TEXT: Services Marketing - People, Technology, Strategy - C. Lovelock 6th Edition 2007 Prentice Hall. Articles [subject to change]

Transcription

1 Columbia Business School B8699 Services Marketing - Spring 2007 TH 9-12:15PM URIS 140 Office Hours: By appointment Professor Sandy Becker sb2707@columbia.edu Office: Adjunct Faculty Center TEXT: Services Marketing - People, Technology, Strategy - C. Lovelock 6th Edition 2007 Prentice Hall HBS Cases [subject to change] How to Delight Your Customer Real Networks Rhapsody Starbucks: Delivering Customer Services XM Satellite Radio Hilton HHonors Worldwide: Loyalty Wars Articles [subject to change] Harnessing the Power of the Customer Breaking the Trade-off between efficiency and Service What Business Are You In Managing the Total Customer Experience Designing and Executing Memorable Service Experiences OVERVIEW/PURPOSE This course is designed to focus on problems and strategies in service businesses. Problems commonly encountered in service businesses - such as service recovery, service guarantees, internal marketing, assessing satisfaction, and defining quality will be addressed. In addition, the course will cover standard marketing actions such as branding, positioning, pricing, promotion, product and channels of distribution as they apply to services. Various service industries, both business-to-business and business to consumer, will be used as currentday applications throughout the course. Concepts will be illustrated using cases (written and video), examples and specific situations from industries such as banking, financial planning, hotel marketing, travel, and technology. This course takes both a practical and conceptual approach to the marketing of services. Marketing literature views quality as being defined by customer expectations and perceptions. This course looks at key components of services that affect these expectations and perceptions, as well as issues of demand management, developing systems that address custom problem solving and crisis management. These include the overlap between operational, organizational, behavioral and marketing issues in service management. The focus of the class will vary to include Professional Services, small service organizations (such as restaurants), large service organizations and businesses that produce services as a key and necessary line extension to products, which they produce. COURSE OBJECTIVES 1) Understand the challenges involved in marketing services 2) Consider the differences and similarities between marketing goods or products and marketing services 3) Appreciate the cross-functional interactions necessary for successful services businesses 4) Understand how to assess and evaluate service quality 5) Appreciate the role of the employee in service delivery, service recovery, service quality and customer service 6) Consider sources of competitive advantage in service businesses Other topics include: a) Managing Service Relationships b) Perceived Service Quality c) Internal/External Marketing d) Technology and Services

2 Schedule* Topic 01/18/07 01/25/07 02/01/07 New Perspectives on -Offer Development -Promotional Strategy Marketing in the Service -Distribution Strategy -Brand Positioning Economy Customer Behavior in Service Encounters Chapter(s) 1,2 3,4 6,7 Text Reading Why Service Stinks (471) Discussion Case How to delight your Real Networks Starbucks: Delivering customer Rhapsody Customer Service Article Harnessing the Power of What Business Are the Customer You In Breaking the Trade-off between efficiency and service Video Case UPS Wine.com Starbucks Due Real Networks Case -Starbucks Case -Services Encounter Topic 02/08/07 02/15/07 02/22/07 -Managing Service -Managing Service personnel Recovery -Designing and Managing Services Processes -Demand Planning -Customer Relationship Management/Building Loyalty Chapter(s) 8,9 11,12 13 Text Reading Creating New Markets Through Service How to lead the Customer Experience Innovation (478) Discussion Case XM Satellite Radio Hilton HHonors How to Delight Your Article Worldwide: Loyalty Wars Managing the Total Customer Experience Customer Designing and Executing Memorable Services Experiences Video Case Furniture.com Marriott Due XM Satellite Radio Case Hilton Hhonors Case -Team Project -Team Project Presentations Week 7 W 02/028/07 AM - Final Exam

3 *Guest Speakers: TBD

4 Grading Class Participation (readings, discussion cases, teamwork) 10% Service Encounter Journal and Analysis [Individual] 20% Case Analysis [Individual] 15% Services Marketing Project [Team] 25% Final Examination [Individual] 30% Expectations 1. Class Participation 10% Overall Class Participation Case study/article discussions Providing real-world insight Leadership and teamwork on group project and presentation preparation 2. Service Encounter Journal and Analysis 20% [See Service Encounter Journal] [Due 2/1] Understand and evaluate the Service encounter from the perspective of the customer Demonstrate how you, as a consumer, evaluate service Complete 5 journal entry forms; record a variety of types of encounters Based on your journal entries, write 3-4 page (12 font - double-spaced) analysis 3. Case Analysis [one case] 15% [See below for due date] Analysis, synopsis and interpretation of Case Material Evaluation of Services Marketing options and recommended marketing plans Strategic Development, and Implementation Plans Sound rationale of Business objective, background and recommended strategy Last Name Case Due Date Assignment A-F Real Networks 01/25/07 G-K Starbucks 02/01/07 L-R XM Satellite 02/08/07 S-Z Hilton HHonors 02/15/07 4. Services Marketing Project 25% [See Services Mkt. Project Outline] [Due 2/22] Services Marketing simulation of a real or fictional Services Company Define Business/Services Marketing mission for a six-month goal Provide strategic and tactical recommendations Define and measure success

5 5. Final Examination 30% [See Final Exam description] [W 2/28 AM] Will measure student s comprehension of concepts, application and strategies reviewed during the semester.

6 Services Marketing Selected Bibliography Author Title Publisher Texts Capon, N. The Marketing of Financial Services Prentice Hall Zeithaml, V. Services Marketing McGraw Hill Bitner, M. Bateson, J. Managing Services Marketing Dryden Gronroos, C. Service Management and Marketing Lexington Books Hoffman/Bateson Essentials of Services Marketing Dryden Books on Reserve Beckwith, W. Selling the Invisible Warner Books Schneider/Bowen Winning the Service Game Harvard Press Berry, L. On Great Service: A Framework for action The Free Press Other Books Artz 301 Great Customer Service Ideas Inc. Magazine Gross Outrageous! Unforgettable Service Guilt Free Selling AMA Wiersema Customer Intimacy AMA Anderson/Zemke Knock Your Socks Off Answers AMA Cannie Keeping Customers for Life AMA Glanz Building Customer Loyalty Irwin McKenna, R. Real Time: Preparing for the Age of the Never Satisfied Harvard Press Customer Cespedes Concurrent Marketing: Harvard Press Integrating Product, Sales and Services Brown, S. Service Quality: Lexington Multidisciplinary and Multinational Perspectives Glynn, W. Understanding Services Management J. Wiley Heskett, J. Service Breakthroughs: The Free Press Changing the rules of the game Sviokla/Shapiro Keeping Customers Harvard Press Palmer, A. Services Marketing: Principles and Practice Prentice Hall Zeithaml,V. Delivering Quality Service: Prentice Hall Balancing Customer Perceptions and Expectations Heskett/Sasser The Service Profit Chain Free Press

7 Service Encounter Journal and Analysis The purpose of this assignment is to understand and evaluate the service encounter from the perspective of a customer as well as from a Service Organizations point of view. You will gain an understanding of how you, as a customer, evaluate service. You ll also learn some important lessons that will help focus on key issues for the Service Manager. There are three parts to this assignment: the Journal Entries, the Encounter Analysis, and the Practical Application. This assignment must be done individually. I. Service Encounter Journal Entries We all have a number of Service encounters each week with restaurants, banks, airlines, dry cleaners, hair stylists, doctors, libraries, video stores, retail stores, and others. Complete 5 entry forms [see blank copy] by keeping a journal of your service encounters over the period requested. Try to record a variety of encounters - some satisfying, some dissatisfying, and some neutral - from different industries. II. Encounter Analysis Based on your journal entries, write a short paper (3-4 pages) including: A. Choose an example of an ideal encounter from your journal. a. What was the source of satisfaction? b. Categorize the encounter based on the following Service Encounter themes applied -Recovery -Adaptability -Spontaneity -Coping c. Why was the encounter so special? d. What did the employee do? e. What were your expectations? f. What could the company do to ensure (if you think they should) that this kind of encounter is the rule rather than the exception? B. Choose an example of a very bad service encounter from your journal. a. What was the source of dissatisfaction? b. Categorize the encounter based on the following Service Encounter themes applied -Recovery -Adaptability -Spontaneity -Coping c. What did the employee do to make this a bad encounter? d. What were your expectations? e. What should the employee have done? f. What should the company do to preclude this type of encounter occurring with other customers? III Practical Application Highlight key lessons-learned a. Describe 3-4 specific Marketing Services lessons learned b. Apply to specific situation (industry example)

8 c. How can a service Manager benefit from your experience

9 Name: Service Journal Entry Form Name of Firm/Service Provider: _ Type of Service: (e.g. bank, restaurant,..) Date: _ Time: How did the encounter take place? (e.g. in person, over the telephone, by mail,..) Customer Perspective: What specific circumstances led up to this encounter? (e.g. purpose, location, expectations, etc.) Exactly what did the firm/employee say or do? Why? (include physical surroundings, if appropriate) How would you rate your level of satisfaction with the encounter? (Circle the corresponding number) Terrible Delighted What exactly made you feel that way?

10 Service Manager perspective: What could the employee/firm have done to increase your level of satisfaction? What improvements need to be made to this service system? How can the organization leverage their core competencies? _ How likely is it that you will go back to this Service provider? Extremely Extremely Unlikely Likely

11 Case Analysis [up 4 pages double-spaced 12 font] (to be used as a guide) Analysis is based solely on facts in the written case and should reflect judgments on the benefits and risks of specific marketing strategies implemented CASE OUTLINE: 1. Problem Definition a) Identify the primary business b) Define the main problem and distinguish between central issues NOTE: Define the problem - not the symptoms 2. Marketing Objectives What are the objectives, which the decision-making unit is trying to achieve? NOTE: Where objectives are not apparent or inconsistent, may help identify the problem 3. Situation Analysis a) Define the market -Who is marketing; who are potential users/buyers, influencers; define User profile -What size is the market, and how fast is it growing -Are there segments within the market; is there brand loyalty strength -Identify overall Brand positioning and image creation -Describe the pre-sale and post-sale process -Outline the impact of customer satisfaction for the Service provider b) Define the competition -Who are competitors (direct and indirect)? -How are Service offerings differentiated; identify the strengths/limitations of the competitors -Profile the competitor s customers -Highlight Services Marketing strategy, and competitive advantages c) Nature of the market -What changes are likely to take place in this Services Industry within the next two years [from the time of the case] 4. Services Marketing -How is Services Marketing a differentiator in this Business -Describe the operational infrastructure to support the product/service line -Highlight the marketing and consumer behavior impact of the service function 5. Business Assumptions -State reasonable assumptions with appropriate rationale -Indicate limitations of the case (e.g. information needed, inconsistencies...) 6. Alternative Evaluation -Identify a few (up to three) possible courses of action and evaluate each (Examine benefits and risks of each) 7. Conclusions/Recommendations -Provide your recommended (strategic and tactical) solution of the defined problem -Select a specific course of action

12 -Indicate why you feel this is the best choice -Define success and how it can measured

13 Services Marketing Project This assignment allows you to choose, research, and write about a topic of interest to you that relates to services marketing and management. Several ideas for potential topics and types of projects are provided below. You are not limited to this list. Potential project topics: 1. Gap Analysis of a company Choose a service offered by a company you work for, have worked for, or have access to in some way. Analyze the company s current services marketing efforts by describing and analyzing their approach to several (3-4) management gaps in the service quality model. Use tools and frameworks (discussed in class) to assess their efforts. Offer recommendations as appropriate. 2. Case study of a particular company Write a case about a company and how it has addressed particular services marketing issues. Present the case in such a way that it could be used as a discussion document. Apply relevant course frameworks, tools, and terminology to the case. Pose questions at the end of the case that bring out services marketing and management issues. 3. Industry Analysis Research an industry you are interested in. Report on trends, issues, and industry challenges related to services marketing. Incorporate relevant tools, frameworks, and terminology from the course. 4. Research a services issue/topic Choose a particular services marketing topic. Read current literature on this topic (at least one book, several articles). Report on your findings and their relevance. Provide examples of how companies are implementing strategies related to the particular topic. What have you learned that will help you be a better manager? Example topics include relationship marketing, customer loyalty, hiring and reward systems for service employees, customer satisfaction measurement, methods of understanding customer expectations, customer education/involvement, quality management, developing new services, service branding, other topics (see text table of contents). 5. Combination You can combine any of the above topics into your own project idea. 6. Other If you have an alternative project suggestion, please see me to discuss.

14 Services Marketing Project Requirement: [12 font double spaced] - 3 person team: up to 12 pages, 4 person team: up to 16 pages Possible Services Marketing Project Topics Operations Recruiting/Staffing Recognition and Rewards Training Facilities Management Promotion Pricing Strategy Brand Positioning Web Services Delivering Services Industries Restaurant Courier Retail Hospitality Computer Services Financial Services Airlines Banking Auto Rental Car Critically evaluate the Service business using the following outline A. Overview 1. Provide background information about the Service Business chosen 2. Focus of the encounter (e.g. a particular service, facility) 3. Issues relevant to service quality in the industry (or company) B. The Service/Customers/Competition Document and critically evaluate the organization s strategies related to the service offered, the customers and the competition. 1. What is the service offered 2. Who are the customers (describe User Profile) (current, potential) 3. Define customer expectations 4. Who is the competition (direct, indirect) 5. How do competitors evaluate this service (i.e. How do they judge quality of service) C. Service Quality Analysis Document and critically evaluate the organization s strategies with respect to the following service quality gaps 1. The expectations gap (market research, customer relationships) 2. The design and specifications gap (customer defined standards) 3. The service delivery gap (people/hr issues, supply/demand fit) 4. The communications gap (promotion, pricing, physical evidence) D. Conclusions and Recommendations 1. Summarize the organization s strengths and limitations with respect to its ability to deliver consistent quality service 2. Provide Strategic and tactical recommendations with appropriate rationale (including a timeline of activities)

15 4. What have you learned from this assignment that may help you be a better Service Manager

16 Final Exam description A. A set of questions will be provided one week prior to the test B. The test will include a portion of these questions