discussion
Discussion 1
A service company is a specific business that helps to produce income by delivering services without selling any physical products. In the modern world, there exist different types of service type of business like consulting, education, entertainment, and media. Yes, I agree with the statement that many of the organizations are traditionally known for superiority intangibles, for example, IBM in computers and Xerox in copiers. For example, most companies like the manufacturing organizations, in the present situation they are describing themselves as service enterprises. Most of the organizations are feeling themselves as service companies because customers prefer to purchase items from the enterprise that delivers excellent customer service (Iacobucci, 2016). Initially, when the organizations consider themselves as a service organization, there is a need to consider major factors like intangibility of output. This is because service companies deliver intangible output which is not an easy activity.
For a business organization to declare as a service the company, the firm not only requires a specific percentage of service instead the firm requires to successfully resolve the issues experienced by consumers. Service mainly includes an intangible product that involves performance or effort and this could not be processed. The organizations delivering services are intangible which may include personal services, rental goods, of items owned by consumers. Service organizations consist of technical and marketing expertise to attract customers. Most of the service organizations determine themselves as service companies by considering factors like intangibility, the involvement of buyers, homogeneity, and inventory. The intangibility is complex to be conceptualized where creative visualization is most important for a business organization to deal with customers (Kotler, Keller, Brady, Goodman, & Hansen, 2019). The service performance surely depends on performance-related attributes that could be measured only when individuals experience purchase experience.
The service organizations mainly focus to deliver exclusive services that involve various factors, this might include key activities. The service definition is identified to be important while offering service management. To declare a firm as a service organization, the initial focus should be on customers (Iacobucci, 2016). The organizations should ensure to develop a vision where customers are primarily targeted individuals. If the customer's problems are resolved and customers achieve satisfaction with company offerings, then firms could be able to declare themselves as a service organization. For example, IBM is described as a service-based organization that offers global services to individuals across the world. By describing themselves as a service organization, IBM services ensure to create new business revenues for the company. IBM is a service-based organization and this is successful because it offers various services to customers based on the priority. The organization declared themselves as service companies because they didn’t calculate the percentage of service delivered to consumers. Instead, they were able to achieve excellent customer satisfaction with improved services.
References:
Iacobucci, D. (2018). Management. Cengage learning.
Discussion 2
Marketing management
The company believes that a product is something that will benefit customers. Marketing can be thought of as an exchange whereby a company offers something and the customer offers something in return and this case, payment. Both the company and the customer seek something of value and both offer a trade (Iacobucci, 2015). The company can make a product or service more attractive and the customer can be good by being loyal or purchasing every time. The company may decide to make the package less attractive and customers too by demanding customized attention.
Since it is difficult to get a new customer than retaining, marketers have realized the advantages of moving from short-term-oriented purchase transaction exchanges to long-term relationship marketing. Customer satisfaction and loyalty are the beginning of the repeated nature of a relational exchange (Iacobucci, 2015). These interactions fruition and strengthen database marketing systems and customer relationship management. To strengthen customer relationships, marketers put together a combination of goods and services.
Some products seem to be pure goods and some services seem to be pure services while other purchases seem to be a mix of a good and a service like leasing a car. Services are intangible because you may not go home with them. The continuum of goods-to-services is related to the concepts of search, credence, and experience (Iacobucci, 2015). Before purchase, the search qualities may be evaluated as the customer learns about competitive offerings. Attributes of experience require consumption or trial before evaluation. Credence qualities are difficult to judge and require one to trust that the quality is good. Experience and search qualities dominate for goods while for services credence and experience qualities dominate.
Services are produced and consumed at the same time. Goods are manufactured and inventoried in warehouses for distribution while services are created in the presence of a customer. Services are more variable than goods (Iacobucci, 2015). Goods manufacturers can set quality standards for the goods because they are produced by machines but for a service provider, experiences vary across customers. Service marketing exchange takes place between the service provider who represents the company and the customer. Customer service interaction can be frustrating or fruitful because the customer and frontline representative have different and changing abilities and needs.
Marketers can affect the satisfaction level of a customer or dissatisfaction through the good or bad value-addeds. A mistake can be made by a company by being myopic when defining their core business that focuses on its product offerings (Iacobucci, 2015). Myopia may not be the problem if the business is good but a problem if the business is bad. Product lines can be pruned especially if customers do not distinguish between brands or brands can be supplemented if a company realizes an opportunity for producing a better brand than that of competitors that customers can value.
Question.
This may be true because both IBM and Xerox produce goods that are then sold to customers worldwide. They have done this over the years and can, therefore, describe themselves to be primary service provider companies. For a company to declare itself a service organization, it must meet the desires and needs of customers by focusing on the characteristics that they desire. A company must compare itself with its competitors. The company should also charge customers in a palatable manner. Also, a company should give attention to the process of recruiting, training, and job design in making up an employee management system. Employees must be motivated to achieve excellence to help the company achieve excellence. Provided a company provides its services throughout the world, it means their strategies and mission are good.
References
Iacobucci, D. (2015). Marketing management (5th ed.). Cegange learning.