Letter of Transmittal

30th June, 2014

To,

Dr. Mohammed Tareque Aziz

Assistant Professor

BRAC Business School

BRAC University.

Dear Sir,

We are delighted to present the term Paper on “Service Marketing” as part of MKT 431 project work. This term paper reflects what a service organization should do to make their service satisfactory for the consumers.

Your instructions have been strictly followed by us to build up this term paper to give proper scenario about implementation of service marketing concepts in organization.

Yours Sincerely,

Md. Bashiur Rahman

Sadaf Min

Saif Abdullah

Morsalin Rashid

Nafis Imtiaz

Tania Shiek

Said Bari Khan

Shinthia Rahman

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Acknowledgement

At the very beginning, we acknowledge the immeasurable blessing and profound kindness of “Almighty Allah”- the supreme authority of the universe.

Numbers of individuals have contributed to this report. Firstly we are thankful to all of them for their help and support. Foremost we are thankful to our course teacher Dr. Mohammed Tareque Aziz, Assistant Professor of BRAC Business School, BRAC University, who has given us the opportunity to know about the real life implementation of Service marketing. We are also thankful to our faculty for giving theoretical knowledge in overall service marketing. We will also like to thank Mr. Fahim alam, Executive, sales and marketing. We got our result through a survey. For that survey we made a questionnaire of 13 questions and made a survey over 30 consumers of TAN POWER. So, we are also thankful to those respondents who gave their valuable times in our survey to make a result or conclusion. This project paper is one of the greatest additions to our knowledge and wonderful experience. Making this project paper we have worked as a group. The whole group collects accurate information regarding the topic.

Finally, we are pleased to complete the project paper on the given subject properly and authentically.

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Executive Summary

Success depends on service not only in strategy. In these days market has become very narrowed down. Customers go again and again to that vendor or buyer who gives the best service. To lead life or passing people want less problems or hassle free life. The company named “TAN POWER” is giving one step ahead towards that easy life. Ranging from silly work to the hard like fixing a door lock to Air ticketing, everything can be arranged by this company. Their main motto is to provide a complete lifestyle solution. The services they are offering are not new, they are old services but putting all services together under an umbrella is a new concept. So, in this area they are the pioneer and this company is a new born company. While analyzing the service aspect we made a survey to know about the current service situation of the company and from there we sort out the expectations and the perceptions associated with this company. We find out the gap. In some cases the follow the traditional method but most of the cases they apply their own method which goes with their customers. So, in those issues like Research, designing and blueprinting we think of a hypothetical situation and try to relate with this company, which can be followed and bring fruits to the company. In this report every aspect of good service marketing is shared and evaluated with the current scenario of TAN POWER with the standard or the benchmark of service sector.

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Table of Contents

Topic Description Page number

01 Introduction and Background 05

01 Objective of the Report 06

01 Scope 06

01 Methodology 06

02 The GAPS model of service quality 07

02Consumer behavior in services

08

03Customer expectations of services

10

04Customer perceptions of services

12

05Listening to customers through research

14

06Building customer relationships

16

07Service recovery

17

08Service development and design

19

09Integrated service marketing

communications

26

10 Recommendation 27

11 Conclusion 2912 Reference 31

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Introduction

TAN POWER Services Limited provides a unique and revolutionary service in home maintenance offering a comprehensive preventive maintenance program to preserve and enhance the value, life, and beauty of your home. They are first in market to provide consumers both B2B and B2C in a professional way. They established their business in 2012 to meet the needs of today’s busy home/apartment owner and provide our customers with the precious gift of extra time. Spending extra time to on things which are more enjoyable and important to you. Their goal is to provide Consumer with comfort and peace of mind knowing that your home/apartment is being well cared for by professionals solely dedicated to home maintenance as a core competence. Their success is being built on their employee’s dedication to excellence in service and by developing trusted partnerships with our customers to maintain and preserve their homes/apartments.

List of service provided them is given below. Interior Designing Repair & Clean Tile Toilet fixing Light Fixing Appliance Repair Molding It Solution

Door Lock Repair Roof Cleaning Painting Carpentry work Electrical Work Plumbing Vehicle Solution

Corporate Clients: 1) ConocoPhillips Bangladesh 2) Reckit&Benkizer Bd. Ltd. 3) Heidelberg Cement Bd. Ltd. 4) Jackson International Bd. Ltd. 5) Cummins Bangladesh 6) Kapita Auto Bricks Ltd. 7) Khalid Group.8) Grameen Phone.

Individual Clients: TAN POWER providing service in more than 65 residential houses located in Bannai, Gulshan & Baridhara.

Banking with: 

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1) Bank Asia 2) Mercantile Bank Ltd

Corporate Office: Level-5, House-22, Road-4, Block-F, Banani, Dhaka-1213, Bangladesh.Email: tanpower3@gmail.com; Web: tanpower.webs.com Branch Office: Level: 4, House-39, Road-126, Gulshan South Avenue, Gulshan-1, Dhaka-1212, Bangladesh.

Objective of the report

The main purpose of this report was to know about the practical use of service marketing concepts in real life as a part of our service marketing course. This report also gave us chance to know about TAN POWER a service company. Another objective of this report was to improve our group work skills.

Scope

This report can be useful to understand the concepts of service marketing and also from this report readers can find out there practical implementation. Officials of TAN POWER will can find this report useful.

Methodology

For primary, we interviewed Mr. Fahim alam, Executive, sales and marketing of TAN POWER. We also conducted survey.

As secondary data we have used service marketing by Valarie A. Zeithaml, Mary J. Bitner and Dwayne D. Gremler.

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GAPS Model of Service Quality

GAPS occur

TAN knows the expectations of the customers but that is very minimal. After taking the service customers invent TAN in new way and most of the time they are unsatisfied because of the nature of service. All the services provided by them actually needs beyond satisfaction limit and TAN sometimes fails to discover the mindsets of customers. As a result this GAP is occurring:

Customers’ Expectations are unknown

1. TAN POWER has not made any research yet. The firm knows what customers need but does not know which aspect of the service the customers like.

2. They only focus on B2B customers and they do not focus that much on individual customers.

3. TAN POWER has inadequate service recovery as they often fail to recover the displeased customers.

Poor service design

For B2C service TAN POWER is affiliated with local firms that provide the desired services. For each particular service the standard differs, but what TAN POWER has done is that they have combined all the services together so that the customers do not have to go to different places and get all the services from one source. But giving all things sometimes become impossible and creates obstacles in delivery, which signifies poor service design.

Uncontrollable Elements:

Insufficient third parties: The affiliated firms take more time responding due to insufficient personnel to take care of TAN POWER’s customers because they have their own customers to deal with.

Costs: TAN POWER has no control over cost; it depends on customers’ requirements. If TAN POWER wants to efficiently reduce costs, they are unable to do so.

Originality of products: Sometimes customers want original products which are not available in Bangladesh and TAN POWER fails to meet customer expectations.

Contact personnel: In most cases of B2C service the repairman (whoreceived low levels of education) provided by affiliated firms is unaware about good customer service and is unable to communicate with the customers to create a positive impression of TAN POWER.

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Perceptions of the customers

Expectation of the customers

Consumer Behavior in services

According to the properties of service TAN POWER’s service shares two characteristics:

Search qualities: In terms of satisfaction and good service people search for such companies for lifestyle solution.

Experience qualities: After taking the service from them customer can experience about good or bad.

Need Recognition

In terms of marketing, need recognition is described by using Maslow’s hierarchy of needs theory. Lifestyle solution falls under the first and second segment where the basic needs and the need of security is described. People always need to repair and decorate their household and offices as well as they need to be very conscious about the maintenance part. TAN POWER is successfully able to deliver these things to their customers.

Information Search

After identifying the necessarily of the service, people tend to gather information about the service and the provider as well. They tend to use both personal and non-personal sources of information. In terms of personal sources, people mostly rely on friends and families where as non-personal sources mostly depend on using media, internet etc.

Maintenance service is high involvement service both for people and organizations so basically TAN POWER depends on both personal and non-personal sources like Word of Mouth, websites, professional contacts etc. and also for this era of E-business, people tend to depend more on media and internet in terms of purchasing any sorts of products and service, so TAN POWER maintains their website and social website pages carefully for the convenience of the consumers.

Evaluation of Service Alternatives

Consumers decide on a number of features while evaluating service alternatives. These factors are weighed according to the importance given to them by the consumers. While seeking information for finding the perfect maintenance company, the major factors are service quality, price, goodwill and security. They mostly consider these aspects in order to choose the service.

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TAN POWER gives there service at reasonable price. They screen the employees thoroughly and also have contract with them, to ensure that they are not threat to the safety of their consumers.

Consumer Experience

Services as Processes:Service always involves a number of phases carried out by consumers. A service marketer must understand that when consumers assess the experience of a service they receive, they consider their experiences in each phase of the service. So the phase of the service process should meet consumer’s expectation. TAN POWER offers a simple system for the consumers however sometimes they find it hard to follow. For example, different plans for business to business and business to customer consumers.

Service Provision as Drama:Service has always been related to drama. A service marketer and his employees have to play different roles for their customers who are the audience. TAN POWER’s employees have been unsuccessful to some extent to perform according to their customer expectations.

Service Roles and Scripts:Every service provider has to play a role perfectly to make a service acceptable and successful.Though the employees of TAN POWER tend to be very helpful to their customers however they sometimes fail to understand some situations and act accordingly.

Emotion and Mood:Service experience can vary consumer to consumer based on their emotion and mood. A customer with a good mood can enjoy a service. Furthermore, at times customers with questions or complications may have to wait longer to resolve and it impacts on their moods.

Post Experience Evaluation

Word-of-Mouth Communication:Since they are new in the market and in most of the cases they have a very few business rivals, the word of mouth communication plays a neutral role to some extent. Due to the few or no number of business rivals, the switch is mostly to the local providers.

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Attribution of Dissatisfaction:Due to the different types of customers, the class and knowledge is varied accordingly. Thus, dissatisfaction related to a service may be caused due to customers’ misconception. The users of TAN POWER have many complaints for which the company is solely responsible. These complaints are always considered by management and they are trying to improve their weaknesses. However, they are failing to resolve these complaints at present times in some cases.

Brand Loyalty:The commitment toward a brand by a consumer defines his/her trustworthiness to the brand. There have been a number of researches conducted by researchers all over the world on consumers’ brand loyalty. TAN POWER’s good service quality, customer relationship is mostly responsible for their success of retaining giant customers like Grameen Phone, Johnson and Johnson and many more.

Customers’ expectation from TAN POWER

We worked with TAN POWER. It is a service provider company. This company has mainly two segments one is interior and another is repairing and maintenance service. Under this they have different services like in interior designing they fix kitchen hood, Repair and clean tile, light fixing it solution etc. In the repairing and maintenance they repair door lock roof cleaning, painting works, carpentry works, electricalworks, vehicle solution etc. This company has opened to give different kinds of service to their customer. Customer’s expectation differs from service to service. Tan company is giving the service to the consumer which they can find from the local any kinds of company. But what kind of service they will get from the local company. Consumers can trust TAN POWER. Theyprovide best quality of services and consumers don’t need to another place. Because TAN POWER gives every kind of services what consumer’s need.As we know those consumers’ expectations are beliefs about service delivery that serve as standards or reference points against which performance can consumer judged. Consumers expect from the TAN POWER that:

It will provide the service within the given time Consumer get the service within their desired price Consumer expects from the company that they will get a good quality of service. The person who delivers the service he or she behaved politely. His behavior will also

vary that how he talks with their consumers, how they provide the service.

Some factors have those will influence the consumers expectation. These will customers social status will vary to get the service. Economic condition is good or not that will also vary that from where a consumer gets the service. Sometimes living area, friends will play an important role to change the consumer’s expectation. If some company meets or exceed consumer’s expectation with a quick response with the consumer and if the service will get earlier service their expectation level will exceed and consumer will be very delighted.

Sometimes two organizations will give same kinds of services.In these case consumers expectation will vary from organization to organization some levels have consumers which will

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make them very happy. These are ideal expectation which will the company never able to fulfill their expectation. Consumer always wants the best service from a company. That will might not to do every time.

Normative expectation which consumer expect that might possible to any kind of service.

Experience based expectation which will help to build a consumer’s expectation which will help to build a consumer expectation by their own experience or from their family or friends references.

Acceptable expectation is which will consumer expect from a company and that is very legal and last one is minimum tolerable expectation which a company might fulfill or might not be able to hit the consumer’s expectation. These expectations will come from a consumer about a service company. If any kind of company will able to fulfill these expectations of a consumer than their consumers will be happy and TAN POWER is that kind of company who will give different kind of service and they are very much able to fulfill all the needs of their consumers. They always try to follow up the desired expectation of their consumers. Consumers will come forward toward these TAN POWER company to get good quality of service and when consumer looking for TAN POWER company they will think that these company will able to fulfill the adequate expectation of their service or not. A consumer sees the encounter expectation it means the actual needs of the consumer vs. the overall position of TAN POWER. And last one is sources of both desired and predicted services. They always try to see that TAN POWER is capable enough to give the service to their consumer or not. And how fast they will give the service to their consumer and how they fulfill their consumer expectation. Consumers sometimes try to look that to fulfill the unrealistic things or not should TAN POWER company will try to delight their customer or not. Consumer of TAN POWER will think that how they will exceed customer service expectation that is how consumers will expect from any kind of Service Company.

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Customers’ Perception about TAN POWER

Service quality dimensions:

Reliability: TAN POWER is reliable in terms of outcome. They promise to deliver a repairing service and interior designing service. They get the job done with no compromises.

Responsiveness: TAN POWER response is slow when it comes to delivering the service because it has to contact the local firms for a number of services (e.g. parts for maintenance, parts for replacement) and it depends on those firms whether they can provide the service instantly. As a result they often late in delivering their service. For this reason a negative perception is created in the mind of the customers.

Assurance: The contact employees (executives) are courteous and can inspire trust and confidence among the customers.

Empathy: The contact employees do empathize when customers reports a problem. Tangibles: It includes the physical appearance of their office. Clients do have a good

impression when they come to TAN POWER which is also partly because the appearance of the employees. When it comes to written documents, they have their good quality billing papers.

Service Encounters:

For TAN POWER there are phone encounters and face-to-face encounters. The first encounter takes place through phone calls where the customer mentions his/her service requirements for the first time. The people in charge of receiving phone calls have the complete idea about the service they provide and respond to customers with utmost courtesy.

The second encounter is different for B2B and B2C services. For B2C services the firm directly sends the required service providers (e.g. AC repairman, locksmith) to the customers’ homes for instant service. For B2B service the firm will arrange a meeting with the customer in the office or a location preferred by client. Marketing executives generally meet the client, but sometimes the managing director himself will meet with the client (if it is a big client). So what TAN POWER wants to do is create a very good first impression for itself through service encounters.

Adaptability VS Service Recovery

TAN POWER’s focus is in adaptability as they provide their service according to customer’s requirements. In case of interior designing, customers’ requirements change. For example a customer decides that a wall needs to be painted yellow and after the painting has been completed, he changes his mind to paint it another color. TAN POWER will adapt to this change and fulfill the customer’s expectation. So they try to adjust to changing customer need so that there is no issue of service recovery. Still, service recovery is needed since they are human and make few mistakes, but this is an area where they lack the professionalism.

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When the damage is done they only try to apologize, but do not any provide any extra benefits to the customer so that the customer remembers the event favorably towards TAN POWER. For example at times when they are delayed they only apologize for the inconvenience. Thus the customer might have somewhat an unfavorable perception toward the firm.

The Evidence of Service

1)People

Contact employees: The B2B clients often praises to the employees that they are satisfied by TAN POWER’s work. B2C customers sometimes complain about the delays in work.

Customer himself: Customers themselves are satisfied because delivers what they promise.

Other customers: Customers often convey the only the negative aspect of service that is the response time which is slow. Other than that we are assuming positive word of mouth is conveyed as their customers come to them from reference.

2)Process

Steps: The steps depend on the service being provided. Generally there are very few steps for the customer as the firm does the major part of the work for the customer (booking flights, etc).

Flexibility VS Standard: TAN POWER is flexible in taking payments. The clients are able to give 40% or 60% payment before the work and the rest when the work is done.

Technology VS Human: The whole service is provided through human interaction.

3)Physical Evidence

Tangible Communication: It includes the physical appearance of their office. Clients do have a good impression when they come to TAN POWER which is also partly because the appearance of the employees. When it comes to written documents, they have their good quality billing papers.

Website: There is an official website and a page on Facebook, where customers can view some of the services they provide but the customers cannot purchase services online and has to call.

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Listening Customers through Research

TAN POWER does not conduct any kind of vast research. They just call customers and try to get feedbacks from them. Here we create a hypothetical situation for effective marketing research which is very necessary indeed.

Complaint solicitation:Complaint solicitationis the area where company asks customers about their problems. In TAN POWER they call their customers and ask them in which area you are facing their problems.

Critical incident studies:Critical incident studies explore wide range of service topics, customer’s evaluation of services, service failure and recovery, customer’s perception on service delivery and customer’s experience.In this way a company tries to see their company through their customers’ eyes. As we say that TAN POWER does not discuss their critical studies effectively so they cannot know what their customers want from them .So there must be difference between what the customers expected and what they perceived. In future if TAN POWER does not discuss their critical studies, they will face many problems related with customers.

Requirements research:TAN POWER does requirements research. Sometimes they give call to their employees. Sometimes customers become very happy with their service price but they are not happy with employees’ educational background and behavior of employees. Company monitors them. They keep their eyes on their employees and try to solve the problems base on customers’ phone calls.

Trailer call:Trailer call or post transactions is gauge the overall relationship with the customers. In this method customers are asked a short list of questions after a particular transaction about their satisfaction with the transaction and contact personnel with whom they interacted. In TAN POWER they do not give any kind of trail call to their customers. So they do not gauge their relationship with their customers which are very dangerous for them. If they do not maintain any market relationship they will not know about their customers’ expectations. So gap will be huge.

Service expectations meetings and reviews:Service expectations meetings and reviews is so much important for a company. If there is a lack of coordination, every service organization must face trouble. Every employee should sit together and discuss problems about feedback of their customers. But if employees do not discuss information’s among them so they will face lots of problems. At TAN POWER, they have Service expectations meetings and reviews in every week. Top officials discuss feedback of their customers. They also discuss about to improve their service.

Check point evaluation:In TAN POWER their process check point evaluation is not covering all the point of marketing research because still they are not doing any kind of survey which can reduce the gap between customers’ expectations and perceived gap. TAN POWER does not follow any checkpoint evaluation process. Like: collect information’s, diagnose problems, recommend alternative solutions, and select

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alternatives, implement solutions. Those things are absent in TAN POWER firm. This can be very dangerous for this firm.

Market orientation:Market orientation ethnography is depending on culture based. In their office we saw female and male green room for their employees and customers. Bangladesh is a Muslim country that’s why we prefer separate green room in every office and market. They strictly maintain this. They have also separate common room for male and female employees. So we can say that TAN POWER maintains their market orientation ethnography.

Mystery shopping:Mystery shopping is a very unique research. Companies hire outside research organizations to send people into service establishments and experience the service as if they were customers. These mystery shoppers are trained in the oratorio important to customers of the customers of the establishment. They deliver objective assessments about service performance by completing questionnaires about service standards. Yet TAN POWER does not do this kind of mystery shopping but sometimes they give phone calls to their customers to know about their employee’s behavior. But employees do not know about those phone calls.

Customer’s panels: Customer’s panels are so much important. But there is no customers’ panel in TAN POWER .They always asks about where customers are facing problems. But they do not ask any customers what customers want from them or what they are expecting from TAN POWER. They do not want any suggestion about customers need from them.

Lost Consumer research: TAN POWER sometimes research about their lost customers. Jackson is one of the firms from where they earn lots of profits. But few days ago there were some misunderstandings between them. They met with Jackson and solved their problems. Although they are having problem to get back some of their consumer. Their recovery service is very poor and they do not give phone call to their lost customers. They send email to their customers. Many customers do not check their email daily. So they do not get update of their services. They send gifts to their existing customers but don’t send gifts or cards to their lost customers. They only follow up them through email. It can create a big gap of the firm.

Future expectation research:TAN POWER does not do any future expectation research about customers. They don’t ask about their future expectation from their firm. So it can create a huge expected and perceived gap of customers.

Listening to customers through research can be effective to close the listening gap, the gap between customers’ expectations and company understanding of customer’s expectations.

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Building Customer Relationship

Trust, Commitment and Emotion are the three dimensions of customer relationship.Relationship marketing is the new focus of marketing. Relationship marketing represents a new paradigm, which gives more importance to build a positive relationship with consumers rather than just selling a product or service to a consumer. It is seen that companies which are giving more focus on building a long term relationship are having increase in their total revenue. For building a good relationship a company must be committed towards their consumers, they have to earn consumers trust and satisfy the consumers as much as possible. TAN POWER does not fully emphasize on relationship marketing, they are covering some of the areas of relationship marketing.

Objective of Relationship marketing

Acquiring Consumers:The first objective for any marketing concept is to acquire consumers leading to increase their market share. But the objective of relationship marketing is not only to increase their market share by attainment of new consumers but also to regain the lost consumers. They are doing promotional activities like Telemarketing, advertisement in magazines, newspaper and also TV advertisement to get attention of the consumers. For lost consumers TAN POWER contacts them over phone, email and by service recovery measures.

Satisfying Consumers:Key to be successful for any business is satisfaction of the consumers. For satisfying the consumers first the company must know the expectation of the consumers. This can be achieved by research of customer expectation. It is not possible to make the consumer full satisfied but service companies have to try their best to satisfy the consumer as much as possible. TAN POWER are satisfying there consumers but not to the full extent. They need to conduct an effective research to understand consumer’s expectation and try to satisfy their consumers to the full extent possible.

Retaining Consumers:Another major objective of relationship marketing is to make sure that consumers will stay with the company. The most effective way to retain consumers is to make them satisfied with the service. Companies can also give some extra benefits to their consumers to reinforce them. Till now TAN POWER is able to retain most of their consumers. By maintaining consumer benefit programs, consumer follow up Etc.

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Enhancing Relationship:A good relationship with consumers can ensure that they will stay with the company for a longer time. Bonding between consumer and a company can be increased by activities like greeting cards in festivals, consumers birthday or marriage day. Many companies arrange get together programs with their consumers. Although TAN POWER being a new organization they are doing activities like get together with their consumers, especially with their business to business clients. They also follow up with their customers time to time; they follow their consumers by email and text messages.

Service Recovery

Service Recovery: It refers to the actions taken by an organization in response to a service failure. Failures occur for all kinds of reasons- the service may be unavailable when promised, it may be delivered late or too slowly, the outcome may be incorrect or poorly executed, or employees may be rude or uncaring. TAN POWER tries hard to response when there is service failure.

Complain action- If anyone complains about service TAN POWER tries to fix it immediately. They first try to find out what is problem and why do it occurs. Then they send their technicians to the customer place to fix the problem.

No complain action- The customer who took service, TAN POWER contact with them that – Are they satisfy with the service or not? If they are not satisfied they try to fix the problems immediately.

Customers Recovery Expectation:

Customers want justice and fairness in handling their complaints. There are three types justice customers are looking -

Outcome fairness:Customers expect outcomes, or compensation, that matches the level of their dissatisfaction. This compensation can take the form of actual monetary compensation, an apology, future free services, reduced charges, repairs or replacements. TAN POWER does not make any compensation or free services etc. when there is service failure; they send their technician to the customer location to solve the problem.

Procedural fairness: Customers expects fairness in terms of policies, rules and timeliness of the complaint process. Customers want easy access to the complaint process and they want things handled quickly, preferably by the first person they contact. TAN POWER communicates fairly to all the customers when any complain come to them.

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Interactional fairness:Customers expect to be treated politely with care and honesty. TAN POWER is not honest to their customers. When customers want any new home appliances like door locks or tiles for their home, TAN POWER sometimes provide fake home appliances and they tell the material is the original one.

Service Recovery Strategies:

Make the service fail-safe- Do it right first time: In this customer get what they expect, and the costs of redoing the service and compensating for errors can be avoided. TAN POWER has not been succeeded to make the service fail-safe, there are many customers who did not get proper service and they did not come again to the company.

Encourage and track complaints: TAN POWER encourages and track complaints so that in future they did not face any difficulties.

Act quickly:While complaining customers want quick responses. TAN POWER tries to respond as quickly as possible but though many a times they fail to response immediately. In some cases, like while providing transportation to customers they have been delayed and responded them after two or three days.

Provide adequate explanation: When there is failures customer wants to understand why the failure occurred. TAN POWER always gives adequate explanation why the failure occurred.

Treat customer fairly: TAN POWER always tries to treat their customers fairly. They maintain both B2B and B2C customers equally.

Cultivate relationship with customers: To maintain long term relationship TAN POWER sends mail, text messaging or contact physically with the customers. They give so gifts like calendar to their loyal customers.

Learn from recovery experience: From the service recovery TAN POWER always try to take knowledge how their service could be better in future. So, that there is no possibility of difficulties in future.

Service Guarantees:

TAN POWER gives service guarantees. Their service is either too good for some customers or too slow to some customers. They only give internal guarantees like money receipt to the customers. They give after service guarantee for a specific time period and if anything goes wrong they will replace it.

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Service Development Design

Service Innovation and Design refers drafting or designing a service, the service marketer is going to deliver or delivers to the customers. Service marketers always design the service in that approach which satisfies all the stakeholders and make the process easier and hassle free. In this paper we tried to match the similarities between the theory and the real world project.

In terms of innovation we can compare TAN POWER’s approach with YAN KRAUSS’s Free Solo Climbing approach. TAN POWER combines different services under one umbrella. We heard about Vehicle solution, Interior Designing, Flight Ticketing, Architectural services, Hajj service and repairing service. In Our country no such a company can give all these services together. TAN POWER is the first or the pioneer company in Bangladesh which gives all the services alone itself and the interesting and the latest thing is about maintenance and repair service, which is new concept of service providing in service sector in Bangladesh. They are the pioneer and first company in Bangladesh creates different concept or idea of merging or diversification by high innovation potentials and at the same time taking the highest risk which has not been taken by others before (as it is a new service providing idea).

Challenges accumulated with this new service provider (TAN POWER):

Risk of Oversimplification:The act of making something seems simpler than it really is. The provided services are too much price sensing and at the same time very much demandable and needs greater satisfaction from the perspective of the customers. One mistake in any strategy can become a hurdle and get it out from the market.

Risk of Incompleteness: TAN provides diversified services and needs too much description. Less details or less pacifying can be a threat to the existence of the company.

Risk of Subjectivity and biasness: If the provided service went wrong somehow and spread over the market by kind of personal or biased personal experience it can be detrimental.

The provided services signify the different types of service innovations:

Start-up business: This is a kind of combination of several services under one umbrella. All the things (services) are old but not provided by one. TAN takes this opportunity to combine all services provided by it and starts new business.

New services for existing market: TAN is going to inaugurate IT solution. Service Line Extension: Interior Design+ Repairing and Maintenance + Vehicle

Solution+ IT Solution. Improvement: Day to day TAN is taking its customers seriously and making an

improvement which is clearly seen in survey. Style change: Earlier for maintenance, service takers could not claim the demurrage or

compensation from the providers but TAN changes this misconception by providing demurrage or compensation.

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Service Development Process of TAN POWER along with our idea:

Business Strategy Review: Their strategy is to give complete lifestyle solution. That’s why they are in this business with diversified services.

We think giving diversified services can keep away from its focal point. We want to provide or focus in any of the area. As the large portion of revenue comes from architectural works so we first want to focus on this segment then we will think of diversification.

New Service Strategy development: TAN has different people for different works and everything is predetermined. For every work they formed a team in Architecture and Interior design they formed a team headed by an architect. For solutions they formed a team of professionals.

We want to form a good management team first. The good management team should consist of differentprofessionals. This effective management team can lead to success.

Idea Generation: To satisfy the people by giving a complete lifestyle solution they came up with this idea of having different services under one umbrella. As the country is developing and the capital Dhaka is the heart so they chose different services which are very necessary in day to day life to meet the various demand of the dwellers of this city.

We will make a segment of our customers and make a service list with a price also we will form a team of professionals to deliver service appropriately.

Concept Development and Evaluation: TAN POWER follows steps or processes. It starts with contacting with the company and ends up with giving the service.

We will make a manual and in that manual to make the service crystal clear everything will be incorporated there and then we will evaluate each and every step to find out the advantages and disadvantages of all the steps.

Business Analysis: Here they tested the feasibility of their initiatives.

Before giving any of the following service we will study about the feasibility like demand, price, durability of the service, cost, profit and everything associated with the service. After analyzing the best service will be launched.

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Service Development and Testing: They tested service in different fields.

To develop a service first we have to determine the provider. The person who is going to serve- Is he capable of doing this? What will he do? These things will be tested in a controlled situation.

Market Testing: Primarily they provided services to business to consumer and now they deal with business to business customers. To them B2C was a test bed and after taking the good responses now they deal with B2B.

Our first target customer is the household or the small builders who need various supports in construction. So, we will provide them our best service to find out the loop holes before commercialization.

Commercialization: After getting good responses from the B2C market TAN went for commercialization in B2B market.

If we get the full proof response from our target customer in test marketing then we will go for the commercialization in the B2C market.

Post Introduction Evaluation:After getting commercial, TAN started taking verbal feedback and suggestions from the customers.

After getting started into the market in a very shorter timeline we will go for a survey to find out the feelings and suggestions associated with the service. This will disclose the advantages and disadvantages both.

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Service Blueprint: It is a process mechanism, containing every final about the service delivery process, which covers:

Person- involved in the service. Cost- how much it will cost? Time- how much time will it need to do all the things?

Blueprint of TAN POWER is like this:

Identifying the process: To get the service customers should do the followings:

Identifying and understanding the customer segment:Mainly TAN is now concentrating on the B2B customers.

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Shows the design to the customer and

takes approval then start working in that

project.

After hearing the requirements, a profile sends to the customer (covering all the primary design and plans in terms of interior design).

After choosing the profile negotiation happens between customers and TAN executives.

B2B customers

Customers make first contact with executives.

TAN contacts with engineers to create a design as per customer’s requirement.

After completing they take consent from customers and take the payment.

Good design

Guarantee

Urgent deliveryCost efficient price

Long term relationship

Mapping the process from customer’s point of view: The blueprint should be designed on the basic requirements of the regular customers.

Mapping contact employee actions: What employees are doing in light and behind the scene.Onstage:

Backstage:

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Complex design Want installments in payment

Longer guarantee period

Cheap price Delivery on time

Proper Design and Planning.

Work with honesty.

Maintaining contacts with the customers.

Take the exact payment. Delivery on time.

Giving updates to the customer.

Hire good professionals.

Limited margin of profit.

Complete the task before scheduled

date.

Doing exact things

Regular monitoring by higher management team.

Supply the finest materials

Minimize complaints.

Linking contact activities to functions:

Adding evidences of service at each customer action step:

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Primary Activities

Secondary/ Support Activities

Inbound logistics

Operation Outbound Logistics

Marketing and sales

Services

Firm’s Infrastructure

Human Resource Management

ProcurementInformation system

Customers will get exact service according to their demand.

Customers will get service at an attractive price.

Proper services will be delivered in proper time

We will try our best to satisfy our customer.

Customers will be delighted and come back to us for another service.

We will build customer relationship.

Quality function deployment:

Customers’’ expectations: Adequate design Negotiation power and attractive price Delivery on time Good materials Proper supervision Guarantee and etc.

Importance of expectations: After getting the response they decorate things in high to low:

Adequate after sales service Availability of hotline number(24 hours) Quality Price

Controllable elements of service: Full control inside the operations and services. Relationship among elements: They have control over some non controllable issues.

Example: In the last December they were scheduled to deliver a project to Jackson but there was political chaos and the prices of materials went higher. They delivered the project not only at the promised time but also gave it to the contracted price as they have acquaintances (suppliers of raw materials) in the market.

Association between expectations and service elements: There is a strong positive relationship between expectations and elements. According to them service is given as per expectation.

Overall importance of elements for meeting customer expectation: Customers get service as per expectation and as a result they have customers like Uniliver, GP, H&M and others.

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Integrated Marketing Communication

Integrated Marketing Communication is the secret of covering all the info to all the customer segments at all the time.

Integrated Marketing Communication is a vital element for any organization. The accurate communication can be the reason for an organization’s success on the other hand inappropriate communication can be reason for an organization’s failure. Over the time many communication strategies were developed. TAN POWER follows two types of communications:

Internal Communication:Internal communication means the communication process for within the company. There are two types of communication channel in the organization. First is the formal and the second one is informal. In formal communication two types of communication flow is available, upward communication and downward communication. When the information flow is towards the general employees from the higher ups it is called downwards communication. In upwards communication the flow of information is from the general employee to the higher ups. TAN POWER uses combination of this two communication flows. The downward communication is used to assign goals, provide job instruction and also to inform about the rules and procedures. With the upwards communication process the employees communicates with the higher ups by giving their feed backs, their ideas, their feel about the organization. This creates an effective environment for the organization. Another type of communication is seen between the employees of same level, this is known as lateral communication.Most common type of informal communication is grapevine. Grapevine is an informal communication channel which is free from management and can rely information than formal channels.

External Communication:External Communication indicates the media to reach to the customers. TAN POWER is basically a new company. Currently they do not have TVC or the billboards advertising their company.

Current media: At present they advertise their service in the renowned daily newspaper and broadcast their company’s profile in cable operator’s movie channel. Basically they are doing personal marketing like telephoning, sending emails, sms and using Word of Mouth approach from their existing customer.

Future Plan: They are developing a TVC with the help of a renowned marketing company and also thinking of billboards for upcoming days.

Barriers in Communication:They are doing diversified business but giving all things together sometimes makes confusions to the customers’ minds. Sometimes customers misinterpret their messages and contact with them for minor issues not related to them

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Recommendation

TAN POWER is relatively a new company and also the service they provide can be considered new, since there is no other company who are providing this kind of service. It has been only two years since they have started their service. In this time they have gained consumers in both Business to Business and Business to consumers. Although there are numerous areas where they need to improve to provide the best service quality. Below we have identified some areas where they need to develop as soon as possible.

First, TAN POWER has to make effective consumers survey to understand what the consumers expects from them. Because without knowing what consumers want no organization can survive in market. TAN POWER also needs to know about consumer perception about the service. If the consumer’s measures the service is not up to the mark or expectation then gap is created in the service. So they must take post-transaction surveys. If TAN POWER knows consumer expectation and perception of the service then they can easily find out service gap and then take measures effectively.

Second, TAN POWER needs to focus on building relationship with the consumers, both business to business and business to consumer. They should make loyalty cards which will give the consumers discount in certain kind of service. Also to make the bonding strong among them, TAN POWER should organize program at least once in every years, where they communicate with each other.

Third, in many cases it has been seen that TAN POWER is giving service recovery to the consumers; it is good to give service recovery to satisfy the consumers. In their business, consumers some time do not understand the reason for failure in service, although it is not in TAN POWER fault, they provide service recovery. As their numbers of consumers are growing they cannot do it anymore. So they need to communicate with the consumers clearly and make them understand that these things are not in their hand. They should also try to reduce the rate of service recovery by satisfying the consumers.

Fourth, TAN POWER should put more emphasis on its promotional activities, so that more consumers get aware of their service. They need to use promotional medium like Tvc, billboard, newspaper. The most important is that they make sure that the message they are trying to give the consumers is clear and not confusing. While moreover with effective promotional activity they can convince people about their service quality.

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Fifth, for longer durability in the market TAN POWER should design their service in effective way. They can design it but it will be more effective if they contact with some consultants who can develop their design to stay focused in the market.

Sixth, to reach to the highest peak of success TAN should do what it promised to the customer. TAN promised 24 hours helpline and giving the quality materials. While doing the survey in very small population we find that they are not doing as promised. Promise is the key of service marketing; if you cannot keep your promise then you should not be in service sector.

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Conclusion

While working in this report we find out the real scenario of service sector. Main thing is that there are a lot of differences between the theory and the real world. Theories are the guidelines to step up but these theories sometimes cannot be followed blindly. Main things depend on market situation. Service marketer should do as per the demand of the customers which make them satisfied.

TAN POWER’s concept is brilliant, but we think too much diversity may not bring success. They can do business in any of the lines which can bring the satisfaction as well as money. Because of this diversifying theory customers are not satisfied or they cannot be able to give their best. If they think they can survive with this strategy then they can follow. But remember Service is all about promise and satisfaction. Without these two basic elements they can never success in their life.

Trust, Commitment and Emotion these things fetch customers. If one customer has faith on you because of your commitment then emotionally that customer will be related with you. This one customer can be an asset to you for the longer time. This loyal customer does not only prove as a single asset but he will bring more assets (customers) to you.

In other hand different things can also be happened. When we interviewed the marketing executive of TAN POWER, he told that B2B customers are more profitable and less problematic than B2C customers. We think this is a destructive thought which can be proved detrimental. Because when they did STP analysis then they targeted that portion which is capable of taking this service in terms of money. But today they are far behind from the analysis as they only targeted big customers rather than individual one.

Profit is a logical term. If you remain in the business for a certain time period you will make a profit. But you have to focus also on the customers’ profit as they are the boss and a single mistake from you can make you out of the competition.

TAN POWER’s good side is that they are new in the market, they have not much marketing effort but they have some large customers in their cart. This happens because of the Word of Mouth approach. These bring customers to them. In the contrary they also lost some customers like big budgets and individuals. You have to remember one thing and that is a satisfied customer can bring 100 customers and an unsatisfied customer can drag out 1000 customers. So, the relationship must be good and the customers must be satisfied by the work quality.

So, applying these things and take things like

Priority to the customer Giving the suitable service/ preferable service Fetching the satisfaction

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These three are the dimensions of service success.

If anyone can follow these, it will lead to the highest peak.

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References

Valarie A Zeithaml, Mary Jo Bitner, Deayne D Gremler, Ajay Pandit (2013-2014). Services Marketing. New Delhi: Tata McGraw hill. All.

Philip Kotler, Gary Armstrong, Prafulla Y. Agnihotri, Ehsan ul Haque (2011). Principles of Marketing. 13th ed. New Delhi, India: Pearson. ALL.

Kotler F. (2000) Marketing Management. 13th ed, Prentice Hall

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