NUS BUSINESS SCHOOL NATIONAL UNIVERSITY OF SINGAPORE Course Outline MKT3412-Services marketing Instructor. Professor rAjIv surendra Office BIZ1#04-15 Telephone:+65-6874-3169 Email bizsr(@nus. edu Venue Conference Room F(BIZ2 04-01b) Tuesday 12 noon-3 p.m St Ms See Y ing Y ing, Jenny(Email: mktsyyj @nus. edu. sg) Course Overview This course is designed for students interested in understanding services and helping organizations leverage service for value creation, market differentiation and competitive advantage. Services, for the purpose of this course, will be interpreted to include all activities in which a service is provided(possibly including a physical tangible product part of it As statistics go, services account for 70%+ of the GNP in most developed economies. In a typical year, a majority of the business graduates go to work for service organizations In the OECd countries, four out of every five members of the workforce holds a service sector job. Yet, the business curriculum generally focuses on the manufacturing sector of the economy and management theories relate largely to manufacturing firms Service management presents unique challenges that reflect the fundamental differences variability, consumer participation and so on. These give rise to singular problems in service design, delivery and control. Successful management of these challenges requires threading together the functional disciplines of marketing, operations and human
NUS BUSINESS SCHOOL NATIONAL UNIVERSITY OF SINGAPORE Course Outline MKT3412 - Services Marketing Instructor: Professor RAJIV Surendra Office: BIZ 1 #04-15 Telephone: +65-6874-3169 Email: bizsr@nus.edu.sg Venue: Conference Room F (BIZ2 04-01b) Time: Tuesday 12 noon - 3 p.m. Secy.: Ms. See Ying Ying, Jenny (Email: mktsyyj@nus.edu.sg) Course Overview This course is designed for students interested in understanding services and helping organizations leverage service for value creation, market differentiation and competitive advantage. Services, for the purpose of this course, will be interpreted to include all activities in which a service is provided (possibly including a physical tangible product as part of it). As statistics go, services account for 70%+ of the GNP in most developed economies. In a typical year, a majority of the business graduates go to work for service organizations. In the OECD countries, four out of every five members of the workforce holds a service sector job. Yet, the business curriculum generally focuses on the manufacturing sector of the economy and management theories relate largely to manufacturing firms. Service management presents unique challenges that reflect the fundamental differences between products and services. For instances, services involve greater intangibility, variability, consumer participation and so on. These give rise to singular problems in service design, delivery and control. Successful management of these challenges requires threading together the functional disciplines of marketing, operations and human resources
The set of topics covered in the course include Analysis of Customer Purchase Process -Customer Activity Cycle, Flowcharting and Service Process Mapping Understanding of Service Experience-Customer Expectations and Perception of Services Customer Relationship Marketing(CRM) Understanding and Managing Service Quality Pricing of Services and Yield Management Using Internet for Service Distribution Growth Strategy Globalization of services To give the participants a broad and varied exposure to the different segments of the service sector, we have selected 10 cases spanning the following service industrie Telecom Airlines Tourism hospitality Banking and Financial Services Consulting and Profe ervices Health Care Service Course Pedagogy Reading Material Class sessions will consist of case discussions, in-class exercises, lectures and group presentations Since I use material from several sources, there is NO required textbook for the course However, I strongly recommend either of the books(a)Services Marketing in Asia(by Christopher H. Lovelock, Jochen Wirtz, Hean Tat Keh and Xiongwen Lu, 2ed., 2005 Prentice Hall), or(b) Services Marketing: Integrating Customer Focus across the Firm (by valarie Zeithaml and Mary Jo Bitner, 3 ed, 2003, McGraw Hill)as a nice supplement to the course material. These books serve well as detailed reference documents and are quite encyclopedic in scope Additional reading materials and cases will be distributed in class and will also be available on IVe
The set of topics covered in the course include: • Analysis of Customer Purchase Process – Customer Activity Cycle, Flowcharting and Service Process Mapping • Understanding of Service Experience – Customer Expectations and Perception of Services • Customer Relationship Marketing (CRM) • Understanding and Managing Service Quality • Pricing of Services and Yield Management • Using Internet for Service Distribution Growth Strategy • Globalization of Services To give the participants a broad and varied exposure to the different segments of the service sector, we have selected 10 cases spanning the following service industries: • Telecom • Airlines • Tourism & Hospitality • Banking and Financial Services • Consulting and Professional Services • Health Care Services Course Pedagogy & Reading Material Class sessions will consist of case discussions, in-class exercises, lectures and group presentations. Since I use material from several sources, there is NO required textbook for the course. However, I strongly recommend either of the books (a) Services Marketing in Asia (by Christopher H. Lovelock, Jochen Wirtz, Hean Tat Keh and Xiongwen Lu, 2nd ed., 2005, Prentice Hall), or (b) Services Marketing: Integrating Customer Focus across the Firm (by Valarie Zeithaml and Mary Jo Bitner, 3rd ed, 2003, McGraw Hill) as a nice supplement to the course material. These books serve well as detailed reference documents and are quite encyclopedic in scope. Additional reading materials and cases will be distributed in class and will also be available on IVLE
Course objectives, Expectations assessment Objectives of this course are To develop an integrated understanding of the relationship between various aspects of marketing and management in successful creation and delivery of value added services and To provide a set of analytical frameworks, concepts and tools for critical thinking about service and service related activities Expectations from Participants Come to each class well prepared to be able to discuss the required readings and signed cases in detail. For each case discussion in class, write up your analysis and recommendations beforehand Actively participate in lectures and tutorials as much of the learning will come from discussions during class. Display a name sign in all lectures! Internalise the concepts covered in the course, and be able to creatively use them in an applied context. This course is all about understanding and application to the real world House Rules for everyone to follow Do not come late for class Switch off your pager and/or hand phone during class Do not pack up your notes until class is dismissed Do not talk while fellow students are presenting or asking questions Respect everyones opinion Method of assessment: During the course, the students will be evaluated based on their performance in each of the following activities Individual component 85% o Class Participation 10% o Individual Assignments(15%x2+ 25%) Group Component 15% o Case presentation 15%
Course Objectives, Expectations & Assessment Objectives of this course are: • To develop an integrated understanding of the relationship between various aspects of marketing and management in successful creation and delivery of value added services; and, • To provide a set of analytical frameworks, concepts and tools for critical thinking about service and service related activities. Expectations from Participants: • Come to each class well prepared to be able to discuss the required readings and assigned cases in detail. For each case discussion in class, write up your analysis and recommendations beforehand. • Actively participate in lectures and tutorials as much of the learning will come from discussions during class. Display a name sign in all lectures! • Internalise the concepts covered in the course, and be able to creatively use them in an applied context. This course is all about understanding and application to the real world. • ‘House Rules’ for everyone to follow: - Do not come late for class - Switch off your pager and/or hand phone during class - Do not pack up your notes until class is dismissed - Do not talk while fellow students are presenting or asking questions - Respect everyone’s opinion Method of Assessment: During the course, the students will be evaluated based on their performance in each of the following activities: • Individual Component 85% o Class Participation 10% o Individual Assignments (15%×2 + 25%) 55% o Quiz (10%×2) 20% • Group Component 15% o Case Presentation 15%
Outline of lectures Session Topic 1 Introduction to Services Marketing Importance of Services Unique Features of Services Marketing Administrative details 2 Understanding managing the Service Experience-I Consumer Purchase Process for Services Consumer behaviour in Service encounters Consumer Expectation Perception of Services 3 Understanding Managing the Service Experience-II Designing the Service Product Augmented Service Product-"Flower of Service"Framework CASE: Euro Disney -france By November 1994, the euro disneyland theme park and resort near Paris has been in business for 2 2 years. The results since the park opened in April 1992 have been financially disastrous causing serious problems for the parent company, Euro Disney SCA. Annual attendance is well below the 1l million predicted(and has actually fallen in the 1993-94 fiscal year) revenues per visitor are lower than expected, there have been difficulties in getting the workforce to share the disney ethos, and the cold wet winters of northern France have resulted in very low attendance during the off-season Management is evaluating the situation and trying to develop a marketing strategy for 1995. Among the issues to be debated are how to boost French attendance, whether to increase or decrease prices, and whether to change the name of the park to Disneyland Paris. In addition to describing the overall situation the case also follows two visitors who have a mixed experience at euro disneyland on a wet september day CASE DISCUSSION QUESTIONS 1. Evaluate the experience of the two visitors to the park. Create a flowchart of their visit, indicating points at which Euro-Disney is doing well What recommendations would you make to management based on the ights from your analysis?
Outline of Lectures Session Topic 1 Introduction to Services Marketing – Importance of Services – Unique Features of Services Marketing – Administrative Details 2 Understanding & Managing the Service Experience – I – Consumer Purchase Process for Services – Consumer Behaviour in Service Encounters – Consumer Expectation & Perception of Services 3 Understanding & Managing the Service Experience – II – Designing the Service Product – Augmented Service Product – “Flower of Service” Framework CASE: Euro Disney – France By November 1994, the Euro Disneyland theme park and resort near Paris has been in business for 2 ½ years. The results since the park opened in April 1992 have been financially disastrous causing serious problems for the parent company, Euro Disney SCA. Annual attendance is well below the 11 million predicted (and has actually fallen in the 1993-94 fiscal year), revenues per visitor are lower than expected, there have been difficulties in getting the workforce to share the Disney ethos, and the cold wet winters of northern France have resulted in very low attendance during the off-season. Management is evaluating the situation and trying to develop a marketing strategy for 1995. Among the issues to be debated are how to boost French attendance, whether to increase or decrease prices, and whether to change the name of the park to Disneyland Paris. In addition to describing the overall situation, the case also follows two visitors, who have a mixed experience at Euro Disneyland on a wet September day. CASE DISCUSSION QUESTIONS: 1. Evaluate the experience of the two visitors to the park. Create a flowchart of their visit, indicating points at which • Euro-Disney is doing well. • Euro Disney is in trouble What recommendations would you make to management based on the insights from your analysis?
4 Understanding Managing the Service Experience-Ill Service Blueprinting Customer as Co-Producer- Managing Customer Participation CASE: Baxter(A)+(B) The two-case sequence discusses the dilemma facing Baxter Renal Division in the UK specifically, and in Europe generally. The division- part of Baxter International, the world's largest supplier of medical products and services- had long been in the vanguard of developing and marketing products and services for patients with kidney disorders. It was the market leader in the early 1990s, with 80% of the market for one form of dialysis treatment. The bags and solutions for this procedure comprised Baxter Renal's main source of revenue and profit. However, two major threats emerged in the mid-1990s:(1)a competing form of dialysis and(2)market share erosion. When case(A)opens in January 97, an unprecedented crisis confronted Peter Leyland, recently appointed UK Business Director: five key hospital accounts had been lost. Leyland was convinced that the only route to long term growth and profitability was not by trying to beat the competition at the same old game, but rather by taking the lead and changing the way the industry operated. Case(B)describes how Leyland was able to reverse the steady deterioration in results. Instead of competing for market share of bags based on price, Leyland creates and leads in a newly articulated"market space'-"renal insufficiency management where providing results over time through a series of value added services for all customers- hospital and health authorities and senior management, economic buyers and patients would become the key measure of success CASE DISCUSSION QUESTIONS How does baxter grow the market for PD? 123 How does baxter sell more bags? How does baxter maximize their competitiveness and income potential? How does Baxter implement the needed strategy? 5 Understanding Managing the Service Experience-IV Integrative Framework for Understanding Impact of Service Environment on Customer Satisfaction Planning the Service Environment Servicescape Design
4 Understanding & Managing the Service Experience – III – Designing the Service Delivery Process – Service Blueprinting – Customer as Co-Producer – Managing Customer Participation CASE: Baxter (A) + (B) The two-case sequence discusses the dilemma facing Baxter Renal Division in the UK specifically, and in Europe generally. The division – part of Baxter International, the world's largest supplier of medical products and services – had long been in the vanguard of developing and marketing products and services for patients with kidney disorders. It was the market leader in the early 1990's, with 80% of the market for one form of dialysis treatment. The bags and solutions for this procedure comprised Baxter Renal's main source of revenue and profit. However, two major threats emerged in the mid-1990s: (1) a competing form of dialysis and (2) market share erosion. When case (A) opens in January 97, an unprecedented crisis confronted Peter Leyland, recently appointed UK Business Director: five key hospital accounts had been lost. Leyland was convinced that the only route to long term growth and profitability was not by trying to beat the competition at the same old game, but rather by taking the lead and changing the way the industry operated. Case (B) describes how Leyland was able to reverse the steady deterioration in results. Instead of competing for market share of bags based on price, Leyland creates and leads in a newly articulated “market space” – “renal insufficiency management” – where providing results over time through a series of value added services, for all customers – hospital and health authorities and senior management, economic buyers and patients - would become the key measure of success. CASE DISCUSSION QUESTIONS: 1. How does Baxter grow the market for PD? 2. How does Baxter sell more bags? 3. How does Baxter maximize their competitiveness and income potential? 4. How does Baxter implement the needed strategy? 5 Understanding & Managing the Service Experience – IV – Integrative Framework for Understanding Impact of Service Environment on Customer Satisfaction – Planning the Service Environment & Servicescape Design