NUS BUSINESS SCHOOL
DEPARTMENT OF MARKETING
Course Outline
BMA5505 - Services Marketing
Instructor: Professor RAJIV Surendra
Office: BIZ 1 #08-20 (Mochtar Riady Building)
Telephone: +65-6516-3169
Email:
Session: Special Term I, 2011/2012
Venue: TBC
Time: Mon & Thurs 6:00pm – 9:30 pm
Secy.: Ms. Jothi S. (Email: )
Office Hour: By appointment
Course Overview
This course is designed for students interested in understanding services and helping organizations leverage service for value creation, market differentiation and competitive advantage. Services, for the purpose of this course, will be interpreted to include all activities in which a service is provided (possibly including a physical tangible product as part of it).
As statistics go, services account for 70%+ of the GNP in most developed economies. In a typical year, a majority of the business graduates go to work for service organizations. In the OECD countries, four out of every five members of the workforce holds a service sector job. Yet, the business curriculum generally focuses on the manufacturing sector of the economy and management theories relate largely to manufacturing firms.
Service management presents unique challenges that reflect the fundamental differences between products and services. For instances, services involve greater intangibility, variability, consumer participation and so on. These give rise to singular problems in service design, delivery and control. Successful management of these challenges requires threading together the functional disciplines of marketing, operations and human resources.
The set of topics covered in the course include:
· Understanding and Managing Customer Satisfaction
· Understanding of Service Experience – Customer Expectations and Perception of Services
· Understanding Consumer Behavior and Segmentation – Quantitative Tools such as Perceptual Maps, Conjoint Analysis and Cluster Analysis
· Analysis of Customer Purchase Process – Customer Activity Cycle: Its Strategic Implications & Implementation Challenges
· Customer Relationship Marketing (CRM)
· Segmented Pricing for Services – Usage-based Pricing & Yield Management
To give the participants a broad and varied exposure to the different segments of the service sector, we have selected cases, mini-cases & in-class exercise/examples spanning the following service industries:
· Telecom
· Airlines
· Tourism & Hospitality
· Banking and Financial Services
· Health Care Services
Course Pedagogy & Reading Material
Class sessions will consist of case discussions, in-class exercises, lectures and group presentations.
Since I use material from several sources, there is NO required textbook for the course. Reading materials and cases will be distributed in class and will also be available on IVLE (except for HBSP/UVA/IVEY cases and notes due to copyright restrictions).
Course Objectives, Expectations & Assessment
Objectives of this course are:
· To develop an integrated understanding of the relationship between various aspects of marketing and management in successful creation and delivery of value added services; and,
· To provide a set of analytical frameworks, concepts and tools for critical thinking about service and service related activities.
Expectations from Participants:
· Come to each class well prepared to be able to discuss the required readings and assigned cases in detail. For each case discussion in class, write up your analysis and recommendations beforehand.
· Actively participate in lectures and tutorials as much of the learning will come from discussions during class. Display a name sign in all lectures!
· Internalise the concepts covered in the course, and be able to creatively use them in an applied context. This course is all about understanding and application to the real world.
· ‘House Rules’ for everyone to follow:
- Do not come late for class
- Switch off your pager and/or hand phone during class
- Do not pack up your notes until class is dismissed
- Do not talk while fellow students are presenting or asking questions
- Respect everyone’s opinion
Method of Assessment:
During the course, the students will be evaluated based on their performance in each of the following activities:
· Individual Component 55%
o Class Participation 5%
o Quiz I (Mid-term Exam) 20%
o Quiz II (End-term Exam) 30%
· Group Component 45%
o Case Analysis Report (15%×3)
[NOTE: There are 4 case reports to be submitted. Best 3 results will count towards final grade.]
Brief Outline of Lectures
Session / Topics / Duration1 / Revision of Concepts from Marketing Management (Product-centric Marketing), Economics & Statistics
CASE: Baxter (A)
Importance of Services: Why learn Service Marketing?
Course Outline & Administrative Matters
Customer Activity Cycle: Concepts / 6:05 – 7:15
7:35 – 8:35
8:50 – 9:30
2 / Recap from Session 1
Customer Activity Cycle: Strategic Implications & Challenges
CASE: Autobytel.com
Customer Satisfaction: Determinants & Measurement / 6:05 – 6:15
6:15 – 7:30
7:50 – 8:50
9:05 – 9:30
3 / Recap from Session 2
CASE: Starbucks (Case Presentation #1)
Measuring Consumer Perception: Perceptual Map / 6:05 – 6:15
6:15 – 7:30
7:55 – 9:30
4 / Recap from Session 3
Measuring Consumer Preference: Conjoint Analysis
In-Class Exercise: Pricing the Fidelity Blue Chip Growth Fund
CASE: Bancaja / 6:05 – 6:15
6:15 – 8:00
8:30 – 8:55
8:55 – 9:30
5 / Revisiting Bancaja CASE
Tools for Consumer Segmentation: Cluster Analysis
Tools for Consumer Segmentation: Discriminant Analysis
CASE: Ontela PicDeck (A)
/ 6:05 – 6:30
6:30 – 7:30
7:50 – 9:00
7:45 – 9:30
Session / Topics / Duration
6 / Recap from Session 5
CASE: Fashion Channel (Case Presentation #2)
Mid-Term Review + In-Class Exercises on Quantitative Tools / 6:05 – 6:15
6:15 – 7:30
8:00 – 9:30
7 / Quiz I (Mid-Term Exam)
Customer Lifetime Value with In-Class Exercises / 6:05 – 7:35
8:00 – 9:30
8 / In-Class Exercises on CLV
Customer Equity & Firm Valuation (Netflix)
Customer Satisfaction, Customer Loyalty & Reward Programs / 6:05 – 8:00
8:30 – 9:00
8:50 – 9:30
9 / CASE: Cabo San Viejo: Rewarding Loyalty (Case Presentation #3)
2-Sided Markets: Pricing Challenges
CASE: Dexit – A Marketing Opportunity
Segmented Pricing for Services I (Usage-Based Pricing) / 6:05 – 7:25
7:45 – 8:30
8:45 – 9:30
10 / Segmented Pricing for Services I (Usage-Based Pricing)
Segmented Pricing for Services II (Yield Management) / 6:05 – 7:45
8:15 – 9:30
11 / Segmented Pricing for Services II (Yield Management)
CASE: Virgin Mobile USA (Case Presentation #4) / 6:05 – 7:45
8:15 – 9:30
12 / Course Wrap-Up
Quiz II (End-Term) / 6:05 – 7:00
7:30 – 9:30
Assignment Schedule
NOTE: Course starts on May 7 (Monday) – Session 1. The last class is on June 14 (Thursday) – Session 12.
Case Presentations & Reports
Session Date Assignment
3 May 14, 2012 Report #1 on Starbucks case
6 May 24, 2012 Report #2 on Fashion Channel case
9 June 4, 2012 Report #3 on Cabo San Viejo case
11 June 11, 2012 Report #4 on Virgin Mobile USA case
Exams
Session Date Assignment
7 May 28, 2012 Quiz I (Mid-Term Exam)
(6:05 – 7:35 pm)
12 June 14, 2012 Quiz II (End-Term Exam)
(7:30 – 9:30 pm)
NOTE:
1. Both Quiz I (Mid-Term Exam) and Quiz II (End-Term Exam) are closed-book, closed-notes.
2. Quiz I is of 1½-hour duration. Quiz II is of 2-hour duration.
3. Quiz I will test your knowledge and understanding of materials covered during Sessions 1-6. Quiz II will only cover material covered after Quiz I.
BMA5505 Services Marketing (Prof Surendra Rajiv) Page | 1
Special Term I, 2011/2012