Today, much of the world economy is dominated by the service sector. In the U.S., approximately 78% of the labor force, 73% of the GDP, 45% of an average family’s budget, and 32% of exports are accounted for by services. Yet, many traditional business schools continue to focus on the manufacturing sector of the economy. The focus of this course is threefold. First, service organizations differ from goods organizations and require their own distinctive approach with regards to the development and execution of marketing strategy. Secondly, goods organizations need to acknowledge the service aspects of their organizations and how service can be used as a source of competitive advantage. Finally, service is dynamic and has different meaning around the world.
- Understand the unique challenges involved in marketing and managing services.
- Identify differences between marketing in services and manufacturing organizations.
- Identify and analyze the various components of the “services marketing mix”– the original — 4Ps plus the physical environment, processes, and people.
- Understand and discuss key issues required in managing customer satisfaction and service quality.
- Appreciate the role of employees (and often customers) in service delivery, customer satisfaction, and service recovery.
- Consider the use of technology to enhance service delivery.
- Appreciate other key issues in service businesses such as managing supply and demand, relationship management, and the overlap in marketing/operations/human resource systems.
- Examine what constitutes effective “service” delivery in different parts of the world.