Service marketing Recommendation
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BUS296 – Services Marketing
BUS296 Services Marketing
Unit Information and Learning Guide
Teaching Period: May Trimester 2019
This information should be read in conjunction with the online learning materials
which can be found on your MyUnits page.
Unit coordinator: Dr Cheryl Leo
Business School,
College of Arts, Business, Law and Social Sciences
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BUS296 – Services Marketing
This unit was originally written by Dr Cheryl Leo, June 2013.
Revised by Dr Cheryl Leo, 2017. Contact details
Revised by Steve Klomp, 2018
© Published by Murdoch University, Perth, Western Australia, September 2018.
This publication is copyright. Except as permitted by the Copyright Act no part of it may in
any form or by any electronic, mechanical, photocopying, recording or any other means be
reproduced, stored in a retrieval system or be broadcast or transmitted without the prior
written permission of the publisher.
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BUS296 – Services Marketing
Contents
Unit information
Information about the unit 3
Contact details 5
How to study this unit 6
Resources for the unit 8
Study schedule 11
Assessment 12
Learning guide
Introduction 19
Topic 1 Marketing in the service economy 20
Topic 2 Customer Behaviour, culture and Service Encounters 21
Topic 3 Developing Service Products 22
Topic 4 Distributing Services 23
Topic 5 Pricing Services 24
Topic 6 Integrated Marketing Communications for Services 25
Topic 7 Managing People; Managing the Customer Service Function 26
Topic 8 Crafting the Service Environment 27
Topic 9 Customer Satisfaction and Service Quality 28
Topic 10 Managing Customer Relationships in Services 29
Topic 11 Complaint Handling and Service Recovery 30
Topic 12 Revision Lecture 31
Appendix A: Assessment Resources 32
Appendix B: Policy on Group Projects 36
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BUS296 – Services Marketing
Information about the unit
Welcome to:
BUS296 Services Marketing
Unit description
The learning objectives of this unit are based on analysing the differences between services
and tangible goods, and the marketing implications of those differences. The development of
marketing strategies for service organisations will be critically examined and include
conducting research projects of selected service organisations. The importance of services
marketing, online and offline, in both service and manufacturing industries will be analysed
together with customer service, relationship marketing and service quality concepts.
Prerequisites BUS 169 Principles of Marketing or BUS183 Foundation of Marketing is the prerequisite for
this unit.
Students who have also completed BUS214 Marketing Management and BUS273 Consumer
Behaviour will more readily understand the concepts in this unit.
Aims of the unit
The broad aims of this unit are to:
1. Introduce students to key service marketing theories, concepts and tools that they can
apply to problems, issues and opportunities in their professional lives.
2. Enable students to systematically apply the principles and techniques of services
marketing to the development of viable marketing plans, programs, strategies and
initiatives.
3. Allow students to develop an appreciation of the growing role of services to the global
economy.
4. Develop communication and interpersonal skills relevant to marketing functions.
Learning outcomes for the unit
Upon successful completion of this unit, students will be able to:
· Identify contemporary trends affecting service industries
· Outline and apply services marketing theories and concepts
· Examine key service issues surrounding a service business
· Evaluate a service business using services marketing tools and recommend a unique
marketing mix
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BUS296 – Services Marketing
Graduate attributes developed in the unit
This unit will contribute to the development of the following Graduate Attributes.
Communication
Critical and creative thinking
Social interaction
Independent and lifelong learning
In-depth knowledge of a field of study
What you need to know
Generic information which students need to know is available at this “What you need to
know” web page.
The information includes:
links to the Assessment Policy
a description of Academic Integrity
links to information about:
Examinations; Non-discriminatory language; Student appeals; Student complaints;
Conscientious objection and assessment policy
determination of grades from components/marks
information for equity students
Unit Coordinator contact details
Dr Cheryl Leo Email: [email protected]
Local Affiliate contact details
Local affiliate details can be obtained from the Kaplan office
Administrative contact details
School of Business
Email: [email protected]
Phone: +618 9360 2705
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BUS296 – Services Marketing
How to study this unit
Learning strategies
The pace of learning for this Unit is fast. This means you must continuously integrate all the
new information that is presented in the sessions and the workshops/tutorials each week,
with the additional research you must conduct, to successfully complete the marketing plan.
Problem-based Collaborative Learning
A problem-based learning approach, with practical applications based on collaborative group
learning, has been adopted for this Unit. Problem-based learning requires you to develop an
understanding of marketing services, and to apply that knowledge in analysing and solving
the marketing problems for a local service organisation.
Collaborative learning is an important element of the total learning processes at the Murdoch
University and provides you with an opportunity to develop the necessary skills to work in
teams, negotiate outcomes, and manage conflict resolution. Collaborative learning is only
successful when all group members contribute to the learning outcomes.
If you have any queries regarding group work, contact your local lecturer.
Workshops As indicated in the Learning Guide, the lectures for each session will introduce
new perspectives of the key topics in service marketing will be posted online. Material posted
online cannot comprehensively cover all aspects of the selected topics, so you will need to
read the relevant chapters of the text, and to make annotated notes of the key issues in each
of those chapters, before you attend the next workshop session.
You should take brief notes during each class so that you can compare the similarities and
differences between your lecture, the relevant chapters of the text and the Supplementary
References (Resources for this unit). This learning strategy will help you to achieve the
learning objectives of this Unit and achieve a satisfactory result.
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BUS296 – Services Marketing
Contact time
There are 6 x 3.5 hour workshops and 1 x 3 hour revision session, one every second week
throughout the trimester. Students are required to complete reading and activities before and
after each workshop. Each workshop has three interconnected components; pre-workshop,
workshop and post-workshop.
Pre-workshop will include: video podcasts, online readings,
discussion and other collaborative learning activities.
Workshops will include: a review of the pre-workshop
materials, discussion questions, case studies and other
applied learning activities.
Post-workshop will include: summarising, collaborating and
reflecting on the topic/s covered.
Time commitment
As this is a 3 credit point unit, we expect you to spend 150 hours overall working on this unit.
Attendance requirements
Although not compulsory, students should attend as many of the workshops as possible.
Please see the Study Schedule to review session times and contact the lecturer if you have
any queries.
Small group and interactive teaching and learning activities
The learning activities may use small group discussions, group work and case study
activities. Please see the LMS site for specific information about these sessions.
https://policy.murdoch.edu.au/dotNet/documents/?docid=1766&LinkedFromInsertedLink=true
&public=true
Unit changes in response to student feedback
This unit has been adapted to accommodate student preferences for more online learning.
Additional activities have been developed to support student engagement with the process of
learning. Student feedback is encouraged and appreciated at all times via email to the Unit
Coordinator
Non standard teaching period dates
Not applicable to this unit.
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BUS296 – Services Marketing
Resources for this unit
To undertake study in this unit, you will need:
Essential Textbook
Lovelock, C., Patterson, P., Wirtz, J., 2014, Services Marketing: An Asia-Pacific and
Australian Perspective, Sixth Edition, Pearson Australia. (ISBN 9781486002702)
Academic Marketing Journals
Journal of the Academy of Marketing Science
Journal of Marketing
Journal of Service Research
European Journal of Marketing
International Journal of Service Management
Journal of Business Research
Journal of Marketing Research
Journal of Professional Services Marketing
Journal of Services Marketing
Marketing Intelligence and Planning
Psychology and Marketing
These journals can be accessed from the databases listed below.
Newspapers/ Business Magazines
Note: Newspapers and business magazines are generally not considered appropriate
academic references. Check with your lecturer for clarification
Harvard Business Review
The Financial Times
The Australian
Business Review Weekly
The Economist
Databases
ProQuest – ABI/INFORM
ScienceDirect
Factiva.com
PsycINFO & PsycARTICLES
JSTOR
SAGE Journals Online
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BUS296 – Services Marketing
Emerald Book Series (electronic fulltext, eg Advances in Business Marketing and
Purchasing (2000 - 2009), Advances in International Marketing (2000 – 2007, 2009)
Blackwell Synergy
SpringerLink
Wiley Interscience
Web of Science
Taylor & Francis (journals)
Singapore and Malaysian Statistics
Web sites: Statistics Singapore http://www.singstat.gov.sg
Department of Statistics Malaysia: http://www.statistics.gov.my
Malaysian International Chamber of Commerce and Industry (MICCI)
http://www.micci.com/
Singapore International Chamber of Commerce (SICC) http://www.sicc.com.sg/
Help on Researching and Analysing Information
When conducting research or analysing information it is a good idea to start by using this
link: http://library.murdoch.edu.au/Getting-help/Starting-your-research/
You may also wish to complete a self-paced online tutorial on how to research. This is
available at: http://library.murdoch.edu.au/Getting-help/LITE-Program/
For information on relevant databases and internet resources that are useful for Marketing
students please follow this link: http://libguides.murdoch.edu.au/marketing
Search on the Murdoch Library website to access others. http://library.murdoch.edu.au/Find-
information/Databases/
Resources provided during the trimester
The following will be provided during the teaching period:
Lecture Slides
Articles on eReserve
Note: Some supplementary lecture recordings may become available during the semester.
Check your LMS site for this unit frequently!
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BUS296 – Services Marketing
Urkund Your Unit Coordinators may use software called Urkund when viewing work that you
submit. Urkund is a pattern-matching system designed to compare work submitted by
students with other sources from the internet, journals/periodicals, and previous submissions.
Its primary purpose is to detect any submitted work that is not original and provide a
thorough comparison between the submitted document and the original sources.
More information about how to avoid plagiarism is contained within the Murdoch Academic
Passport (MAP)
unit https://moodleprod.murdoch.edu.au/course/view.php?id=2684 . University policies on
academic integrity can be accessed here: http://our.murdoch.edu.au/Educational-
technologies/What-you-need-to-know/
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BUS296 – Services Marketing
Study schedule
Class Session
#
Topic/Project/Study theme Assessment
items
Due
1 1. An overview of Services Marketing (Chapter 1)
2. Customer Behaviour in Service Interactions
Market Segmentation and Service Positioning
(Chapter 2 & 3)
2 3.
Developing Service Products (Chapter 4)
Service
organisation
profile & Group
charter
Due in Workshop 2
4. Distributing Services (Chapter 5)
3 5. Pricing and Revenue Management of Services
Balancing Demand (Chapter 6 & 7) Mid term quiz
Date and
time tba
6. Integrated Marketing Communications for Services (Chapter 8)
4 7. Managing People
Managing the Customer Service Function (Chapter
9 & 11)
8. Crafting the Service Environment (Chapter 10)
5 9. Customer Satisfaction and Service Quality
(Chapter 12) Marketing Plan
Due in
Class 5 and
online LMS
submission
10. Managing Customer Relationships in Services (Chapter 13)
6 11. Complaint Handling and Service Recovery (Chapter 14)
12. Revision Lecture
7 REVISION SESSION
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BUS296 – Services Marketing
Assessment
Assessment for this unit is conducted in accordance with the Assessment Policy.
https://policy.murdoch.edu.au/dotNet/documents/?docid=1896&LinkedFromInsertedLink=true
&public=true
Schedule of assessment items
You will be assessed on the basis of:
Assessment Topics Description Value Due
Mid term Test Chapters 1 to 6 of the
required text.
25 test questions
consisting of MCQs and
True/False
25% Date and time
TBA
Services
Marketing Plan
Chapters 1 to 14 of the
required text; plus
Supplementary
References.
Group Marketing Plan –
(for a local service
organisation) - 2500
words
35% Class 5,
(submission
online).
Submission
deadline tba
Final Exam Chapters 1 to 14 of the
required text.
Consist of discussion
questions and/or case
study
40% University
exam period
Assessment details
ASSESSMENT 1: Test (25%) (Closed book)
The mid-semester exam will consist of 25 MCQ’s and/or True/False questions. The exam will cover the learning material from chapters 1 to 6, the time allowed is 30 minutes.
Note: There will be NO supplementary assessment offered for the mid-semester exam. In cases of extenuating individual circumstances, such as illness (supported by a medical certificate) the Unit Controller may make alternative arrangements such as allowing the student to sit an alternative exam at a later time.
ASSESSMENT 2: SERVICES MARKETING PLAN (35%)
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BUS296 – Services Marketing
The group marketing plan is to be completed in groups of FOUR students. Each group is to select a local service organisation, from the list of service categories shown, to complete Assessment 2.
Service Categories
Education Providers – Public or Private Colleges; Universities
Hospitals/Medical - Public Hospitals; Private Medical Centres; Nursing Homes; Hospitals
Financial – Trading Banks; Insurance Companies; Credit Unions
Telecommunication Networks - Fixed-line Networks; Mobile Networks; Broadband; Subscription TV
Airlines (local airline services only)
The list of service categories is indicative only. If you select a service organisation that is not included in the list of service industries, consult your local lecturer before proceeding.
Note: It is important that each group explains how the relevant services marketing theory and/or practice can be applied to the selected local service organisation. The group will receive a Fail grade for the particular Report if it does not explain the relevance, and practical application of the services marketing theory, to the selected service organisation.
Due Date: Class 5 (Session 9). Exact submission deadline online tba
This assignment requires you to form groups of up to 4 people in your class and develop a services marketing plan for a service company of your choice (The Affiliate lecturer makes the final decision on groupings and organisation choice). Each group has to submit a service organisation profile of the chosen service organisation to their tutor in Class 2 (See Appendix A for Service Organisation Profile).
The company should be mainly offering a service product, for example, a financial consulting firm, dry cleaning service, or education provider rather than a convenience store or fast food restaurant (these are more goods dominant industries). Some companies offer many service lines so you try to select the main service offering. Pick a service provider that you can get information easily, for example, service providers with websites, reported in magazines, or companies, which you have been regular customers or personally worked as service employees, are ideal.
The services marketing plan should follow specific guidelines (See Appendix A for Marketing Plan Structure). It should be typed written in 12-point Times New Roman font and double-spaced. The word limit for the plan is 2500 words (excluding executive summary, appendices and references). Students are expected to retain copies of all assessment items submitted until a final grade for the course has been awarded.
The services marketing plan should be supported by secondary research from various sources such as academic journal articles, periodicals (newspapers or magazines), books, and other business or population statistics e.g. ABS. You should use appropriate services marketing concepts to describe and justify the strategies. The marketing plan must include no less than ten (10) academic journal articles, dated no earlier than 2009. Failure to review the required number of academic journal articles will result in lower marks being awarded for the ‘Extent of Research and Supporting Materials’ criteria (see the marking criteria). When you are researching, do not substitute web-pages and/or blogs, such as Wikipedia, for academic journal articles because it is very unlikely that those web-pages will have the academic rigour. Other associated Academic Journals and Supplementary references are listed
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BUS296 – Services Marketing
under Resources for this unit. A list of the online databases that are accessible from the Murdoch Library’s homepage: http://library.murdoch.edu.au/
Your final plan should include (Refer to Appendix A for specific details):
Executive summary
Introduction to organisation
Situation analysis that includes a SWOT analysis, target market segmentation and positioning
In-depth analysis and audit of current services marketing strategies
Proposed recommendations to existing strategies
Any supporting materials that helped to formulate your services marketing strategies should be included in the Appendices
The marketing plan is a group assignment so students should plan and work together to ensure an equitable workload. Students should utilise the strengths of individual group member and actively resolve potential group conflict prior to the submission of the assignment.
Your analysis section should focus on
Assignment structure
The marketing plan will take more time than you initially thought; something will invariably go wrong and the blame game will begin! Start planning the marketing plan straight away
Format
Paper A4, white
Font Times Roman, 12 point
Line spacing Double
Title Page To include Unit Title; Assignment Title; Your student numbers and names; and the day/time of your Workshop/tutorial.
Page numbering To start from the first page of the assignment text; not from the Title page.
References Use Chicago/Harvard Style referencing for in-text referencing and the list of References at the end of the assignment; do not use footnotes. Poor/incorrect referencing will lower your marks. Go to: http://weblib.murdoch.edu.au/citation/chicago.html
Quotations Avoid the overuse of quotations; they are to support your intellectual effort, not replace it.
Margins 2.5 cm margin, top and bottom; left and right.
Spelling Use the Spell check facility in the word processor, but remember Australian English is the standard (not US English!).
Style Do not use expressions such as; I believe..., I think..., We..., Our... or In my/our opinion... Use third person impersonal, and an active writing style, for all your written work. It is your responsibility to focus the reader's attention on your analysis and the logical conclusions that you have drawn from that analysis.
Stapled Top left hand corner; binding is not required for either Research Report in this Unit.
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BUS296 – Services Marketing
The Marking Criteria for Services Marketing Plan
The services marketing plan will be evaluated based on the analysis and insights to the strategies, understanding of services marketing, ability to integrate relevant theoretical concepts, depth of research and overall written quality of the plan (see Marking Criteria overpage).
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BUS296 – Services Marketing
Marking Criteria for Services Marketing Plan
Criteria Excellent (8-10) Good (7-8) Satisfactory (5-6) Unsatisfactory (0-4)
Executive summary and Introduction (10 marks)
Executive summary very succinct and comprehensively addresses key issues in the plan. Very highly relevant and succinct discussion on the company and topic. (9-10)
Executive summary quite succinct and addresses most key issues in the plan. Highly relevant and succinct discussion on the company and topic. (7-8)
Reasonable attempt at summarising the key issues in the executive summary in a concise manner. Reasonably relevant and succinct discussion on the company and topic. (5-6)
Does not adequately address the key issues in the plan and/or is lengthy Content generally lacks relevance to the company and topic and/or is lengthy (0-4)
Identification of key issues (10 marks)
Accurately identifies and excellent justification of all key issues. (9-10)
Accurately identifies most key issues and provides good justification. (7-8)
Reasonably identifies most key issues and provides satisfactory justification, some flaws evident. (5-6)
Key issues not adequately covered and with little justification, major flaws evident. (0-4)
Analysis of Current Service Strategies (30 marks)
Highly insightful and thorough analysis of current service strategies. Critical analysis extremely well developed. Excellent integration of services marketing theory and research. (9-10)
Insightful and thorough analysis of current service strategies. Displays high level of critical analysis. Good integration of services marketing theory and research. (7-8)
Satisfactory insights and analysis of current service strategies. Displays satisfactory critical analysis. Integrates services marketing theory and research, some flaws evident. (5-6)
Incomplete analysis of current service strategies. Critical analysis is weak or undeveloped. Limited and/or inappropriate integration of services marketing theory and research. (0-4)
Recommended Strategies (30 marks)
Very well justified and reasoned solutions, consistent with analyses. Strategies are very creative. (9-10)
Well justified and thought out solutions, consistent to most of the analyses. Strategies are quite creative. (7-8)
Appropriate solutions based on reasonable justification, linked to the analyses, some flaws evident. Demonstrates some creativity in strategies. (5-6)
Inappropriate/poorly justified solutions, with little/no link to the analyses. Demonstrates little thought/originality in strategies. (0-4)
Extent of Research and Supporting Materials (10marks)
Provides extensive, highly relevant supporting material to support analyses. Supporting material very creative (9-10)
Provides a lot of supporting, mostly relevant material to support analyses. Supporting material quite creative (7-8)
Provides satisfactory supporting material to support analyses, some flaws evident. Some creativity in supporting material (5-6)
Insufficient and/or inappropriate use of supporting material to support analyses. Little thought in use of supporting material (0-4)
Overall quality of presentation and referencing (10 marks)
E.g. Structure, grammar, referencing, readability
Quality of presentation is extremely and consistently high. Excellent written expression and superior grammar and spelling. Referencing is consistent and correct. (9-10)
Quality of presentation is a high standard. Good written expression, spelling and grammar at a high standard with very few errors. Referencing is mostly consistent and correct. (7-8)
Quality of presentation is of a satisfactory standard. Writing quality satisfactory and/or occasional errors in spelling and/or grammar. Satisfactory attempt at referencing, but not always consistent or correct. (5-6)
Quality of presentation is a weak or very weak standard. Poor writing quality and/or significant errors in spelling and/or grammar. Little/no evidence of referencing, mostly inconsistent and incorrect. (0-4)
Overall Comments: Total /100 Reweighted /35%
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ASSESSMENT 3: FINAL EXAMINATION (40%)
Final exam (closed book)
The final exam will consist of 5 discussion questions. The discussion questions could be based on a case study. The exam has been developed to test your understanding of the key topics in BUS296 Services Marketing. The exam will be held during the examination period at the end of the semester. The time allowed is TWO hours; plus 10 minutes reading time; writing is not permitted during the reading time. The final exam contributes 40% to the total marks for this Unit. A formal briefing on the final exam will be provided in the lecture and via LMS in Session 12. ALL elements of this unit are examinable.
Exam timetables are published through MyInfo. Internal students, and many external
students will be required to come on campus at South Street to sit the exam. External
students who live a bit further away should check the university website for advice about
examination arrangements. The same exam is set for both internal and external students
and these are held concurrently.
Note: Supplementary exams are not automatically offered in the unit BUS296 Services Marketing. However, if a student’s final mark is between 40% and 49% then the Unit Controller may consider offering that student a supplementary exam. Students should understand that the Unit Controller is not obliged to offer any particular student a supplementary exam.
Assignment submission
1. To avoid a late penalty, students should hand in assignments at the start of their workshop.
2. Students should also submit their assignments online via LMS – only 1 submission per group is required.
Deadlines
There are two types of group behaviour; the first manage their responsibilities and meet deadlines, while the second type waste time and submit their marketing plans after the due time and date. The issue of punctuality is a basic management problem.
Penalties
A penalty of 10% per day of the set mark, or part thereof, will be applied to any written assessments that are received after the designated time and/or due date. Requests for extensions to submission deadlines must be sought in writing providing evidence to substantiate the reasons for the request.
Plagiarism-checking software
The University uses software called Urkund that checks for plagiarism. The Coordinator may have added a link to Urkund in your online unit. Please note that when you or your Unit Coordinator submits assignments electronically to Urkund, a copy of your work is retained on the database to check collusion and future plagiarism. The University has a legal agreement with Urkund that it will not share or reproduce student work in any form.
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Assignment cover sheets Assignment cover sheets are available through your local school office. Electronic versions of the assignment cover sheet are available via the LMS website for this unit. Electronic assignment submission When submitting assignments electronically, please use the Electronic Cover Sheet available at Murdoch website via search function type in Assignment coversheet. Assignments should be submitted electronically through the LMS ‘Moodle’ site. Where assignments are submitted in Microsoft Word, the coversheet and assignment should be submitted as a single file. To ensure your work doesn't get mixed up, use a filename which follows the convention: Unit Code_last name first name_your Student Number. e.g. BUS296_Chong Alex_ 1234567 for student Alex Chong. If you need to submit a coversheet separately (e.g. when the assignment is written in another package, such as Excel), append CS to the same filename, to signify that this is a coversheet
Determination of the final grade
The final grade is made up of the sum of scores achieved across all assessment
components. See the current Assessment Policy regarding grades.
http://www.murdoch.edu.au/index/policies/index?Filter=assessment
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BUS296 Learning Guide
This Learning Guide contains information on how to study each topic, including:
Introduction to topic
Learning outcomes
Activities for tutorial
The exercises fulfil all learning outcomes for this unit.
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Class 1 - Session 1: Marketing in the Service Economy Introduction: The macro-environment change the ways in which service firms do business. Services marketing differ from goods marketing, because a service is an act or performance rather than an object and there is an expanded marketing mix (7Ps) for services. In this session, we aim to understand how services differ from goods and understand challenges that face service marketers due to these distinct differences. Learning outcomes:
• Understand the significance of services. • Define what characterises a service. • Identify key characteristics that distinguish services from goods. • Categorise a service in different ways. • Identify key components of a service system. • Describe the expanded ‘marketing mix’ for services.
Session 1 activities:
Textbook Reading
(Lovelock):
Chapter 1
Pre-Workshop Exercise:
Watch online Video: High vs low contact services
Answer pre-workshop questions:
Explain why services are harder to evaluate than goods?
Describe an unsatisfactory encounter you experienced with a high contact and low contact service. In what instance could the service provider improve?
Workshop Session
Discussion to pre-workshop questions
Chapter 1 lecture
Service Classification Workshop Activity
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 1 - Session 2: Customer Behaviour, Culture and Service Encounters Introduction: Consumer behaviour differs between goods and services, especially so at the purchase and consumption stages. These behavioural differences can be better understood through different theories of behaviour. In this session, we aim to understand how customers react in service encounters and the importance of understanding customers’ behaviours for service marketers. Learning outcomes:
• Understand the effect of culture on consumer behaviour in services • Explain the three-stage model of service consumption. • Outline how perceived risk and information search relate to pre-purchase. • Explain the importance of customers’ intrinsic needs and values. • Apply mood states theory, role and script theory and control theory on customer
behaviour.
Session 2 activities:
Textbook Reading
(Lovelock):
Chapters 2 and 3
Pre-Workshop Exercise:
Watch online video 1: Service Positioning
Watch online video 2: NAB Breakup
Answer pre-workshop questions:
Based on the video, how do service positioning maps help managers?
What is the position of the NAB bank and how does the bank maintain its positioning through specific attributes?
Workshop Session
Discussion to pre-workshop questions
Chapter 2 lecture
Service Positioning Workshop Activity
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 2 - Session 3: Developing Service Products Introduction: Service product strategy can be developed through a mixture of core and supplementary services. In this session, we aim to understand the concept of a service product and how to formulate product offerings for a service firm. The creation of new services and branding strategies are issues that surround a service product strategy.
Learning outcomes:
• Understand the total service product concept. • Apply the ‘Flower of Service’ model. • Formulate a service product strategy. • Understand key principles of service redesign and branding strategies.
Session 3 activities:
Textbook Reading
(Lovelock):
Chapter 4
Pre-Workshop Exercise:
Watch online video 1: Flower of service model
Answer pre-workshop questions:
What is the total product strategy concept? Use an example to outline the concept.
Based on the video, explain the Flower or Service concept and how this concept helps service marketers?
Explain the distinction between enhancing and facilitating services. Give two examples of services you used recently to contrast the differences between each supplementary service category.
Workshop Session
Discussion to pre-workshop questions
Chapter 3 lecture
Service Product Workshop Activity
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 2 - Session 4: Distributing Services
Introduction: Service distribution strategy relates to the ‘what’, ‘how’, ‘where’ and ‘when’ of service delivery. Unlike distributing goods, which often involve cargo being moved from manufacturer to distributor to the end-consumer, service distribution is hard to understand because there is no physical good to transport. In this session, we aim to understand what is service distribution flow, type of contact, different channel strategies, and the role of blueprinting to improve service distribution.
Learning outcomes:
After completing the required readings and activities for this week, you should:
• List four foundations of service distribution strategy. • Describe three main modes of service distribution. • Understand determinants of customers’ channel preferences. • Recognise issues of distribution through electronic channels. • Describe the key role of intermediaries. • Use blueprinting to design and distribute services.
Session 4 activities:
Textbook Reading
(Lovelock):
Chapter 5
Bitner, Mary Jo, Amy L. Ostrom, and Felicia N. Morgan (2008), ''Service Blueprinting: A Practical Technique for Service Innovation,” California Management Review. Spring
2008, 66-94
Pre-Workshop Exercise:
Watch online video 1:
Answer pre-workshop questions:
How can an experience or something intangible be distributed?
An entrepreneur is thinking of setting up a new service business (you can choose any business), how can he use the service blueprint to help him in issues on place?
Think about the nature of a service (e.g., pest control and weight reduction clinic), what issues do you have to consider for these services to go international?
Workshop Session
Discussion to pre-workshop questions
Chapter 5 lecture
Service Blueprinting Workshop Activity
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 3 - Session 5: Understanding Costs, Developing Pricing & Balancing Productive Capacity and Demand Introduction: The foundations of pricing include different types of costs and the development of pricing objectives. In this session, we aim to understand how service marketers formulate pricing strategies and use revenue management practices. This session also helps understand how to balance demand and supply using capacity management. Demand management strategies are critical for service products perishable in nature.
Learning outcomes: Pricing strategy:
• Describe the foundations of pricing strategy.
• Formulate pricing objectives.
• Define and distinguish different costs.
• Formulate pricing strategies.
• Describe what revenue management is.
• Review ethical issues related to pricing.
Demand management:
• Describe productive capacity • Distinguish different supply–demand situations • Explain and use demand and capacity management techniques
Session 5 activities:
Textbook Reading
(Lovelock):
Chapters 6 and 7
Pre-Workshop Exercise:
Watch online video 1: Balancing productive capacity and
demand
Watch online video 2: Dynamic pricing
Watch online video 3: Disney surge pricing
Watch online video 4: Uber surge pricing
Answer pre-workshop questions:
Why is pricing of services more difficult than goods?
Based on the videos, how have these services tried to innovate in pricing strategies?
How can we charge different prices to different segments of customers without them feeling cheated? How can we charge the same customer different prices at different times/contexts to be seen as fair?
Workshop Session
Discussion to pre-workshop questions
Chapter 5 lecture
Service Pricing Workshop Activity
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Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
Class 3 - Session 6: Integrated Marketing Communications for Services
Introduction: Service marketers use integrated marketing communications (IMC) to deliver a consistent message to customers. It is important to ensure that all communications deliver a strong brand identity. What is being communicated to customers has an impact on customers’ expectations and perceived service quality. In this session, we aim to understand how IMC strategy can be developed for services. Learning outcomes:
• Understand the importance and difficulties of IMC in services
• Identify the 5Ws of marketing communications planning
• Be familiar with the marketing communication mix
• Understand the role electronic media play in IMC
Session 6 activities:
Textbook Reading
(Lovelock):
Chapter 8
Pre-Workshop Exercise:
Watch online video 1: Dumb ways to due
Watch online video 2: “The best job in the world”
Answer pre-workshop questions:
What role does marketing communications play in services?
Based on the video, what elements of the communications mix strategies were undertaken?
Discuss the effectiveness of the campaigns in stimulating word-of-mouth. Why is word of mouth important for services?
Workshop Session
Discussion to pre-workshop questions
Chapter 8 lecture
Integrated Marketing Communications Workshop Activity
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 4 - Session 7: Managing People and Managing the Customer Service Function Introduction: Customer service strategies impact on customer satisfaction and the operational efficiency of service organisations. In this session, we aim to understand what the customer service function is and address how service firms leverage technology to improve on their customer service. Service employees who are satisfied and productive help service organisations to achieve service excellence and attain customer satisfaction and customer loyalty. However, frontline service work is demanding and difficult due to many roles employees play in services. In this session, we aim to understand the role service employees’ play, and how human resources strategies affect their productivity and service delivery. Learning outcomes:
• Describe the customer service function.
• Understand the trade-off between customer satisfaction and operational
efficiency.
• Distinguish between hard and soft service standards.
• Explain how technology leverages customer service.
• Demonstrate an understanding of the service profit chain
• Explain why the frontline is crucial.
• Explain why frontline roles are challenging.
• Distinguish cycles of failure, mediocrity and success.
• Describe the role of service culture and leadership.
Session 7 activities:
Textbook Reading
(Lovelock):
Chapters 9 and 11
Pre-Workshop Exercise:
Watch online video 1: SIA cabin crew: Service from the
heart
Watch online video 2: What Steve Jobs learnt from the
Ritz-Carlton
Answer pre-workshop questions:
How did the two service firms in the video build up such a strong service culture?
Under what conditions should you use empowerment? Is empowerment always good?
Workshop Session
Discussion to pre-workshop questions
Chapters 9 and 11 lecture
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 4 - Session 8: Crafting the Service Environment
Introduction: Physical environment of services is critical in shaping customers’ service experiences and satisfaction levels. Servicescape refer to the style and appearances of the physical environment and experiential elements such as colour and music where service delivery occurs. In this session, we explore the purposes and specifics of service environments, and understand why people respond in particular ways in specific surroundings. The importance of designing service environments from a holistic perspective, and from customers’ point of view is addressed. Learning outcomes:
• Explain the four purposes of service environments.
• Demonstrate understanding of environmental psychology theory.
• Describe the dimensions of a service environment.
• Understand the effect of ambient conditions on customers.
• Describe the roles of spatial layout and functionality.
• Describe the roles of signs, symbols and artefacts.
Session 8 activities:
Textbook Reading
(Lovelock):
Chapter 10
Pre-Workshop Exercise:
Watch online video 1: Service environment theories
Answer pre-workshop questions:
What is the purpose of the service environment? Describe two firms from two service sectors which you visited and relate to these purposes.
Describe how the Mehrabian-Russell Stimulus response model and Russell’s Model of affect explain consumer responses in service environments. Relate the two models to the previous two service firms.
Workshop Session
Discussion to pre-workshop questions
Chapter 10 lecture
Servicescape workshop activity
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 5 - Session 9: Customer Satisfaction and Service Quality
Introduction: Satisfaction is an emotional state. It is important for service marketers to understand how satisfaction is formed and the relationships between customer satisfaction and outcomes such as loyalty and positive word-of-mouth. In this session, we seek to define and model customer satisfaction and use these models to understand how to manage customers’ expectations and involvement. Learning outcomes:
• Define customer satisfaction and quality.
• Understand the importance of customer satisfaction.
• Describe models of satisfaction and service quality.
• Explain linkages between perceived value, service quality, satisfaction and
loyalty.
• List drivers of service satisfaction and quality.
Session 9 activities:
Textbook Reading
(Lovelock):
Chapter 12
Pre-Workshop Exercise:
Watch online video 1: GAP model for service quality
improvement
Answer pre-workshop questions:
What are the five gaps of service quality?
How can service managers use this tool?
Which gap do you see as most important?
Workshop Session
Discussion to pre-workshop questions
Chapter 12 lecture
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 5 - Session 10: Managing Customer Relationships
Introduction: Customer retention is important for service organisations loyal customers deliver value to the service firm. In this session, we aim to understand what relationship marketing and management involves in services, and the strategies that help to retain customers.
Learning outcomes:
• Explain the importance and economics of customer retention.
• Outline strategies to retain customers.
• Describe foundations of successful customer retention.
• Understand customers’ loyalty motives.
• Understand the customer relationship framework
Session 10 activities:
Textbook Reading
(Lovelock):
Chapter 13
Pre-Workshop Exercise:
Watch online video 1: You should have gone to RAKBANK
Watch online video 2: Marketing case insight: RAKBANK
Watch online video 3: Starwood fundamentally a tech
provider
Answer pre-workshop questions:
Who are the different segments of customers Rakbank serve and how does Rakbank tailor their service levels to different customers segments?
What is CRM? How does Starwood hotel undertake CRM and how do they know they have gotten their CRM imperative right?
Workshop Session
Discussion to pre-workshop questions
Chapter 13 lecture
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 6 - Session 11: Managing Customer Complaints and Service Recovery Introduction: Customer retention is important for service organisations loyal customers deliver value to the service firm. In this session, we aim to understand what relationship marketing and management involves in services, and the strategies that help to retain customers. Customer complaints are inevitable in service encounters due to the variability of services. Customer dissatisfaction can be dealt with more effectively if we understand how customers respond to service failures and from learning effective complaint handling and service recovery practices. In this session, we aim to learn about what customers do when they are dissatisfied and the motivation for complaining complaints. Concepts of service recovery and implementation are addressed.
Learning outcomes:
• Explain the importance and economics of customer retention.
• Outline strategies to retain customers.
• Describe foundations of successful customer retention.
• Understand customers’ loyalty motives.
• Understand the customer relationship framework
Session 10 activities:
Textbook Reading
(Lovelock):
Chapter 14
Customer Rage: Triggers, Tipping Points and Take outs
Pre-Workshop Exercise:
Watch online video 1: Woman misses flight
Watch online video 2: Professor Paul Patterson on what
causes customer rage
Answer pre-workshop questions:
What is service recovery? What service recovery tactics have you experienced as a customer? Why do you think the tactic was used?
Explain how customer rage evolves. Watch the film on customer rage and outline what strategies and tactics you think the airline can undertake before, during and after the incident?
Workshop Session
Discussion to pre-workshop questions
Chapter 14 lecture
Post-Workshop Exercise
Test self-knowledge on 3 MCQ questions
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Class 6 - Session 12: Revision for Exam Introduction: This session is designed to provide students with information they need for the final exams. In this session, the lecturer will go through key concepts covered in the semester and some sample questions. The questions are only an example of how questions are generally worded for the exam. Students are expected to cover all content in this unit in their own time including the answers to the sample questions, readings and resources, online and face-to- face content. Session 10 activities:
Textbook Reading
(Lovelock):
Chapters 1 to 14
Pre-Workshop Exercise:
Answer pre-workshop questions: Sample exam questions
Workshop Session
Discussion to answers of sample exam questions
Chapter 1-14 revision lecture
Post-Workshop Exercise
Not applicable
--END OF TERM--
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Appendix A: ASSESSMENT RESOURCES
Service Organisation Profile
Tutorial Time and location:
Tutor:
Group Members Student Number Contact number
1)
2)
3)
4)
5)
Name of service company:
Brief description of company and products offered
(Not more than 150 words):
Service industry of company:
Size of company:
Brief reason(s) for choosing this company?
How and what sources of information is available regarding the company?
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Summary of Team Rules, Responsibilities, and Goals
What does the group want to achieve out of this assignment?
Will the group have a leader? How would decisions be made regarding the services marketing plan?
How would the group stay in contact? Eg. Email, phone, skype etc
How often will the group meet for the group services marketing plan assignment?
Does everyone have to attend every meeting?
What if someone does not attend the meeting(s)? What will the group do?
When will the meeting(s) take place?
Where will the meeting(s) take place?
What if someone does not produce the task they were responsible for?
Will you set a deadline for tasks? How will these deadlines be enforced?
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Services Marketing Plan Structure (Same for internal and external students)
Weighting: 35% (2500 words limit excluding references and appendices) Due: Class 5 Online submission deadline tba
You are required to join a group of 4 individuals in your workshop/tutorial group to develop a services marketing plan for a service company of your choice. The service company can be commercial, government or non-for-profit. However, the company should offer products which are service dominant rather than goods dominant, for example, travel agent, airlines, hairdresser rather than a supermarket or restaurant etc. The tutor/affiliate lecturer can make the final decision on groupings and organisation choice Some companies are large and offer a portfolio of services; therefore students should narrow their scope in the report and state the scope they are analysing. The service company should operate in Australia and be one that you can easily get information on, for example, media, website, or which you have previously worked in or have experiences as a consumer of the service. The company has to be agreed by your tutor in Workshop 2, in which you have to submit your service organisation profile. You are required to conduct secondary research on the company on its service policies, strategies and practices. Though your research, you would then analyse the company’s services marketing efforts and propose recommendations either for improvement or to maintain current service strategies in the marketing plan. All arguments and recommendations in your report should be justified and supported by theory and research. You are not required to conduct any primary research or make contact with representatives of the company. The final report should be typed-written in font Times New Roman, sized 12 and doubled-spaced. The marketing plan should contain a minimum of 10 references. For internal students, this is a group assignment and it is expected that all group members contribute equally towards the completion of the assignment. Students are expected to actively work towards resolving potential group conflict prior to the submission of the marketing plan. The service company profile (which has a section to document rules and goals of the group) and group journal (to document meetings) are useful tools that can be used to manage the group. In the event a peer evaluation is requested after the submission of the assignment, strong evidence is required on attendance of meetings and member contributions.
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Services Marketing Plan Structure
The structure to the services marketing plan is provided in the following. While students are required to address all the elements (sub-headings), the focus may differ for each marketing plan as companies would differ in their strategies and goals. NOTE: The focus of the analysis and recommendations are likely to differ for different companies as each company is weak or strong in different areas
1. Executive Summary
Provide a brief overview of the services marketing plan. The executive summary should be succinct and should cover the key points of the marketing plan, including key outcomes and recommendations.
2. INTRODUCTION TO ORGANISATION
Provide some general background information on the service company and the service offerings. This may include brief information on the products sold, size, location and number of employees etc.
3. SITUATIONAL ANALYSIS
Briefly define and profile the main markets of the company. Analyse and discuss the competitive positioning of the company in relation to its competitors using a positioning map. Discuss the overall issues based on the situational analyses.
4. ANALYSIS Analyse three (3) key services marketing issues below for the organisation and analyse and critique whether the strategies,
practices and activities undertaken by the company are effective or requires improvement. When analysing the organisation, make reasoned arguments strongly backed by services marketing frameworks, concepts and research. Address conclusions on to
whether each strategy is done right or could be improved further.
Analysis of Service Product Strategies
Analyse the service product or branding strategies offered by the company. Is the development of new services necessary? Your analysis to service product strategies may relate to creating new services, service re-design or service product line extensions, which should be closely related to the characteristics of the service.
Analysis of Service Placement Strategies
Analyse the current service delivery modes and distribution. Consider ‘what?’, ‘how?’, ‘where?’ or ‘when?’ of distribution by the company. Who is involved at each step of the process? What is the role of technology in the distribution strategy? You may use the service blueprint to highlight weaknesses in critical points for improvement.
Analysis of Service Pricing Strategies
Analyse the pricing policy and methods currently undertaken by the company. If relevant, also analyse the company’s approach to managing capacity and demand. Your analysis of pricing strategies should take into consideration the type of service, competitors, objectives and target market. Consider the use of marketing mix elements apart from price that shape service demand patterns.
Analysis of Integrated Service Communication Strategies
Analyse the current services communication mix undertaken by the company based on the communication objectives and target audience. Focus more specifically on the implementation of technology and social media. Consider the impact and potential of communication that occur out of the control of the organisation. Your analysis of service communication strategies should take into consideration different communication mix for different purposes.
Analysis of Customer Service and Recovery Strategies
Analyse the current customer service standards or service recovery strategies. What is the service quality of the firm? What service recovery policies are in place and how have they been implemented. Are they effective and how have these policies affected customers’ relationship with the firm? Consider the guidelines and principles in relation to actual practices and behaviours of employees of the company.
Analysis of Customer Relationship Management
Analyse whether customers’ loyalty is important for the firm. What affects loyalty to the firm and is the firm attracting customer loyalty the right way? Why do customers stay with the firm and are customers remaining with the firm for the right reasons? If they leave, how do they end the relationship and is it
Analysis of Service Environment (Servicescape)
Analyse the current service environment and servicescape based on its physical dimensions. What is it trying to achieve in terms of experience and to communicate?
5. RECOMMENDATIONS
Following from your analyses, you are to propose 3-4 focused service strategy recommendations to be undertaken by the company
based on your previous analysis and critique. The recommendations provided should be strongly justified, innovative, sound, and based on theoretical understanding.
References
A minimum of 10 references is required for the marketing plan. Students should use Chicago referencing format to reference all sources of information such as textbooks, journal articles, websites (e.g. Australian Bureau of statistics or news websites) and business periodicals (e.g. Forbes, Australian Financial Review)
Appendices
The appendices are not included in the word count of 2500 words. Students should include all information and materials that support the analyses, for example, tables, background information, diagrams or charts etc. A service blueprint has to be included.
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Appendix B: Policy on Group Projects
Murdoch University –
School of Management and Governance (Marketing)
Collaborative Learning
Group projects foster collaborative learning, and are important means of developing teamwork skills, such as managing conflict resolution and negotiating outcomes. Those skills, when learnt in completing group projects provide valuable training, because the outcomes of most workplace tasks, apart from applying technical skills, invariably include managing group dynamics. Learning to be part of a group involves accepting that collective judgements are often required to successfully complete the group assessments for this Unit. Group assessment, like any other assessment, is subject to the criteria of academic rigour and validity within the framework of the Unit learning objectives.
Conflict Resolution In order to successfully complete the group assessments, each group member must comply with the following requirements that have been developed to minimise any conflict associated with each group member’s responsibilities in completing the group assessments.
Each group must maintain Group Activity Records of each member’s meetings and contributions to the group assessments; see requirements of a Group Activity Record. The group should meet at least weekly, and in the first group meeting should negotiate each member’s contributions, and the delivery date for those specific agreed contributions. The subsequent progress of each group member towards completing the agreed activities for completing the group assessments will also be noted in the Group Activity Records of subsequent group meetings.
If any group member fails to attend a scheduled group meeting, or fails to supply her/his specified contribution without an adequate explanation (such as a medical certificate), the other members of the group may exclude the individual from the group; the excluded student will therefore complete the marketing plan alone. The group must notify the excluded individual, and the local lecturer in writing, including the evidence to support that exclusion, within TWO days of taking that action. An email to the individual, and copied to the local lecturer, will be deemed to be sufficient notice of exclusion from the group.
If the excluded individual wishes to re-join the group, she/he may request a meeting of the group and the local lecturer to submit any reasons why she/he should be allowed to re-join the group. A decision to exclude the individual rests with the other group members and their decision will be binding on the individual.
If there are contentious issues about a group member’s contribution to the marketing plan, each member of the group must sign the Peer Assessment and submit that peer assessment with the marketing plan on the due date. In the event that an individual group member receives a Fail peer assessment for the group marketing plan, that student has 24 hours from the time of being notified by the local lecturer of the peer assessment, to
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produce evidence of her/his input to the Report; that is, the signed copies of the completed Group Activity Records for the Report. If the student does not produce the required evidence within 24 hours of notification, her/his grade, as assessed by the other members of the group, will stand and be included as part of that student’s final grade.
If the members of a group cannot resolve any differences within that group, the local lecturer may dissolve the group and/or reallocate the members to other groups.
If any students, who are members of a group, withdraw from the Unit, the remaining group members must notify the local lecturer as soon as possible. The remaining group members may consider joining another group with less than four members, or they may elect to complete the group assessments with the remaining group members. Whatever the outcome, it is expected that those arrangements will be completed by the end of Session 6.
Group Activity Record Each group is to complete Group Activity Records which must include the following information:
The title of the group marketing plan being completed.
The dates of the group meetings when each group member’s agreed contributions to the marketing plan were negotiated, and the subsequent progress made by each group member towards completing their agreed activities.
A detailed explanation of the each group member’s responsibilities, including her/his agreed actions to be undertaken in completing the marketing plan, and the due dates of those agreed activities, must be signed off by each group member.
All Group Activity Records from group meetings must be signed by each group member and submitted with each group Services marketing plan on the due dates.
An example of the contents of a Group Activity Record is provided.
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Group Activity Record
Meeting date: _______________
Marketing Plan/Presentation: ________________________________
Member’s name Signature Agreed actions Due date
A
B
C
D
You are accountable for the agreed actions that you have signed for.
Submit all the completed Group Activity Records with the appropriate assessments.
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Group Charter This is a charter that applies to you; as an individual, and as a member of a group. It provides the means to regulate the behaviour and conduct of the group, together with your rights and responsibilities. Each member of the group has the right to expect a certain standard of performance from the other group members, and in turn has the responsibility to provide an equal standard of performance to complete the group research assessments. Read the following Rights and Responsibilities. Then print your name and student number, and sign the Student Declaration on the following page to indicate that you have read and understand your rights and responsibilities. When all members of the group have signed the Student Declaration, make a copy and give the original to your local lecturer by the end of Session 3 of the current semester.
RIGHTS of all Group members
The group has the right to expect the members to be on time for group meetings.
The group has the right to expect high quality input from the individual group
members.
The group has the right to expect full participation from group members and allow
group members to hold different opinions.
A majority of group members has the right to dismiss any member of the group who
does not perform to the group’s standards.
The group has the right to expect the full support of all group members at all times.
RESPONSIBILITIES (Obligations) of all Group members
You have the responsibility to be on time for group meetings and to submit your
work in time to meet the due date.
You have the responsibility to provide the highest quality input of which you are
capable.
You have the responsibility to fully participate in the group’s activities and to
critically analyse the input of others without being critical of a particular person.
You have the responsibility to support the group’s decision even if it means that a
friend is involved.
You have the responsibility to support the group at all times.
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Student Declaration
We, the undersigned students as members of a group, have read the Policy on Group
Projects and the Group Charter provided within this Appendix B, and the assessment
requirements (within this Unit & Learning Guide) that apply to BUS296 Services Marketing.
Name Student No Date Signature
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Peer Assessment of the Services Marketing Plan
We, the undersigned group members hereby authorise the local lecturer for BUS296
Services Marketing to adjust the marks pro-rata for the specific contribution of each member
in completing the Marketing Plan as indicated and signed.
Name Student No Date Signature Proportion
of marks
(%)
Note:
1. The proportion of marks for each group member cannot be greater than 100% of the total of the marks awarded to either of the Reports. For example, if the Report is marked at 70%, then the mark for each member cannot be greater than 70%. If one member submitted only half of her/his agreed contribution, then that student will receive half of the mark for the Report – that is, 30%.
2. Each member of the team must sign this form if an individual wishes to have his/her marks adjusted pro-rata to reflect his/her contribution to the Report(s). If any member of the group does not sign this form, then all members of the group will receive the same mark for the Report regardless of any individual claims made regarding his/her contribution in completing the Report(s).
Unit Co-ordinator