Introduction to customer service Chapter 1

Expanded Marketing Mix for Services
Product 
Place 
Promotion 
Price 
1) Physical good features 1) Channel type 
1) Promotion blend 
1) Flexibility 
2) Quality level 
2) Exposure 
2) Salespeople 
2) Price level 
3) Accessories 
3) Intermediaries 
- Number 
3) Terms 
4) Packaging 
4) Outlet locations 
- Selection 
4) Differentiation 
5) Warranties 
5) Transportation 
- Training 
5) Discounts 
6) Product lines 
6) Storage 
- Incentives 
6) Allowances 
7) Branding 
7) Managing channels 
3) Advertising 
- Targets 
- Media types 
- Types of ads 
- Copy thrust 
4) Sales promotion 
- Publicity 
 
 

---

Additional 3 ‘P’s of Services Marketing
Product 
Place 
Promotion 
Price 
1) Physical good features 1) Channel type 
1) Promotion blend 
1) Flexibility 
2) Quality level 
2) Exposure 
2) Salespeople 
2) Price level 
3) Accessories 
3) Intermediaries 
- Number 
3) Terms 
4) Packaging 
4) Outlet locations 
- Selection 
4) Differentiation 
5) Warranties 
5) Transportation 
- Training 
5) Discounts 
6) Product lines 
6) Storage 
- Incentives 
6) Allowances 
7) Branding 
7) Managing channels 
3) Advertising 
- Targets 
- Media types 
- Types of ads 
- Copy thrust 
4) Sales promotion 
- Publicity 
 
 

---

Tourism and hospitality market
….activities of persons travelling to and staying in places outside their usual 
environment for not more than one consecutive year for leisure, business 
and other purposes not related to the exercise of an activity remunerated 
from within the place visited (UNWTO)
o
Demand for a wide range of travel and hospitality products
o
Total market now serviced by the world’s largest industry 
• International arrivals: 50 million in 1950 to 1.18 billion in 2015 
(UNWTO, 2016). 
• International tourism represents 7% of total world exports and 
30% of services exports. 
• In 2015, the total export value from international tourism 
amounted to $1.4 trillion, with the sector being responsible for 
10% of the world’s GDP, and accounting for one in 11 jobs. 

---

Western markets 
o
Mature hospitality and tourism markets
• Severe competition
• Low product differentiation
• Limited promotional cost
• Customer service increasingly important as market differentiator
o
Actual customer satisfaction
• Heightened customer expectations
• Lagging satisfaction rates for tourism and hospitality

---

Customer service superstars 
1) The Ritz-Carlton Hotels and 
Resorts 
Luxury hotel; renowned for its personalized service and famous (and generous) 
employee empowerment policy; has its own Leadership Centre often used by other 
companies for development and training; motto, ‘We are Ladies and Gentlemen 
Serving Ladies and Gentlemen’ has impact internally and externally. 
2) Harrah’s Entertainment 
Gaming/Entertainment; CEO is co-author of the service profit chain; uses leading 
edge database system to do ‘surgical marketing’; belief that business should be 
grown by investing heavily to focus the firm on the customer rather than investing on 
the tangible assets of the firm only. 
3) The Walt Disney Company 
Entertainment; in addition to its reputation as the provider of family entertainment 
and fun, Disney is known for many customer-focused approaches such as 
‘guestology’ and the ‘imagineers.’ 
4) Four Seasons 
Luxury hotel; embodies a true ‘home away from home’ experience with exceptional 
personal service; ranked number two in recent Business Week survey of best 
customer service. 
5) Club Med 
Resorts; the carefree, all-inclusive holiday package company, in search of the 
‘alchemy of happiness,’ has been able to make necessary adjustments along with 
demographics of customer base. 
4) Southwest Airlines 
Airline; innovation of the ‘low cost’ carrier—has continually run contrary to most of 
the airline industry through its customer-service culture; considers itself a ‘customer 
service business which just happens to provide transportation.’ 
4) Singapore Airlines 
Airline; at the premium end of the market, Singapore Airlines has consistently 
outperformed its competitors throughout its three-and-a-half decade long history. It 
has sustained its competitive advantage by effectively implementing a dual strategy: 
differentiation through service excellence and innovation, together with simultaneous 
cost leadership. 

---

---

Asian markets 
Knowing our guests and their preferences helps us to understand their needs, 
and in turn, we are able to anticipate their requests before they even ask for 
assistance -
The Ritz-Carlton director of sales and marketing
o
High levels of service in tourism and hospitality
o
Customer satisfaction study in Singapore
o
Satisfaction index across eight economic sectors, 102 organizations.
o
Top five spots: The Ritz-Carlton, Singapore Airlines, Swissotel The 
Stamford, Shangri-La and Grand Hyatt 

---

‘There’s no second chance for a first impression’ 
o
Five-star hotels, beach, restaurants, shopping malls, golf course
o
African-themed: Jungle foliage, calls, scents 
o
40 % repeat customers
o
Attention to detail
• Cocktails at check-in
• Televisions on guest’s language channel 
• Staff track personal preferences
• Complementary drinks and fruit
o
Investments in staff training
o
Well-compensated, career opportunities
Case Study: The Lopesan Group, Gran 
Canaria, Spain