ASSIGNMENT MEMORANDUM

Transcription

1 Page 1 of 5 ASSIGNMENT MEMORANDUM SUBJECT : SERVICES MARKETING (SERM) ASSIGNMENT : 2ND SEMESTER 2009 QUESTION 1 [90] 1.1 Process Smart managers know that where services are concerned, how a firm does things is often as important as what it does, particularly if the product is offered by many competitors. Cell C has two strong competitors, Vodacom and MTN, and therefore they must ensure effective processes, for example: Availability and convenience: Distribution through Cell C-owned shops, franchises and big retailers such as Woolworths and Game. Cell C Direct: A one-stop service for anyone wishing to purchase a Cell C contract in the comfort of their home. Effective delivery: Delivery time within 48 hours. GSM 1800 licence: Faster call switching and wireless opportunities. Limited choice of packages: Less confusing to customers, which makes choosing a package a simpler process. Limited time contracts: Short term contracts available a one month only makes switching easier. (10) People Cell C uses various avenues to distribute its service, e.g. Cell C-owned shops, franchises and retail outlets where people form part of the service delivery process. Despite technological advances, many services require direct interaction between customers and contact personnel. This will influence how the customers perceive service quality. Front-line staff is therefore important. Possible technical problems also require contact with technical staff. Staff and management at Cell C-owned shops and franchises must be well trained to ensure the best service to clients. Cell C also needs to ensure that

2 Page 2 of 5 retail outlets staff are well informed regarding its products, services and technical assistance. Ordering through Cell C Direct means that smooth, timely delivery is expected. Staff should be well trained to ensure an effective service. Cell phones and service delivery might be problematic to some clients which means direct contact with call centre staff who should be well trained. (10) Quality/productivity No service organisation can afford to address productivity and quality in isolation. Improving productivity is essential to any strategy aimed at reducing cost, but it should not influence customer perception. Improving quality should not be so expensive that revenues are influenced. Cell C have the following options available to increase productivity: Chatting up the Youth: 1-month contracts which give customers an easy, cheap option. All day and standard rates: Choose between a flat rate or variable billing based on peak and off-peak periods. 32K SIM: Card usually only available with more expensive packages. This increases the quality of the service delivered to Cell C clients. (10) (Refer to Lovelock, 2007: 23 25) 1.2 Cell C s dropped call rate remained at less than 1%. Call set up success was above the target of 96%. Order taking from home delivery within 48 hours. Value-added applications available, e.g. cell phone banking. Flat rate billing available or variable billing based on peak or off-peak times. Prepaid contracts available. Consulting with Cell C sales people. Regular billing statements. Individual billing. One-Stop Direct. Payment options available. Delivery of phones.

3 Page 3 of 5 Complaints handling. Extra gifts. Refer to the specific answer and discussion. (15) (Refer to Lovelock, 2007: 77) 1.3 Functional: Financial: Temporal: Physical: Unsatisfactory performance outcomes Instrument might be dysfunctional, signal not strong enough, instrument doesn t have adequate functions (2) Monetary loss, unexpected cost Changing contracts might mean loss of money; losing a cell phone might mean extra costs; a faulty instrument might mean extra additional cost (2) Wasting time, consequences of delays Delays in the delivery of the instrument; losing business if services are not provided in time (2) Damage to possessions Losing a cell phone, damage such as water, etc. (2) Physiological: Personal fears and emotions Influence on lifestyle due to the use of cell phones; access to chat rooms (2) Social: How others think and react Young people prefer certain brands/numbers/instruments Perceptions of quality of phone and service (2) Sensory: Unwanted effects on any of the five senses Colour of phone/ring tones available (2) (Refer to Lovelock, 2007: 44) 1.4 Infrastructure, power and communication Nigeria has a fairly extensive infrastructure of roads, railroads, airports and communication networks. The road system is by far the most important element in the country s transportation network, carrying about 95% of all the nation s goods and passengers. Currently many of the roads are in disrepair because of poor maintenance and years of heavy traffic. Import policies Nigeria s high tariffs and numerous import bans have been a concern to many US businesses, and were raised in the context of Nigeria s May 2005 Trade Policy Review in the World Trade Organisation.

4 Page 4 of 5 Bureaucratic hurdles Bureaucratic hurdles slow the import approval process. Intellectual property rights Counterfeit car parts, business and entertainment software, music and video recordings and other consumer goods are sold openly throughout the country, and intellectual property infringers from other countries appear increasingly to be using Nigeria as a base for the production of pirated goods. Services barriers Foreign participation in the services sector is generally not restricted. Regulations provide for 100% foreign access in many service sectors, including banking, insurance, telecommunications, and securities. Nigeria imposes quotas on expatriate employment. Positions in finance and human resources are almost exclusively reserved for Nigerians. Significant delays in the approval of this allotment and in subsequent approval of visas for expatriate personnel present serious management challenges. Corruption Nigeria is seen as the most corrupt country in the world. Leadership In recent years, Nigeria s leadership institutions and policies have been subject to abrupt and unpredictable changes making planning difficult. Other government policies have harmed urban productivity and welfare. Fiscal deficits have fuelled inflation. (12 marks for valid points) Option for Cell C: Refer to student s answer based on research (4) (The above is a guideline. Students must do their own research) Restoring Urban Infrastructure and Services in Nigeria. Available from: Accessed 20 March Nigeria: Infrastructure, power and communications. Available from Accessed 20 March Generating revenue and profit Making the largest possible contribution to profit Achieve a specific target level Cover fully allocated costs Cover incremental costs Building demand Maximise demand Achieve full capacity

5 Page 5 of 5 Developing a user base Stimulate trial and adoption of a service Build market share or a large user base. The student must refer to the three objectives. 5 marks for the discussion under each objective. (Refer to Lovelock, 2007: 126) PRESENTATION [10]