The document provides guidelines for students completing a group assignment on developing a new service proposal. It outlines the key elements to address for each part of the marketing mix as it relates to the new service. For the product section, students are asked to classify the new service, describe how it adds value for customers, and identify which areas of the service quality model it improves. They should also propose a branding strategy for the new service and whether it will be associated with an existing brand.

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.  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
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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)
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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?
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Which category? Explain why.

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)
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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
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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. 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)
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There are 3 parts for this section.

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
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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
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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
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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
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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)
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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
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