Table 1
- Tangible, can be seen and touched
- Can be controlled before it reaches the customer
- Can be inventoried
- Can be sold and trade
- Marketing service for cars:
- Intangible, can not be seen and touched
- Can not be controlled before it reaches the customer
- Can not be inventoried
- Can not be sold and trade
Table 2 shows the comparison of the sales and service departments.
Table 2
- The job entitled selling both new and used vehicle
- Customer can also trade in their existing vehicle with the vehicle they are willing to purchase
- Low mileage used cars is also bought at auction for resale
- The employees in the sales department includes:
- Sales manager
- Seven sales people
- Office manager
- Secretary
- Scheduling appointments for repairs
- Maintenance
- Writing up each work order
- Calling customers with repair estimates
- Assisting customers when they returned to pick up the cars and pay for the work that had been done
- The employees in the service department includes:
- Service manager
- Parts supervisor
- Nine mechanics
- Two receptionists
- Stressful job may involve
- Have to deal with angry, abusive and yelling customers
- Turnover in the receptionist job is high
The differences of service marketing between the Car industry and Travel industry
Service Classification Schemes
Table 1 shows the comparisons of the different service classification schemes between the car industry and travel industry. Due to the increased competition in the service market, the classification may vary in different companies in the same industry. Different companies have been trying to introduce and improve their services in order to gain more market shares.
However, it shows the differences between the car industry and travel industry. Some of its features are similar but some are different, therefore, some of it features from the travel industry may be helpful to apply into the car industry. For example, travel industry is a nongoods market which makes profits by charging commissions. In order to gain more profits, the travel company has to attract more customers. Therefore, Carol can apply the experiences of attracting new customers in the travel industry to use in the car industry.
Table 3
Traditional service classification scheme:
- Goal of the Service Provider
- Skill Level of the Service Provider
- Degree of Customer Contact
- Goal of the Service Provider
- Skill Level of the Service Provider
- Degree of Customer Contact
Natural of the business:
- Services directed at goods and other physical possessions
- Services directed at goods and other physical possessions
- Services directed at people’s mind
Relationship with Customers
- Continuous delivery of service (e.g. continuously checking and maintenance for members throughout the membership period)
- Discrete transactions (e.g. lower price for the members when the service is needed)
- Discrete transactions (this is applied in the Sullivan’s Motor World case)
Customization and Judgment in Service Delivery
- High extent to which service characteristics are customized
- Low extent to which customer contact personnel exercise judgment in meeting individual customer needs
- High extent to which service characteristics are customized
- Low extent to which customer contact personnel exercise judgment in meeting individual customer needs
The Nature of Demand for the Service Relative to Supply
- Wide extent of demand fluctuations over time
- Peak demand regularly exceeds capacity
- Wide extent of demand fluctuations over time
- Peak demand can usually be met without a major delay
Service Delivery Method
- Single service outlet available (this is applied in the Sullivan’s Motor World case)
- Also multiple outlet available
- Customer goes to service organisation
- Single service outlet available
- Also multiple outlet available
- Customer goes to service organisation
The service flowchart and failure points
The Figure 1 is the flowchart which represents the service transactions of the Motor World. There are three failure points which occurs in the service processes:
- First failure point occurs when customers enter the service building after parking their car. When customers enter the service building, they have to go through the side door and wait for their turn of service in a cramped room with peeling paint in the early morning. Customer would probably feel that they are not important for the company if they had to enter the building by the side door and it might not be possible for some people to bring the car before 8:30am. However, the poor and old decorated of the building may represent poor quality of service.
- Second failure point occurs while waiting for the receptionist. Customers have to stand in the poor and old decorated building for their term to be serviced while they might be on hurry to go to work in the morning.
- Third failure point occurs when the receptionist records the order. When it comes to the next customer’s term, they have to wait for the receptionist to complete the work orders for their car by writing on large sheets of documents with hand. The ringing telephones frequently interrupted the processes and it is very disturbing to keep hearing telephone ringing in the early morning.
Failure recovery strategies:
- Redecorate the service department so it looks more attractive and more reliable. In addition, customers would feel more comfortable to wait if the building is in good condition.
- Do not set the time limit of service. It will restrict the service only to those customers who is available in the morning.
- Computerize the work system so the process will be faster but training will have to be provided for the receptionist to operate the system.
Handling difficult customer
The table 4 indicates the different types of difficult customers and the best method of handling them.
Carol Sullivan-Brown should provide training to all the employees in both sales and service departments. The training program should contain how to deal with difficult customers. The above table states many methods of how to deal with different kind of difficult customers. The information may be able to help the employees to have a brief idea about how to deal with different kind of difficult customers. However, managers in both of the departments should always be there to help when the employees is unable to handle the situation instead of hiding in the office like how Carol’s father did. Carol could have employed another person who has the skill and knowledge of handling difficult customers but because of the financial situation of the company, extra costs of employing new personnel is not a good idea. Therefore, Carol can use her experiences of complaint handling from her job in the travel industry to train the employees and also provide help when they can’t handle the situation.
Table 4
The type of customer who places his or her needs above all other customers and service personnel
- Not let his ego destroys yours, while the same time appealing to his ego.
- Never talk policy
- Policy should still apply but just don’t let him know that you are restating policy
The type of customer who becomes loud, crude and abusive to service personnel and other customers alike
- Move her off stage so as to not further contaminate the service environment of your other customers.
- Once isolated, ignore her foul language and listen to determine the core of the problem and take appropriate action. This is a difficult option to undertake, particularly if her language is excessively abusive and personal in nature.
- Use selective agreement in an attempt to show him/her that you are listening and possibly on her side. Selective agreement involves agreeing with him/her on minor issues. However, it will allow him/her to use this to her advantage at a later date.
- Force the issue. Let him/her know that you would be more than willing to help her solve her problem but that you don’t have to listen to her language. If he/she continues to be crude, hang up, walk away or do whatever is necessary to let her know she is on her own. In most cases, she will return the call. Walk over and apologize and let you get on with your job.
The type of customer who reverts to screaming and tantrums to make his or her point:
- Move her off stage so as to not further contaminate the service environment of your other customers. When offstage, let him/her vent and get it off his/her chest. This is when you can finally get to the heart of the matter and begin to take action. Finally take responsibility of the problem.
- Do not blame the problem on fellow employees, upper management or others who may ultimately be responsible. Offer an apology for what has occurred and more importantly, a solution to the customer.
The type of customer who assumes superiority over all personnel and management:
- Not to let him push you around. Employees should stick to their game plans and provide service in the manner they know is appropriate and equitable for all concerned.
- The best way is to tell him/her in a straightforward fashion exactly what you can do for him.
The type of customer who uses tricks or verbal abuse to acquire services without paying:
- In many cases, dealing with this kind of customer will involve giving him/her what he/she wants.
- Develop new policies to prevent this kind of customers in the future.
Improving the service and sales marketing
Both the marketing and sales departments are very important to the company although the sales department generates more profits. But it is obvious that the service department of Sullivan’s Motor World has always been a problem in the business. Carol’s father had never been very interested in the parts and service business, seeing it simply as a necessary adjunct of the dealership. When customers are not satisfying with their services, he would just ignore all the problems and let other employees handle it. In the language of economics, both goods and services provide utilities they are offered to satisfy needs, both present and emergent. To consider services as entirely divorced from products is to disregard that both are related to specific needs, corporate or personal. Therefore, it is important take both service and sales into account when considering making improvements of its marketing.
Suggestions for improving the marketing:
- The first marketing technique to be applied should be marketing research, which is concerned with objective analysis and identification of needs, motivations, socio-economic groupings, age, geographic location, etc. this systematic approach enable macro market demand to be defined into market segments with defined characteristics to guide market strategy. However, the company has already been doing it by doing customer satisfaction surveys. Therefore, Carol should concentrate on the result of the survey in order to improve customer satisfaction.
- The next marketing technique which can be applied to the service market is strategic planning. Planning, whether of products or services, is the foundation from which all other corporate decisions proceed. It entails developing services aimed to satisfy the needs of particular kinds of clients as identified through marketing research. Strategic planning should be done thoroughly: it includes the setting of objectives, market target figures, promotional policies, distributive arrangements, tactical selling operations, etc. the planning stage should include the development of new services: innovation in the service industries is as vital as in product markets. Marketers of services should monitor their markets and be prepared to innovate by offering new or improved services. Clearly, it will be advantageous for service industries to identify, though research, key accounts and to devise strategies to win this business by offering specialized services. Therefore, Carol can try to introduce a service which the company is not offering in order to make improvement. For example, set up a membership style of service to offer benefits to customers. Customers have to pay for joining a certain type of member and they will only have to pay a certain amount of payment when they come back for other services. It will increase profits for the service department by receiving membership fees and also customers will come back for other services if they join the membership.
In addition, Carol can also introduce membership to the business to increase profits and this can also help to increase customer retention. Customers have to pay a fix amount of fees to join its members and they will get discounts for any services in the future. However, the two marketing techniques can only act as guidance for Carol. There are several things has to be done before the company making recovery. For example, redecorate the service department and provide training to employees about how to handle difficult customers.
Conclusion
In conclusion, Carol now has to make a decision of whether to sell the business or attempt a turnaround. In my opinion, there is still a chance for the Motor World to attempt a turnaround although it might involve a lot of hard works. Carol should firstly improve the service department because it has always been a problem for the business and may be the reason that drove customers away. Customer is the main subject which a company has to consider if it wants to be successful. In order to attract new customers and retain the existing customers, the company has to provide good service to satisfy them. However, by attempting a turnaround can also increase the value of the business if Carol is thinking of selling it in the future.
