Differences between marketing cars and marketing services for the same vehicles is the major reason because of which, Auto World is facing different issues in its operations. For example, zero-error strategy has been adapted before putting a used car in the showroom however,…
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However, according to Sullivan-Diaz, her father was never interested in services part of the business and it was only a necessary adjunct of the business. The problem starts right from here because Sullivan family has been unable to identify the strong interdependency between product sales and services.
Nowadays, marketing products and services are interdependent because of the changing consumers’ buying behaviour. Consumers make the purchase after considering how the services later on, will benefit them. However, at Auto World, a huge difference has been noticed between their efforts to market products and providing services. First, the showroom was built in modern building with latest facilities and ambient whereas, the services section was hidden behind the showroom and its building was old and greasy however, the equipment was latest. Second, services section had sufficient capacity to handle more repair work but the capacity was not being achieved because of the requirements of more mechanics and more focus of the staff towards unit sales.
The major difference between marketing products and service operations is that services require the personal contact or face-face meeting. At Auto World, the buyers of new cars were given a warm welcome however, whenever the same customer came for car services, he used to wait for many hours. The major reason is that marketing cars was being considered to be a highly efficient process whereas, service operations were very inefficient and even the service layout was not properly developed.
Auto World is offering tangible products and services to the customers, and both these components are contributing to create value for the customers. Therefore, company should give great focus towards both marketing cars and services operations. If the company has been able to introduce used cars after ensuring their full repair and maintenance, then it should be also efficient in its services operations.
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