I. LOCATOR INFORMATION

• Semester: Spring 1996
• Course: MKTG 675 Services Marketing
• Credit Hours: 3
• Meeting Time: Tuesday at 6:00 p.m.
• Location: SBE 116
• Instructor: Dr. Khalid M. Dubas
• Office Location: SBE 316
• Office Phone: 486-1983
• E-mail: kdubas@sbe1.uncfsu.edu
• URL: http://www.uncfsu.edu/w2/fac/dubas
• Office Hours: MWF 9:00- 10:00 a.m. & 11:00 a.m. - Noon, Tuesday 5-6 p.m. Other Times by Appointment

II. COURSE DESCRIPTION

This course focuses on the distinctive aspects of marketing a service. The course discusses the process by which the needs of buyers are identified, relevant services designated, priced, promoted, and delivered. Special emphasis will be given to marketing professional and technical services, as well as financial and health-care services. The issues and concepts of services marketing are explored through the utilization of cases and computer-based exercises.

III. COURSE FORMAT

Class discussions and lectures relating to the assigned chapters, cases, computerized exercises, assignments utilizing library resources and term project.

IV. REQUIRED TEXT

• Christopher H. Lovelock (1996), Services Marketing, third edition. Englewood Cliffs, NJ: Prentice Hall.
• Gary L. Lilien (1993), Marketing Management: Analytic Exercises for Spreadsheets. San Francisco, CA: The Scientific Press.

V. RECOMMENDED TEXTS

• John E. G. Bateson (1991), Managing Services Marketing: Text and Readings, 2nd edition. Orlando, FL: The Dryden Press.
• James L. Heskett, W. Earl Sasser, and Christopher W. L. Hart (1990), Service Breakthroughs: Changing the Rules of the Game. New York, NY: The Free Press.
• Bernard Katz, (1988), How To Turn Customer Service into Customer Sales. Lincolnwood, IL: NTC Business Books.
• Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry (1990), Delivering Quality Service. New York, NY: The Free Press.

VI. COURSE OBJECTIVES

The objectives of this course are as follows:

• Introduce students to the important role played by services in the marketplace.
• Strategic management of the service delivery process.
• Improving the quality of services in a competitive environment.
• Perform computer-based analysis of managerial problems for service organizations.

VII. EVALUATIVE CRITERIA

The final grade will be tabulated as follows:

30% Lilien Exercises
20% Case Analysis
25% Term Project
25% Company Analysis
100%

VIII. GRADING SCALE

The letter grade will be calculated as follows:

A = 90% - 100%
B = 80% - 89%
C = 70% - 79%
F= <70%

Week /Subject Matter

1. Ch. 1. Distinctive Aspects of Services Marketing
2. Ch. 3. Developing Frameworks for Services Marketing
   Appendix: Studying and Learning from Cases pp. 513-516
3. Ch. 2. The Customer Experience
   Term Project Topic Approval
4. Ch. 4. Positioning a Service in the Marketplace
5. Ch. 5. Managing the Customer Portfolio
   Case: Sullivan's Auto World
6. Ch. 6. Managing Demand
7. Ch. 7. Creating and Delivering Services
   Term Project Progress Report
8. Spring Recess
9. Adding Value to Core Products with Supplementary Services
10. Ch. 8. Understanding Costs and Delivering Services
11. Ch. 9. Communicating and Promoting Services
12. Ch. 10. Developing and Managing Customer-Service Function
    Term Project Progress Report
13. Ch. 11. Improving Service Quality and Productivity
14. Ch. 12. Organizing and Implementing the Marketing Effort
15. Globalizing Services Marketing
16. Student Presentations
    Projects Due
17. Student Presentations
    Projects Due

• Transportation;
  Airlines
• Utilities
• Financial Services:
  Banking
  Savings & Loans
  Nonbank Credit Agencies
• Brokerage Firms
• Hotel & Lodging Places
• Personnel Services:
  ex. Kelly services
• Business Services:
  Accounting Firms, Advertising Agencies, Legal Services, Tax Help ex. H & R Block, Marketing Research Firms, Postal Service, Telephone Service, Restaurants, Schools/Universities, Hospitals
• Repair Services
• Recreation:
  Cable TV, Aquarium
• Protection Services:
  Police Service, Fire Department, The 911 Emergency Service, National Defense
• Church

I. Introduction

II. Strategic Plans

• Mission Statement
• Strategic Corporate Plans
• Strategic Marketing Plans
• Marketing Objectives
• Target Markets
• Marketing Mix

III. Situation Analysis (SWOT Analysis)

• Financial Analysis
• Financial Ratio Analysis
  
• Marketing Analysis
• Marketing Mix, Market Share, Sales, Profits

IV. Major Problems and Opportunities

V. Possible Solutions for the Major Problems

VI. Summary

VII. References

Appendix

• Sales Forecast
• Estimates of Marketing Costs
• Break-even Analysis
• Annual Report

• Globalization of Services
• Marketing Opportunities Arising from New Technology ex. Internet
• Market Segmentation and Positioning/Repositioning of Services ex. Marriott's Courtyard
• Pricing of Services
• Creating and Delivering Services
• Promoting Services Advertising Sales Promotion Personal Selling Publicity
• Improving Service Quality and Productivity
• Organizing for Services Marketing - Centralization vs. Delegation The Marketing Function The Operations Function The Human Resources Function
• Building a Customer-Oriented Organization
• Innovation in Services Marketing Strategies Organizational Structures
• Industrial Services

I. Introduction

• Introduce the Topic
• Purpose and Scope

II. Literature Review

III. Framework

• Synthesize Concepts into a Coherent Framework

IV. Discussion

V. Conclusions

VI. References

Appendix

Gary L. Lilien (1993), Marketing Management: Analytic Exercises for Spreadsheets. San Francisco, CA: The Scientific Press.

• Introduction
• Chapter 1. Introduction
• Chapter 2. Using the Exercise Spreadsheets in Lotus 1-2-3
• EXAMPLE: Advertising Response spreadsheet that illustrates how the system works (p. 13).
• Chapter 3. The Working of Markets
• Consumer Behavior Models
• CONSUME: A comparison of consumer behavior models (p. 175).
• MARKOV: Market share dynamics under the Markov process brand switching (p. 184).
• MAP: Market segmentation/brand positioning according to consumer tastes (p. 183).
• Organizational Buying
• BUYCENT: How multiple individuals combine their preferences to make a buying decision for an organization (p. 169).
• Segmentation
• MAP: (See above).
• Demand Assessment
• EXPER: Analyses of a price/advertising experiment using regression (p. 177).
• HERSHEY: Use of business profitability/sensitivity map to project demand (p. 180)
• REGRESS: Use of multiple regression to forecast product demand (p. 193)
• Chapter 4. Marketing Tactics
• Product Design Decisions
• CONSUME: (See above, Chapter 3.)
• MAP: (See above, Chapter 3.)
• Pricing Decisions
• CONCORN: (Concorn Kitchen Case) Setting price, promotion, and advertising levels for two types of grocery products (p. 133).
• EXPER: (See above, Chapter 3.)
• LEARN: Pricing over time with the learning curve (p. 181).
• PRICE: Optimal pricing with two different demand functions (p. 189).
• PRICEAD: Setting price and advertising when the effects interact (p. 190).
• VALUE: Pricing using value-in-use analysis (p. 199).
• Distribution Decisions
• OUTLET: Allocation of retail building resources across markets (p. 188).
• Advertising Decisions
• ADBUDG: (Castle Coffee Company) Advertising budgeting case (p. 130).
• COMPAD: Setting advertising levels in a competitive market (p. 173).
• CONCORN: (See above.)
• EXAMPLE: (See above, Chapter 2.)
• EXPER: (See above, Chapter 3.)
• PRICEAD: (See above.).
• SALEAD: Setting an optimal advertising/salesforce budget (p. 194).
• VIDALE: Carryover effects of advertising through the Vidale-Wolfe model (p. 201).
• Sales Promotion Decisions
• PROMO: Allocation of promotional expenses across sales territories (p. 192).
• Salesforce Decisions
• SALEAD: (See above.)
• Chapter 5. Marketing Plans & Strategies
• Marketing Strategies
• GE: Use of GE multifactor portfolio matrix (p. 178).
• Marketing Mix Interaction
• PRICEAD: (See above, Chapter 4.)
• SALEAD: (See above, Chapter 4.)
• Market Definition and Competitive Response
• COMPAD: (See above, Chapter 4.)
• MAP: (See above, Chapter 4.)
• New Product Analysis
• CASHFLOW: A spreadsheet for new product planning (p. 170).
• TRIALRPT: Use of trial/repeat framework for analyzing test market sales (p. 197).
• Chapter 6: Using What We've Learned
• Chapter 7: Cases
• Chapter 8: Exercise Questions
• Chapter 9: The Exercises in Excel

• Section I: Understanding Services
• Brown, Stephen W., Raymond P. Fisk, and Mary Jo Bitner (1994), "The Development and Emergence of Services Marketing Thought," International Journal of Service Industry Management, 5 (1), 21-48.
• Henkoff, Ronald (1994), "Service is Everybody's Business," Fortune,(June 27), 48-60.
• Section II: Strategic Issues in Services Marketing
• Lipin, Steven, Brian Coleman, and Jeremy Mark (1994), "Pick a Card: Visa, American Express and MasterCard Vie in Overseas Strategy," The Wall Street Journal, (February 15), A1, A6.
• Maister, David H. (1993), "Measuring Marketing Success," Professional Marketing, (September), 4 pages.
• Shostack, G. Lynn (1987), "Service Positioning Through Structural Change," Journal of Marketing, 51 (January), 34-43.
• Brandenburger, Adam M. and Barry J. Nalebuff (1995), "The Right Game: Use Game Theory to Shape Strategy," Harvard Business Review, (July-August), 57-71.
• McKenna, Regis (1995), "Real-Time Marketing," Harvard Business Review, (July-August), 87-95.
• Collis, David J. and Cynthia A. Montgomery (1995), "Competing on Resources: Strategy in the 1990s," Harvard Business Review, (July-August), 118-128.
• Section III: Tools for Service Marketers
• Douglas, Torin (1988), "The Power of Branding," Business Life, (April/May), 4 pages.
• Maddox, Kate, Mitch Wagner, and Clinton Wilder (1995), "Making Money on the Web," INFORMATIONWEEK, (September 4), 31-40.
• Legg, Donna and Julie Baker (1987), "Advertising Strategies for Service Firms," in Add Value to Your Service, Carol Surprenant, ed., pp. 163-168. Chicago, IL: American Marketing Association.
• Maister, David H. (1993), "Why Cross-Selling Hasn't Worked," The American Lawyer, (October), 4 pages.
• Berry, Jonathan, John Verity, Kathleen F. Kerwin, and Gail DeGeorge, (1994), "Database Marketing: A Potent New Tool for Selling," Business Week, (September 5), 9 pages.
• McCarthy, Michael J., and Bridget O'Brian (1994), "Fare Combat," The Wall Street Journal, (February 28), 4 pages.
• Hargrove, Earnestine (1988), "Conjoint Study Lends Support to Financial Decisions," Marketing News, p. 28.
• Green, Paul E. and Yoram Wind (1975), "New Way to Measure Consumers' Judgments," Harvard Business Review, 53 (4), 107-115.
• Wind, Jerry, Paul E. Green, Douglas Shifflet, and Marsha Scarbrough (1989), "Courtyard by Marriott: Designing a Hotel Facility with Consumer-Based Marketing," Interfaces, 19 (1), 25-47.
• Hart, Christopher W. L. (1995), "The Power of Internal Guarantees," Harvard Business Review, (January-February), 64-73.
• Drucker, Peter F. (1995), "The Information Executives Truly Need," Harvard Business Review, (January-February), 54-62.
• Anderson, James C. and James A. Narus (1995), "Capturing the Value of Supplementary Services," Harvard Business Review, (January-February), 75-83.
• Smith, Scott (1996), Multidimensional Scaling Tutorial, http://msmonline.byu.edu/emp/sms/mds.html, pp. 1-4.
• Smith, Scott (1996), Conjoint Analysis Tutorial, http://msmonline.byu.edu/emp/sms/conjoint.html, pp. 1-6.
• Dobias, Arthur P. (1990), "Designing a Mouse Trap Using the Analytic Hierarchy Process and Expert Choice," European Journal of Operational Research, 48, pp. 57-65.
• Section IV: Challenges for Senior Management
• Devlin, Susan J. and H. K. Dong (1994), "Service Quality From the Customers' Perspective," Marketing Research, 6 (1), 5-13.
• Byrne, John A. (1993), "The Horizontal Corporation," Business Week, (December 20), 9 pages.
• Heskett, James L., Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and Leonard A. Schlesinger (1994), "Putting the Service-Profit Chain to Work," Harvard Business Review, (March-April), 12 pages.
• Serwer, Andrew E. (1994), "McDonald's Conquers the World," Fortune, (October 17), 103-116.
• Mauer, Laurence J., and Mary E. Guthenberg (1992), Total Quality Management in Education: A Case Study, College of Business Administration, St. John's University, New York, 22 pages.

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FURTHER READINGS
• New Product Development & Management
• Crawford, C. Merle (1994), New Products Management. Boston, MA: Irwin.
• Green, Paul E., and Abba M. Krieger (1987), "A Consumer-Based Approach to Designing Product Line Extensions," Journal of Product Innovation Management, 4, 21-32.
• Page, Albert L., and Harold F. Rosenbaum (1987), "Redesigning Product Lines with Conjoint Analysis: How Sunbeam Does It," Journal of Product Innovation Management, 4, 120-137.
• Urban, Glen L., and John R. Hauser (1993), Design and Marketing of New Products. Englewood Cliffs, NJ: Prentice-Hall.
• Cost-Benefit Analysis
• Mishan, E. J. (1988), Cost-Benefit Analysis. Boston, MA: Unwin Hyman. Part I. Some Simplified Examples of Cost-Benefit Studies. Chapter 1. Introductory. Chapter 2. A Underground Railway. Chapter 3. Disease Control. Chapter 4. Reservoir Construction. Chapter 4. An Under-river Tunnel. Chapter 5. Cost-Benefit Capacity Adjustment. pp. 1-21.
• Strategy
• Benedetto, C. Anthony (1987), "Modeling Rationality in Marketing Decision Making with Game Theory," Journal of the Academy of Marketing Science, 15 (4), 22-32.
• Zeithaml, Valarie A., A. Parasuraman, and Leonard L. Berry (1985), "Problems and Strategies in Services Marketing," Journal of Marketing, 49, 33-46.
• Significance Tests
• Market Facts, Inc. (19??), "The Logic of Statistical Significance Tests," in Research on Research, Report No. 36, pp. 1-6.
• Statistical Software
• Dubas, Khalid M. (1996), Statistical Analysis System at Fayetteville State University. School of Business & Economics, Fayetteville State University, 11 pages.
• Forecasting
• Urban, Glen L., Bruce D. Weinberg, and John R. Hauser (1996), Premarket Forecasting of Really-New Products," Journal of Marketing," 60 (January), 47-60.
• Bayus, Barry L., Saman Hong, and Russell P. Labe, Jr. (1989), "Developing and Using Forecasting Models of Consumer Durables: The Case of Color Television," Journal of Product Innovation Management, 6, 5-19.
• Thomas Robert J. (1987), "Forecasting New Product Market Potential: Combining Multiple Methods," Journal of Product Innovation Management, 4, 109-119.
• Jacob, M. F. (1985), "A Time Series Approach to Modeling Daily Peak Electricity Demands," paper presented at the SAS Users Group International Annual Conference, Reno, Nevada.
• Andrews, Bruce H. and Shawn M. Cunningham (1995), "L. L. Bean Improves Call-Center Forecasting," Interfaces, 25 (6), 1-13.
• Market Positioning
• Augustine, Andre J. S., William J. Long, and John Pantzallis (1992), "Hospital Positioning: A Strategic Tool for the 1990," Journal of Health Care Marketing, 12 (1), 15-23.
• Green, Paul E., Frank Carmone, and Scott Smith (1988?), Multidimensional Scaling.
• Lewis, Robert C. (1985), "The Market Position: Mapping Guests' Perceptions of Hotel Operations," The Cornell Hotel & Restaurant Administration Quarterly, 26 (August), 86-99.
• Ries, Al. and Jack Trout (1986), Positioning: The Battle for Your Mind. New York: NY: Warner Books.
• Schiffman, Susan S., M. Lance Reynolds, and Forrest W. Young (1981), Introduction to MDS. Orlando, FL: Academic Press.
• Market Segmentation
• Robles, Fernando, and Ravi Sarathy (1986), "Segmenting the Commuter Aircraft Market with Cluster Analysis," Industrial Marketing Management, 15 (February), 1-12.
• Ronen, Simcha, and Oded Shenkar (1985), "Clustering Countries on Attitudinal Dimensions: A Review and Synthesis," Academy of Management Review, 10 (July), 435-54.
• Pricing
• Hawes, Jon M., Michael F. D'Amico, and Thomas L. Baker (1995), "Simultaneous Use of Break-Even and Demand Analysis for Pricing Decisions: A Teaching Method," Journal of Education for Business, (May/June), 285-289.
• Coats, R. Morris (1995), "Peak-Load Pricing and Facility Utilization in Higher Education," Journal of Marketing for Higher Education, 6 (2), 15-25.
• The Boston Consulting Group, Inc. (1972), Perspectives on Experience. Boston, MA: The Boston Consulting Group.
• Marketing in the New Interactive Media
• Special Issue of Marketing Review, (1996), 51 (6). A publication of the New York American Marketing Association.
• Service Quality
• Bolton, Ruth N. and James H. Drew (1991), "A Longitudinal Analysis of the Impact of Service Changes on Customer Attitude," Journal of Marketing, 55 (January), 1-9.
• Chao, Chiang-nan, and Khalid M. Dubas (1995), "A Short-Term Business Training Program for Chinese Managers at a U.S. University," Journal of Eduction for Business, (May/June), 300-304.
• DeSarbo, W. S., L. Huff, M. Rolandelli, and J. Choi (1994 or after) "On the Measurement of Perceived Service Quality: A Conjoint Analysis Approach," in R. Rust and R. Oliver (eds), Handbook of Service Quality, Sage Press, forthcoming.
• DeSarbo, W. S., M. Wedel, M. Vriens, and V. Ramaswamy (1992), "Latent Class Metric Conjoint Analysis," Marketing Letters, 3 (3), 273-88.
• Dubas, Khalid M. and James T. Strong (1993), "Course Design Using Conjoint Analysis," Journal of Marketing Education, (Spring), 31-36.
• Hart, Christopher W. L. (1988), "The Power of Unconditional Service Guarantees," Harvard Business Review, (July-August), 54-62.
• Parasuraman, A., Valarie A. Zeithaml, and Leonard L. Berry (1985), "A Conceptual Model of Service Quality and Its Implications for Future Research," Journal of Marketing, 49 (Fall), 41-50.
• Reichheld, Frederick F. and W. Earl Sasser, Jr. (1990), "Zero Defects: Quality Comes to Services," Harvard Business Review, (September-October), 105-111.
• Valarie A. Zeithaml, Leonard L. Berry, and A. Parasuraman (1988), "Communication and Control Processes in the Delivery of Service Quality," Journal of Marketing, 52 (April), 35-48.
• Relationship Marketing
• Special issue on relationship marketing: Journal of the Academy of Marketing Science, fall 1995, 23 (4).
• Other Topics
• Berry, Leonard L. (19??), "The Employee as Customer," Journal of Retail Banking, 3 (1), 33-40.
• Blois, K. J. (1983), "The Structure of Service Firms and Their Marketing Policies," Strategic Management Journal, 4, 251-261.
• Chase, Richard B. (1978), "Where Does the Customer Fit in a Service Operation?" Harvard Business Review, (November-December), 137-142.
• Christopher H. Lovelock, and Robert F. Young (1979), "Look to Consumer to Increase Productivity," Harvard Business Review, (May/June), 168-178.
• George, William R., and Leonard L. Berry (1981), "Guidelines for the Advertising of Services," Business Horizons, 24 (4), 52-56.
• Katz, Karen L., Blaire M. Larson, and Richard C. Larson (1991), "Prescription for the Waiting-in-Line Blues: Entertain, Enlighten, and Engage," Sloan Management Review, (Winter), 44-53.
• Main, Jeremy (1981), "Toward Service Without a Snarl," Fortune, (March 23), 58-66.
• Journal of Retailing, Spring 1993, vol. 69, no. 1. Special Issue on Services Marketing.

Note: Every group will turn in SWOT Analysis for each case before the discussion of a case.

Date    Group   Title                                           Pages
2/ 5    Class   Sullivan's Auto World                           76-81

3/12    Class   Federal Express: Business Logistics Services    ------

3/19    A       Singapore Airlines                              ------                          

3/26    B       Boston Center for Adult Education               92-107          

4/ 2    C       Metropole Base-Fort Security Group              82-91

4/ 9    A       Shouldice Hospital Limited                      467-482

4/16    B       Vancouver Public Aquarium                       324-337

4/23    C       Air BP: Aviation Service Centers                ------- 

4/30            Last Day of Class: Project Presentations.  All Projects due.
----------------------------------------------------------------------------

Group   Members
  A     Gerald Speight, Larry Swart, and Sedrick Utley
  B     Stacy Bell, Gary Greene, and Jo Anne Williams
  C     Ron Lavoie, Sherard Rogers, and Leicer Wade

1. Executive Summary
2. Situation Analysis (SWOT Analysis)
   Detailing important issues relating to the case.
3. Problem Statement
   Stating the problem as broadly as possible.
4. Alternatives Specifications
   Specifying alternative solutions to the problem.
5. Evaluative Criteria
   Specification of criteria to be used to evaluate the alternatives.
6. Analysis of Alternative Solutions
7. Select the Best Solution and Implementation Plan
8. Summary