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JAIPUR NATIONAL UNIVERSITY, JAIPUR

School of Distance Education & Learning

Internal Assignment No. 2

Master of Business Administration (MBA)

Paper Code: MBAM106

Paper Title: Service Marketing

Last date of submission: Max. Marks: 15

Note : Question No. 1 is of short answer type and is compulsory for all the students.

It carries 5 Marks. (Word limits 50-100)

Q. 1. Answer all the questions:

(i) Define classification of services.

Ans. Services can be defined as,Activities, benefits and satisfactions which are offered for sale or are provided in connection

with the sale of goods are known as services.

Core Services: A service that is the primary purpose of the transaction. Eg: a haircut or the

services of lawyer or teacher.

Supplementary Services: Services that are rendered as a corollary to the sale of a tangible

product. Eg: Home delivery options offered by restaurants above a minimum bill value.

(ii) Define service delight.

Ans. Service Delight cab defined as the very favorable experience of the client of

a business when they have received a good orservice that significantly surpasses what they had

initially anticipated. A marketing department can use instances of customer delight toa company's advantageby requesting referrals and obtaining testimonials from

delighted customers that can help attract new customers.

(iii) What is service recovery?

Ans. Service Recovery means that a service breakdown has occurred and the problem hasbeen corrected to the customer satisfaction and its goal is to retain customer loyalty. Usually, it is

practiced in terms of :

Apologizing; Listening and Empathizing; Asking open questions, Fixing the problems quickly

and fairly; Offer atonement; Keeping promises; Follow-Ups
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(iv) Define the role of branding in service marketing.

Ans. Once you realize that every successful business is grounded on its unique and appealing

brand, theres no denying the importance of branding in service marketing. The goal is to make iteasy for consumers to relate your brand to a specific product or service. In this way, your

company name, logo, and brand are not just symbolsthey are the face of your company that

customers picture when they require the product or service you offer. The role of branding in

service marketing is that it helps a company initiates to determinebased on their existing

reputation, competencies, customers, and competitorshow they should situate themselves for

optimal differentiation and market effectiveness.

In the following ways branding if helpful in service marketing:

Delivery of the Message Clearly Creation of Business Credibility Connection of the Customer to the Product Motivation of the Buyer

(v) What are the dimensions of service environment?

Note: Answer any two questions. Each question carries 5 marks (Word limits 500)

Q. 2. Discuss the importance of service sector in the Indian economy.

Ans. The current situation in India is that the growth rate of services has overtaken both

agriculture and industry and is now more than 50% of GDP. The services sector has the highest

growth rate and is the least volatile sector. Growth is particularly marked in public services, IT

and financial services. In some areas the growth rate of the services sector is 40-50% due to

increased use of mobile technologies.

India therefore has a services-oriented economy. It hasnt followed traditional growth models (as

in China) in that it has skipped the manufacturing stage and has jumped straight from the

agricultural stage to services. Growth in the services sector will support growth in the

agricultural and industrial sectors, although growth in manufacturing, which causes pollution is

not so desirable in terms of job creation and increased prosperity.

As Indias population grows so too does the number of dependents in the lower and higher age

groups. For the economy to grow it has to invest. Currently the public sector invests more than it

saves. The household sector saves in surplus, but this is not increasing so it cannot continue to

support private and public sectors. There is a massive need to spend on health and education,

particularly the education of women, in order to reduce the birth rate. In South India the number
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of women in the population outnumbers men, so the development of the south of India will

depend on the education of women.

In the next two decades (a growth window for India which may not come again because the

working population to total population ratio increases up to mid 2030s) it will be important for

India to absorb the growing labour force if the services sector is to play an important role. Indiais in a strong position to do this since it has a history of using English for communication, which

in turn supports global trade and finance. Only the services sector can have a major impact on

poverty. Improvements in agriculture are not having an effect on poverty. To address poverty

there is a need to move people from bad sectors to good sectors or from unemployment to

employment. This is happening with growth in human skills intensive sectors such as hotels,

restaurants and IT, but there are geographical, labour unions and human skills restrictions on

labour movement.

The key question raised at the conference wasCan services lead the economy?

For example, can services, such as IT, be taken to rural areas? This has been done in Andhra

Pradesh, where the people have been educated through TV and IT with resulting reductions in

infant mortality, poverty and fertility rates. So it seems that services could lead the economy, but

there needs to be greater equality between the different States and a better gender balance. There

is also the need for additional fiscal capacity, tax reforms to fund education, reduction in

government debt and the revenue account must be kept in balance. Progress is good but still

initial conditions for growth have not yet been achieved.

Q. 3. Explain the recent global trends in marketing of services.

Ans. 2013 is poised to be an exciting year for service marketers; trends that have been takingshape over the course of the past decade are creating new opportunities for business owners.These initial years of the 21st century brought economic problems, corporate collapses and

environmental disasters, but it was also a decade defined by a shift in communications from

traditional media to a worldwide conversation that flows faster and farther than anyone could

have imagined.

With those economic, cultural, political and environmental events, as well as the advances intechnology and the global online conversation in mind, following are 10 trends that affect all

areas of marketing of services, and will shape marketing strategy throughout 2013 and beyond.

1. Transparency and trust are paramount.Brands that make a concentrated effort to be honest and open in their marketingcommunications will generate positive consumer responses, which can lead to brandloyalty and brand advocacy. Building trust is the most important thing in 2013, and once

you've earned it, you need to make sure you keep it. In other words, transparency and

trust are not a one-time thing. They're an ongoing effort.

2. Less interruption, more enhancement and value-add.The days when ads and marketing messages were developed for the sole purpose of


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getting the attention of consumers are over. People expect more (or in the case of

interruptions, less) from businesses and brands. Give them more by ensuring your

marketing communications and efforts deliver useful and meaningful value.

3. Speaking of value . . .Rather than spending money frivolously, consumers began seeking out deals, using

coupons and actively looking for the biggest bang for their buck. When the economyrecovers, that behavior will not disappear immediately. Be prepared for the consumerfocus on value to continue well beyond 2013, and build marketing campaigns with that

consumer demand in mind.

4. Show it, don't tell it.Consumers are more skeptical than ever, and you need to prove your marketing claims.

Don't just tell consumers about your product, business or services, show them what's in it

for them if they pull out their hard-earned money and buy from you.

5. Social media is not going away, and engagement is critical.Twitter, Facebook, blogs, YouTube, and other tools of the online social community are

not going anywhere. In 2013, it's critical that your business joins the social web

conversation, and you must engage consumers on the social networking sites. Give themamazing content and interact with them to fully leverage the power of the social media.

6. Peace-of-mind messages prevail.Consumers have lived through a wide variety of negative events over the past several

years, from economic turmoil to environmental disasters and more. They're activelyseeking marketing messages that give them a feeling of peace of mind. Try to

communicate a feeling of security in your marketing efforts to meet this need.

7. Relationships rule.Leverage the social web to interact with people around the world and build relationships

that wouldn't have been possible a decade ago. When you build relationships with

consumers, you also build a band of brand loyalists that can become your most powerful

source of word-of-mouth marketing, brand advocacy and brand guardianship.

8. Online video and mobile marketing are hot.You can create your own online video content or mobile content, or you can invest in

online video or mobile advertising. The choice is yours, but there is no better time tojump in than right now!

9. Focus, focus, focus!As the first decade of the 21st century unfolded, marketers and social media professionalsbegan using the term niche more and more to identify highly focused products, websites,

blogs and so on. Today, that strategy is even more important. Build your core and keep it

as strong as possible before you try to extend your brand and branch out into new areas.

10.Integrated marketing trumps stand-alone tactics.You can make your brand, your business and your messages stand out by surrounding

consumers with branded experiences and allowing them to choose which of those

experiences they want to consume. For example, use online advertising, online video,

custom content, point-of-sale collateral, and ads with consistent messaging to engageconsumers in different parts of their lives. If you're consistent and persistent, your

messages are more likely to connect with your target audience--raising brand awareness,

recognition, purchases and loyalty.


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Q. 4. What kind of pricing approaches are used by service industry? Discuss its benefits

associated with company and customer.

Ans


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JAIPUR NATIONAL UNIVERSITY, JAIPUR

School of Distance Education & Learning

Internal Assignment No. 1

Master of Business Administration (MBA)

Paper Code: MBAM107

Paper Title: Product & Brand Management

Last date of submission: Max. Marks: 15

Note : Question No. 1 is of short answer type and is compulsory for all the students.

It carries 5 Marks. (Word limits 50-100)

Q. 1. Answer all the questions:

(i) Difference between cost and price?

Ans. Price and Cost are two words that appear alike due to the similarity in their connotations.Strictly speaking there is difference between the two words.

Price is the amount of money or goods for which a thing is bought or sold. In other words it canbe said that price is the value or worth of a product or a service. the

Cost on the other hand is the expenditure involved in the manufacture of a thing or a product.

Thus cost determines the price of a product or a service. Price does not determine the cost.

(ii) What do you mean by staple goods?

Ans. Products purchased regularly and out of necessity. Traditionally, these items have fewermarkdowns and lower profit margins.

While price shifts may raise or lower demand for certain kinds of products, the demand for staple

goods rarely changes when prices change.

Also Known As: Staples, Core Products, Necessity Goods

Consumer goods (such as bread, milk, paper, sugar) that are bought often and

offerlittle differentiation and are usually compete on the basis ofprice.

(iii) Define brand?

Ans. Traditional view: A brand is a name, term, sign, symbol, or design which is intended to

identify the goods or services of one seller or group of sellers and to differentiate them from

those of competitors.

A brand is a persons gut feeling about a product, service or organization.

A brand defines the relationship customers have with us. A brand is a promise we make to our customers and to ourselves. A brand is shaped by each experience customers have with the firm.
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A brand differentiates the product from similar offerings.(iv) With an example explain upward stretching of brands.

Ans. Upward Stretching:The introduction of a new product into an already established line ofproducts whereby thenewly introduced product comes in at a lowerprice point is known as upward stretching of

brands. This kind of stretching increases the prestige of an existing range of product.

Example: Toyotabrands upward stretching is Lexus which increased its prestige. This upward

stretching is also a risky step, because it may fail to gain customer acceptance and the ability to

purchase this product. :

(v) What are the characterstics of STAR in BCG matrix?

Ans. BCG matrix has four cells which are called as stars, cash cows, question marks and dogs.

Stars- Stars represent business units having large market share in a fast growing industry. They

may generate cash but because of fast growing market, stars require huge investments to

maintain their lead. Net cash flow is usually modest. SBUs located in this cell are attractive asthey are located in a robust industry and these business units are highly competitive in the

industry. If successful, a star will become a cash cow when the industry matures.

Note: Answer any two questions. Each question carries 5 marks (Word limits 500)

Q. 2. What is branding? What are major branding related decisions a marketer has to make?

Q. 3. What is a new product? Discuss the entire development process in brief.

Ans. New products are goods and services that differ significantly in their characteristics orintended uses from products previously produced by the firm.

Businesses focus on designing new products and selling these products to customers. The

company's goal with creating new products involves two parts. The first part consists of finding a

product that customers want to pay for; only products that customers purchase produce revenue

for the business. The second part consists of beating competitors to market. The first company to

offer a product generates the greatest number of repeat customers.

The process of creating a new product involves nearly every department in the organization.

Many companies create a new product development team. The team includes representatives

from the purchasing department, research and development, the production area, accounting and

marketing. The purchasing and accounting representatives contribute financial data regarding the

new product. The purchasing representative contacts vendors and provides material cost

information to the team. The accounting representative uses the material cost information,

estimated labor costs and calculates the total product cost. The accounting representative also
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calculates a potential profit margin using the anticipated selling price from the marketing

department.

New Product Development:

The development of original products, product improvements, product modifications, and new

brands through the firms own R&D efforts Or New products can also come from acquisition of

other companies, patents, or licenses

Idea Generation-Sales force, Customers, Employees, R&D specialists, The competition,Suppliers, Retailers, Independent inventors.

Screening-Screening separates ideas with commercial potential from those that cannotmeet company objectives.

Business Analysis-The business analysis consists of assessing the new products marketpotential, growth rate, likely competitive strengths, and compatibility of the proposed

product with organizational resources. Development-Converting an idea into a physical product Requires interaction among

many of the firms departments. Prototypes may go through many changes. Test Marketing-Introduction of a trial version of a new product supported by a complete

marketing campaign to a selected city of television coverage. Commercialization- is stage, the firm establishes marketing strategies,

and funds outlays for production and marketing.

Q. 4. Write short notes on any two out of the following:-

New Product Development Process


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(i) Brand Mascot.

(ii) GE model.

(iii) Market penetration strategies.

Ans. Short Notes

Brand Mascots

The term mascotdefined as a term for any person, animal, or object thought to bring luck

colloquially (informally) includes anything used to represent a group with a common public

identity, such as a school, professional sports team, society, military unit, orbrand name.

Mascots are also used as fictional, representative spokespeople for consumer products, such as

the rabbit used in advertising and marketing for the General Millsbrand ofbreakfast cereal, Trix.

Mascots oradvertising characters are very common in the corporate world. Recognizable

mascots such as Chester Cheeto, Keebler Elf, Fruit of the Loom Guys, Pizza Pizza Guy for LittleCeasars, Rocky the Elf, Coca Cola Bear, and the NBC Peacock. These characters are typically

known without even having to refer to the company or brand. This is an example ofcorporate

branding, and soft selling a company. For example many corporate mascots can attend non-profit

events, or sports and promote their brand while entertaining the crowd. Some mascots are simply

cartoons or virtual mascots, others are characters in commercials, and others are actually created

as costumes and will appear in person in front of the public at tradeshows or events.

In the world of sports, mascots are also used for merchandising. Team mascots are often

confused with team nicknames. Costumed mascots are commonplace, and are regularly used

as goodwill ambassadors in the community for their team, company, ororganization such as the

U.S. Forest Service's Smokey Bear.

Market Penetration Strategies

Market penetration is one of the four growth strategies of the Product-Market Growth

Matrix as defined by Ansoff. Market penetration occurs when a company penetrates a market in

which current or similar products already exist. The best wayto achieve this is by gaining

competitors' customers (part of their market share). Other ways include attracting non-users of

your product or convincing current clients to use more of your product/service (by advertising

etc.). Ansoff developed the Product-Market Growth Matrix to help firms recognize if there was

any advantage of entering a market. The other three growth strategies in the Product-Market

Growth Matrix are:

Product development(existing markets, new products): McDonalds is always within thefast-food industry, but frequently markets new burgers.

Market development(new markets, existing products): Lucozade was first marketed forsick children and then rebranded to target athletes.

Diversification(new markets, new products): Mohen A.S, Bion Products, Selectron Ltd, bk
http://en.wikipedia.org/wiki/Luckhttp://en.wikipedia.org/wiki/Schoolhttp://en.wikipedia.org/wiki/Professional_sportshttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/University_societyhttp://en.wikipedia.org/wiki/Military_unithttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Trix_Rabbithttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/General_Millshttp://en.wikipedia.org/wiki/Breakfast_cerealhttp://en.wikipedia.org/wiki/Trix_(cereal)http://en.wikipedia.org/wiki/Advertising_characterhttp://en.wikipedia.org/wiki/Fruit_of_the_Loom_Guyshttp://en.wikipedia.org/wiki/Corporate_brandinghttp://en.wikipedia.org/wiki/Corporate_brandinghttp://en.wikipedia.org/wiki/Soft_sellhttp://en.wikipedia.org/wiki/Athletic_nicknamehttp://en.wikipedia.org/wiki/Good_faithhttp://en.wikipedia.org/wiki/Ambassadorhttp://en.wikipedia.org/wiki/Communityhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Smokey_Bearhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Igor_Ansoffhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Market_developmenthttp://en.wikipedia.org/wiki/Market_developmenthttp://en.wikipedia.org/wiki/Diversification_(marketing_strategy)http://en.wikipedia.org/wiki/Diversification_(marketing_strategy)http://en.wikipedia.org/wiki/Diversification_(marketing_strategy)http://en.wikipedia.org/wiki/Market_developmenthttp://en.wikipedia.org/wiki/Product_developmenthttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Igor_Ansoffhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Product-Market_Growth_Matrixhttp://en.wikipedia.org/wiki/Smokey_Bearhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Communityhttp://en.wikipedia.org/wiki/Ambassadorhttp://en.wikipedia.org/wiki/Good_faithhttp://en.wikipedia.org/wiki/Athletic_nicknamehttp://en.wikipedia.org/wiki/Soft_sellhttp://en.wikipedia.org/wiki/Corporate_brandinghttp://en.wikipedia.org/wiki/Corporate_brandinghttp://en.wikipedia.org/wiki/Fruit_of_the_Loom_Guyshttp://en.wikipedia.org/wiki/Advertising_characterhttp://en.wikipedia.org/wiki/Trix_(cereal)http://en.wikipedia.org/wiki/Breakfast_cerealhttp://en.wikipedia.org/wiki/General_Millshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Trix_Rabbithttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Military_unithttp://en.wikipedia.org/wiki/University_societyhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Professional_sportshttp://en.wikipedia.org/wiki/Schoolhttp://en.wikipedia.org/wiki/Luck


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"Penetration is a measure of brand or category popularity. It is defined as the number of people

who buy a specific brand or a category of goods at least once in a given period, divided by the

size of the relevant market population."

The penetration that brands and products have can be recorded by companies such

as ACNielsen and TNS who offer panel measurement services to calculate this and other

consumer measures. In these cases penetration is given as a percentage of a country's householdswho have bought that particular brand or product at least once within a defined period of time.
http://en.wikipedia.org/wiki/ACNielsenhttp://en.wikipedia.org/wiki/ACNielsen

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