Pass Marks: 35
Course objective:
This course aims to impart fundamental knowledge about marketing of services and service industries. In
addition, this course also makes an attempt to acquaint knowledge to them regarding service marketing practices
in Nepal.
Course Description:
This course contains introduction, models in service marketing, marketing segmentation, targeting and positioning
for services firm, customer perception and expectations of services, buyer behavior and relationship marketing,
service product and quality management, pricing strategies for services, promotion strategies for services,
distribution strategies for services, emerging service sectors in Nepal.
Course Details:
Unit 1: Introduction LH 17
Meaning, characteristics and classification of services; Fundamental difference between goods and
services; Emerging key services; Reasons for the growth of services sector; Challenges in service sector;
Concept and importance of services marketing; Marketing mix for services.
Unit 2: Models in Services Marketing LH 8
The molecular model; The servunctional model; The industrial management model The market-focused
management model.
Unit 3: Market Segmentation, Targeting and Positioning for a services Firm LH 9
Concept and process of market segmentation for service product; Market segment strategies for service
products; Concept and process of service positioning in the target market; Service positioning strategies.
Unit 4: Customer Perceptions and Expectations of Services LH 17
Customer perception on service products; Customer satisfaction and service quality; Gap model of service
quality; Concept of customer expectations and factors influencing customer expectations; Service
encounters and moment of truth; Management of customer service expectation; A process model of
customer service expectation management.
Unit 5: Buyer Behaviour and Relationship Marketing LH 15
Understanding buyer behavior; Factors influencing buyer behavior; Meaning and importance of
relationship marketing; Difference between transactional selling and relationship marketing; Customer
development process; Customer relationship development strategies; Customer value building
approaches.
Unit 6: Service Product and Quality Management LH 15
Concept and nature of service product; New service product and service product development; Life-cycle
strategies for service products; Branding the service product; Maintaining service quality and model of
service quality; Service-profit chain strategy; Researching service quality and setting quality standard.
Unit 7: Pricing Strategies for Services LH 15
Pricing objectives and buyers’ perception of value; Considerations of services pricing – demand
considerations, cost considerations, competition considerations, legal considerations; Emerging service
pricing strategies – satisfaction-based pricing, relationship pricing, efficiency pricing.
Unit 8: Promotion Strategies for Services LH 15
Meaning and objective of promotion for service product; Communication process for service product;
Promotion mix for service product; Selection strategies for selecting the promotion mix; Integrated
marketing communication for service product – service promised, communicated message, internal
communication, and guarantees; Social ethics in service promotion.
Unit 9: Distribution Strategies for Services LH 15
Nature of distribution for service products; Factors affecting the choice of distribution channels;
Distribution strategies – intensive, selective and exclusive; Managing distribution channels – selection,
motivation, training, evaluation, managing conflict; Role of Internet in global distribution system.
Unit 10: Emerging Service Sectors in Nepal LH 14
Introduction; Healthcare sector; Banking sector; Insurance sector; Tourism sector; Communication and
networking sector; Hydro power sector.
Project Work LH 10
After the completion of fourth year concentration classes the students shall have to prepare and submit a project
work in the area they have specialized. The subject teachers have to discuss with students on possible topics of the
project work, availability and sources of literature, availability of data, data collection methods, appropriate tools
of data analysis, etc relevant to the subject within 10 lecture hours.
Basic Books:
Jauhari, V. & Dutta, K., Services Marketing, Operations, and Management, New Delhi: Oxfort University Press
Palmer, A., Principles of Services Marketing, London: McGraw-Hill International Edition.
Woodruff, H., Services Marketing, New Delhi: Macmillan India Ltd.
References Books:
Lovelock, C., Service Marketing, New Delhi: Pearson Education Asia
Apte, G., Services marketing, New York: Oxford University press
Payne, A., The Essence of Services marketing, New Delhi: Prentice Hall of India.
Balaji, B., Services Marketing and Management, New Delhi: School and Co. Ltd.
Zeithaml, V. A., Bitner, M. J., Gremler, D. D., & Pandit, A., Services Marketing. New Delhi: Tata McGraw-Hil.
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