Services Marketing

Full course description

Much of the economy in the developed world is dominated by the production and consumption of services. For example, in the US, current statistics show that approximately 75% of the work force is involved in the services industry. Additionally, 45% of an average US family's budget is spent on services, and for Europe statistics are similar. In many developing nations services are considered a way to expand and stimulate economic growth and development. Consistent with economic growth comes a growth in services employment. While most business schools focus on the manufacturing segment of the economy, given these facts it seems imperative to study the marketing of services in a separate course. Three kinds of services will form the central focus of this course: (1) Services which are offered by organizations in the service-sector (banks, assurance and transport companies, the hotel and catering industry, health care and the tourist industry, among others), (2) Services which are offered by companies that manufacture products. In this context services refer mostly to the so-called "after-sales service" (repair services, service engineers, etc.) but also (product) instructions accompanying a sale, and (3) a specific focus on the online context of social media, virtual communities, Twitter etc. as these hold promising potential for service delivery and as they form a new frontier for both practitioners as well as researchers.

Service organisations vary, from restaurants, hotels and car rental agencies to financial services and even education. These organisations require a distinctive approach to marketing strategy. We will build on the principle of marketing and expand into very specific themes covering the entire spectrum of services, seen through many angles and illustrated by relevant case studies. In the course we will explore methods, based on academic research, in which firms can use service as a unique selling proposition. We have designed this course to address the unique needs and challenges in this ever-changing aspect of marketing, including the dynamic and rapidly developing area of electronic and mobile services. Throughout the course emphasis will be placed more specifically on issues related to marketing management and customer perceptions. Thus, a number of presentation topics need to be researched both in a theoretical and a practical manner in addition to the discussion of a number of tasks. Moreover, to enhance understanding of the course concepts, several elaborate cases will be discussed and student teams will complete a real-life services marketing project.