Marketing Activities in the Service Industry - Essay Example

? Service Experience Report Reflection on my experience of critical service points in two service encounters Reflection on first service encounter Myfirst experience taught me that it is not necessary that the employees and managers in service sectors or tourism sectors may behave in the same manner. It should be noted that the employees of the Palazzo Versace Hotel, in Gold coast, have not been behaved properly with us whereas the manager has showed immense patience and character in hearing our complaints and settling it. Even though we had a voucher to use free spa area, the employees were not in a mood to allow us to use it. In fact, employees showed a negative at attitude towards customers like us, which is evident from the details posted in my blog 1. They tried to discriminate us from other customers. On the other hand, the manger was an understandable person who knows the importance of treating all customers equally well for the development of the business. He tried to settle the issues rather than complicating it. Thus, the manager’s behavior generated a good impression of the hotel in our minds. Moreover, the manager had shown high levels of maturity and responsiveness while attending our problems and settling it (Shiqi: Service Industries Marketing Blog 1) Reflection on second service encounter My second experience Palazzo Versace Hotel, in Gold coast is also generated mixed feeling about the customer services in hospitality industry. I encountered the best and worst customers’ service experience from this hotel at the same time. Check is has been taken more than half an hour which should be avoided to satisfy the visiting customers. The person who is charge of the check in operation was getting lot of phone calls and hence the customers forced to wait for a substantial period of time to find out their rooms. However, customer service after the check in process was satisfactory and outstanding. In short, the reception at the entry level was poor whereas the rest of the services were excellent. The receptionist and the welcome staff in this hotel need more training and empowerment. However, the rest of the services were outstanding (Shiqi: Service Industries Marketing Blog 2) Report: Customer servicing is the most important thing in any business in the modern era and the hospitality business is not an exception. Marketing activities in the service industry in the past concentrated mainly on the canvassing of customers at any cost. In order to attract customers to the hotels and restaurants, marketing executives provided fake offers and attractions to the customers. They concentrated more on attracting the customer rather than servicing the customer. They thought that their job is only to lead the customers towards their hotel or restaurant and the rest of the jobs should be look after by others. Modern customers are particular about the service they receive from hotels and restaurants. The reflections given at the top of this report clearly indicate the problems in customer servicing in service industries. This report analyses the critical service points/theme in the service encounters that are informed by services marketing theory and concepts, based on the above reflections. My analysis and evaluation of critical service points/theme in the service encounters that are informed by services marketing theory and concepts All the employees in a service organization should work for the betterment of the organization rather than the betterment of their careers alone. Even if a visiting customer experiences hundreds of good service from a hotel, one bad experience may prevent him from visiting that hotel again. In other words, all the employees should work collectively for the improvement of customer servicing. Responsiveness of the employees paly vital role in the success and failure of service organizations. Pleasant attitude, timely servicing, and helping mentality of the employees encourage customers to revisit the same hotel or restaurant regularly. It should be noted that the employees and the manager behaved differently to me when I visited hotel Palazzo Versace. Since a visitor interacts with the employees first, the behavior of the employees is important than the behavior of the manager in encouraging a customer to revisit a particular hotel or restaurant. It is impossible for a visitor to approach the manager for his requirements all the time. “According to the theory of the gaps model, perceived service quality can be defined as the difference between consumer expectations and perceptions which eventually depends on the size and the direction of four gaps concerning the delivery of service quality on the company’s side” (Theory of the gaps model in servicing organizations, 2005). The following illustration clearly explains the importance of theory of the gaps model in the marketing strategies of a service organization. (Theory of the gaps model in servicing organizations, 2005) Competition is getting tougher and tougher in the business world after the introduction of globalization and liberalization. It is difficult for a service industry to rely more on new customers for generating revenue. In fact returning customers are not only helping the organization to generate more profit, but also to improve the reputation of the hotel or the restaurant. It should be noted that mouth publicity is the most effective marketing strategy compared to other marketing strategies. A returning customer would definitely give positive feedbacks about the hotel to other potential customers so that the organization may benefit immensely. According to Roderick J. Brodie (2009), there are three types of marketing perceptions that influence a customer, employee and the organizational perceptions of the service brand. these perceptions are: External marketing (communication between the organization and customers making promises about the service offer). Interactive marketing (interactions between people working within the organization/ network and end customers that create the service experience associated with delivering promises about the service offer). Internal marketing (the resources and processes enabling and facilitating promises about the service offer involving the organization and people working in the organization). In my first “Reflection on second service encounter”, I explained about the differences in the service attitudes of the employees and the managers of a particular hotel. Even though, I received good service from the manager, same thing cannot be said about the services extended by the employees. Employees are the first persons, customer may come in contact. It is impossible for a manager in a service organization to interact with all the visitors. It is the duty of the employees to satisfy the customers as much as possible and avoid the complaints. Only the satisfied customers may give positive feedbacks about the service quality of a hotel. On the other hand, dissatisfied customers may provide negative feedbacks about the service quality of a particular organization. In short, mouth publicity depends heavily on the service extended by all the employees towards a customer. In short, the interactions between the customers and the employees of a service organization play a vital role in enhancing the reputation of the organization and improving the positive mouth publicity of the organization. The common denominator of most service definitions is “activities” or “processes.” This activity or process, in turn, implies applying something and doing something for the benefit of some entity. It is individual and organizational resources, especially specialized skills and knowledge (i.e., competences) that are being applied. Accordingly, service is the application of specialized competences (skills and knowledge), through deeds, processes, and performances for the benefit of another entity or the entity itself (self-service). Furthermore, this service is sometimes provided directly, and sometimes it is provided indirectly, that is, through the provision of tangible goods; goods are distribution mechanisms for service provision (Vargo & Lusch, 2004, p.326) It is not necessary that the employees of a service organization need to satisfy the customers using expensive strategies. Even a simple servicing can create fond memories in the minds of the customers which is evident from the incident (Masks that put on the table with a little lovely card with a sentence, “Enjoy it and Have a nice dream”), explained in my second reflection. Such a positive gesture may remain in the memories of the customers for a longer period. Innovation is the key for survival in most of the industries and the case of service industry is not an exception. It should be noted that Apple is the first company which introduced touchscreen phones. At present most of the other mobile phone manufacturers are trying hard to compete with the touchscreen phones of iPhones of apple. Same way, a service organization should develop innovative marketing strategies to attract new customers and also to retain existing customers. The needs of the modern customers or the tourists are different from the needs of the customers in the past. Science and technology is developing rapidly and so are the living standards and the needs of the people. For example, a television and telephone facilities were symbols of luxury in hotel rooms in the past. Current customers need internet facilities also inside their rooms. Based on the changing needs of the customers, service industries should make changes in their customer servicing strategies. Time is precious for everyone. In fact time is one of the rarest entities which is running beyond the control of human. In other words, human cannot stop accelerate or retard the normal time. Current generation is always complaining about the lack of time available for them to fulfill their commitments. Under such circumstances, customer service executives in service industries should make sure that unnecessary delays in servicing customers may not happen in their organization, as explained in my experience in the reflection 2. Services marketing are dominated by the 7 Ps of marketing namely Product, Price, Place, Promotion, People, Process and Physical evidence. While everyone knows about the 7 Ps of services marketing, the 8th P of Services Marketing has emerged in research very recently. The 8th P is Productivity and Quality (The 8 Ps of Services Marketing, n.d.) It is impossible for a product to excel in the market even if the reputation or brand image of the company is too good. Modern customers are not much particular about the brand images; they are particular about the quality of the product. For example, Apple is the most valuable technological company in the world. Many of its ‘I’ series products are labeled as examples of innovations. On the other hand, Samsung do not have the same reputation of Apple in consumer electronics industry. Yet their galaxy series smartphones such as S2 and S3 outclassed Apple’s iPhone 4 and 5. This is purely because of the focus given by the modern customers to the quality of a product rather than the image or reputation of the company. Same thing is true in the case of service industry also. Histories and reputations may not help a service organization to survive in the market. What matters at present to the customers are the services they are receiving at present. The marketing mix in service industry is getting modified as time goes on. Previously, marketing Gurus, talked about 7 Ps (Product, Price, Place, Promotion, People, Process and Physical evidence) and later they modified it as 8 Ps (adding Productivity and Quality to the 7 Ps). Nowadays, several other elements such as branding, channels of distribution, personal selling, advertising, promotions, display, servicing, physical handling fact finding etc are added to the existing elements of marketing mix in service industry. The marketing mix or servicing elements in hospitality industry is slightly different from that of other servicing industries. The Product Mix for a Hotel will typically include: Reception: – Welcome, Enquiry and signposts. Boarding: – Catering, restaurants and cafeterias. Lodging: – Bed, room, light, water, sanitation, ventilation and view. Entertainment: – TV, Dance, music, cultural shows and radio. Shopping: – shopping arcade, fairs and exhibitions. Personal Care: – Beauty parlor, hair cutting, gymnasium and jogging. Communication and transport: – Telephone, news, papers, magazines, reservations Medicals: – first aid / ambulance (Vora, 2010). Apart from the seven or eight Ps of marketing mix, there are four C’s in the marketing mix of service industry; cost, convenience, consumer and communication. Customers will revisit a hotel only if they are satisfied with the quality of service provided by the employees of that hotel. Moreover, they should feel that visiting that hotel again is convenient to them. Communication plays a vital role in the success and failures of an organization. In fact communication is the blood if the organization is the body. In other words, all the organizational functions are carried out through different types of communication processes. Delayed communication and absence of communication between the employees and the visiting customers of a service organization may demotivate the customers from revising that organization again and again. It should be noted that I forced to wait more than half an hour for the check in process at Palazzo Versace Hotel, in Gold coast. It is difficult for a busy customer to waste time for such simple activities. It is the duty of the reception employees to avoid time delay in welcoming or servicing the arriving visitors. Conclusions Service industry marketing strategies are extremely different from the marketing strategies in other industries. In service industry, the customer is the most important element, which determines the success and failures of an organization. Only the satisfied customers spread positive feedbacks about a particular service organization. On the other hand, dissatisfied customers may spread negative feedbacks and rumors about an organization. All the employees in a service organization should work together for the betterment of the organization. It is possible for a single employee to ruin the efforts of all the other employees. References Brodie, R.J. (2009). From goods to service branding: An integrative perspective. Sage. Volume 9(1): 107–111. www.sagepublications.com DOI: 10.1177/1470593108100064 Shiqi W. (n.d.). Service Industries Marketing Blog 1. Shiqi W. (n.d.). Service Industries Marketing Blog 2. Theory of the gaps model in servicing organizations, (2005). Retrieved from http://www.marketing.org.au/?i=mhOLQLXYtU8=&t=jZS6ngCVPug= The 8 Ps of Services Marketing. (n.d.). Retrieved from http://business-fundas.com/2011/the-8-ps-of-services-marketing/ Vargo, S.L. & Lusch, R.F. (2004). The Four Service Marketing Myths. Journal of Service Research, Volume 6, No. 4, May 2004 324-335. DOI: 10.1177/1094670503262946 Vora, Y. (2010). Marketing Mix of Hotel Marketing. Retrieved from http://mgmtfunda.com/marketing-mix-of-hotel-marketing/# Read More