Question1: - Discuss briefly about customer retention strategies in Customer relationship management.

Answer: As Lowenstein highlighted what customer loyalty is all about. It is all about driving perceived value, whether rational values like functional, quality, cost, etc., or emotional trust, service, communication, information, brand equity, etc. or a combination of these two dimensions. Many customer retention strategies have been formulated, applied, and reviewed to get a high customer retention rate. Here to retain a customer, what a company does in order keep customers coming back is to build strategies. Customer retention rate is the number of clients that a company has lost in a predefined time span. This is calculated by existing customers times the rate of customers lost in a certain period, be it annual or quarterly, without including the newly acquired customers. Many companies are struggling over retaining the customers, they always try to find the best customer retention strategies to keep their sales up. Customer retention ideas are thought of, customer retention programs are made, customer relationship tips are followed, but somehow the problem still remains the same. They invest in new technologies, exerting much effort and labor in measuring the return of investment in the expenditures. The puzzle stands, the solutions are brought in, but still the problem remains. For example, some important questions help us to understand the importance of CRM in business. They are: What is a good sales activity? What makes the customers feel good when they get those calls from sales representatives? People from marketing would know how to answer this because they know the market place. What about the product? What makes an overall good product? What makes good customer service? A service which people can identify as reliable, consistent, accommodating? What is good financial management? Which investments should companies take up/avoid?

Here, the marketing team knows how to answer these questions, simply because they know the market. This of course doesnt mean that marketing would be the one to tell each department what they should and should not do. This only means that we as marketers must constantly reach out to the market for the purpose of

coming back with detailed analysis of what exactly customers want. From each contact with the customer, marketing would have brought back useful information in, which different departments and organizations can use for their cost analysis, work requirements and feasibility studies. Question 2: - Explain briefly the 7Ps of marketing mix. Answer: The 7Ps of service marketing mix are: Product: This should provide value to the customer though it need not be a tangible product. Every good is associated with a service component as is every service with a physical good. However, the degree of association may vary. Price: In service marketing, price is fixed for services and depends on the service provider and service delivery. Pricing needs to o be competitive and must necessitate profit. The cost strategy includes discounts and offers. Service rates are often variable and depend on the nature and type of service as well as on customers who may either not entirely use the service or pay only for the service rendered to him/her. Place: This means where and when the customer buys and consumes the product or service. It is the place where the customer purchases the product and the manner in which product reaches out to the particular place. This happens through various channels like internet, wholesale, and retail traders. In service marketing, it depends on where and how service is delivered to the customer. Promotion: This includes adopting various ways to communicate to the customer regarding the product offers of the company. This also includes communicating about the advantages of a product or a service than speaking about its features. Usually adopted promotion techniques include advertising, sales promotions, publicity, direct marketing, exhibitions, displays, packaging, and word-of-mouth. Service marketing even caters to individual customers and designs offers that are tailor made. This is called as personalized or privileged or customized services. People: People include the customers, employees, and management. An essential ingredient to any service provision is the use of appropriate staff and people. In service marketing, customers also have an active role in the service delivery. A good service provider should ensure that the service as well as its experience delights the customers and not just satisfies him/her. Customers should look forward for such experience and benefit from service. Process: Process refers to the systems used to assist the organization in delivering the service. Any process whether it is electronic, mechanical or manual, service providers should ensure that it helps in providing efficient service to the customers without causing any disturbance or delays. A service delivery process must assist in

raising service quality/standards and reduce service gaps or customer wait. For example, Travel operators should establish a proper process or a system for advance bookings, cancellation, pick-ups, drop, and emergencies during travel so on. Physical evidence: In service marketing, physical evidence serves as a proof of service experienced. Since services are basically intangible, certain things can add to the experience of service such as complimentary items offered during service, Pamphlets and brochures that create product awareness. Consumers will make perceptions based on their sensory abilities of the service provision, which will have an impact on the organizations perceptual plan of the service. For example, if you walk into a fine restaurant your expectations are of a clean, comfortable and friendly environment that may give aromatic smell of specialized cuisine. Question 3: - Explain the stages in new service development and its implementation. Answer: 1. Business strategy development or review: Every organization has a unique vision and mission. A new service can be developed by first reviewing this vision and mission. The new service developed should align itself with the strategic vision and mission of the organization. The growth efforts of the organization must also be considered while developing the new service. 2. New service strategy development: A product portfolio strategy and defined organizational structure for a new product or service development is critical for the success of an organization. The goals, vision, capabilities, and growth plans of the organization need to be considered while developing new types of services. A new service strategy could be defined in terms of markets, types of services, time horizon for development, profit criteria, or other factors. 3. Idea generation: Generation of new ideas is the next step in the process. The new service strategy screen screens the idea developed at this phase. Brainstorming, ideas from employees and customers, lead user research, learning about competitors are the methods used for idea generation. 4. Service concept development and evaluation: The development phase begins once the idea is regarded to fit both the business and new service strategies. For a tangible product, forming the product description and drawings and presenting it to customers would be the next step. Service being intangible, places complex demands on this phase of the process. Describing an intangible service in concrete terms is difficult. 5. Business analysis: Estimating the economic feasibility and potential profit implications form a part of the next step after development. Demand

analysis, revenue projections, cost analyses and operational feasibility are assessed at this stage. Implementation: 1. Service development and testing: This is the step where product prototypes are constructed and customer acceptance is tested. This step presents unique challenges due to the intangible nature of service and the fact that the production and consumption is simultaneous. These challenges can be addressed by involving all those who are involved in the new service in this step of the process. It is in this step that the service is refined and service blueprint is drawn out 2. Market testing: This is the stage where market acceptance is evaluated by introducing the new service in a test market. Due to the nature of services, it is difficult to test services in isolation. The new services might be offered to employees and their families for a time to assess their responsiveness to variations in the marketing mix 3. Commercialization: The service goes live and is introduced in the marketplace in this stage of the process. This step involves the building and maintaining acceptance of the new service in the market. Excellent internal marketing will contribute significantly to the success of the new service. 4. Post introduction evaluation: At this point, the information gathered during commercialization of the service can be reviewed and changes made to the delivery process, staffing, or marketing mix variables on the basis of actual market response to the offering. Service never remains the same. Hence it is necessary to evaluate the changes so as to improve service quality. Question 4: - Discuss the GAP Model briefly Answer: This model offers an incorporated view of the relationship between the customer and the company. This model is based on a substantial research performed by several service providers. As in the Gronroos model, it shows the perception gap and summaries the contributory elements. The provider gaps are those that happen within the organization. It is the difference between the expectations of the customer and the understanding; the firm has regarding those expectations. Most of the organizations fail to meet the client expectations due to their lack of understanding of those aspirations. The provider gaps include GAP 1, GAP 2, GAP 3, GAP 4 and GAP 5. Each GAP occurs due to the inconsistencies and discrepancies in the quality management process. Let us assess these provider gaps and the factors that cause those gaps.

GAP 1: This is known as the management perception gap. This occurs mainly due to the difference between the service expected by the customers and the perception the management have regarding the customer expectations. Failure in understanding the client expectations leads the services organizations into trouble. GAP 2: This is known as the quality specification gap. This occurs due to the difference between the management perception of client expectation, designs, and the standards of customer driven service. The precise perception of the service providers regarding the customer expectations will not be sufficient to deliver better quality service. Some of the service firms will have effective information and communication network. These firms will be capable of supervising without a gap in the first level. GAP 2 is the second test the firms need to cross. GAP 3: This means service delivery gap and occurs due to the difference between the client driven service designs and service delivery and standards. Even if you formulate guidelines to perform services, it will not assure quality service performance. The standards should be supported by adequate and suitable resources like systems, people and technology. GAP 4: This is the Market Communication gap and refers to the service delivery and external communications to the customers. Service firms assure their efficiency through external marketing process to the existing as well as the potential clients. Gap 5: This means perceived quality gap and occurs due to the difference between organizations perceived service and the expected service. It is difficult to evaluate the reasons for this gap, but the organizations need to expect some negative results when such a gap occurs. But you can see that this GAP also creates a positive impact. If the perceived quality surpass the accepted quality, the clients will be happy, which in turn will be beneficial for the organization.

Question 5: - Discuss about the marketing of services in Banking sector, Airline industry, Hospitality sector? Answer: Marketing banks is a combination of functions for providing services to satisfy customers financial needs and wants, more effectively and efficiently keeping in view the objectives of the bank.

Then there are three main categories of banks: Commercial banks: It consists of all those banks that provide banking services to the people and normally charge for the services that they provide. They are further categorized in two as nationalized banks and private banks. The nationalized banks are aided by the government; State bank of India is one of the examples of nationalized bank. ICICI bank is an example of private banks. Co-operative banks: These banks are also formed with the help of the government. They provide the long term and short term credits to customers. Short term credits are provided by the State Cooperative Banks like Uttar Pradesh cooperative Bank Ltd and District Central Cooperative Banks provide financial services for activities like setting up milk dairy in urban areas and agricultural needs of the rural population. Long term credit is provided by Primary Cooperative Agriculture banks like Primary Cooperative Agricultural Bank. Development banks: the role of these banks is to provide the capital raising services to the industries. Their main focus is to help the industries to develop by lending them money. For example IDBI (Industrial Developmental Bank of India), SIDBI (Small Industries Development Bank of India), NABARD (National Bank for Agricultural and Rural Development).and EXIM bank (Export and Import bank of India) Airlines Marketing The Indian Aviation sector is one of the fastest growing aviation industries in the world. It can be broadly divided into the following main categories: Scheduled air transport service. Non-scheduled transport service. Cargo service.

Marketing strategies employed by the aviation industry are: Marketing planning: Marketing analysis, benchmarking, and competitive analysis are the techniques used for the marketing planning so that the marketing can generate the desired results. Branding: Branding plays an important role in the marketing of the company and its product or service. It differentiates the company and its services from the competitors. So it is of paramount importance to maintain the brand value and put effort in the brand management.

Communication strategy: communicative strategies to customers should be clear and with motive. It should deliver what the company wants to deliver to its customer without any ambiguity. Online marketing: Online marketing is one of the premier marketing media for every organization for its marketing needs. The reach of internet is very large and deep and as most of the banking services are online, so the airlines are also getting online to attract maximum customers towards them. Marketing of the Hospitality Services Hospitality sector includes all those services related to hotels, restaurants, lodges, and bars. The growing economy of India is also helping the hospitality sector to grow at rapid pace. The main reasons for the growth of the Indian hospitality sector are due to: Increase in foreign direct investment. Increase in numbers of foreign visitors. Increase in the income of the Indian family. Emergence of the brand Incredible India.

As the numbers of players in the field of hospitality sector are increasing, marketing strategies are also changing. Earlier, hospitality sectors were keener on building brand recognition that attracted those customers who were willing to pay. Now, the hospitality sector is working on new marketing strategies. They are using marketing media very effectively. Question 6: - Write a short note on 1. Pricing strategies of service 2. Roles played by the customers during service delivery Answer: Pricing strategies of service The service providers can adopt a pricing strategy to decide the pricing of the service. Usually, companies have used the cost plus approach to achieving pricing for their services. However, many retailers started using the information which they get through their scanners to arrive at pricing rather than following the cost plus approach. The different strategies that are used for pricing of a service: Mark-up pricing: The mark-up pricing strategy can be employed for services that cannot be differentiated. For example, it is not possible to differentiate the service provided by BESCOM for Bangalore.

Value for money pricing: In India, the retailer Big Bazaar uses the positioning line Is se sasta aur achha kahin nahin, which means nowhere else you will get such better and cheaper offers. Obviously, the idea of savings convinces huge segment of customers, but the consideration for this strategy is the competence of the retailer to continue being a cost leader. If any other retailer competes this by offering the same products at lower prices owing to the price sensitivity of the customers, they would make quick exits to go and buy from the new cost leader. Image value pricing: This is a very popular method of pricing the products. This method enables to charge premium price for the product. For example: The prices charged by Gillette for its razors, shaving foams, and after shaves are more than its competitors price. Roles played by the customers during service delivery 1. As productive resources: The customers of the services are referred to as partial employees of the services organization. They are the effective human resources who contribute to the productive efficiency of the organization. They can make both negative and positive impact on the productivity of an organization through the quality of their contribution and the quality and quantity of the generated output. For example, there are airline services who ask the customers to do crucial roles such as carrying their own bags while moving to other airlines. This helps in increasing the productivity. 2. Customers as contributors to service quality and satisfaction: Another major role played by the customers is that of a contributor to their own satisfaction and the quality of the service which they receive. In services such as education and personal fitness, desired outcomes cannot be achieved without the active contribution from the part of the customer. Those customers who contribute to the delivery of quality service frequently ask questions and report once there is a failure. They enjoy their own participation in service delivery. They book tickets using internet and do the banking transaction through ATM. 3. Customers as competitors: Another major role played by the service customers is that of a competitor. There are organizations that outsource certain service activities such as data processing, pay roll, accounting, maintenance, and facilities management. They realize that it is better to concentrate on their core activities and leave the support services to others who have better expertise. In this case, an organization might decide to stop the outsourcing activities and convert it into in-house.