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Philippine School of Business Administration

COURSE SYLLABUS

COURSE CODE : MKTG 10

COURSE TITLE : SERVICES MARKETING
COURSE CREDIT : THREE (3) UNITS
PREREQUISITE : MARKETING 1 PRINCIPLES OF MAKETING

COURSE DESCRIPTION :

This course will introduce the core principles, concepts and marketing strategies specific to the services sector. It will explore service processes and delivery, customer loyalty, pricing, communications and capacity
by studying businesses in a variety of service industries. We will also expand the 4 Ps concepts to include 8 Ps for the services sector. The course involves both individual and group work, with an emphasis on
application to provide a strong understanding of the fundamentals of services marketing.

COURSE OBJECTIVES:

 To explain why service marketing has become a center of attention in recent years.

 To identify the characteristics of services that are important from the

marketing point of view.

 To discuss the service marketing process

 To consider some of the managerial challenges of service marketing.

 To provide an in-depth appreciation and understanding of the unique challenges inherent in managing and delivering quality services.
Participants will be introduced to and have the opportunity to work with tools and strategies that address these challenges.

 To develop an understanding of the ‘state of the art’ service management thinking.

 To promote a customer service-oriented mindset

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DETAILED COURSE OUTLINE:

WEEK HR TOPICS LEARNING OUTCOMES STRATEGIES/ ASSESSMENT OF

ACTIVITIES LEARNING OUTCOMES
1 1 Chapter 1 1. Student should be able to understand and articulate what services are and identify important trends in When appropriate per Written and Oral
services. chapter Examination
INTRODUCTION 2. Explain the need for special services marketing concepts and practices and why the need has developed Reporting
TO SERVICES Lecture
and is accelerating.
Demonstration
3. Explore the profound impact of technology on service. Discussion
4. Outline the basic differences between goods and services and the resulting challenges and Collaborative Learning
opportunities for service businesses. Literature Review
5. Introduce the expanded marketing mix for services and the philosophy of customer focus as powerful Case Study /Discussion
frameworks and themes that are fundamental to the rest of the text. Method
Multimedia Instruction
Problem Solving
Immersion
Environments
Web-based Instruction
Audiovisual instruction
Simulation
Business games
Role plays
Adventure learning
Student presentations
(Company visit)
1 1 Chapter 2 1. Student should be able to understand and articulate a framework, called the gaps model of service
quality, which is used to organize this textbook.
CONCEPTUAL 2. Demonstrate that the gaps model is a useful framework for understanding service quality in an
FRAMEWORK organization.
OF THE BOOK: 3. Demonstrate that the most critical service quality gap close is customer gap, the difference between
THE GAPS
customer expectation and perceptions.
MODEL OF
4. Show that four gaps that occur in companies, which we call provider gaps, are responsible for the
SERVICE
customer gap.
QUALITY
5. Identify the factors responsible for each of the four- provider gap.

1 1 Chapter 3 1. Student should be able to understand and enhance the understanding of how consumers choose,
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experience, and evaluate services.

CONSUMER 2. Describe how consumer judge goods versus services in terms of search experience, and credence
BEHAVIOR IN criteria.
SERVICES 3. Develop the elements of consumer behavior that a services marketer must understand: choice
behavior, consumer experiences, and post experience evaluation.

2 1.5 Chapter 4 1. Student should be able to understand and recognize that customers hold different types of expectation
for service performance.
CUSTOMER 2. Discuss the sources of customer expectations of service, including those that are controllable and
EXPECTATIONS
uncontrollable by marketers.
OF SERVICE
3. Acknowledge that the types and sources of expectations are similar for end consumers and business
customers and inexperienced customers.
4. Delineate the most important current issues surrounding customer expectations
2 1.5 Chapter 5 1. Student should be able to understand and provide a solid basis for understanding what influences
customer’s perceptions of service and the relationships among customer satisfaction, service quality,
CUSTOMER and individual service encounters.
PERCEPTIONS 2. Demonstrate the importance of customer satisfaction-what it is, the factors that influence it, and the
OF SERVICE
significant outcomes resulting from it.
3. Develop critical knowledge of service quality and its five key dimensions: reliability, responsiveness,
empathy, assurance, and tangibles.
4. Show that service encounters or the “moments of truth” are the essential building blocks from which
customers form their perceptions.

3 3 Chapter 5 1. Student should be able to understand and present the types of and guidelines for marketing research in
services.
LISTENING TO 2. Show how marketing research information can and should be used for services.
CUSTOMERS 3. Describe the strategies by which companies can facilitate interaction and communication between
THROUGH management and customers.
RESEARCH 4. Present ways that companies can and do facilitate interaction between contact people and
management.

4 3 Chapter 7 1. Student should be able to understand and articulate relationship marketing, its goals, and the benefits
of long-term relationships for firms and customers.
BUILDING 2. Explain why and how to estimate customer relationship value.
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CUSTOMER 3. Introduce the concept of customer profitability segments as a strategy for focusing relationship
RELATIONSHIPS marketing efforts.
4. Present relationship development strategies-including quality core service, switching barriers, and
relationship bonds.
5. Identify challenges in relationship development, including the somewhat controversial idea that “the
customer is not always right.”

5 3 Chapter 8 1. Student should be able to understand and illustrate the importance of recovery from service failures in
keeping customers and building loyalty.
SERVICE 2. Discuss the nature of consumer complaints and why people do and do not complain.
RECOVERY 3. Provide evidence of what customers expect and the kind of responses they want when they do
complain.
4. Present strategies for effective service recovery, together with examples of what does and does not
work.
5. Discuss service guarantees-what they are, the benefits of guarantees, and when to use them-as a
particular type of service recovery strategy.

6 3 Chapter 9 1. Student should be able to understand and describe the challenges inherent in service innovation and
design.
SERVICE 2. Present the stages and unique elements of the service innovation and development process.
INNOVATION 3. Demonstrate the value of service blueprinting and how to develop and read service blueprints.
AND DESIGN 4. Present lessons learned in choosing and implementing high-performance service innovations
7 3 Chapter 10 1. Student should be able to understand and distinguish between company-defined and customer-defined
service standards.
CUSTOMER- 2. Differentiate among “hard” and “soft” customer-defined service standards and one-time fixes.
DEFINED 3. Explain the critical role of the service encounter sequence in developing customer-defined standards.
SERVICE 4. Illustrate how to translate customer expectations into behaviors and actions that are definable,
STANDARDS repeatable and actionable.
5. Explain the process of developing customer-defined service standards.
6. Emphasize the importance of service performance indexes in implementing strategy for service
delivery.

8 3 Chapter 11 1. Student should be able to understand and explain the profound impact of physical evidence,
particularly the service scape, on perceptions and experiences.
PHYSICAL 2. Illustrate differences in type of service scape the roles played by the service scape, and the implications
EVIDENCE AND
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THE for strategy.

SERVICESCAPE 3. Explain why the service scape affects customer and employee behavior, using a framework based in
marketing, organizational behavior, and environmental psychology.
4. Present elements of an effective physical evidence strategy.
9 3 Chapter 12 1. Student should be able to understand and demonstrate the importance of creating a service culture in
which providing excellent service to both internal and external customers is a way of life.
EMPLOYEE’S 2. Illustrate the pivotal role of service employees in creating customer satisfaction and service quality.
ROLES IN 3. Identify the challenges inherent in boundary-spanning roles.
SERVICE 4. Provide examples of strategies for creating customer-oriented service delivery through hiring the right
DELIVERY people, developing employees to deliver service quality, providing needed support systems, and
retaining the best service employees.

10 3 Chapter 13 1. Student should be able to understand and illustrate the importance of customers in successful delivery
and co-creation of service experiences.
CUSTOMER’S 2. Discuss the variety of roles that service customer’s play: productive resources for the organization,
ROLES IN contributors to quality and satisfaction, competition.
SERVICE 3. Explain strategies for involving service customers effectively to increase satisfaction, quality, and
DELIVERY
productivity.

11 3 Chapter 14 1. Student should be able to understand and identify the primary channels through which services are
delivered to end customer.
DELIVERING 2. Provide examples of each of the key service intermediaries.
SERVICE 3. Discuss the benefits and challenges of each method of service delivery.
THROUGH 4. Outline the strategies that are used to manage service delivery through intermediaries.
INTERMEDIARIE
S AND
ELECTRONIC
CHANNELS
12 3 Chapter 15 1. Student should be able to understand and articulate the underlying issue for capacity-constrained
services: lack of inventory capability.
MANAGING 2. Present the implications of time, labor, equipment, and facilities constrained combined with variations
DEMAND AND in demand patterns.
CAPACITY 3. Lay out strategies for matching supply and demand through (a) shifting demand to match capacity or
(b) adjusting capacity to meet demand.
4. Demonstrate the benefits and risks of yield management strategies in forging a balance among capacity
utilization,
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Pricing, market segmentation, and financial return.

5. Provide strategies for managing waiting lines for times when capacity and demand cannot be aligned
13 3 Chapter 16 1. Student should be able to understand and articulate the key service communication challenges.
2. Introduce the concept of integrated service marketing communications.
INTEGRATED 3. Discuss ways to integrate marketing communications in service organizations.
SERVICES 4. Present specific strategies for addressing service intangibility, managing promises, managing customer
MARKETING expectations, educating customers, and managing internal communications.
COMMUNICATI
ONS

14 3 CHAPTER 17 1. Student should be able to understand and explain three major ways that service price are perceived
differently from goods prices by customers.
PRICING OF 2. Articulate the key ways that pricing of services differs from pricing of goods from a company’s
SERVICES perspective.
3. Demonstrate what value means to customers and the role that price plays in value.
4. Describe strategies that companies use to price services.
5. Give examples of pricing strategy in action.

15 3 CHAPTER 18 1. Student should be able to understand and examine the direct effects of service on profits.
2. Consider the effect of service in getting new customers.
THE FINANCIAL 3. Evaluate the role of service in keeping customers.
AND ECONOMIC 4. Discuss what is known about the key service drivers of overall service quality, customer retention, and
IMPACT OF profitability.
SERVICE 5. Discuss the balanced performance scorecard that allows for strategic focus on measurements other
than financials.

COURSE REQUIREMENTS:

1. Class Attendance, Participation and Punctuality:

2.Exam Preparations, Deadlines and Late Policy:

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Lecture Sequence:

The primary teaching techniques shall be the lecture/discussion method. Students are responsible for reading the assigned material beforehand. The instructors will only
discuss topics that he feels require further elaboration. Students, however, may ask about topics they do not understand during class, after class, during office hours, or at a
mutually convenient time. A schedule of activities is outlined above. The initial of the last name of the Lecture/reporter assigned for that day is indicated after the discussion
topic. This schedule may be modified when deemed necessary by the instructors.

Student Rights and Responsibilities:

Freedom to teach and freedom to learn are inseparable facets of academic freedom. The instructor has the right to conduct his lectures without disruption. Students also have
the right to learn without being bothered. It is for this reason that anyone who disturbs the class will be subject to the appropriate disciplinary action. Such action may include a
warning and removal from the classroom. Outrageous behavior will not be tolerated and the offending student will be asked to leave the classroom. Some examples of
unacceptable behavior are: talking loudly that it disrupts the class, shouting at the instructor or at any other student, always coming in late, use of abusive language directed at
either the instructor or students, cheating in exams and other assigned work, plagiarism, etc.

The instructor has the right to give any type of exams he deems appropriate. He has the right to ask a student to sit elsewhere if he suspects cheating. One, however, should not
conclude that the person being asked to move is the one cheating. It is possible that someone else is copying his work. Students have the right to complain if they feel that
something is amiss.
There is, however, a procedure for airing complaints. The student should first speak with the instructor privately. If the student is afraid to speak to the instructor or is still
dissatisfied after speaking with the instructor, the chair of the Marketing Department would be the appropriate person to speak with next. If the student is still unhappy with the
situation after talking to the chair, he may raise the issue with the Dean's office. If the Dean's office is unable to provide a satisfactory solution, it will refer the student to the next
higher authority depending on the nature of the complaint. As a matter of policy, we welcome comments about my teaching. We firmly believe that teaching is a two-way
learning experience. Students also have responsibilities. If you sign up for this course, you are expected to show up in class all the time and stay for the entire period. You may
not leave the class early without prior permission of the instructor. A policy on attendance and punctuality is discussed in the section on class participation. You are expected to
have read the assigned material before the class begins. If you miss a class, it is your responsibility to know what material was covered and what assignments are due. Students
are also responsible for submitting the assignments on time. It is expected that students will devote time outside the classroom to fulfill the requirements of this course
GRADING SYSTEM:
(For details please see Student’s Handbook pp 21)

MID-TERM GRADING PERIOD

Average Quizzes 50%
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Mid-Term Examination 50%

MIDTERM GRADE 100%

FINAL GRADING PERIOD

Mid-Term Grade 40%
Ave. Quizzes/projects/assignments 30%
Final Examination 30% RECOMMENDED TEXTBOOK:
FINAL GRADE 100%
SERVICES MARKETING-Integrating Customer Focus Across the Firm, Fifth Edition
Valarie A. Zeithaml-University of North Carolina
Mary Jo Bitner-Arizona State University
Dwayne D. Gremler-Bowling Green State University

REFERENCES:

ELECTRONIC SOURCES;
http://www.pearsonhighered.com/educator/academic/product/0,3110,0136107214,00.html
http://www.amazon.com/Services-Marketing-Technology-Strategy-Edition/dp/0136107214
https://uk.sagepub.com/en-gb/asi/services-marketing-and-management/book225008

PREPARED BY: DR. ERWIN C. ZABALA

MARKETING AND MANAGEMENT PROFESSOR
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NOTED BY:

DR. CATHERINE T. FLORENTINO

B.S.B.A. DISCIPLINE HEAD

APPROVED BY:

DR. JOSE F. PERALTA

PRESIDENT AND DEAN OF UNDERGRADUATE STUDIES