JAIPUR NATIONAL UNIVERSITY, JAIPUR School of Distance Education & Learning Internal Assignment No.

2 Master of Business Administration (MBA) Paper Code: Paper Title: MBAM 106 Service Marketing Max. Marks: 15

Last date of submission:

Note : Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks. (Word limits 50-100) Q. 1. Answer all the questions: (i) Define classification of services.

Ans. Services can be defined as, Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods are known as services. Core Services: A service that is the primary purpose of the transaction. Eg: a haircut or the services of lawyer or teacher. Supplementary Services: Services that are rendered as a corollary to the sale of a tangible product. Eg: Home delivery options offered by restaurants above a minimum bill value. (ii) Define service delight.

Ans. Service Delight cab defined as the very favorable experience of the client of a business when they have received a good or service that significantly surpasses what they had initially anticipated. A marketing department can use instances of customer delight to a company's advantage by requesting referrals and obtaining testimonials from delighted customers that can help attract new customers.

(iii)

What is service recovery?

Ans. Service Recovery means that a service breakdown has occurred and the problem has been corrected to the customer satisfaction and its goal is to retain customer loyalty. Usually, it is practiced in terms of : Apologizing; Listening and Empathizing; Asking open questions, Fixing the problems quickly and fairly; Offer atonement; Keeping promises; Follow-Ups

(iv)

Define the role of branding in service marketing.

Ans. Once you realize that every successful business is grounded on its unique and appealing brand, theres no denying the importance of branding in service marketing. The goal is to make it easy for consumers to relate your brand to a specific product or service. In this way, your company name, logo, and brand are not just symbolsthey are the face of your company that customers picture when they require the product or service you offer. The role of branding in service marketing is that it helps a company initiates to determinebased on their existing reputation, competencies, customers, and competitorshow they should situate themselves for optimal differentiation and market effectiveness. In the following ways branding if helpful in service marketing: Delivery of the Message Clearly Creation of Business Credibility Connection of the Customer to the Product Motivation of the Buyer (v) What are the dimensions of service environment?

Note: Answer any two questions. Each question carries 5 marks (Word limits 500) Q. 2. Discuss the importance of service sector in the Indian economy.

Ans. The current situation in India is that the growth rate of services has overtaken both agriculture and industry and is now more than 50% of GDP. The services sector has the highest growth rate and is the least volatile sector. Growth is particularly marked in public services, IT and financial services. In some areas the growth rate of the services sector is 40-50% due to increased use of mobile technologies. India therefore has a services-oriented economy. It hasnt followed traditional growth models (as in China) in that it has skipped the manufacturing stage and has jumped straight from the agricultural stage to services. Growth in the services sector will support growth in the agricultural and industrial sectors, although growth in manufacturing, which causes pollution is not so desirable in terms of job creation and increased prosperity. As Indias population grows so too does the number of dependents in the lower and higher age groups. For the economy to grow it has to invest. Currently the public sector invests more than it saves. The household sector saves in surplus, but this is not increasing so it cannot continue to support private and public sectors. There is a massive need to spend on health and education, particularly the education of women, in order to reduce the birth rate. In South India the number

of women in the population outnumbers men, so the development of the south of India will depend on the education of women. In the next two decades (a growth window for India which may not come again because the working population to total population ratio increases up to mid 2030s) it will be important for India to absorb the growing labour force if the services sector is to play an important role. India is in a strong position to do this since it has a history of using English for communication, which in turn supports global trade and finance. Only the services sector can have a major impact on poverty. Improvements in agriculture are not having an effect on poverty. To address poverty there is a need to move people from bad sectors to good sectors or from unemployment to employment. This is happening with growth in human skills intensive sectors such as hotels, restaurants and IT, but there are geographical, labour unions and human skills restrictions on labour movement. The key question raised at the conference was Can services lead the economy? For example, can services, such as IT, be taken to rural areas? This has been done in Andhra Pradesh, where the people have been educated through TV and IT with resulting reductions in infant mortality, poverty and fertility rates. So it seems that services could lead the economy, but there needs to be greater equality between the different States and a better gender balance. There is also the need for additional fiscal capacity, tax reforms to fund education, reduction in government debt and the revenue account must be kept in balance. Progress is good but still initial conditions for growth have not yet been achieved.

Q. 3.

Explain the recent global trends in marketing of services.

Ans. 2013 is poised to be an exciting year for service marketers; trends that have been taking shape over the course of the past decade are creating new opportunities for business owners. These initial years of the 21st century brought economic problems, corporate collapses and environmental disasters, but it was also a decade defined by a shift in communications from traditional media to a worldwide conversation that flows faster and farther than anyone could have imagined. With those economic, cultural, political and environmental events, as well as the advances in technology and the global online conversation in mind, following are 10 trends that affect all areas of marketing of services, and will shape marketing strategy throughout 2013 and beyond. 1. Transparency and trust are paramount. Brands that make a concentrated effort to be honest and open in their marketing communications will generate positive consumer responses, which can lead to brand loyalty and brand advocacy. Building trust is the most important thing in 2013, and once you've earned it, you need to make sure you keep it. In other words, transparency and trust are not a one-time thing. They're an ongoing effort. 2. Less interruption, more enhancement and value-add. The days when ads and marketing messages were developed for the sole purpose of

getting the attention of consumers are over. People expect more (or in the case of interruptions, less) from businesses and brands. Give them more by ensuring your marketing communications and efforts deliver useful and meaningful value. 3. Speaking of value . . . Rather than spending money frivolously, consumers began seeking out deals, using coupons and actively looking for the biggest bang for their buck. When the economy recovers, that behavior will not disappear immediately. Be prepared for the consumer focus on value to continue well beyond 2013, and build marketing campaigns with that consumer demand in mind. 4. Show it, don't tell it. Consumers are more skeptical than ever, and you need to prove your marketing claims. Don't just tell consumers about your product, business or services, show them what's in it for them if they pull out their hard-earned money and buy from you. 5. Social media is not going away, and engagement is critical. Twitter, Facebook, blogs, YouTube, and other tools of the online social community are not going anywhere. In 2013, it's critical that your business joins the social web conversation, and you must engage consumers on the social networking sites. Give them amazing content and interact with them to fully leverage the power of the social media. 6. Peace-of-mind messages prevail. Consumers have lived through a wide variety of negative events over the past several years, from economic turmoil to environmental disasters and more. They're actively seeking marketing messages that give them a feeling of peace of mind. Try to communicate a feeling of security in your marketing efforts to meet this need. 7. Relationships rule. Leverage the social web to interact with people around the world and build relationships that wouldn't have been possible a decade ago. When you build relationships with consumers, you also build a band of brand loyalists that can become your most powerful source of word-of-mouth marketing, brand advocacy and brand guardianship. 8. Online video and mobile marketing are hot. You can create your own online video content or mobile content, or you can invest in online video or mobile advertising. The choice is yours, but there is no better time to jump in than right now! 9. Focus, focus, focus! As the first decade of the 21st century unfolded, marketers and social media professionals began using the term niche more and more to identify highly focused products, websites, blogs and so on. Today, that strategy is even more important. Build your core and keep it as strong as possible before you try to extend your brand and branch out into new areas. 10. Integrated marketing trumps stand-alone tactics. You can make your brand, your business and your messages stand out by surrounding consumers with branded experiences and allowing them to choose which of those experiences they want to consume. For example, use online advertising, online video, custom content, point-of-sale collateral, and ads with consistent messaging to engage consumers in different parts of their lives. If you're consistent and persistent, your messages are more likely to connect with your target audience--raising brand awareness, recognition, purchases and loyalty.

Q. 4. Ans

What kind of pricing approaches are used by service industry? Discuss its benefits associated with company and customer.

JAIPUR NATIONAL UNIVERSITY, JAIPUR School of Distance Education & Learning Internal Assignment No. 1 Master of Business Administration (MBA) Paper Code: Paper Title: MBAM 107 Product & Brand Management Max. Marks: 15

Last date of submission:

Note : Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks. (Word limits 50-100) Q. 1. Answer all the questions: (i) Difference between cost and price?

Ans. Price and Cost are two words that appear alike due to the similarity in their connotations. Strictly speaking there is difference between the two words. Price is the amount of money or goods for which a thing is bought or sold. In other words it can be said that price is the value or worth of a product or a service. the Cost on the other hand is the expenditure involved in the manufacture of a thing or a product. Thus cost determines the price of a product or a service. Price does not determine the cost. (ii) What do you mean by staple goods?

Ans. Products purchased regularly and out of necessity. Traditionally, these items have fewer markdowns and lower profit margins. While price shifts may raise or lower demand for certain kinds of products, the demand for staple goods rarely changes when prices change. Also Known As: Staples, Core Products, Necessity Goods Consumer goods (such as bread, milk, paper, sugar) that are bought often and offer little differentiation and are usually compete on the basis of price. (iii) Define brand? Ans. Traditional view: A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A brand is a persons gut feeling about a product, service or organization. A brand defines the relationship customers have with us. A brand is a promise we make to our customers and to ourselves. A brand is shaped by each experience customers have with the firm.

 (iv)

A brand differentiates the product from similar offerings. With an example explain upward stretching of brands.

Ans. Upward Stretching: The introduction of a new product into an already established line of products whereby the newly introduced product comes in at a lower price point is known as upward stretching of brands. This kind of stretching increases the prestige of an existing range of product. Example: Toyota brands upward stretching is Lexus which increased its prestige. This upward stretching is also a risky step, because it may fail to gain customer acceptance and the ability to purchase this product. :

(v)

What are the characterstics of STAR in BCG matrix?

Ans. BCG matrix has four cells which are called as stars, cash cows, question marks and dogs. Stars- Stars represent business units having large market share in a fast growing industry. They may generate cash but because of fast growing market, stars require huge investments to maintain their lead. Net cash flow is usually modest. SBUs located in this cell are attractive as they are located in a robust industry and these business units are highly competitive in the industry. If successful, a star will become a cash cow when the industry matures.

Note: Answer any two questions. Each question carries 5 marks (Word limits 500) Q. 2. Q. 3. What is branding? What are major branding related decisions a marketer has to make? What is a new product? Discuss the entire development process in brief.

Ans. New products are goods and services that differ significantly in their characteristics or intended uses from products previously produced by the firm. Businesses focus on designing new products and selling these products to customers. The company's goal with creating new products involves two parts. The first part consists of finding a product that customers want to pay for; only products that customers purchase produce revenue for the business. The second part consists of beating competitors to market. The first company to offer a product generates the greatest number of repeat customers. The process of creating a new product involves nearly every department in the organization. Many companies create a new product development team. The team includes representatives from the purchasing department, research and development, the production area, accounting and marketing. The purchasing and accounting representatives contribute financial data regarding the new product. The purchasing representative contacts vendors and provides material cost information to the team. The accounting representative uses the material cost information, estimated labor costs and calculates the total product cost. The accounting representative also

calculates a potential profit margin using the anticipated selling price from the marketing department. New Product Development: The development of original products, product improvements, product modifications, and new brands through the firms own R&D efforts Or New products can also come from acquisition of other companies, patents, or licenses

New Product Development Process

Idea Generation-Sales force, Customers, Employees, R&D specialists, The competition, Suppliers, Retailers, Independent inventors. Screening-Screening separates ideas with commercial potential from those that cannot meet company objectives. Business Analysis-The business analysis consists of assessing the new products market potential, growth rate, likely competitive strengths, and compatibility of the proposed product with organizational resources. Development-Converting an idea into a physical product Requires interaction among many of the firms departments. Prototypes may go through many changes. Test Marketing-Introduction of a trial version of a new product supported by a complete marketing campaign to a selected city of television coverage. Commercialization- is stage, the firm establishes marketing strategies, and funds outlays for production and marketing. Q. 4. Write short notes on any two out of the following:-

(i) (ii) (iii)

Brand Mascot. GE model. Market penetration strategies.

Ans.

Short Notes

Brand Mascots The term mascot defined as a term for any person, animal, or object thought to bring luck colloquially (informally) includes anything used to represent a group with a common public identity, such as a school, professional sports team, society, military unit, or brand name. Mascots are also used as fictional, representative spokespeople for consumer products, such as the rabbit used in advertising and marketing for the General Mills brand of breakfast cereal, Trix. Mascots or advertising characters are very common in the corporate world. Recognizable mascots such as Chester Cheeto, Keebler Elf, Fruit of the Loom Guys, Pizza Pizza Guy for Little Ceasars, Rocky the Elf, Coca Cola Bear, and the NBC Peacock. These characters are typically known without even having to refer to the company or brand. This is an example of corporate branding, and soft selling a company. For example many corporate mascots can attend non-profit events, or sports and promote their brand while entertaining the crowd. Some mascots are simply cartoons or virtual mascots, others are characters in commercials, and others are actually created as costumes and will appear in person in front of the public at tradeshows or events. In the world of sports, mascots are also used for merchandising. Team mascots are often confused with team nicknames. Costumed mascots are commonplace, and are regularly used as goodwill ambassadors in the community for their team, company, or organization such as the U.S. Forest Service's Smokey Bear. Market Penetration Strategies Market penetration is one of the four growth strategies of the Product-Market Growth Matrix as defined by Ansoff. Market penetration occurs when a company penetrates a market in which current or similar products already exist. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc.). Ansoff developed the Product-Market Growth Matrix to help firms recognize if there was any advantage of entering a market. The other three growth strategies in the Product-Market Growth Matrix are:

Product development (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers. Market development (new markets, existing products): Lucozade was first marketed for sick children and then rebranded to target athletes. Diversification (new markets, new products): Mohen A.S, Bion Products, Selectron Ltd, bk

"Penetration is a measure of brand or category popularity. It is defined as the number of people who buy a specific brand or a category of goods at least once in a given period, divided by the size of the relevant market population." The penetration that brands and products have can be recorded by companies such as ACNielsen and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country's households who have bought that particular brand or product at least once within a defined period of time.