UNIVERSITY OF NAMIBIA

Private Bag 13301, 340 Mandume Ndemufayo Avenue, Pionierspark, Windhoek, Namibia

Faculty of Economics & Management Science

Department of Management Science

23 February, 2011

COURSE OUTLINE for Strat Mktg Three A: MSM 3871

Semestre 1: 2011

1. WELCOME

Welcome to Strategic Marketing Three A (MSM 3871) class. We value you as a member of an ever-growing community of
students who have chosen to study for a strategic marketing qualification at UNAM. I hope you will find this module
interesting, practical and stimulating.

You have taken a challenge to advance your career through this qualification. Strategic Marketing and subsequent
strategies have a fundamental and pivotal impact upon all systems within an organization. The importance of the
marketing factor in terms of business viability is currently in sharp focus.

3. OVERVIEW OF LEARNING OBJECTIVES

 To demonstrate an understanding of the field of Strategic Marketing.

 To relate Marketing theory to marketing practice.
 To collect, analyse, organize and critically evaluate marketing related information for decision-making.
 To describe and explain the marketing mix
 To promote creative thinking.
 To promote independent learning.

3. UNIT DESCRIPTION
The Unit consists of Strategic Marketing Planning, Strategic Mission and Strategic Goals, Environmental Scanning, Market
opportunities Analysis, Marketing Strategy, Creating the Marketing Mix, Marketing Research, Marketing Implementation
and Control, Creation of the Marketing Plan, and students are required to present an analytical paper on the subject
matter.

 We will cover strategic marketing planning

 Services Marketing
 Marketing strategy implementation and Control
 Marketing research
 How organizational opportunities affect the planning process, corporate, business-unit and
marketing strategies and creating the marketing plan.

The course will also deal with other marketing management issues including implementation and control. We will explore
various approaches to organizing a marketing unit, issues regarding strategy implementation and techniques for controlling
marketing strategies.

Lectureship

The course will be presented through regular 1 hour face to face tuition. There is a possibility of guest lectures from invited
experts in the subject matter, but this is not compulsory. Students are expected to use extensive case studies in written
assignments.

Candidates must do a thorough research and wide reading before they sit down to write an assignment. An assignment
report should be rich of in-depth knowledge, research evidence and critical analysis of the matter at hand. It should be
punctuated with both local and international examples, illustrations and adequately referenced.

At this level, an academic piece of work should be correctly referenced with a minimum of 15 references. The worst kind of
mistake on academic platform is to present work that is void of references. That is a self-defeatist approach. If the work is
not referenced, then it is unscholarly and does not deserve any single mark. The work would be returned to you forthwith
to “RE-DO”.

Use the UNAM Library, Polytechnic Library, National Library, the internet and any other resources at your own disposal.
There is no substitute for research. No excuses please! Whether you are too busy, your work is demanding or you stay in
rural and remote area. That is not a valid reason for you not to research! We know that you are busy, and everyone is
indeed busy. You stay far and in the back of beyond. True as it may be, that is not enough reason for you to present a
shoddy piece of academic work. Remember, the degree is yours. You have to work for it and earn it. Thank you!

Assessment

Course Work

4 Assignments of 100 marks each and 4 tests of 100 marks will be given. A final exam of 3 hours in June, 2011. Please try to
do your best in assignments because exams can be full of surprises. All the best for your final score!
Final Exam

Will be a three (3) hour exam paper covering work done in assignments and contained in your module and/or course
outline. The course outline is your best in terms of content to be covered per semestre. The course outline is your exam
scope.

Plagiarism

When you write any piece of work on an academic platform, you are duly expected to acknowledge your sources. Failure to
do so will be deemed as plagiarism and this is heavily punishable. You loose quite a great deal of marks or the whole piece
of work is forfeited! You also run the risk of being summoned for a displinary hearing by the academic board, where you
are likely to be heavily sanctioned or your studentship may be withdrawn forthwith. Thus, all diagrams, tables and graphs
must be adequately and correctly referenced.

Please allow me to take this opportunity to thank you for being with us in MSM III. Wishing you a great finish! God bless
you so much.

Lecturer: Fanuel Dangarembizi

(MBA, BA (hons), UZ, Dip. Tourism, Cambridge, (U.K); Dip. in Leadership, (USA).

Cell: +264 81 3022 416

Tel: +264 61 206 3418

Email: fanuel2020@yahoo.com or fdangarembizi@unam.na

Recommended Text Books:

Jobber, D. (2010): Principles and Practice of Marketing: 6th Edition: McGraw-Hill International.

Phillip Kotler (2007): Principles of Marketing

Services Marketing
A service is “work done by one person or group that benefits another”, (Bassington,
2006:349). It is the value delivered by a company or agency that performs or delivers
a specific function. According to Gronroos, A. (2000:445) a service is “an act or
performance offered by one party to another. Although the process may be tied to a
physical product, the performance is essentially intangible and does not normally
result in the ownership of any of the factors of production." It can be difficult to define
just what is meant by a service because most products we buy contain a mixture of
both goods and service elements (the Molecular Model). A meal in a restaurant
contains a combination of goods elements (the food) and service elements (the
manner in which the food is served). The service economy in developing countries is
most often made up of the following:

 Financial services
 Tourism
 Distribution
 Health, and
 Education

The industrialization of services business model

The industrialization of services business model is a business model used in

strategic management and services marketing that treats service provision as an
industrial process, subject to industrial optimization procedures. It originated in the
early 1970s, at a time when various quality control techniques were being
successfully implemented on production assembly lines.

Theodore Levitt (1972) argued that the reason the service sector suffered from
inefficiency and wide variations in quality were that it was based on the craft model.
Each service encounter was treated as an isolated event. He felt that service
encounters could be systematized through planning, optimal processes, consistency,
and capital intensive investments. This model was the foundation of the success of
McDonalds and many other mass service providers in the 1970s, 80s, and 90s. Also
many customers prefer the "personal touch".

By the early 1990s most service providers turned their attention back to the human
element and personalized their services. Employees were empowered to customize
the service encounter to the individual characteristics of customers.

According to Levitt (1999:371) a service system (customer service system) is a

configuration of technology and organizational networks designed to deliver services
that satisfy the needs, wants, or aspirations of customers. It is a value co-production,
configuration of people, technology, internal and external service systems connected
via value propositions and shared information.

Design of service systems

Marketing operations and global environment considerations have significant
implications for the design of a service system. Three criteria used to classify service
systems include:

 customer contact,
 capital intensity, and
 level of customer involvement.

Properly designed service systems employ technology or organizational networks

that can allow relatively inexperienced people to perform very sophisticated tasks
quickly, vaulting them over normal learning curve delays. Ideally, empowerment of
both service provider employees and customers (often via self service) results from
well designed service systems.

Services Positioning.

In recent years, increasing attention has been paid to positioning and, more
specifically, positioning of service brands. This is so because of the unique
characteristics of services. Although some authors argue that there are no marked
differences between positioning in services and that of physical goods, the vast
majority of marketing scholars believe that it is difficult to embark on positioning
strategies in services. Positioning your service is the first step in the marketing
process. Most important, define your best target client. When positioning your
service, there are 3 things to consider and these are as ff:

 Your service offering

 Which target client type is most profitable to you, and
 Who is your competition?

The six dimensions of the services positioning by Silvestro et

al. (1992) are:

(1) equipment/people focus;

(2) customer contact time per transaction;
(3) degree of customization;
(4) degree of employee discretion;
(5) value added back office/front office; and
(6) product/process focus.:
(1) equipment/people focus;
(2) customer contact time per transaction;
(3) degree of customization;
(4) degree of employee discretion;
(5) value added back office/front office; and
(6) product/process focus.
As Silvestro et al. conclude, “… in service operations, significant volume increases
can be made, and frequently are made, without any change in the service process,
as would be expected in manufacturing” (1992:66). However, with the current
capabilities of information technology, volume may be more correlated with process
design decisions, especially for information intensive businesses such as banks,
insurance and fast foods restaurants.
A summary of the axes of the major classification schemes and matrices discussed
here is shown in Table I. A general similarity of all matrices in Table 1 is an attempt
to include two pervading concepts given below:

(1) Customer and employee involvement; and

(2) Service system design.

Service delivery

The term “service delivery system” used here includes:

 job design, process design, and facility design, where each of these
 complements the others;
 technology and service innovations used during service delivery;
 customer and service provider interaction and employee training, and
 the servicescape (Bitner, 1992).

For a full discussion of service delivery systems see Collier (1994:46-50, 109-62,
223-60, 264-9; 26).

Three states within the service continuum are:

(1) Customer routed services - are those that offer the customer broad freedom to
select from many possible routes through the service delivery system;

(2) Co-routed services - offer customers a moderate number of routes through the
service delivery system;

(3) Provider routed services - constrain customers to follow a very small number of
possible routes through the service delivery system.
Service Loyalty

A unified definition of service loyalty is proposed, together with a conceptual model that
represents the relationships among the antecedent constructs of loyalty as discussed in the
research.

Published research on customer loyalty to a service provider remains underrepresented in the

marketing literature compared to publications dealing with brand loyalty. In an effort to
encourage more research on the former, this article integrates the present body of knowledge
regarding the concept of service loyalty, defined herein as the loyalty of a household
consumer to a service provider.

According to the objective of this thesis, this research focuses on the result of service brand
loyalty in Tesco Lotus, Big C and Carrefour. The result has been gathered from the
questionnaires done by the people who use the service from these three brands of discount
stores in Bangkok. The following is the discussion which can be concluded from – the effect
from demographic factors; effect of communication modes, perceived service quality, service
brand awareness, brand association and service brand image; and the relationship among
modes of communication, perceived service quality, service brand awareness, service brand
association and service brand image—on the service brand loyalty of discount stores in
Thailand.
According to the findings of this research, the researcher found that the perceived service
quality is most important parameter that influences consumers feeling about overall quality of
the service brand or advantage over other brands that attract buying decision as service brand
loyalty.

Furthermore, executive and marketing people can enhance more effectiveness of consumers
need, increase customer base and make more market share in this segmentation by using
marketing strategies, which many dealers use, that is the price, distribution, promotion and
product though modern trade used the form of outside-in, the objective for this strategy is
getting through the more consumers’ need.

The study was undertaken with the objectives: (1) To study the effect of demographic factors
on the service brand loyalty of discount store in Thailand. (2) To study the effect of the mode
of communication, perceived service quality, service brand awareness, service brand
association and service brand image on the service brand loyalty of discount stores in
Thailand. (3) To study the relationship among modes of communication, perceived service
quality, service brand awareness, service brand association and service brand image of
discount stores in Thailand.
The research analysis is based on qualified 480 questionnaires that were collected from 16
January, 2008 until 6 February 2008, by random population by used Accident Sampling from
the people who using services of 3 discount stores and separate by Tesco Lotus: 160
samplings (Lardprao on Paholyothin Rd., Fortune town); Big C: 160 samplings (Lardprao,
Rajdamri); and Carrefour: 160 samplings (Lardprao, Ratchadaphisek) all located in Bangkok.
The Statistical Package for the Social Science (SPSS) was used to analyze the data: i.e.
percentage, frequency, means, and SD. The relation was presented through T-test, ANOVA
and Regression
 
Abstract:

Purpose – The purpose of this study is to focus on the feeling associated with being
rejected by the preferred service brand, and its effect on consumer assessment of
the alternate brand.

Design/methodology/approach – The data were collected using a self-

administered questionnaire in the context of higher education services targeted at
the international market.

Findings – Consumers who do manage to get their preferred service brand tend to
be more satisfied with the features of the obtained brand and exhibit higher levels of
brand loyalty towards that brand. In comparison, consumers who end up with a
service brand that is not their first choice seem to have lower levels of satisfaction
with and loyalty towards the obtained brand.

Research limitations/implications – A key limitation of this study is the sampling

frame. Future studies should replicate this study in different service and product
contexts and with different target population. In addition, the disconfirmation of
expectations or desires within the framework of preferred brand attainment should be
explored.

Practical implications – Managers should ensure that one's service brand is high in
the consideration set. This has implications for service branding and brand
positioning as well as fulfilling service brand promise through services elements. It
also has implications pertaining to winning over new customers and retaining
through superior service delivery – particularly the service augmentation elements,
and the selection and training of service delivery personnel.

Originality/value – This study provides answers to a crucial question – “Can the

number two brand ever achieve a prominent position or is it doomed to remain in the
second place waiting to be picked only when consumers do not get their first
choice?”

Bibliography

Beckwith, Harry (1997). “Selling The Invisible: A field Guide To Modern Marketing”, Warner Books.

 Levitt, T. (1972) "Production line approach to service", Harvard Business Review,

Sept-Oct, 1972, pp. 41-52.
 Mundie, P. (1987) "Internal marketing: cause for concern", Quarterly Review of
Marketing, spring-summer, 1987, pp. 21-24.


 

 Service Marketing Mix/Extended Marketing Mix

 Having discussed the characteristics of a service, let us now look at the marketing mix
of a service. The service marketing mix comprises off the 7’p’s. These include:
• Product
• Price
• Place
• Promotion

• People
• Process
• Physical evidence.

 Lets now look at the remaining 3 p’s:

 People
 An essential ingredient to any service provision is the use of appropriate staff and
people. Recruiting the right staff and training them appropriately in the delivery of
their service is essential if the organisation wants to obtain a form of competitive
advantage. Consumers make judgments and deliver perceptions of the service based
on the employees they interact with. Staff should have the appropriate interpersonal
skills, aptititude, and service knowledge to provide the service that consumers are
paying for. Many British organisations aim to apply for the Investors In People
accreditation, which tells consumers that staff are taken care off by the company and
they are trained to certain standards.

 Process
 Refers to the systems used to assist the organisation in delivering the service. Imagine
you walk into Burger King and you order a Whopper Meal and you get it delivered
within 2 minutes. What was the process that allowed you to obtain an efficient service
delivery? Banks that send out Credit Cards automatically when their customers old
one has expired again require an efficient process to identify expiry dates and
renewal. An efficient service that replaces old credit cards will foster consumer
loyalty and confidence in the company.

 Physical Evidence
 Where is the service being delivered? Physical Evidence is the element of the service
mix which allows the consumer again to make judgments on the organisation. If you
walk into a restaurant your expectations are of a clean, friendly environment. On an
aircraft if you travel first class you expect enough room to be able to lay down!
Physical evidence is an essential ingredient of the service mix, consumers will make
perceptions based on their sight of the service provision which will have an impact on
the organisations perceptual plan of the service.

  


  

  


To summarise service marketing looks at:
 The Characteristics of a service that are:
(1) Lack of ownership
(2) Intangibility
(3) Inseparability
(4) Perishability
(5) Heterogeneity.
 The Service marketing mix involves analysing the 7’p of marketing involving,
Product, Price, Place, Promotion, Physical Evidence, Process and People.

 To certain extent managing services are more complicated then managing products,
products can be standardised, to standardise a service is far more difficult as there are
more input factors i.e. people, physical evidence, process to manage then with a
product.