Terry College of Business University of Georgia

SERVICE MARKETING (MARK 7620)

Spring 2013 Office: 135 Brooks Hall Office Hours: Tuesday 1.00-2.00 E-mail: pkumar@terry.uga.edu Course Syllabus The focus of this course is the exploration of the management models in the service sector, centering on the intersection of marketing, operations, human resources, and information technology. Throughout this course, we will explore and challenge the underpinnings of alternative service management systems and develop a completely new one from scratch. Beyond services, this course will challenge many of your currently held beliefs about customer management, competitiveness, incentive systems, and management by metrics. The course sylabus is a general plan for the course; deviations announced in the class may be necessary. Grading System A F (Traditional) Prerequisite MARK 7510 Credit Hours 3 Course Objectives Students will gain knowledge about the strategic issues relating to services, tools for service marketers, and challenges that service marketing managers face. Honor Code As a University of Georgia student, you have agreed to abide by the Universitys academic honesty policy, A Culture of Honesty, and the Student Honor Code. All academic work must meet the standards described in A Culture of Honesty,: found at: www.uga.edu/honesty. Lack of knowledge of the academic honesty policy is not a reasonable explanation for a violation. Questions related to course assignments and the academic honesty policy should be directed to the instructor. Professor Piyush Kumar

Collaboration on work that individually assigned, referring to material without appropriate citation, using information including but not limited to that available on the Internet without permission will constitute a violation of the Honor Code.

Course Description The service sector in the global economy is going through a revolution. In the U.S. alone, services today account for almost three-fourths of the gross domestic product, and employ four out of every five working Americans. This course is designed to focus on the marketing management problems faced by service firms and the service arms of manufacturing firms. The overall learning objective is to understand the strategic initiatives that are necessary to build world-class service organizations. In order to achieve this objective an attempt will be made to: (i) develop an understanding of the strategic differences between marketing goods and marketing services, (ii) identify the sources of competitive advantage in service businesses, (iii) appreciate the crossfunctional nature of the service delivery process, and (iv) understand the determinants of service quality. The course is highly interdisciplinary in flavor. It deals with broad-based strategies in the services sector and has been designed to demonstrate how operating strategies and human resource policies need to dovetail with the familiar elements of the marketing mix in order to deliver lasting value to both internal and external customers. The course also has a liberal sprinkling of some of the most important issues faced by service managers today, including (i) managing in a global economy (ii) exploiting technology to better serve the customer, (iii) customer satisfaction, (iv) service quality, and (v) strategic interorganizational relationships. The pedagogical tools that we will employ will consist of a mix of lecture and casediscussion sessions. In addition, students will be required to complete a number of interesting projects that will involve a mix of some fieldwork and conceptual strategic thinking. The course is appropriate for all management students, especially those who aspire to be connected with the service sector, consulting, or the service-centric manufacturing sector.

Course Materials A course packet containing cases and several articles should be purchased from Bel-Jean. There is no required text for the course but a set of suggested readings will be provided in class.

Assignments Class Participation Each student is expected to thoroughly prepare each assigned reading and case and contribute to the discussions in class. In addition, each student is required to submit a one page, double-spaced typewritten answer to an assigned question prior to every case discussion. The assigned questions are given in the course schedule. These questions will often become the basis of the initiation of class discussions. Class participation will be graded on the basis of the quality and extent of contribution made to each case discussion and on the basis of the number of the written submissions. You are required to attend all classes. The methodology for evaluating class participation will be discussed in class. Projects and Papers (i) Students, working in groups of 2-3, will be required to undertake a short project relating to service process improvement. The projects may involve the collection and analysis of some qualitative and/or quantitative data. The details of the project will be discussed in class. (ii) Students, again working in groups of three, will be required to write and present a 10page paper on their vision of some aspect of services marketing. The paper will have to be futuristic, yet realistic, and provide insights into their conceptualization of cutting-edge services marketing. The details of the project will be discussed in class. (iii) Finally, students, working in groups of four, will submit a detailed analysis of one of the assigned cases. Course Grade Class Participation and Written Analysis Project Reports/ Presentations Case Analysis

30% 50% 20%

Course Schedule (7620) Date Session 1 Readings/ Case Preparation Introduction: The Marketing of Services Read: Strategy is Different in Service Businesses Strategic Service Vision Session 2 Case: Southwest Airlines: 1993 (A) Assignment Question: How would you deploy the two uncommitted 737s and why? Case: Jetblue Airways: Starting From Scratch

Session 3

Assignment Question: What are the key strategic differences between Southwest and Jetblue? Session 4 Case: Apollo Hospitals of India Assignment Question: How should Apollo expand in the future? Marketing Operations Interface Read: Note on the management of queues Case: Shouldice Hospital Assignment Question: As Dr. Shouldice, what actions would you take to expand the hospitals capacity? Case: Benihana of Tokyo Assignment Question: What major design choices generate the operational efficiencies for Benihana? Case: Porcinis Pronto: Great Italian Cusine without the wait Assignment Question: Is the extension of Porcini to Pronto a good idea? The Marketing- Human Resources Interface Read: Putting the Service Profit Chain to Work (Course packet) Case: Fairfield Inn (A) Assignment Question: Would you franchise the Fairfield Inn concept? To what extent and how? Case: Au Bon Pain: the French Bakery Caf-The Partner/Manager Program Assignment Question: Would you advise Au Bon Pains management to introduce the partner/manager program to all other stores? Some other stores? No other store? Why? Service Quality and Service Guarantees Session 12 Session 13 Read: Zero Defections: Quality comes to services Case: Club Med (A) Assignment Question: What is the value of a satisfied customer at Club Med? Case: Commerce Bank Assignment Question: Do you support the retailtainment concept at Commerce Bank? Student Presentations: Service Process Improvement

Session 5 Session 6

Session 7

Session 8

Session 9 Session 10

Session 11

Session 14

Session 15

Using Technology to Deliver Superior Service Session 16 Case: Mrs. Fields Cookies Assignment Question: What are the key strategic components of the technology systems at Mrs. Fields? Case: British Airways: Assignment Question: Critically assess the Caress system at BA? Case: Innovation at Progressive Insurance (A): Pay as you go Assignment Question: Critically evaluate the approach to innovation at Progressive? Management of Professional Services Session 19 Session 20 The nature of professional services. Lehman Brothers: The rise of the equity research department Assignment question: How should the research department be managed after Jacks departure? Weservehomes.com Assignment question: What is the unique strategic challenge at Weservehomes.com Booz Allen & Hamilton: Vision 2000 Assignment question: Does organizational structure play a role in a consulting firms competitiveness? Service Brands Session 23 Case: Branding Citigroups Consumer Business Assignment Questions: How would you brand Citigroups multiple businesses? Case: Starbucks: Delivering Customer Service Assignment Question: Should Starbucks spend the extra $40m? Case: Infosys: Building a Global Brand Assignment Question: TBA

Session 17 Session 18 insurance

Session 21

Session 22

Session 24 Session 25

Integrated Service Management Session 26 Session 27 Integrated Service Management Systems Case: Taco Bell Corp. (A) Assignment Question: How should John Martin keep Taco Bell going forward? What next? Case: The Aravind Eye Hospital, Madurai, India: In Search of Sight Assignment Question: Does the Aravind system differ from a standard for-profit service systems. Special topics in service marketing Student Presentations: Visions Project

Session 28

Session 29 Session 30

The Instructor
Piyush Kumar is associate professor of marketing at the Terry College of Business at the University of Georgia. He has previously taught at the Wharton Business School, Vanderbilt University, and Rice University in the MBA and EMBA programs. He has won several MBA Professor of the Year Awards including twice at the Terry School of Business. He has taught his service management course at many leading institutions across the world and has been listed as an outstanding professor by Businessweek. He recently published his first co-authored book, entitled Decision Equity: The Ultimate Metric to Connect Marketing Actions to Profits. He has also been engaged in consulting, speaking, project supervising, or teaching capacities with a number of leading organizations including Altria, Merck, Tyco, BMC Software, Coca Cola, Bristol Myers Squibb, Bridgestone Firestone, Marathon Oil, Louisiana Pacific, Shell Technology Ventures, ICICI Lombard, ITC , AGCO, Gaylord Hotels, TVA, GSE International, the Securities Industry Association, the Delta Airline Pilots Association, the Filter Manufacturers Council, the Religion Communicators Council and the Wholesale Florists Association. Piyush has published on a variety of topics in almost all leading marketing journals including Marketing Science, Journal of Marketing Research, Journal of Marketing, Journal of Retailing, Organizational Behavior and Human Decision Processes , and the Journal of Service Research. His research has been extensively supported by the Marketing Science Institute, the Institute for the Study of Business Markets, and H-E-B Foods. He serves on the editorial boards of the Journal of Marketing, Journal of Service Research, and Service Business: An International Journal. He is a past winner of the FeDex Excellence in Service Research a recent winner of the Best Reviewer Award at the Journal of Service Research. He has been quoted in or has appeared on Fox News, NPR Radio, NBC Television, CBS Marketwatch, Oakland Tribune, The Tennessean, Little Rock Democrat Gazette, Commercial Appeal, ISB Insight, and the Knoxville News Sentinel. Piyush holds a B.Tech from the Indian Institute of Technology, Kanpur, an M.B.A. from the Indian Institute of Management, Ahmedabad, and a Ph.D. from Purdue University. Prior to his Ph.D., he spent several years in marketing and brand management across a variety of consumer and industrial companies and was involved in many new product launches.