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    The document discusses marketing services for vehicles compared to marketing the vehicles themselves. It notes several key differences: marketing services involves intangible elements and combining core and supplementary services, while marketing vehicles focuses more on the tangible product. Marketing services also considers factors like people and the difficulty customers have imagining an intangible service. Both sales and service departments at Auto World aim to satisfy customers but have different responsibilities, with sales focusing on purchases and service on repairs. From a consumer perspective, operating a car dealership has useful parallels to operating healthcare, as both require focusing on quality, customer experience, and building trust.

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    FORD SULLIVIAN

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    The document discusses marketing services for vehicles compared to marketing the vehicles themselves. It notes several key differences: marketing services involves intangible elements and combining core and supplementary services, while marketing vehicles focuses more on the tangible product. Marketing services also considers factors like people and the difficulty customers have imagining an intangible service. Both sales and service departments at Auto World aim to satisfy customers but have different responsibilities, with sales focusing on purchases and service on repairs. From a consumer perspective, operating a car dealership has useful parallels to operating healthcare, as both require focusing on quality, customer experience, and building trust.

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    © All Rights Reserved
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    73 views6 pages

    Ford Sullivian

    Uploaded by

    bilal
    The document discusses marketing services for vehicles compared to marketing the vehicles themselves. It notes several key differences: marketing services involves intangible elements and combining core and supplementary services, while marketing vehicles focuses more on the tangible product. Marketing services also considers factors like people and the difficulty customers have imagining an intangible service. Both sales and service departments at Auto World aim to satisfy customers but have different responsibilities, with sales focusing on purchases and service on repairs. From a consumer perspective, operating a car dealership has useful parallels to operating healthcare, as both require focusing on quality, customer experience, and building trust.

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    © All Rights Reserved
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    of 6

    SERVICES MARKETING

    ASSIGNMENT # 2

    CASE STUDY TOPIC: SULLIVAN FORD AUTO WORLD

    SUBMITTED TO: DR. SAMAR RAHI

    SUBMITTED BY: MUHAMMAD BILAL AZAM

    ROLL NUMBER: E19MBA002

    HAILEY COLLEGE OF BANKING AND FINANCE, UNIVERSITY OF THE PUNJAB, LAHORE.


    1) How does marketing cars differ from marketing service for those same vehicles?

    Marketing cars:
    when the customer’s purchases manufactured goods such as cars they take title of the car from
    the dealer or the company, however, marketing services for those same vehicles the dealer
    retains the title of his/her business and offers experiences.
    Marketing services
    Marketing services a significant portion of the price paid by customers is for the value added by
    the service elements, including expert labor and the use of specialized equipments or tools. A
    service product compromises all the elements of the service performance, both tangible and
    intangible, that create value for the customers.
    Key differences:
    Marketing services. Marketing cars.

     A vehicle is marketed as the core product with  Marketing a car is easy because the product can
    certain core benefits to the customer, however be seen, touched or can be experienced. Through
    delivering of this core product is typically pictures and illustrations, customers can already
    accompanied by a variety of other service related see the features of the product.
    activities that are offered collectively as  Marketing and promoting in the automobile
    supplementary services. industry takes an extra skill.
     Designing a service concept is a complex task  Marketing cars differs from the method of
    that requires an understanding of how the core marketing services.
    and supplementary services should be combined,  Marketing cars can be done in the orthodox way
    sequenced, delivered, and scheduled to create of marketing.
    value proposition that meets the needs of the  Marketing cars works with the marketing mix,
    target segments. which attempt to control the 4P’s (Product,
     Marketing a service for a car includes the 7P’s Place, Price, Promotion).
    (Product, Place and Time, Price, Promotion and  Automobile or the cars are tangible products that
    Education, Physical Environment and People). are being sold in unit.
     Service is can’t be seen or heard off; making it  The procedure of production a car and
    tough for the customers to imagine what will consumption or usage of a car are separated
    actually happen if they get the service. process.
     Service industries face more challenges than its  Prospective customers may debate purchase
    product counterpart because of the people factor. months in advance.
     Car servicing need skill manpower and  Purchase may involve exchange of existing
    experienced labor. vehicle.
     In service, monetary transaction, time and effort  Much of the advertising effort is undertaken by
    are exchange for labor or skills, but the car manufacturer.
    ownership of the product is not seen or heard of.
     Distribution takes place through franchised
     A service is an intangible product that must offer
    dealers who take responsibility for personal
    superior service in order to hold a competitive
    advantage. selling, and participate in promotional programs
     Need for service tends to increase in frequency with manufacturers.
    and cost as car ages  Marketing a car will usually emphasis on the
     Service price is hard to predict but much lower buying process of the consumer, involving
    transaction, to take ownership of the product.
    than new purchase – often less than $40 for  Product is the primary player.
    routine work (oil change, lubrication etc…)  Marketing
    arketing for car and marketing for service
     No mention of advertising, reminders, special needs different people from different skill sets.
    offers to generate service business  Marketing
    keting a car is easy because it is tangible: can
     Same location but service building is greasy and be seen, touched or can be experienced in test
    hidden behind showroom drive and through the car printed brochures,
    customers can already see the features of the
     Customers wait in line for servicevice writers; can
    product.
    look at file-cabinets and listen
    isten to telephones
     Extensive advertising and promotions to attract
    ringing. car buyers
     Eye-catching
    catching site in convenient location
     Customers can examine the cars (and sit in them
    if they wish) while they wait for a salesperson.
    salesperson
    2) Compare and contrast the sales and service departments at Auto World.

    Sales department. Service department.


     Sales Department in Auto world is  The Service Department of Auto world is
    accountable for engaging the customer and accountable for the servicing, repair and
    influences the customer to buy the product. maintenance of the cars.
     Sales department also in charge of giving  They are also accountable for answering the
    alternatives or more options to the customer quires of the customers and entertaining the
    who weren’t able to buy brand new cars concerns and problems of the customers.
    where they offer the second hand or pre pre-  The showroom was situated in a modern
    owned ones. facility, while the service and repair bays
     Sales department always look for increasing were in 30-year-old building.
    revenue from the car sale. They are target  The service departments, when fully
    oriented and concentrate to fulfill their staffed, consisted of a service manager, a
    target. parts supervisor, nine mechanics and two
     Sales
    ales department is decorated finely, the service writers. The job of service
    showroom is handsome and high high-ceilinged, writers entailed scheduling appointments
    each vehicle is polished to a high sheen, for repairs and maintenance, writing up
    and the sales representatives are doing each work order, calling customers with
    well. repair estimates, and assisting customers
     The sales departments in the automobiles when they returned to pick up the cars and
    industry are more accountable in engaging pay for the work that had been done.
    the customer and influencing them to buy the
    product. They are also accountable in
    informing them about the new models and
    offerings in the market.
     Sales department are in charge of giving
    alternative options and offers to the new
    brand of automobiles.
    3) From a consumer is perspective, what useful parallels do you see between operating a

    car sales and


    d service dealership and operating health services?

     Sales
    ales and service department always work for making the customers satisfied.
     Sales and service department do it with their great quality product and smooth service
    experience.
     No matter what is the ver vertical
    tical of my business or industry, it’s very important and
    significant that I have to provide a good quality product and best quality service.
     Operating an automobile sales and service dealership and operating health care services
    s
    have many similarities.
     As health service is basically depends on only service while automobile industry is based
    on both product and service. In both vertical, there must have a customer oriented
    strategy.

    Car dealership. Health care.


     Owners hate to be without cars  Customers are worried and uncomfortable
     Outcome not certain, owners worried about  Outcome not always certain
    costs.  Can insure against illness to avoid risk of
     Can get initial warranties, may be able to high hospital payments
    obtain service contracts  Customers generally prefer to have a
     Outside warranty restrictions, can sw switch regular doctor whom they trust
    service suppliers whenever they want  Word-of-mouth
    mouth recommendations play an
     Customers generally prefer to have a regular important role in influencing choice of a
    service garage they trust health plan or doctor.
     Word-of-mouth
    mouth recommendations often
    influence choice
    4) What advice would you give to Carol Sulliv
    Sullivan Diaz?

     I would advise Carol Sullivan to appoint Larry Winters as a new leader. As he can

    manage the changed system since he has a great track record in auto mobile sales

    industry. He was once a leading sales rep in Auto World. He has strong managerial

    capabilities
    pabilities and strong network in the industry.

     Hire
    ire both financial and service manager to hold the financial assets and service section.

     For more effective motive, she might as well train her sisters to be in the place so that the

    profitss will still be within the company.

     Hire an experienced service management team


    team.

     Revamp the service department


    department.

     Train the service staff.

     Develop a customer oriented service strategy.

     Make use of the technology for client records and service writing
    writing.

     Expand the service delivery system


    system.

     Advertising and marketing tools and promotions should be efficiently use.


    use

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