Mba 2020 - 2020-2020 MBA 2020 2020 PDF

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HR Smart Exam Midterm 20202
HR Smart Exam Midterm 2020
HR Smart Exam Midterm 2020
HR Smart Exam Midterm 2020
HR Smart Exam Midterm 2020...

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Arab Academy for Science and Technology Graduate School of Business Smart Village

Midterm Exam Course Name: Marketing Management

Lecturer Name: Ahmed Elsamadicy

Exam Date: Fall 2020

Exam Duration: 90 minutes

Name : Saleh Aboul Fotouh Saleh ISSA Registration # :19223884 Answer the following essay questions: 1. During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap. Answer#1 When discussing marketing strategy development, Kotler introduces the strategic planning gap: Assessing growth opportunities includes Planning new businesses, downsizing, and terminating older businesses. If there is a gap between future desired sales & projected sales, corporate management will need to develop or acquire new businesses to fill it. The following figure illustrates this strategic-planning gap for a major manufacturer of blank compact disks called Musicale (name disguised). The lowest curve projects the expected sales over the next five years from the current business portfolio. The highest describes desired sales over the same period.

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Bridging the strategic planning gap There are several ways to bridge the gap: intensive growth (identifying further growth opportunities within existing businesses); integrative growth (building or acquiring businesses that are related to current businesses); and diversification growth (adding businesses that are unrelated to existing businesses). For intensive growth opportunities, businesses should review four types of growth and their associated marketing strategies: Intensive growth Some options for intensive growth include identifying new customer groups within existing sales areas, developing additional distribution channels, or selling in new markets, such as those in other countries. The product-market expansion table below (aka Ansoff growth matrix) is a helpful tool to evaluate various options, starting with existing markets and products and eventually reviewing market expansion. Marketing Strategies

Markets

Products

Strategy

Current

Current

Market Penetration

New

Current

Market Development

Current

New

Product Development

New

New

Diversification

Integrative growth After examining intensive growth strategies, the next step is to consider integrative growth strategies. Integrative growth typically involves backward, forward, or horizontal integration with an industry. Horizontal integrations result in buying competitors, often smaller ones. Backward integrations reach into the value chain to acquire suppliers. Forward integration involves buying distribution channels in the front of the value chain closest to the customer. Acquiring or establishing partnerships with suppliers, distributors and competitors are common integrative growth strategies. Integrative growth presents their own challenges as merging business models, internal processes, and cultures can often go awry. There are large costs to combing organizations and their associated channels, partners, and customer bases.

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Diversification growth Diversification growth can be achieved through several strategies. A concentric strategy would involve offering a new product or service to a different group of customers. A horizontal strategy would involve selling related new products to existing customers. Finally, a conglomerate strategy would consist of creating an entirely new set of products or services. Disney, for example, branched out from being an animated film producer to licensing characters, becoming a broadcaster with its own cable channel, and publishing books under a separate brand.

Changes in marketing Kotler shares his high-level perspective on how the definition of marketing has changed over the years: Kotler says the mantra of marketing is: “Create, Communicate, and Deliver Value to a Target market at a Profit”. “Create value” equates to product management; “communicate value” is brand management (communicating excitement and differentiation) and “deliver value” is customer management. He goes on to talk about the changes in each of these disciplines. Product management once consisted of making things based on an internal viewpoint and then asking sales and marketing to “get rid of it.” Today companies like Procter and Gamble connect with scores of scientists outside their walls to solve problems. Product development is no longer about closed doors. P&G will tap resources anywhere in the world to solve problems. For example, P&G found someone to help them print on potato chips, which required a multi-disciplinary approach to be successful. Today, this type of open innovation leverages outside experts and resources to create new products and services. Brand management used to be packaging, name, and logo. Brand management now is a promise and inspires everything a company does do. Today, brand management defines the way you act. It is emotional. Previously, it used to be going after the consumer’s mind and heart. Now, says Kotler, we want not only mind- and heart-share, we also want spirit share. A share of something more than just narrow interests. As a result, customers often choose civic and caring firms (i.e., corporate social responsibility). Customer management no longer consists of simply having a database of customers to be reached through direct mail and on-line campaigns. Now, companies want to co-create products and advertising through open innovation.

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2. Clarify the marketing mix for service sector and why services are more difficult to be controlled and explain the service characteristics as well. Answer#2 A service business is one in which the perceived value of the offering to the buyer is determined largely by the services provided to him than the products offered. This includes the business of all intangible services delivered to the customer. Some of the tangible services where both the goods and services are provided to the customer, like restaurants and supermarkets, also come under the purview of the services marketing. The spectrum of services range between the degree of intangibility and tangibility of the offerings delivered to the user. Some offerings are clearly services like enjoyment of movie, art exhibition or an athletic event. Some of the service offerings also have the product component like the buying of contact lenses also requires proper eye examination and evaluation of the vision parameters are the offerings of the service in the process. - 1. Meaning and Definitions of Service 2. Concept of Service 3. Characteristics 4. Importance 5. Classification 6. Nature and Role of Service Marketing 7. Marketing Mix for Services 8. Factors Affecting the Channel of Distribution of Services 9. Differences between Goods and Services 10. The Customer Service Gap Model 11. Growth of Service Marketing 12. Problems in Marketing of Services

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Service: Definitions, Concept, Characteristics, Importance, Classification and the Customer Service Gap Model Service – Meaning and Definitions Marketing, on the whole, can be divided into goods marketing and services marketing. Although according to Philip Kotler, besides goods and services, a marketer also markets eight other entities like Events, Experiences, Persons, Places, Properties, Organizations, Information and Ideas; yet it is generally clubbed together and is widely known as goods and services. In marketing, services marketing essentially deals with the products, which are intangible in nature. Services are created through a direct interaction between the service provider and the customers. Goods are physical, tangible articles, while Services are nonphysical and intangible in nature and can also satisfy a need like goods. Financial services – Banking, Telecom, DTH, Courier, Hotel, Airline, Multiplex, Train, Doctors, Lawyers, Healthcare and Management Consultancy are all examples of services. With the advancement in the economy, a country moves from a goods producing country to a service oriented country. For example, USA, which is one of the most developed countries in the world, is having a 21% – 79% mix of goods and services. Services can be defined as following: ‘A service is any activity or benefit that one party can offer to another, which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.’ – Kotler, Armstrong, Saunders and Wong ‘Services are economic activities that create value and provide benefits for customers at specific times and places as a result of bringing about a desired change in – or on behalf of – the recipient of the service.’ – Christopher Lovelock A service business is one in which the perceived value of the offering to the buyer is determined largely by the services provided to him than the products offered. This includes the business of all intangible services delivered to the customer. Some of the tangible services where both the goods and services are provided to the customer, like restaurants and supermarkets, also come under the purview of the services marketing. The spectrum of services range between the degree of intangibility and tangibility of the offerings delivered to the user. Some offerings are clearly services like enjoyment of movie, art exhibition or an athletic event.

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Some of the service offerings also have the product component like the buying of contact lenses also requires proper eye examination and evaluation of the vision parameters are the offerings of the service in the process. Services are all or mostly tangible. In some cases the physical evidence will be there of transaction that took place but the work done to execute the transaction will be tangible. The example may be cited of the service rendered by the Attorney in preparing the will document of his client as the tangibility may be seen as the physical evidence in preparing the document while the brain work done to prepare the same may be intangible. The inseparability of the buyer and service provider may be seen on many occasions while designing and delivery of the services. This is called as simultaneity. The services cannot be stored, warehoused or otherwise kept on hand for sometime when the demand is high. The services are also time-sensitive as they cannot be back ordered. The services are largely need-based and called for immediate attention or delivery to the customer. The doctor’s services are required when there are patients. Some of the services are provided to cover the risk irrespective of its immediate need. The example may be cited of an insurance company who serves the client till he or his life insurance is alive without looking for instant or short-run benefits. Since a large number of services are highly intangible, it is difficult to measure and control the quality and they cannot be standardized like products. This makes it difficult for the customer to evaluate the quality and for employers to measure and control the quality. The quality of the services can be assessed largely on the behavioral dimensions of the customers and service providers. In view of the difficulty of quality assessment of the services it is always risky for the customer to purchase the same. The services are largely delivered as per the customer’s prescription unlike products which are often standardized. The interior consultants, tailors, restaurants and the like render the customized services. However, there are some services that have standardized deliveries like ATM services of banks. Many services are process rather than discrete transactions and the talents and attitudes of the person or team providing the service can dramatically alter the outcome and the level of customer delight.

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The buyer-provider relationship in service marketing as the knowledge, skill, communication and customer-friendly attitude of buyer and provider determine the quality of service and the degree of customer satisfaction.

Service – Concept of Services Services are the major component and somehow influenced by the service motives of any business. The service are much needful to develop and make safeguards of customers interest. Moreover, services are complementary and decisional part of marketing. According to Philip Kotler: “A service is any activity or benefit that are being an offer to another that is essentially intangible and does not result in the ownership of anything.” The characteristics of services are briefly stated here: (i) It is a core area or an activity or a task of business, (ii) It is a major component and denotes a parallel size of business, (iii) Services may be collateral activity and have a supplementary service to support the core area of business, ADVERTISEMENTS: (iv) A service is an act or performance offered by one party to another, (v) It is an ideology or concept or an approach based on customers’ orientation, (vi) A service is an economic activity that creates values and provides benefits for customers, (vii) The service process may be tied to a physical product and the performance is transitory, (viii) Services are based on the concepts of rational behaviour and the norms of ethical values, (ix) Services may be treated as the philosophical part in the form of art and a systematical part in the form of ‘science’,

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(x) It is prominent task to serve at the input as well as output stages in any value creation process, (xi) It serves as dynamic platform to accommodate professional attitudes, (xii) It is provided by a person who processes a particular skills, quality, competencies and learning aspects, (xiii) Services having the continuous process within their performance, (xiv) Services may be characterised as intangibleness, inseparability perishability, heterogeneity in nature and does not normally result in ownership of any resource, (xv) Service are based on different environmental factors.

Service – 6 Distinctive Characteristics Service, marketing academics and practitioners argued that services required special treatment as a result of their distinctive characteristic; intangibility, inseparability, heterogeneity and perishability. These characteristics were outlined during the “crawling out” stage. i. Intangibility refers to the fact that a large component of many service offers is immaterial or intangible and cannot be presented in a concrete manner to consumers prior to purchase. For example, a customer cannot touch the aerobics class prior to attending the class neither can assess the quality without attending the class. ii. Inseparability refers to the notion that, in much service operation the production and consumption cannot be separated, that is, a service is to great extent consumed at the same time as it is produced. For example, a hairdresser may prepare in advance to carry out the service, but most of the hairdressing service is produced simultaneously as the customer consumes the service. iii. Heterogeneity is closely related inseparability as it is very difficult to apply quality standards to services to ensure an identical service output, when so much depends on the cooperation and participation of individual customers. iv. Perishability refers to the fact that unlike physical goods, services cannot be stored. An appointment with the dentist, in contrast, at a given time on a given day, cannot be stored and offered again to the customer.

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A detailed insight of the distinctive characteristics of services is provided below: Characteristic # 1. Intangibility: Services cannot generally be seen, tasted, felt, smelt, heard before being bought. The potential customer’s is unable to perceive the service before the service delivery. Service is totally intangible and cannot be seen what is done. Intangibility presents problems in the sense that the customer may experience difficulty in knowing and understanding what is on offer before and even after in receipt of the service. The challenge for a service provider is to make the service tangible which implies resort to make some form of measurement and to providetangible evidence, e.g., computerised representation of hairstyle or a university prospectus. Service cannot be inventoried and therefore fluctuations in demand are often difficult to manage, e.g., resort owners have same number of rooms to sell year around but demand varies during peak and non- peak seasons. Services cannot be easily patented and new service concepts can therefore be easily copied by customers, Services cannot be readily displayed or easily communicated to customers, so quality may be difficult for consumers to assess. Decisions about what to include in advertising and other promotional campaigns are challenging as is pricing. The actual cost is difficult to be determined and so price quality relationship is complex. Levitt has suggested that there are no so such things as service industries, only industries where the service components are relatively greater than those in other industries. Similarly, Shostack has argued that there are few industries or activities that are purely goods based or a purely service based, and presents a continuum from tangible dominant goods to intangible dominant services. Kotler identifies four distinct categories of offerings, ranging from purely tangible goods, to tangible goods with accompanying services, to a major service with some accompanying goods, to pure services. Characteristic # 2. Inseparability: There is marked difference between physical goods and services in terms of the sequence of production and consumption. Sequence of Production and Consumption: a. Physical Goods b. Services c. Production

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d. Sale e. Storage f. Produced and consumed at the same time g. Sale h. Consumption Goods are first produced stored finally sold and consumed, whereas services are first sold then produced and consumed simultaneously. For various services at production site customers presence is must, e.g., counselling, rail travel, hotels, etc. Some services are produced and delivered in the absence of customers, e.g., carpet cleaning, plumbing, etc. Whatever be the nature and extent of contact the potential for inseparability of production and consumption remains. The involvement of customers in production and delivery of services implies service provider must take care in what is being produced and delivered. Proper selection and training of customer contact personnel are necessary to ensure the delivery of quality of services. Production and consumption are said to be separable, but for a service production and consumption are said to be inseparable where both must meet at a time and place which is mutually convenient in order that the producer can directly pass on service benefits, e.g., the service of the ATM machine can be realised if producer and consumer interact. Inseparability has number of marketing implications for services. First, goods are generally first produced then offered for sale and finally sold and consumed, inseparability causes this process to be modified for services. Services are sold first then produced and consumed while the method of goods produced is to a large extent of little importance to the consumer, production process are critical to the enjoyment of services. All service encounters have similarities. The “service encounter”, the provision and consumption of a service, is central to service experience and an understanding of service encounters involves an appreciation of a complex set of behaviours on the part of all involved in them. a. Waiting time – time spent in queues or in-process delays; b. Personal interaction – between participants, service provider, customers and others present; c. Expectations and perceptions – of service adequacy and quality.

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