Service Industries Marketing - Essay Example

Service Marketing Table of Contents Second Experience 3 Service Marketing 4 Marketing Plan 5 Establishing a Competitive Edge 5 Continuum of Service 6Customer Service Policy 6 Solving Customer Problems & Queries 7 Consumer Equity 8 Service Guarantee 8 7Ps of Service Marketing Mix 9 Supplementary Service 13 Relationship Marketing 14 References 16 Bibliography 18 Second Experience In my second visit to Starbucks store it had the similar ambience with slight changes in the surrounding. The theme of the store was changed. Colorful store banners and merchandizes were displayed that gave a complete fresh look to the store. The changing of the theme according to the season was an excellent move of Starbucks to maintain a harmony. To make the store a greater place for meeting with friends or for a date, the theme is changed and this helps in attracting consumers. This time I experienced certain artworks of Starbucks designers. There were certain commuter mugs and T-shirts that depicted the city’s personality. The food items were fully covered in order to maintain the hygiene. But it was especially done to uphold the pleasing aroma of the coffee in the store (Thompson, n.d.). The music played in the store was soothing and enthralling. It provided peaceful ambience. With this type of calm environment, it seemed to enrich the taste. The atmosphere was pleasant that pleased everyone especially the couples present in the store (Michelli, 2007). The ambience of the store provides a cozy and intimate atmosphere. It is a perfect place where one can break free from the clamor of the fast-paced world. People can relax, escape into a book; friends can huddle on a sofa and chat over a mug of coffee. Overall it provides a unique magnificent ambience (Starbucks Coffee Company, 2010). Service Marketing For the enhancement of the service level Starbucks has referred employees as partners. In the year 2002, Starbucks has employed 60,000 partners globally. When Mr. Howard Schultz was associated with the company he believed that satisfaction of the consumers will be generated and enhanced with the partner’s satisfaction (Tewell & Et. Al., 2006). The key success for Starbucks is through enhancement of the service. Starbucks being in the business of coffee retail chain needs to focus enormously upon the service quality that will enhance the satisfaction of the consumers aiming to attract them back to the store again. Providing warm reception and friendly service will make the consumers feel more satisfied and these will increase the sales (Tewell & Et. Al., 2006). Marketing Plan There are numerous approaches for the service marketing in the coffee retail sector. Starbucks has been in this industry for a longer period of time and consumers have a set of perception towards the company. The biggest challenge for Starbucks is to enhance the service marketing thorough various applications of service marketing concepts. Consumers normally visit coffee stores during their leisure hours in order to relax and get a quality service and be satisfied through the product and service offerings (Kandampully & Et. Al., 2001). Establishing a Competitive Edge The extension in the service beyond the expectations of the consumers provides a better opportunity for enhancing the satisfaction level. It becomes a highly uncertain scenario to expand the provided services and is subjected to affect the consumers’ level of expectation and the service provided. This can be managed if Starbucks applies strong understanding of desires, wants and demands of the consumers and use creative ideas to provide their consumers with better hospitality services with extensive service strategy and innovation. The strategy will not only develop the expansion of the service but also it will monitor the affects and enhancements, which will lead to more innovative ideas in order to improve the service level that will ultimately benefit the consumers (Kandampully & Et. Al., 2001). Continuum of Service To enhance the service quality it is important for a face-to-face encounter with the consumers. The perceptions of quality service of the consumers are generated from diversity of experience with service provider over a time period. Therefore, it is very important for the service providers of Starbucks not only to take care of personal experience of the consumers but also the activities that precedes and follows (Kandampully & Et. Al., 2001). The interaction needs to be friendly in nature by providing certain suggestions of the offers, new product launches and schemes. The consumers should be provided with ample space for relaxation. Enhanced service level of interaction will make the consumer’s remember the quality of service that will in turn generate loyalty towards the store. Customer Service Policy Starbucks needs to draft the service policy related to the consumers and should communicate it to all the employees. The employees should be well versed with the customer service policy. To enhance the quality of service, it offers employees incentives or bonuses to perform exceptional customer service. Since every consumer has different needs, wants and concerns, the employees need to be flexible with each consumer and serve them according to their needs and wants. The rewarding system will enhance the satisfaction level of the employees; it will help in improving the service provided towards the consumers. This will generate quality service and it will act as a standard practice for the new employees. They will also inculcate the culture, which will help to maintain the service level. Solving Customer Problems & Queries In this industry the consumers’ switching cost is very high. Special care is required to be taken regarding the problems that the consumers face in the store. Regular response on Starbucks website in order to solve the queries of the consumers will generate positive impact and they will be encouraged to come to the store. The complaints need to be well managed. The problems arising regarding the parking for visiting the store, against the product, against the staffs, against the environment, ambience or anything must be heard and their problem should be solved. This will lead to positive impact upon the consumers and they will be delighted that their complaints are being solved. The satisfaction level will increase and this will help in building loyal consumers. Consumer Equity For Starbucks, it is imperative to know its consumer equity that will help in detecting the satisfaction level and enhance the service level. A certain level of satisfaction is required from a provided service for a consumer to refer it to another consumer. Once he or she is satisfied with the level of satisfaction level he or she will refer to others. Consumers are most likely to inform the message to their friends, colleagues and families (John, 2003). The identification of the consumers who make significant amount of purchases and frequently visit the store are the loyal consumers. Starbucks must provide them with special services with the aim that they feel royally treated and can benefit from the service (John, 2003). The level of service should be equal for everyone and the consumers should be treated equally but extra-attention should be focused upon the loyal consumers. Service Guarantee The consumers always need to be promised what is guaranteed. The guarantee of service is the biggest challenge. There is less chance to recall a service as it is probable with the physical components and its value attached with it. Consequently, guarantees are significant and influential practices that will help in reducing the consumers’ perceived risks. The level of prediction a consumer will make is the promise that Starbucks is going to provide certain services. To enhance the service level the commitment towards the promise must be ensured. Once the commitment is made and strictly followed there is every possibility of enhancing the service of the store. 7Ps of Service Marketing Mix Product The product is a significant component of service marketing. The product design and the quality help in satisfying the consumers. The product offering enhances the service that Starbucks provides. The level of satisfaction a consumer derives from the product helps in enhancing the service level. Once the consumers are happy with the product they are satisfied with the level of service too. The new introduction of different variety of coffee enhances the taste of the consumers and satisfies them. Quality of the product makes changes in the attitude of the consumers even if there is certain lack in the offered service that can be adjusted through the product offering (The McGraw-Hill Companies, n.d.). Price The flexibility and offerings in price strategy are important as that will help in adding value to the service level. There are certain offerings that attract more consumers towards the product. To enhance the service there are several offerings and discounts that minimize the effect of poor quality of service especially for loyal consumers (The McGraw-Hill Companies, n.d.). In certain cases when Starbucks has failed or has not catered quality service the offerings in term of discounts and gifts offerings will help in maintaining the relationship and minimize the effect of low standard service. Place Starbucks’ locations are normally in the best suited place that provides a relaxed environment. Place in terms of ambience can increase the level of satisfaction. This will help in providing the service to be executed properly and make the consumers delighted through their service (The McGraw-Hill Companies, n.d.). In order to properly serve the consumers, there need to be ample space for movement of the consumers and employees that will reduce the stress level while serving and help them to serve properly. The design of the store helps in effective service flow. Promotion To enhance the level of service, it needs to be well communicated first. People have different perceptions about the service of Starbucks. If the promotion of the enhanced service quality is communicated in a proper manner then it can change the perception level of the consumers. They expect the service to be up to a certain level. Starbucks needs to provide the service that has been promoted and promised (The McGraw-Hill Companies, n.d.). This way the standards are compared and they endeavor to provide the level that has been committed to the consumers. The drawbacks can be easily identified and immediately rectified that helps in maintaining the same level of service. People Starbucks treats their employees as partners. This helps in creating a sense of ownership and work towards the enhancement of service. The employees must be trained in the practice of delivering service (The McGraw-Hill Companies, n.d.). If differences are found or employees are facing difficulties in providing service or not being able to maintain the satisfactory level of service, they should be evaluated and provided with adequate training. The additional training will help in increasing the skills of the employees to offer better service level, which will ultimately delight the consumers. People are important in this industry as there is more interaction of the consumers with the employees. The employees need to learn the art of tackling the consumers with a smile in their face always and a warm welcoming friendly environment. Physical Evidence Service is intangible but it can be measured in different terms. The facility design, signage, Starbucks’ store banners and employees are the physical evidence towards the consumers that are present to delight them with different service providing capabilities. To find out the level of satisfaction there is another option. The complaints and feedback system and the solution offerings of Starbucks have enhanced the service level. Fewer complaints regarding the service will ensure that there is increase in the service level that has been able to delight the consumers. If more complaints are received regarding the service it implies failure in the service providing facility. These are the measuring techniques through which the service can be enhanced by evaluating the actual standards and the performance (The McGraw-Hill Companies, n.d.). Process In Starbucks, the level of consumers’ involvement is high and thus the process needs to be highly customized according to the service offered. The flow of activities needs to be highly monitored to develop the process of delivering the service (The McGraw-Hill Companies, n.d.). The process should be highly flexible in order to customize the service offering according to the consumers’ demand with the ambience changes. The flexibility will allow independence in serving and enhance the quality of service. The process acts like a blueprint of consumer-focus by meeting consumers’ expectations. It helps in the value creation towards the service delivery through the process modification. Supplementary Service (Lovelock & Wirtz, 2004). Information, order-taking, billing and payment are facilitating elements in the service offerings. Consulting, hospitality, safekeeping and exceptions are enhancing elements of the service offerings. Combination of facilitating and enhancing elements improve the quality of service level. Starbucks needs to combine these two elements properly to derive the quality of service offering that will help in establishing the standard of service facility. Easy evaluation of offerings and standards will establish the measure to enhance the quality of service offerings. Relationship Marketing The relationship marketing not only benefits Starbucks but it also benefits the consumers. These benefits are confidence, social and special treatment benefits. The confidence benefit arises from the trust or equally from low feeling of anxiety with the company. This is regarded as the most vital benefit that a consumer requires (Mudie & Pirrie, 2006). Social benefit frequently arises when the consumer obtains extra technical advantage of the service. Starbucks has become the part of consumers’ life support structure. When the service reaches the social benefit level consumers derive this benefit (Mudie & Pirrie, 2006). Special treatment benefits are provided through the preferential treatment as a loyalty scheme. In Starbucks this can be achieved through certain offerings in this category of consumers through concessions or certain rewarding systems (Mudie & Pirrie, 2006). These three benefits are expected by the consumers and enhancing the service quality will make Starbucks achieve the three levels and be efficient to provide the benefits. This will help in improving the quality of service. References John, J., (2003). Fundamentals of Customer-Focused Management: Competing Through Service. Greenwood Publishing Group. Kandampully, J. & Et. Al., (2001). Service Quality Management in Hospitality, Tourism, and Leisure. Routledge. Lovelock, C. & Wirtz, J., (2004). Services Marketing: People, Technology, Strategy 5/e. Prentice Hall. Retrieved Online on December 21, 2010 from http://www.lovelock.com/associates/images/news/SM5ScottsdalePresentation.pdf Mudie, P. & Pirrie, A., (2006). Services Marketing Management. Butterworth-Heinemann. Michelli, J. A., (2007). The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary. McGraw-Hill Professional. Starbucks Coffee Company, (2010). Starbucks in Australia. About Us. Retrieved Online on December 21, 2010 from http://www.starbucks.com.au/Starbucks-in-Australia.php Thompson, (No Date). Crafting And Executing Strategy 14E (Sie). Tata McGraw-Hill. Tewell, K. & Et. Al., (2006). Starbucks Marketing Plan. Franklin College. Retrieved Online on December 21, 2010 from http://www.franklincollege.edu/pwp/BOdom/SampleWorkStarbucks.pdf The McGraw-Hill Companies, (No Date). Introduction to Services. Service Marketing. Retrieved Online on December 21, 2010 from http://docs.google.com/viewer?a=v&q=cache:lsOjjH2RsnAJ:pegasus.cc.ucf.edu/~borrieci/Chap01.ppt+7+p%27s+of+service+marketing+site:edu&hl=en&gl=in&pid=bl&srcid=ADGEESgG0nKj1XKaZkuZpCHZCYe57WQVY13-8RjvYr57V48lrhAjsmQucIPclxSpm-DQ_P96QWu6rMFOUOiw0lcl7OpwxpLAeAf1DYoJl_ZfeDO8z1pcJGKQcisY8hF8gC7qP4uEPHs1&sig=AHIEtbQ4P0IuD4nxlfCm_L9Q0HG7lpjOag&pli=1 Bibliography Bruhn, M. & Georgi, D., (2006). Services Marketing: Managing the Service Value Chain. UK. Pearson Education. Kotler, P. & Et. Al., (2006). Marketing for Hospitality and Tourism. Pearson Education. Lovelock, C. & Et. Al., (2007). Services Marketing: An Asia-Pacific And Australian Perspective Frenchs Forest. NSW: Pearson Education. Lovelock, C. & Et. Al., (2009). Essentials of Services Marketing. Pearson Education. Starbucks Coffee Company, (2010). Sustainable Design And Build Methodologies Are Part Of Our DNA. Store Design. Retrieved Online on December 21, 2010 from http://www.starbucks.com/coffeehouse/store-design Read More