Services Marketing

Australian Telecommunications Company has continued to expand to address the demands of the market. It has remained a key player in the country’s economic growth, having generated close to $37 billion in 2008 and $98 billion revenue in 2009. The industry has over five hundred thousand employees across the country, working in various capacities (IBISWorld, 2011).Advertising We will write a custom assessment sample on Services Marketing specifically for you for only $16.05 $11/page Learn More It has arguably been considered as a stimulant for employment in almost every sector of Australian economy. It has local and international companies which contribute to this tremendous global recognition. Among these are Optus and Vodafone which are considered as key players in the market. This paper gives a critique of the performance of these companies based on their weaknesses and threats with reference to the entire telecommunications industry in Australia. Vodafone is a UK-owned company and the leading telecommunications company around the world operating in more than twenty five countries including Australia. Vodafone Australia is the third largest Telecommunications Company in Australia, behind the giants Telstra and Optus. The company runs a GSM mobile network which is approximated to cover 92% of Australian market (Vodafone, 2011). It also boasts of a Globalster satellite which enables it to cover the entire population. Even as the company continues to thrive in an ever-expanding economy and market, it has had its fair share of weaknesses and threats triggered by intertwined factors in the telecommunications market. Vodafone Australia has experienced one of the worst network problems in the Australian market. Towards the end of 2010, the company registered pitiable quality in its calls, data speed, SMS reliability and voicemail services. It was faced with a class action suit for demonstrating incompetence in serving Australian pe ople. To maintain its business reputation, the company responded by blaming customers for using faulty software on their handsets and use of Smartphones (Vodafone, 2011). Although Vodafone CEO offered an apology, the interruption saw several customers terminate their contracts with the company to seek better services.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Additionally, expansion of the company has been achieved by direct regulation of its operations. Through mergers and acquisitions, the company has not realized organic growth. As a result, the company has a stable customer base at the expense of proper management of its subsidiaries (Vodafone, 2011). With its operational structure centered in UK, Vodafone Australia has failed to address needs of the market allowing effective competition from smaller companies. Moreover, Vodafone Australia continues to experience several thre ats as permitted by market trends and its ability to effectively serve Australians. Competition from major players and upcoming companies is seen as a major threat for the company. Telstra which is the leading player in the market, previously possessed by the government runs most of the copper network, offering landline, broadband and mobile services (Vodafone, 2011). Immense global penetration of internet companies further threatens Vodafone’s ability to penetrate the market in future. It is important to note that though saturated, the market still offers opportunities in terms of the aging population and changing needs for customers. Through strategic plans like simple phones and friendly pricing plans, the company stands a chance of favorably competing in market (IBISWorld, 2011). On the other hand, Optus is ranked second in Australian telecommunications market and is owned by Singapore Telecommunications Company. Headquartered in Sydney, Optus has retained SingTel service s and products like Boost Mobile, Virgin Mobile Australia, Uecomm and Alphawest (Optus, 2011). In serving its customers, the company runs its own network infrastructure together with the use of other companies’ services like Telstra Wholesale. It has two channels of service delivery where it directly serves customers in the market and as a wholesale agent for smaller companies.Advertising We will write a custom assessment sample on Services Marketing specifically for you for only $16.05 $11/page Learn More The company also provides internet services through dial-up and broadband services. It mainly serves the government, business owners and residents of Australia. Like other players in the Australian telecommunications market, the company has weaknesses and continues to experience threats from a wide range of areas. Being owned by Singapore Telecommunications Company which has concentrated its operation in Australia, Optus is exposed to high comp etition from local players and other bigger players in the market. In addition, Optus is faced with management issues manifested through labor strikes experienced before (Optus, 2011). This affects its reputation in maintaining a competitive advantage and customer base. Lastly, service delivery has not been up to date with customers complaining of low network connection speed and Cable TV services. Even though the company is ranked second in Australian telecommunications industry, it faces stiff competition from Telstra and Vodafone among other key players and upcoming companies. It therefore suffices to mention competition as the company’s major threat. Nevertheless, Optus prides on a number of opportunities in the telecommunications industry. With ever-changing technology, the company has a chance to expand its service and product delivery in order to address the needs of its young customers. It also plans to increase its customer base through TV mobile services by the end of 2012 by use of FetchTV (Optus, 2011). Additionally, the company seeks to access government license to offer provisional satellite services that will cover Australian Broadband Network. This will win new customers across the country including remote regions which are not well covered by its competitors. In general, a survey of Australian telecommunications market indicates various viewpoints with regard to the performance of companies like Vodafone and Optus. It is evident that the two companies have weaknesses which have continued to affect their performances. Nevertheless, there are countless opportunities to be utilized in maintaining competitive advantage.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More References IBISWorld. (2011). Mobile Telecommunications Carriers in Australia: Market Research Report. IBISWorld. Web. Optus. (2011). Media Center. Optus. Web. Vodafone. (2011). Vodafone Company. Vodafone. Web. This assessment on Services Marketing was written and submitted by user Konnor Mclaughlin to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Services Marketing Executive summary Service quality is a very critical aspect of any business. The paper carried out researches on five service-providing firms. The firms included one bank, three restaurants, and a hospital. Many theories and models have been put in place to explain the subject of service quality. The paper links theories such as the attribution theory and equity theories, among others to the specified service encounters.Advertising We will write a custom report sample on Services Marketing specifically for you for only $16.05 $11/page Learn More The researcher rated the service provided on a five-point rating scale. CERVICAL model also comes in handy in terms of analyzing the aspect of service delivery and quality. The paper also explains the researcher’s expectations together with what he thought the firm would have done at that point. The journal also required the researcher to recommend how employees or the firm would have improved on its servi ce provision. These journals were later on analyzed to give an insight into the practice of service marketing. First Service Encounter Various entries were made in a study of service marketing conducted on Joapick hotel on July 22, 2013, at 10.00 am. The researcher had a personal encounter with service providers in this restaurant. The entries were therefore likely to give accurate information about service provision in the restaurant. In this encounter, the researcher had purposed to understand the events and behavior of various front-line operators and employees that result in client dissatisfaction. The researcher had purposed to visit this restaurant to evaluate how it offers its service. In this entry, the service encounter involved one-on-one communication between the customer and the service-providing officer. For improvement of the delivery of restaurant services, the management should offer close employee supervision. Service provision could also be improved through increas ed employee commitment. Second Service Encounter The second journal entry was made at ANZ bank. The industry offered banking services to its clients. The entry was recorded on June 15, 2013, at 11.00 A.M. The encounter was also entered through a personal visit to the bank. The researcher decided to visit the bank due to its location. The bank was in proximity to the point where the researcher was working. It would therefore, easy for him to reach the bank. The researcher rated satisfaction with the service encounter at one in a five-point rating scale. The rating depended on the feelings of the client. The researcher felt that way because the front office operators had no organization ability, which resulted in delays in service delivery. The client felt that there were delays in service delivery. On the question of what the employee or the firm would have done to increase the level of client satisfaction, the journal indicated that the employees of ANZ bank would have been more ord erly in their service provision. To improve the service system of ANZ bank, bank management should apply job subdivision. The bank should also restructure its job design in a way that employees who are offering any service feel at the right positions in a bid to maximize their input and hence the overall yield of the bank.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Third Service Encounter The third journal was recorded from PPK restaurant, which is a service industry that provides food services to its clients. The data was recorded on July 2, 2013, at 10.00 A.M. The service encounter took place via telephone. The specific circumstance of the encounter was expectations. The researcher had expectations that the restaurant would provide better services owing to its high publicity. According to the journal, the rate of satisfaction with the service encounter was put at five on a five-poin t rating scale. This was the highest rating mark. The researcher recorded that the feeling of delight resulted from the fact that service providers were able to provide services on time. The services were also satisfactory to the customer. The researcher also suggested that the employee or the firm would have improved on their level of emotional labor to offer better services. From this journal, there is an indication that the service system required that employees need to do job training on emotional labor. Fourth Service Encounter The fourth journal entry form was filled from Making hospital. The hospital provides a variety of medical services to clients. This journal focused on services offered by nurses at Making hospital. The journal entry was made on July 30, 2013, at 10.00 A.M. The journal was recorded during a personal service encounter with the hospital nurses. This encounter resulted from the expectations of the researcher on the quality of services provided by the hospita l. The service encounter with this hospital was rated at two in a five-point rating scale. The researcher attributed this below-average performance to the fact that the service providing employees did not indicate much dedication to their duties and responsibilities. For example, nurses would respond to patients’ questions in a rude way. On the issues of what the hospital would have done to improve on the client’s level of satisfaction, the researcher asserted that it should have motivated its employees to enable them to offer the best qualities to the client. The researcher also suggested that the service provider should improve on employee motivation to make employees perfect their service provision ability. Fifth Service Encounter The fifth journal entry was entered from Small World Restaurant. The company provides catering services. The journal was entered on June 29, 2013, at 10.00 A.M. The service encounter happened through mail correspondence. The encounter was purposely planned by the researcher. The service encounter was rated at two on a five-point rating scale. The researcher attributed this rating to the fact that the restaurant took much time to respond to the mail and had little commitment to mail. The journal entry also indicated that the restaurant would have minimized delays in service delivery. The service system needs improvement in communication and training of employees on the best communication practices.Advertising We will write a custom report sample on Services Marketing specifically for you for only $16.05 $11/page Learn More Analysis of service encounters The service encounters may be explained in several theories and models. Although some were related, there are also differences within these models. In the first service encounter, the three evident theories are the attribution theory, equity theory, and personal involvement. The attribution theory is used to explain human behavior and suit the first case based on the employee attitude at the work place (Bloemer, de Ruyter Peeters, 1998, p.276; Choi et al., 2004, p.913). Various models can be used to explain the behaviors of the employees in the first encounter, and the owner of the restaurant expresses a particular attitude to the employees. Caruana (2002, p. 811) states that the theory is important as it can be used to explain human behavior even in management and business. Equity theory also applies to the encounter, with the employees trying to fit in the workplace and appear to be doing equal tasks. However, they had little personal involvement, and this could be a significant factor for the performance of the business and the employee rating. The banking industry, as represented in the second encounter, displays several theories that are generalizable in other organizations. In this second encounter, disconfirmation of expectation paradigm is applicable. The encounter proves that employees are not always satisf ied with the services offered in organizations despite the positive feedback that this confirmation of expectations paradigm may provide. The encounter also includes a display of the conceptual model of service quality (Brown Meuter, 2000, p.138). Consumers have personal needs, experience and other sources of information to predict the services that they can get from institutions such as banks, and marketers should filling the gaps that exist in the satisfaction of these services. The SEQUAL model can also be applied here. Marketers should ensure that they participate in creating reliability, responsiveness, empathy, and assurance so that the clients are assured of quality services (Brady, Cronin Brand, 2002, p.17). The third and fifth encounters were both in restaurants, and the major values that were evident include the consumer expectation types. Consumers display varying expectations based on several factors. Desired expectations are displayed in the restaurants, with the mana gement having to use the marketing team to make sure the customers provide feedback on these expectations. The other forms of expectations that are evident include equitable and predictive expectations (Lovelock, Patterson Walker, 2011).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The fourth service encounter in MarieKing Hospital was crucial in displaying the different kinds of values in organizations, including perceived value, performance value, social value, emotional value, and interaction value. Though the clients in the institution displayed the values, the performance value and the social values were expressed in a significant way and applicable in the management of the institution. The reason for the application of the social value is mainly the nature of the institution that is meant to offer services without regard to client ability to pay for the services. The link between Theory and Practice The theories discussed above are applicable in management and business, and organizations apply them to ensure that they maintain a competitive edge in the respective markets. In the disconfirmation and expectation paradigm, employers can use surveys to ensure that the consumers are satisfied with the services offered by their organizations. The SEQUAL model also helps employers to gauge the service delivery quality in their respective organizations. This will be effective in making them improve their services. Chebat and Slusarczyk (2005, p.664) assert that the declining quality of service in service provision industry has been associated with poor training of employees. Consumers tend to stick to organizations that provide the best services as per their evaluations, and the service encounters discussed above are good examples of the same. Organizations can apply the 7 P’s of marketing in the form of price, place, product, promotion, people, process, and physical evidence to ensure that their products are rated highly. The product design, quality, and usability are some of the factors that they can alter in the output to ensure that it is appealing in the market (Bitner, Brown Meuter, 2000, p.138). The place of sale and the price at which the products are available should also be convenient to the customers, with the employees being trained on how to approach the target market. Physical evidence and promotion will be crucial in the determination of the availability of a particular product to the target market. The characteristic of services is some of the other links that exist between theory and practice in marketing. Marketers should aim at replicating the goals of the department in the field (Brady, Cronin, and Brand 2002, p.16), with the right measures being put into place for this. The theories in marketing provide a conceptual framework on which marketers can use to promote their products and organization. To ensure that the theory is applied, marketers and organizations need to plan and make the objectives of the particular department, with the employees being trained on the same (Pluta-Olearnik, 2011). The organizations should also carry out surveys to evaluate the efficiency of the applied theories and take relevant measures based on the findings (Cadogan et al., 2001, p.261). Decision-making pro cess in organizations should be consultative and inclusive, with members in all the working levels being involved (Nijssen Herk, 2009). Despite involving several employees, the decision-making process should also be fast enough to ensure that the relevant measures are taken in time. A service triangle involving consumers should also be established (Bendapudi Leone, 2002, p.83). The management should not be solely involved in decision making that is likely to involve other employees without consulting them first. Several factors influencing behavior in organizations include the culture in the organization, the social background of the employees, and the management, and the type of personalities within the organization. Employees and the management team can display differing behaviors based on the above factors (Brady Robertson, 2001, p.53). To ensure that the behaviors do not affect the output of the organization, an appropriate organizational culture should be cultivated. Concept ual Framework The conceptual framework of service delivery that is relevant in the above service encounters is mainly the working hypothesis and the descriptive types. Analysis of the literature on the same topic would provide adequate information for a descriptive study, and this would ensure that any gaps in the literature are filled and more models of evaluating service encounters are developed (Choi et al., 2004, p.913). The initial process of planning such a study would involve the assessment of the services discussed, and appropriate information gathered based on the existing theories and other literature on the same. Businesses need to ensure that marketing is an essential function, and such a framework would be beneficial (Schultz, Frederiksen Doerr, 2013; Bendapudi Leone, 2002, p.83). Marketing does not necessarily involve the presentation of the products and can be done even using other methods (Daunt Harris, 2012; Elsamen Alshuride, 2012). The conclusions of a study o n the service encounters above would go a long way in determining the efficacy in the marketing profession. Summary and Conclusion Service encounter has become a relevant field of study in the business world. The researcher carried out journal entries from various service providers. Analysis of various service encounters indicated that service provision in the world economy is still below average. The findings of the research indicated that factors such as poor communication, low motivation, and lack of proper training resulted in poor service quality. The research also found that service encounter quality has a direct impact on the level of customer satisfaction. Service encounter was also found to influence the perception of service quality. Reference List Bendapudi, N., Leone, P. (2002). Managing Business-to-Business Customer Relationships Following Key Contact Employee Turnover in a Vendor Firm. Journal of Marketing, 66(2), 83-102. Bitner, J., Brown, W., Meuter, L. (2000). Tec hnology Infusion in Service Encounters. Journal of the Academy of Marketing Science, 28(1), 138-149. Bloemer, J., de Ruyter, K., Peeters, P. (1998). Investigating Drivers of Bank Loyalty: The Complex Relationship between Image, Service Quality and Satisfaction. International Journal of Bank Marketing, 16(7), 276-286. Brady, K., Robertson, J. (2001). Searching for a Consensus on the Antecedent Role of Service Quality and Satisfaction: An Exploratory Cross-National Study. Journal of Business Research, 51(1), 53-60. Brady, K., Cronin, J., Brand, R. (2002). Performance-only Measurement of Service Quality: A Replication and Extension. Journal of Business Research, 55(1), 17-31. Cadogan, W., Paul, J., Salminen, T., Puumalainen, K., Sundqvist, S. (2001). Key Antecedents to â€Å"Export† Market-Oriented Behaviors: A Cross-National Empirical Examination. International Journal of Research in Marketing, 18(3), 261-282. Caruana, A. (2002). Service Loyalty: The Effects of Service Qual ity and the Mediating role of Customer Satisfaction. European Journal of Marketing, 36(7/8), 811-828. Chebat, J., Slusarczyk, W. (2005). How Emotions Mediate the Effects of Perceived Justice on Loyalty in Service Recovery Situations: An Empirical Study. Journal of Business Research, 58(5), 664-673. Choi, S., Cho, H., Lee, S., Lee, H., Kim, C. (2004). The Relationships among Quality, Value, Satisfaction and Behavioral Intention in Health Care Provider Choice: A South Korean Study. Journal of Business Research, 57(8), 913-921. Daunt, K., Harris, L. (2012). Exploring the forms of dysfunctional customer behavior: A study of differences in servicescape and customer disaffection with service. Journal of Marketing Management, 28(1/2), 129-153. Elsamen, A., Alshuride, M. (2012). The Impact of Internal Marketing on Internal Service Quality: A Case Study in a Jordanian Pharmaceutical Company. International Journal of Business Management, 7(19), 84-95. Lovelock, H., Patterson, G., Walker , R. (2011). Services marketing. An Asia Pacific perspective (5th Ed.) NSW: Pearson Prentice-Hall. Nijssen, E., Herk, H. (2009). Conjoining International Marketing and Relationship Marketing: Exploring Consumers’ Cross-Border Service Relationships. Journal of International Marketing, 17(1), 91-115. This report on Services Marketing was written and submitted by user Alvin Mckinney to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.