Post Graduate Programme in Management

2014-15
TERM: IV
TITLE OF THE COURSE: MARKETING OF SERVICES [MOS]
CREDITS: 4
COURSE: Elective Course
No. of Section, if elective course: 2
Instructor
Email:
Tel. Number Faculty Block and Room No.
Prof. Jayasimha K R jayasimha@iimidr.ac.in 2439538
B-105

COURSE DESCRIPTION
The ever increasing contribution of the service sector to the gross national product of
nations is well understood. This growth is not only propelled by the traditional service
industries such as health care, hospitality, education etc, but also by a range of
professional services, business services and by traditional box sellers [goods] providing
unparalleled customer service. This transition from selling boxes to competing on
service has had a significant impact on the practice of marketing, which is often
referred to as the 'service imperative'.
Given the significant contribution of the service sector to the global economy, the
service imperative is what is expected to drive the business forward in terms of growth
and profitability. To sustain the service boom and profit from it, it is necessary to break
free from the product marketing mindset and appreciate the nuances of marketing of
services.

COURSE OBJECTIVES
1.
2.

3.

4.
5.

Introduce students to the special challenges presented by services and highlight

the significant differences between marketing of services and goods marketing.
Introduce students to the notion of operating role of customes and employees in
service creation and delivery under conventional as well as collaborative
consumption service systems.
Provide adequate understanding of attracting, retaining and building profitable
customer relationships through quality service in organizations whose core
offering is service as well as organizations that depend on superior service for
competitive advantage.
Provide a greater understanding of concepts like service recovery, role of
technology in service creation and delivery etc.
Introduce students to the issues & challenges in new service design.

PEDAGOGY/TEACHING METHOD
There will be 20 sessions of 75 minutes each, consisting of conceptual discussions,
cases, in-class group exercises and simulations. The guidelines for case analysis and
group exercises would be provided separately. All participants are expected to come
prepared and reflect on the cases and readings (book chapters included) in the
classroom sessions. The last module of the course includes an offline, computer based
simulation.

EVALUATION
Weightage
End Term Exam
30%
Written Case Analysis
20%
CP
10%
Assignment/Performance in the simulation
20%
Mid Term Examination
20%
Total
100%

SCHEDULE OF SESSIONS
Module I

Introduction

Module Objective
Introduce students to the special challenges presented by services and highlight the
significant differences between marketing of services and goods marketing
Sessions and Objective
Session 1:
Highlight the fundamental differences between Marketing of goods and Marketing of
services.
Readings:
1.
Breaking Free from Product Marketing, Lynn Shostock, Journal of Marketing,
April, 1977, pp 73-80
2.
Ford; Robert C., Heaton; Cherrill P., and Brown; Stephen W., (2001 Fall),
Delivering Excellent Service: Lessons from The Best Firms, California Management
Review, Vol. 44, No. 1. CMR214
Case: American Repertory Theater, HBS

Session 2
Highlight the fundamental differences between Marketing of goods and Marketing of
services.
Readings:
1.
Cyber Serive: Taming Service Marketing Problems with the World Wide Web,
BH 035 : Access would be provided separately
2.
McDermott; Robert F., and Teal; Thomas A., (1991, September), Service Comes
First: An Interview with USAA's Robert F. McDermott. 91508
Case: American Repertory Theater, HBS
Session 3
Introduce different Service Systems
Reading: Anderson; James C., and Narus; James A., (1995), Capturing the Value of
Supplimentary Services, HBR. 95101
Case: Gateway Computers: Moving beyond boxes, HBS. 9-601-038

Module II

Operating role of customers

Module Objective
Introduce students to the notion of operating role of customes and employees in service
creation and delivery under conventional as well as collaborative consumption service
systems.
Sessions and Objective
Session 04
Objective: Introduce the dyadic exchanges between the service provider and service
receiver.
Readings:
1.
Who is a Professional? Ashish Nanda, HBSP, March 2005, 9-904-047
2.
Effective Marketing of Professional Services, Paul N Bloom, HBR, Sept-Oct 1984,
pp 1-9

Sessions 5 and 6
Objective: Introduce the concept of Operating role of the customer
Readings:
1.
Breaking the Tradeoff Between Efficiency and Service, Frances X.Frei, HBR, Nov
2006, pp 2-12
2.
Want to Perfect Your Companys Service? Use Behavioral Science, Richard B Chase
and Sriram Dasu, HBR, June 2001, pp 79-84
3.
Exploding the Self Service Myth, HBR. F00304
4.
Don't Manage Waits, Manage Experiences, IIR006
Case: Zipcar: Influencing the customer behavior, HBS
Sessions 7 and 8
Objective: Employees role in service delivery
Readings:
1.
Putting the Service-Profit Chain to Work, James Heskett et al, HBR, July-August
2008, pp 2-12
2.
Prokesch; Steven E., (1995), Competing on Customer Service: An Interview with
British Airways' Sir Colin Marshall, HBR. 95607
Case: Starbucks: Delivering Customer Service, HBS
Session 09
Objective: Self Service and Technology Mediated Service Delivery
Readings:
1.
Christensen; Clayton M., and Anthony; Scott D., (1997), Cheaper, Faster, Easier:
Disruption in the Service Sector, HBSP. S0401A
2.
Growing Negative Services. SMR206: Access would be provided separately
Case: QuickMedx Inc., HBS

Module III

Service Quality & Relationship Management

Module Objective
Provide adequate understanding of attracting, retaining & building profitable customer
relationships through quality service in organizations whose core offering is service as
well as organizations that depend on superior service for competitive advantage.

Sessions and Objective

Session 10
Objective: Measuring Customer Satifaction
Reading: Do Rewards Really Create Loyalty. HBR 95307
Case: Taste of Frankenmuth: A town in Michigan thinks about word of mouth referral,
HBS
Sessions 11 and 12
Objective: Service Quality: Meaning and Measurement
Leacure: SERVQUAL Scale, GAPS Model and The Zone of Tolerance
Reading: Parasuraman, A., Finding Service Gaps in the Age of e-Commerce, IESE-Insight
Magazine. IIR099
Sessions 13 and 14
Objective: Introduce the concepts of Service Failure and Service Recovery
Exercise [1] Customer Complaint Handling
Readings:
1.
The Profitable Art of Service Recovery, Christopher W.L. Hart et al, HBS, JulyAugust 1990, pp 148-154
2.
Quality Control in a Service business, G.M. Hostage, HBR, pp 99-106
3.
Merlino; James I., and Raman; Ananth, (2013), Health Care's Service Fanatics,
HBR. R1305J
Session 15
Objective: Introduce the concept of Service Guarantee
Readings:
1.
The Power of Unconditional Service Guarantees, Christopher W.L. Hart, HBR,
July-August 1988, pp.54-61
2.
My week as a room service waiter at the Ritz. HBR R0206B
3.
What Unhappy Customers Want? SMR479: Access would be provided
separately
Case: Federal Express: The Money Back Guarantee (A), HBS

Module IV

New Service Design

Module Objective
Introduce students to the issues and challenges in new service design
Sessions and Objective
Session 16
Objective: Introduction to the new service design framework
Readings:
1.
R&D Comes to Services: Bank of Americas Path Breaking Experiments, Stefan
Thomke, HBR,April 2003, pp 3-11
2.
The Four Things That a Service Business Must Get Right, Francis X.Frie, HBR, April
2008, pp2-12
3.
Michel; Stefan, Brown; Stephen W., and Gallan; Andrew S., (2008), Service-Logic
Innovations: How to Innovate Customers, Not Products, California Management
Review. CMR396
Case:Commerce Bank, HBS
Session 17
Objective: Application of the NSD framework
Reading: Note on Service Mapping. HBS 693065
Exercise (2): New Service Development
Sessions 18 and 19
Objective: Application of the NDS framwork
Reading: Gulati; Ranjay, (2007), Silo Busting: How to Execute on the Promise of
Customer Focus. HBR R0705F
Computer Simulation based exercise
Session 20
Capstone

Additional Reading
Services Marketing: Integrating customer focus across the firm, Valarie Zeithaml, Mary
Jo Bitner, Dwayne Gremler, Ajay Pandit, 2010, Tata McGral Hill, New Delhi
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