequate to deal with the complexities of services marketing. Also the unique characteristics of services create specific marketing implications which remain unaddressed in conventional marketing. The course aims to systematically study the service characteristics, their marketing implications and finally, the scope and role of marketing in service organizations. Course Objectives 1. To provide an in-depth appreciation and understanding of the unique challenges inherent in managing and delivering quality services. Participants will be introduced to and have the opportunity to work with tools and strategies that address these challenges.. To develop an understanding of the state of the art service management thinking by studying the marketing challenges in different service industries. 3. To promote a customer service-oriented mindset and to develop effective service strategies for global competitiveness. Evaluation procedure Quiz (Best of 3) 10% Assignment 30% Class Participation 10% End-term examination 50% Details of course content and allotted time Topic Growth in Service Industry, India & abroad, Role of Manufacturing Industry Course orientation, Course Overview, Introduction to Services, Understanding the Service economy, The nature and characteristics of services, Service Classification, Customer satisfaction in services Customer Behavior in Services, Managing customer expectations, Service quality management, The 4 absolutes Allotted time (hours) Lectures Tutorials 4 4

2 of quality, The Gaps Model of Service Quality, Service Marketing Mix Customer Perceptions of Service; Listening to customers, Building Customer Relationships, Loyalty Marketing Programs, Service Recovery Service Development and Design, Productisation of services, The flower of service- core & supplementary services, Service packaging, Customer-Defined Service Standards Pricing of Services, Major approaches to service pricing, Cost Accounting for Services, Price Bundling and Cross- Selling, Price Discrimination Integrated Marketing Communications in services (PR, Personal selling advertising and sales promotion strategies), Moments of truth People element in services marketing, Role of customers and employees in service delivery, Internal Marketing to Build and Foster a Customer Service-oriented Culture Service profit chain Process management, Service Flow Charting, Service blueprinting, Service delivery through electronic channels, Self Service technologies (SSTs) Physical Evidence and Designing Servicescape for 4 customer delight, Managing service demand and supply, Yield management Internationalization of services Total 8 Modules Module I 1. Explain what services are and identify important trends in services.. Explain the need for special services marketing concepts and practices and why the need has developed and is accelerating. 3. Explore the profound impact of technology on service. 4. Outline the basic differences between goods and services and the resulting challenges and opportunities for service businesses. 5. Introduce the expanded marketing mix for services and the philosophy of customer focus, as powerful frameworks and themes that are fundamental to the rest of the text. 6. Contribution of Service Industry to India s GDP Module II 1. Enhance understanding of how consumers choose and evaluate services, through focusing on factors that are particularly relevant for services.. Describe how consumers judge goods versus services in terms of search, experience, and credence criteria.

3 3. Develop the elements of consumer behavior that a services marketer must understand: choice behavior, consumer experiences, and postexperience evaluation. 4. Explore how differences among consumers (cultural differences, group decision making) affect consumer behavior and influence services marketing strategies. 5. Demonstrate that the gaps model is a useful framework for understanding service quality in an organization. 6. Demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions. 7. Show that four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap. 8. Identify the factors responsible for each of the four provider gaps. Module III 1. Enhance understanding of how consumers choose and evaluate services, through focusing on factors that are particularly relevant for services.. Describe how consumers judge goods versus services in terms of search, experience, and credence criteria. 3. Develop the elements of consumer behavior that a services marketer must understand: choice behavior, consumer experiences, and postexperience evaluation. 4. Explore how differences among consumers (cultural differences, group decision making) affect consumer behavior and influence services marketing strategies. Module IV 1. Provide a solid basis for understanding what influences customer perceptions of service and the relationships among customer satisfaction, service quality, and individual service encounters.. Demonstrate the importance of customer satisfaction-what it is, the factors that influence it, and the significant outcomes resulting from it. 3. Develop critical knowledge of service quality and its five key dimensions: reliability, responsiveness, empathy, assurance, and tangibles. 4. Illustrate the importance of recovery from service failures in keeping customers and building loyalty. 5. Discuss the nature of consumer complaints and why people do and do not complain. 6. Provide evidence of what customers expect and the kind of responses they want when they do complain. 7. Present strategies for effective service recovery, together with examples of what does and does not work. 8. Discuss service guarantees-what they are, the benefits of guarantees, and when to use them-as a particular type of service recovery strategy. Module V 1. Describe the challenges inherent in service design.

4 . Present the stages and unique elements of the new-service development process. 3. Demonstrate the value of service blueprinting and how to develop and read service blueprints. 4. Present lessons learned in choosing and implementing high-performance service innovations. 5. Distinguish between company-defined and customer-defined service standards. 6. Differentiate among one-time service fixes and "hard" and "soft" customerdefined standards. 7. Explain the critical role of the service encounter sequence in developing customer-defined standards. 8. Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and actionable. 9. Explain the process of developing customer-defined service standards. Module VI 1. Discuss three major ways that service prices are perceived differently from goods prices by customers.. Articulate the key ways that pricing of services differs from pricing of goods from a company's perspective. 3. Demonstrate what value means to customers and the role that price plays in value. 4. Describe strategies that companies use to price services. 5. Give examples of pricing strategy in action. Module VII 1. Discuss the key reasons for service communication challenges.. Introduce the concept of integrated service marketing communications. 3. Present four ways to integrate marketing communications in service organizations. 4. Present specific strategies for managing promises, managing customer expectations, educating customers, and managing internal communications. Module VIII 1. Illustrate the importance of customers in successful service delivery and cocreation of service experiences.. Discuss the variety of roles that service customers play: productive resources for the organization; contributors to quality and satisfaction; competitors. 3. Explain strategies for involving service customers effectively to increase both quality and productivity. 4. Discuss the variety of roles that service customers play: productive resources for the organization; contributors to quality and satisfaction; competitors. 5. Explain strategies for involving service customers effectively to increase both quality and productivity. 6. Demonstrate the importance of creating a service culture in which providing excellent service to both internal and external customers is a way of life.

5 7. Illustrate the critical importance of service employees in creating customer satisfaction and service quality. 8. Provide examples of strategies for creating customer-oriented service delivery through hiring the right people, developing employees to deliver service quality, providing needed support systems, and retaining the best service employees. Module IX 1. Identify the primary channels through which services are delivered to end customers.. Provide examples of each of the key service intermediaries. 3. View delivery of service from two perspectives-the service provider and the service deliverer. 4. Discuss the benefits and challenges of each method of service delivery. 5. Outline the strategies that are used to manage service delivery through intermediaries. Module IX 1. Explain the profound impact of physical evidence, particularly the servicescape, on customer perceptions and experiences.. Illustrate differences in types of servicescapes, the roles played by the servicescape, and the implications for strategy. 3. Explain why the servicescape affects customer and employee behavior, using a framework based in marketing, organizational behavior, and environmental psychology. 4. Explain the underlying issue for capacity-constrained services: lack of inventory capability. 5. Present the implications of time, labor, equipment, and facilities constraints combined with variations in demand patterns. 6. Lay out strategies for matching supply and demand through (a) shifting demand to match capacity or (b) adjusting capacity to meet demand. 7. Demonstrate the benefits and risks of yield management strategies in forging a balance among capacity utilization, pricing, market segmentation, and financial return. 8. Provide strategies for managing waiting lines for times when capacity and demand cannot be aligned. Module XI 1. The trend in international market for services, the obstacles and key issues related to growth.. Examine the direct and indirect effects of internationalization of service on profits. 3. Consider the effect of service on getting customers in new countries Required references Text Book: Valarie A. Zeithaml and Mary Jo Bitner,Dwayne D Gremler, Ajay Pandit: Services

6 Marketing: Integrating Customer focus across the firm, 4th ed. Tata McGraw-Hill. Reference Books 1. Christopher H. Lovelock, Services Marketing: People, Technology, Strategy, (New Jersey: Pearson), Ravi Shanker, "Services Marketing: Text and Readings," (New Delhi: Excel Books, 00). 3. John E.G. Bateson, Managing Services Marketing, (III ed), (Oriando: Dryden Press), Christian Groonross, Service Management and Marketing, New York. John Wiley, Donald W. Cowell, The Marketing of Services, (London: Heineman), Payne: Essence of Services Marketing, (New Delhi: Prentice Hall of India).Adrian Palmer, Principles of Services Marketing, (New York: McGraw Hill), Hans Kaper, Piet Van Helsdinger and Wonter de Vries Jr, Services Marketing Management (New York: John Wiley), Craig Terrill and Arthur Middlebrooks, Marketing Leadership Strategies for Service Companies, (Illinois: NTC Business Books), 001 The course is reviewed and commented by the following experts: Mr P.S.Narayan Ecoeye, Social and Community Initiatives, Wipro Mr Brij Sethi Ecoeye, Social and Community Initiatives, Wipro Mr Rakesh Sharma Strategy & Business Development, Philips Electronics India Limited Mr Pawan Deep Singh Strategy & Business Development, Philips Electronics India Limited