OPEN UNIVERSITY OF TANZANIA
FACULTY OF BUSINESS MANAGEMENT
OME 313: SERVICES MARKETING AND CUSTOMER CARE
COURSE OUTLINE
INTRODUCTION:
The foundation of this course is to recognize that Services Marketing and Customer Care
present special challenges that must be identified and addressed. There are same
problems encountered in service organizations can not be found in organization that deal
with goods for example, inability to handle inventory, difficulty in synchronizing demand
and supply, and challenges in controlling the performance quality of human interactions
all of these problems need to be articulated and tackled by managers. Customer Service
also known as Client Service is the provision of services to customers before, during and
after purchase.
The attraction, retention, and building of strong customer relationships through quality
services are the heart of this course. Most of the topics in this course are equally
applicable to organizations whose core product is service (such as banks, transportation
companies, hotel, hospitals, educational institutions, professional services, and
telecommunication) and organizations that depend on service excellence for competitive
advantage (high-technology manufacturers, automotive and industrial products)
Financial Services Marketing gives students the opportunity to examine the contribution
that marketing can make to the success of an organization that operates in financial
service industry.
OBJECTIVES OF THE COURSE
This course in Service Marketing and Customer Care is intended to broaden your view on
marketing and customer care, to give you an understanding of how marketing is practiced
in service organizations, and how it will be managed in the future. To equip you with
knowledge on customer care and services as you become manager or administrator.
The course is intended to encourage you to question the convectional view of marketing.
It will examine marketing in industries that deal primarily in services but also from the
perspective of all organizations, on the fact that service is an integral part of the business
offering of every company and organization, regardless of the sector in which it operates.
The course will apply the principles of service marketing to organizations in the private,
public and not for profit sectors. It will examine marketing in service organization and
discusses differences between the market of tangible products and the marketing of
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services. It will also address the need for understanding consumer behavior as it applies
to the purchase of services and to the interaction between customers and service
providers. Consequently, a good understand of consumer behavior will be helpful in this
course.
The course is designed to help you to gain a comprehensive understanding of services
and how they are marketed. Successful marketing of services and delivery of excellent
customer care are critical element in the development of customer satisfaction and the
long term success of an organization. In this regard service quality and its measurement
will be discussed and be linked to service quality and customers satisfaction. Factors that
contribute to perceived service quality are the responsibility of all employees of an
organization. The provision of superior service is therefore a responsibility of all
departments of the organization. To provide outstanding customer service and positive
customer experience often make differences between gaining and keeping a customer or
losing one. This course offers you the tools and techniques to help you to build and
maintain mutually beneficial relationship with your customers.
LECTURE ONE: INTRODUCTION TO SERVICES
1.1 Overview
In this lecture you will learn that service is any act of performance that one party can
offer to another that is essentially intangible and does not result in the ownership of
anything. Its production may or may not be tied to a physical product.
1.2 Learning Objectives:
After the end of this lecture, you will be able to:
• Explain what services are and identify trends in the service sector.
• Explain the need for special services marketing concepts and practices and why
the need has developed and accelerated over the last several decades.
• Explore the profound impact of technology on service
• Outline the basic differences between goods and services and the resulting
challenges for service businesses
• Introduce the expanded marketing mix for services
1.3 Sub topics
• Concept of services
• Characteristics of services Vs Products
• Rationale of studying marketing of services
• Impact of technology on services
• Services marketing mix
LECTURE TWO: INTRODUCTION TO CUSTOMER SERVICE
2.1 Overview
The company will be in a better position to identify new opportunities and set a course
that promises to deliver long run profit by monitoring customer needs. It can decide
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which customer group and emerging needs are the most important to serve given its
resources and objectives.
2.2Learning Objectives:
After the end of this lecture, you will be able to:
• Explain the concept of customer care and services.
• Identify the socioeconomic and demographic changes that have influenced
customer service
• Outline the major components of customer-focused environment.
2.3 Sub topics
• Define customer services
• The history of service industry
• Reasons for the higher increase of services
• Advancement of Information Technology and services (E-commerce)
• Disposable income and relationship to services demand
• An organization culture and customer services experiences
• What are the components of customer services
• Quality of customer services, recruitment, selection and training qualified people
LECTURE THREE: INTRODUCTION TO FINANCIAL SERVICES
3.1 Overview
In this lecture you will learn the key principles learnt in Marketing Management and
places them in the context of marketing of financial services. Students are required to
understand how financial services are marketed in the modern world.
3.2 Learning Objectives:
After the end of this lecture, you will be able to:
• Explain the concept of marketing of financial services.
• Distinguish the characteristics of services from physical products in financial
services.
• Articulate the issues of key concern to financial institutions.
• Demonstrate an understanding of the various components of services marketing
3.3 Sub topics
Definition of service marketing in the context of financial services.
• Characteristics of service marketing as opposed to physical products in financial
services
• Definition of financial services.
• Application of marketing in financial services.
• Roles played by financial institutions.
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LECTURE FOUR: FINANCIAL PRODUCT AND SERVICES.
4.1 Overview
In this lecture you will learn that banks offer credit cards, insurance and mutual funds.
Insurance companies sell pre-need, besides non-life and life insurance. Pre-need offer
insurance riders with pension, education and/or memorial plans. Because of the
convergence of financial services, financial institutions have become more alike in their
product offering and, thus, have greater need to differentiate their services from one
another.
4.2 Learning Objectives:
After the end of this lecture, you will be able to:
• Explain the entire product spectrum of financial services, their business logic, and
how they converge and compete with one another.
• Identify and explain the financial products available in Tanzania and their
respective providers.
• Identify and explain the function of securities marketing
4.3 Sub topics
Product categories.
• Core Product — e.g. Banks’ savings/current accounts; Pre-Need’s pension,
education, life plans
• Concentric Products — all other value-added services as unique selling points
(UPS’s), e.g.: Banks’ brokerage, mutual funds, insurance over-the counter;
• Pre-Need’s insurance riders, loans
• Service providers in Tanzania
4.4 Financial products and services
• Banking
• Insurance
• Credit and debit cards
• Securities
• Brokerage.
4.5 Securities Markets
• Explain how to invest in securities marketing
• Compare the advantages and disadvantages of equity financing
• Identify the classes and features of bonds
4.6 Sub Topics
• Meaning securities marketing
• Functions of securities marketing
• Equity financing
• Features of bonds
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LECTURE FIVE: USING ICT IN MARKETING OF FINANCIAL PRODUCTS
AND SERVICES
5.1 Overview
In this lecture you will learn how financial services industries apply ICT to perform their
services
5.2 Learning Objectives:
After the end of this lecture, you will be able to:
• Explain the significance of IT in marketing financial services.
5.3 Sub Topics
• E-Marketing in financial services sector.
• Software that Financial services use in marketing their products
LECTURE SIX: REGULATORY ENVIRONMENT IN FSI
6.1 Overview
In this lecture you will learn that, today’s world marketers have the challenge to analyze
the environmental forces (Micro and Macro) that shape the financial services by applying
proper strategies
6.2 Learning Objectives:
After the end of this lecture, you will be able to:
• Discuss the main features and sectors of the FSI
• Explain the marketing environment in today's FSI: (Environmental Analysis)
• Discuss strategic factors in the FSI and its sub-sectors.
• Explain the role of Bank of Tanzania as a regulatory body.
6.3 Sub Topics:
Characteristics of FSI.
• Features and sector of FSI
• Marketing environment analysis
• Strategic factors in FSI
• The role bank of Tanzania as a regulatory body.
LECTURE SEVEN: MARKETING SEGMENTATION, TARGETING AND
POSITIONING IN FSI
7.1 Overview
In this lecture you will learn various bases for market segmentation, targeting and
positioning is crucial to marketers for developing effective marketing strategies.
7.2 Learning Objectives:
After the end of this lecture you will be able to:
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Explain marketing theory as applied in the financial services sector.
Discuss the practicability of segmentation, targeting and positioning strategies in
FI in Tanzania business environment.
Explain the use of marketing segmentation tools and strategies in developing
effective marketing strategies.
Discuss the concept of pricing decisions for Financial products and services
Compare the elements of the promotion mix and evaluate their relative
Importance in the promotion strategy of FSI.
Identify factors impacting financial services product strategy.
7.3 Sub Topics:
• Definition of marketing segmentation, targeting and positioning.
• Bases for financial market segmentation
• Target market selection and positioning strategies with various financial products.
7.4 Marketing mix variables.
• Product
• Promotion
• Price
• Place
• People
• Process
• Physical evidence
LECTURE EIGHT: CONSUMER BEHAVIOUR IN SERVICES
8.1 Overview
In this lecture you will learn that, marketing is all about making sure customers get what
they expect in order. For business to succeed marketers should make sure that all the
marketing elements are adhered to. In services markets customers are sensitive to prices
and the way service providers handle customer’s issues. In a contemporary world a
marketing manager will need to be market-oriented in order to meet customer needs.
8.2 Learning Objectives:
At the end of this lecture you should be able to:
• Explain overview of the generic differences in consumer behaviour between
services and goods
• Understand consumer behaviour decision making processes
• Understand the philosophy of customer focus, and the gaps model of service
quality as powerful frameworks and themes that form the foundation for the rest
of the lectures
• Understand the roles of culture and group consumer behaviour in services
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8.3 Sub topics
• Categories of consumer products (search qualities, experience qualities and
credence qualities)
• Consumer decision making processes
• Service quality gaps
• Role of culture in services
LECTURE NINE: CUSTOMER ANALYSIS; KNOWING YOUR CUSTOMER
9.1 Overview
In this lecture you will learn that in meeting customer needs you have to develop a much
greater understanding of your customer. Customer can learn from friends and indirect
experience through competitors.
9.2 Learning Objective
At the end of this lecture you should be able to:
• Analyze internal and external environment of the customers
• Identify the key customers components
• Understand the products deliverable
• Identify delivery systems
• Know potential customers
9.3 Sub topics
• System analysis for customer services
• Customer components
• Customer perceptions to services
• Products in service industry
• Available delivery systems
LECTURE TEN: CUSTOMER EXPECTATIONS OF SERVICES
10.1 Overview
In this lecture you will learn that performance to expectations works well in competitive
markets in which customers have sufficient knowledge to choose a service that meets
their needs and wants.
10.2 Learning objectives
At the end of this lecture you should be able to:
• Recognize that customers hold different types of expectations for service
performance
• Discuss the sources of customer expectations of service, including those that are
controllable and uncontrollable by marketers
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Discuss how the types and sources of expectations are similar for end consumers
and business customers, for pure service and product-related service, for
experienced customers and inexperienced customers
Delineate the most important current issues surrounding customer expectations
10.3 Sub topics
• Meaning and types of service expectations
• Factors influencing customer expectations on services
• Model of customer service expectations
• Issues involved in customer service expectations
LECTURE ELEVEN: CUSTOMER SATISFACTION
11.1 Overview
In this lecture you will learn that quality service includes customer feelings about the
personal style of individual and satisfaction levels with those supplementary elements
they feel competent to evaluate.
11.2 Learning objectives
At the end of this lecture you should be able to:
• Understand the concept of customer satisfaction and service quality and how
these two types of customer perceptions are related
• Understand the outcomes of customer satisfaction
• Explain service quality dimensions
• Show that service encounters or the “moments of truth” are the essential
foundation of customer
• Highlight strategies for managing customer perceptions of service
11.3 Sub topics
• Concept of customer satisfaction and service quality
• Determinants of customer satisfaction
• Outcomes of customer satisfaction
• Service quality dimensions
• The foundations for satisfaction and service quality
• Strategies for influencing customer perceptions
LECTURE TWELVE: BUILDING CUSTOMER RELATIONSHIPS
12.1 Overview
In this lecture you will learn why companies need to emphasis the important of focusing
on desirable customers and build their loyalty through well-conceived relationship,
including delivery of quality services.
12.2 Learning objectives
At the end of this lecture you should be able to:
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Explain relationship marketing, its goals, and the benefits of long-term
relationships for firms and customers
Explain why and how to estimate customer relationship value
Specify the foundations for successful relationship marketing
Explain customer profitability segments
Discuss the levels of relationship strategies
12.3 Sub topics
• Concept of relationship marketing
• Goals of relationship marketing
• Benefits of long-term relationship to customers and firms
• Relationship value of customers
• Customer profitability segments
• The expanded customer pyramid
• Levels of relationship strategies
LECTURE THIRTEEN: SERVICE RECOVERY
13.1 Overview
In this lecture you will learn about service recovery as an umbrella term for systematic
efforts by a firm to correct problem following a service failure and to retain customer
goodwill.
13.2 Learning objectives
After the end of this lecture you should be able to:
• Illustrate the importance of recovery from service failures in keeping customers
and building loyalty
• Discuss the nature of consumer complaints and why people do not complain
• Provide strategies for effective service recovery, together with examples of what
does not work
• Discuss service guarantees- what they are, the benefits of guarantees, and when to
use them-as a particular type of service recovery strategy.
13.3 Sub topics
• The concept of service recovery
• Importance of service recovery
• The service recovery paradox
• Customer complaint
• Types of customer complaint actions
• Types of complainers
• Service recovery strategies
• The concept of service guarantees
• Benefits of service guarantees
• Types of service guarantees
• Right time to use guarantee
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LECTURE FOURTEEN: SERVICE CHANNEL AND INTERMEDIARIES
14.1 Overview
In this lecture you will learn how decisions on where, when and how to deliver service
have important effects on the nature of customers services experiences. The organization
has to know weather the nature of the service require customers to be in direct physical
contact or not in order to deliver through physical channels or non physical channel i.e.
telecommunication.
14.2 Learning objectives
After the end of this lecture you should be able to:
• To illustrate the critical importance of service employees in creating customer
satisfaction and service quality
• Demonstrate the challenges inherent in boundary-spanning roles
• Illustrate the importance of customers in successful service delivery
• Enumerate the variety of roles that service customers play
• Explain strategies for involving service customers effectively to increase both
quality and productivity
• Identify the primary channels through which services are delivered to end
customers
• Discuss common issues involving intermediaries
• Identify key intermediaries for service delivery
• Enumerate benefits and challenges of using an electronic channel in delivering
services
• Discuss strategies that are used for effective service delivery through
intermediaries
14.3 Sub topics
• Importance of service employee in creating customer satisfaction and service
quality
• Challenges inherent in boundary-spanning roles
• Importance of customers in successful service delivery
• Roles of customers in service delivery
• Strategies for enhancing customer participation
• Concept of service intermediaries
• Key intermediaries for service delivery (Franchising, Brokers, Agents
• Concept of electronic channels and its challenges in services industry
• Strategies for effective service delivery through intermediaries
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LECTURE FIFTEEN: HANDLING DIFFICULT CUSTOMERS
15.1 Overview
In this lecture you will learn that each person has personality characteristics that
influence his or her baying behavior of any product or service. In providing customer
services organization has to know how to handle difficult customer.
15.2 Learning Objective
At the end of this lecture you should be able to:
• Recognize a variety of difficult personality types.
• Determine appropriate strategies for dealing with various types of customers
• Exhibit confidence when involved in difficult customers interactions.
• Develop better relationship with internal customers.
15.3 Sub topics
• How to deal with difficult customers
• Why people buy products or services (Customer expectations)
• Basic customer needs (Maslow’s hierarchy of needs model)
• The role of behaviour style
• Working with difficult customers
• Working with internal customers (Coworkers)
LECTURE
SIXTEEN:
COMMUNICATIONS
INTERGRATED
SERVICES
MARKETING
16.1 Overview
In this lecture you will learn the way marketing communication activities must be
integrated to deliver a consistent message and achieve the strategic positioning.
16.2 Learning objectives
At the end of this lecture you should be able to:
• Introduce the concept of integrated services marketing communications
• Discuss the key reasons for service communication problems
• Understand categories of strategies to match service promises with delivery
• Understand the concept of customer expectations
• Understand types of expectations
• Understand how to manage internal marketing communication
• Communication skills
• Listening to customers
16.3 Sub topics
• Integrated services marketing communications
• Reasons for service communication problems
• Strategies to match service promises with service delivery
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Concept of customer expectations
Managing internal marketing communication
LECTURE SEVENTEEN: PRICING OF SERVICES
17.1 Overview
In this lecture you will learn that pricing is more complex in service than in
manufacturing because it is harder for a manager to determine the financial cost of
creating a process of performance for a customer, compared to identifying the costs
associates with creating and distributing physical goods. This lecture introduces to you
different pricing techniques and their roles
17.2 Learning objectives
At the end of this lecture you should be able to:
• Discuss the major ways that service prices differ from goods prices for customers
• Demonstrate what value means to customers
• Discuss the role that price plays in value
• Articulate the key ways that pricing of services differ from pricing of goods
• Delineate strategies that companies use to price services
17.3 Sub topics
• Approaches to pricing services
• Concept of value to customers
• Role of price as an indicator of service quality
• Ways of pricing services
• Strategies used by companies to price services
LECTURE EIGHTEEN: THE INTERGRATED GAPS MODEL OF SERVICE
QUALITY
18.1 Overview
In this lecture you will learn that quality entails meeting or exceeding customer
expectations, the manager’s task is to balance customer expectations and perceptions and
to choose any gaps between the two.
18.2 Learning objectives
At the end of this lecture you should be able to:
• Understand Gaps model of service quality
• Discuss key factors influencing service quality gaps
• Understand the applicability of service quality model to Tanzanian Business
environment
18.3 Sub topics
• Service quality gaps
• Factors influencing service quality gaps
• Applicability of Service quality gaps to Tanzanian business environment
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LECTURE NINETEEN: ICT AND CUSTOMER CARE AND SERVICE
19.1 Overview
In this lecture you will learn how ICT is important when buyer need information about
product or service and their price. Marketers are challenged to take into consideration the
role of information technology before providing services to customers.
19.2 Learning Objective
At the end of this lecture you should be able to:
• Understand the extent to which customer services is facilitated by the effective
use of ICT
• Use technology in service delivery capabilities
• Communicate effectively via e-mail, Internet and facsimile
19.3 Sub topics
• Role of Technology in customer services
• Types of Technologies used in service industry
• Technologies strategy for customer service
• Telephone in customer care and services
LECTURE TWENTY: CUSTOMER CARE AND SERVICE IN DIVERSE
WORLD
20.1 Overview
In this lecture you will learn why the company needs to define its marketing objectives
and policies. Marketers are able to capitalize on the potential of developing market by
changing their conventional marketing practices to sell their products and services more
effectively. Economic and cultural differences need attention in local and foreign
competition to be able to exist in the market.
20.2 Learning objective
At the end of this lecture you should be able to:
• Recognize the importance of culture in services marketing and customer care
• Develop sensitivity to the fact that we are unique.
• Understand the treatment of customers individually.
• Identify ways for dealing with various types of people.
• Identify factors that make people in diversity and that help serve them better.
20.3 Sub topics
• Diversity and its impact.
• Definition of diversity.
• Customer awareness and culture.
• Quality services to diversity customer groups.
• Communication with diversity audience.
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EVALUATION
This course is evaluated in the normal system of the University.
• Two Timed Tests @ 20
=
40%
• Final Examination
=
60%
Total
100%
References:
Benjamin Schneider and David E. Bowen (1995), Winning the Service Game, Harvard
Business School Press
Christopher H. Lovelock, Jochen Wirtz, and Tat Hean Keh (2002), Services Marketing
in Asia: Managing People, Technology, and Strategy, Singapore: Prentice Hall
Christopher H. Lovelock and Jochen Wirtz (2004), Services Marketing, 5th ed., Upper
Saddle River, New Jersey: Prentice Hall
Dall, M.A (2004) Wining the War against Customer diversity, 1st Edition Prentice –
Hall.
Ian Smith (2003) Meeting customer Needs, 3rd Edition: Chartered Management
institute; Butterworth-Heinemann.
Jha S. M (1994), “Services marketing”, Himalaya publishing house, New Delhi, India
John E.G. Bateson and K. Douglas Hoffman (1999), Managing Services Marketing, 4th
edition, London: Dryden Press
Leonard L. Berry (1995), On Great Service - A Framework for Action, Free Press
Leonard L. Berry (1999), Discovering the Soul of Service: The Nine Drivers of
Sustainable Business Success, Free Press
Lucas, R.W (2002) Customer Services, Skills and Concepts for Success, 2nd Edition:
Glencoe McGraw – Hill: New York.
Turbun, E. (2002) Electronic Economics; a Managerial perspective. Prentice- Hall.
Valarie Zeithaml and Mary Jo Bitner (2003), Services Marketing, 3rd ed., Boston:
McGraw-Hill
Zeithaml, V and Bitner, M, (2003), Services Marketing, Integrating customer focus
across the firm, 3rd edn, Mc Graw-Hill, New Delhi, India
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