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Services Marketing
Notes The marketing strategy could be to shift sales accent from its employees to Direct Sales Agents
(DSAs) or Travel Agencies. In effect, the strategy for marketing would be to stress more on
outsourcing of sales, and shift from salaries to commissions.
The marketing objectives should be prioritized by urgency and importance. Each objective then
should be assessed for its impact on the respective marketing area and the service firms
competitiveness. It is only after this exercise that resources should be allocated to each plan and
objective.
Self Assessment
Multiple Choice Questions:
1. Which of the following decisions is most likely to be taken at the corporate level?
(i) Marketing strategy to launch a product
(ii) Hire new front line employees
(iii) Designing the mission and vision of the service organisation
(iv) Testing the service delivery process
2.
are SBUs that are in low growth or mature industries but have relatively
high market shares.
(i) Stars
(ii) Cash cows
(iii) Questions marks
(iv) Dogs
3. In
strategy, the products or SBUs are disposed off from the portfolio of the
service organisation if they are not performing well.
(i) Invest
(ii) Protect
(iii) Harvest
(iv) Divest
4.
strategy is adopted by a service firm or the SBU when it concentrates its
entire attention on a very specific customer segment and their needs.
(i) Cost leadership
(ii) Differentiation
(iii) Focus
(iv) Invest
14.2 Service Recovery Strategies
As per Tax and Brown, Service recovery is a process that identifies service failures, effectively
resolves customer problems, classifies their root cause, and yields data that can be integrated
with other measures of performance to assess and improve the service system.
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