SQ Project Guidelines (Part Two) - July 2013

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SQ Project Guidelines (Part Two) - July 2013

  1. 1. 1. Product 2. Price 3. Place SERVICE QUALITY (MKTG 1268) GUIDELINES FOR GR0UP ASSIGNMENT: NEW SERVICE PROPOSAL (PART TWO) (JULY 2013) Geoffrey da Silva
  2. 2.  Don’t describe the elements of the marketing mix  But instead focus on the implications of how the new service idea or proposal could impact on the development of the marketing mix  As you go through the SEVEN elements of the service marketing mix make sure you are writing about the NEW service and not the current business operations  ALSO where possible link back to how the marketing mix element could overcome one or more of the FOUR characteristics of services (Example intangibility, perishability, etc) FOCUS OF THE SERVICE MARKETING MIX 2
  3. 3. Product (and Branding) (10 marks) (What new service product/s are you offering? What kind of branding strategy will you adopt for the new service? 1. PRODUCT (FROM CHAPTER 4 CONTENT) 3
  4. 4.  Discuss and describe the nature of the new service offer  Categorize the new service – WHICH one of the seven categories does your new service belong to (refer to material from chapter 4) WHAT NEW SERVICE PRODUCT/S ARE YOU OFFERING? 4 Which category? Explain why.
  5. 5.  Try to explain the service concept from the customer point of view – what is he benefiting from this new service. How does the new service add value?  Is it core or supplementary  Core Product  Central component that supplies the principal, problem-solving benefits customers seek  Supplementary Services  Augment the core product, facilitating its use and enhancing its value and appeal NEW SERVICE PRODUCT (CONT’D) 5
  6. 6.  Which aspect (don’t describe the whole model) but show which particular areas does the new service add value to? LINK THIS TO THE FLOWER OF SERVICE 6
  7. 7. Choose among 3 broad alternatives:  Single brand to cover all products and services  A separate, stand-alone brand for each offering  Some combination of these two extremes  Explain the benefit of branding the new service  Does it have an association with the existing service brand or none – that means no association  Explain the rationale why BRANDING - WHAT KIND OF BRANDING STRATEGY WILL YOU ADOPT FOR THE NEW SERVICE? 7Pg
  8. 8. Price and Other User Outlays (5 marks)  (What are the costs involved in producing the new service? How will you cover them [what may be the potential sources of funding)?  What is the pricing structure of the new service?  Present a realistic budget and goals pertaining to the new service.) 2. PRICING (FROM CHAPTER 6 CONTENT) 8 There are 3 parts for this section.
  9. 9.  Purpose of this section is to give some idea of the feasibility of the new service and the profitability  Just provide some rough estimates  Example what sort of costs will be incurred for developing and running the new service?  Initial outlays like service development costs such as market research and testing of the service concept, new equipment, refurbishment of facilities (service-scape)  Operating costs such as labor, training, etc  From here you can then answer the 3rd part of this section – the budget and the goals COSTS AND FUNDING 9
  10. 10. How will you cover them? Means what kind of sales targets are roughly expected each year? What levels of CAPACITY (%) is needed to cover costs? Just provide rough figures. Funding Internal funding from current operations? Or external sources of funding from investors, raising capital through shares COSTS AND FUNDING 10
  11. 11.  Discuss what levels of pricing would be used for the new service  Is this higher or cheaper than your current service?  Justify why there is a price differential – value to the customer. Does your new service justify a higher price and why?  Discuss the segmentation strategy – which groups of customers are you targeting at for this new service?  Are there rate fences for your new service?  How would you use price to attract current and new customers?  How could you use pricing to retain loyal customers? PRICING STRUCTURE 11
  12. 12.  Budget means doing a simple pro-forma P&L  What is your sales estimate  What are your total operating costs (show the rough breakdown) and the estimate profit  Goals – this means your listing of some targets  How many customers per period  Average value of service order/purchase  Estimated capacity targets (utilization of service facility) – a % target BUDGET AND GOALS - PRESENT A REALISTIC BUDGET AND GOALS PERTAINING TO THE NEW SERVICE 12
  13. 13. Place and Time (5 marks)  (Where and when will the new service be made available? Provide justifications.)  Apply the classification –which ONE does your service delivery belong to? 3. PLACE (FROM CHAPTER 5 CONTENT) 13
  14. 14.  Where – location  Justify the location in terms of convenience, the value it provides the customer in terms of accessibility  Can the service be offered using the Internet? To what extent? Which aspect of the service could be offered through the internet  When – timing (availability)  Is the service 24/7?  Would you offer service variants to time sensitive customer segments at a price premium (example special delivery or consultations)  Justify your answers. WHERE AND WHEN 14

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