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In order to gain a greater understanding of marketing in service sector.

Extracts from this document...

Introduction

Introduction In order to gain a greater understanding of marketing in service sector, I will be looking at the case study of the Sullivan's Motor World and critically analyzing its service market. Sullivan Motor World is a company selling both new and used vehicles. The owner Walter Sullivan who set up this business in 1977 had died recently and his daughter Carol Sullivan-Brown was asked to temporarily assume the position of general manager of the dealer-ship. Carol was working in the travel industry and her employer had given her a six weeks leave of absence to put her father's affairs in order. When she was reading the financial statement of the company, she has realised that the company is in financial difficulties and its revenue has been decreasing. In addition, she has also noticed some problems within the service department which has lead to poor customer satisfaction. It is her decision now to either sell the business or save the business by making some improvement. This report will be containing the following topics: - The difference between the marketing of service and the marketing of good * Differences between the sales and service department * The comparison of the sales and service departments - The differences between car industry and travel industry * The service classification schemes - The service flowchart and failure points * Flowchart and its failure points * Recommendation of improvements - Handling difficult customer * Types of difficult customers and how to handle them - Improving the service and sales marketing * Marketing techniques * Recommendations The difference between the marketing of cars and marketing service for cars The major differences between the marketing of service and the marketing of goods are most commonly attributed to four distinguishing characteristics, ...read more.

Middle

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. ...read more.

Conclusion

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. ?? ?? ?? ?? 1 ...read more.

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