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• Module overview
• 1. What is marketing?
  • 1.1 What is marketing?
    • 1.1.1 Different uses of the term 'marketing'
    • 1.1.2 Different levels of marketing
    • 1.1.3 A definition of marketing
  • 1.2 Clarification of the marketing definition
    • 1.2.1 Outputs
    • 1.2.2 Inputs
    • 1.2.3 Exchange
  • 1.3 Development of marketing
  • 1.4 Types of marketing
  • 1.5 What is a service?
    • 1.5.1 Characteristics of services
    • 1.5.2 A service definition
    • 1.5.3 Classifications of services
    • 1.5.4 Services: a growth sector
  • 1.6 Marketing in the maritime industry
  • 1.7 Towards social and ethical responsibility
    • 1.7.1 Common criticisms of marketing
    • 1.7.2 Social impact of marketing
  • 1.8 Summary

• 2. Strategic marketing management

  • 2.1 Introduction
  • 2.2 The environments
    • 2.2.1 External environment
    • 2.2.2 Internal environment
    • 2.2.3 Mission statements and objectives
    • 2.2.4 Resources
  • 2.3 Controllable factors
  • 2.4 The strategic marketing management process
    • 2.4.1 Planning
    • 2.4.2 Implementation and control
    • 2.4.3 Marketing plan
  • 2.5 Types of marketing strategies
    • 2.5.1 Strategic considerations for services
  • 2.6 Summary

• 3. Marketing research and information systems

  • 3.1 Introduction
  • 3.2 The marketing information system (MIS)
  • 3.3 Marketing research
    • 3.3.1 Scope of research
  • 3.4 The marketing research process
    • 3.4.1 Step 1: defining the problem
    • 3.4.2 Step 2: analysing the situation
    • 3.4.3 Step 3: obtaining problem-specific data
    • 3.4.4 Step 4: interpreting the data
    • 3.4.5 Step 5: solving the problem
  • 3.5 Summary

• 4. Consumer and B2B buying behaviour

  • 4.1 Introduction
  • 4.2 Consumer buying behaviour
    • 4.2.1 Psychological influences
    • 4.2.2 Cultural and social influences
    • 4.2.3 The decision-making process
  • 4.3 B2B buying behaviour
    • 4.3.1 Business buying processes
    • 4.3.2 Main types of business markets
  • 4.4 The buying of services
  • 4.5 Summary

• 5. Segmenting markets, targeting and positioning

  • 5.1 Introduction
  • 5.2 Market segmentation
    • 5.2.1 Dimensions used to segment markets
  • 5.3 Target markets
  • 5.4 Market positioning
  • 5.5 Summary

• 6. Product planning and decisions

  • 6.1 Introduction
  • 6.2 Product concepts
    • 6.2.1 The total product concept
    • 6.2.2 Product classifications
    • 6.2.3 The service offering
  • 6.3 The product mix
  • 6.4 Branding
  • 6.5 Packaging
  • 6.6 Product life-cycle
  • 6.7 Product development
  • 6.8 Summary

• 7. Pricing considerations

  • 7.1 What is the 'price' of a product?
  • 7.2 Pricing environments
  • 7.3 Pricing objectives
  • 7.4 Pricing policies
    • 7.4.1 Discount and allowance policies
  • 7.5 Price setting
    • 7.5.1 Cost-oriented price setting
    • 7.5.2 Demand-oriented price setting
    • 7.5.3 The price setting process
  • 7.6 Summary

• 8. Marketing logistics networks

  • 8.1 Introduction
  • 8.2 Definition of distribution
  • 8.3 Channels of distribution
    • 8.3.1 Selecting channels
    • 8.3.2 Main Australian channels
    • 8.3.3 Distributing services
    • 8.3.4 Managing channels
  • 8.4 Managing distribution
  • 8.5 Distribution and ports
  • 8.6 Summary

• 9. Integrated marketing communications

  • 9.1 Communication with a purpose
  • 9.2 Marketing communication process
  • 9.3 The promotional mix
  • 9.4 Managing advertising
  • 9.5 Managing publicity and public relations
  • 9.6 Managing personal selling
  • 9.7 Managing sales promotion
  • 9.8 Summary

• 10. E-commerce and direct marketing

  • 10.1 Introduction
  • 10.2 Direct marketing
  • 10.3 Electronic commerce
    • 10.3.1 Successful e-commerce
  • 10.4 Online marketing
  • 10.5 Using customer databases
  • 10.6 Privacy issues
  • 10.7 Summary

• 11. Managing the service encounter

  • 11.1 Introduction
  • 11.2 Participants
    • 11.2.1 Customers
    • 11.2.2 Service personnel
  • 11.3 Managing the service encounter
    • 11.3.1 Role theory
    • 11.3.2 Script theory
  • 11.4 Process
    • 11.4.1 Operations management and services
    • 11.4.2 Manufacturing efficiency
    • 11.4.3 Improving services efficiency
    • 11.4.4 Matching supply and demand
  • 11.5 Physical evidence
    • 11.5.1 Types of physical evidence
    • 11.5.2 Space demarcation
    • 11.5.3 Atmospherics
    • 11.5.4 Servicescapes
  • 11.6 Summary

• 12. Customer relationship management

  • 12.1 Introduction
  • 12.2 Customer relationship management
  • 12.3 Customer satisfaction
    • 12.3.1 Benefits of customer satisfaction
  • 12.4 Service quality
    • 12.4.1 Conceptual model of service quality
    • 12.4.2 SERVQUAL
  • 12.5 Summary

6.2.3 The service offering

There is some variation in the use of the term service offering , but we shall use it to refer to the 'bundle of activities that includes the core service, which is the most basic benefit the customer is buying, and a group of supplementary service that support or enhance the core service' (Lamb et al. 2000, p. 378). The kinds of issues addressed within the service concept are what services to provide, when and how and where and by whom.

Various tangible and intangible elements comprise a service product . The difficulty is in breaking down the service, as the tangible elements are much easier to identify than the intangible. For instance, does a passenger flight include the departure lounge experience?

That leads to the issue of controllable versus uncontrollable service elements, because some elements are simply beyond the control of the service provider. For example, the service provider/marketer cannot know whether an inspection by customs will delay and possibly damage the goods shipped half way across the world.

The service can be offered to the consumer in different forms. There are various ways the elements of the service may be packaged. For instance, a shipper may offer a door-to-door service or an alongside-wharf service; he/she may offer service with or without insurance or send cargo by express or ordinary speed.

Closely linked to the idea of offering any number of a variety of services, is the idea of offering quality of service, on which the successful marketing of services hinges. Reliability, speed, accuracy and safety are just some of the aspects of quality expected by buyers of port services.

Unlike a physical product, the manufacturing and marketing of a service are usually inseparable. It is at this stage that the additional Ps for services become necessary as a means of showing the factors related to delivering the service product.

Consider this

What are the seven Ps of services? Can you write a short definition on each?

As you will begin to realise, due to the interactive real time experience of a service, the process, physical evidence and participants are all vital to the success of the service offering.

A service delivery system (process) both creates the service product and delivers it to the consumer. The service delivery system is comprised of the physical evidence of the service and the participants , issues we will treat in greater detail in later chapters. The professionalism and personal skills of service personnel are vital ingredients in assessments of the quality of service. This is especially true in liner shipping where homogeneity of the product is the norm.

The physical evidence of a service encompasses such things as buildings, equipment, vehicles, and documents. Items such as these form the technology that facilitates the performance of the service.

In the case of terminal services, physical evidence would include the cranes, computer systems, warehouses, and containers, among other things. Other tangible aspects of a service delivery system would be the ability of the computer system to produce accurate bills of loading, the cranes to load/unload rapidly or the warehouse to provide protection from weather and pilferage.

There are a few conceptual approaches to assist in understanding the service product and your text offers the total product concept on pages 389-390 that we use to explain physical products. Although it is useful for you to study the model in Kotler et al. (2004) for a service perspective, your next reading will direct you to a model by Grönroos (1990). The model is called the augmented service offering and is part of four steps Grönroos (1990) suggests to managing the service offering:

• develop the service concept
• develop a basic service package
• develop an augmented service offering
• manage image and communication.

Turn now to the next reading to learn more about the service offering in terms of the augmented service offering. After working through Grönroos (1990) try to recognise his concepts in the second reading on Carnival Corporation's cruise ships.

Reading 6.1

Grönroos, C. 1990, Service Management and Marketing. Managing the Moments of Truth in Service Competition, Lexington Books, Massachusetts , pp. 71-91.

Reading 6.2

'Carnival Corporation receives its last in a series of eight cruise ships' 1999, Ships and Ports , June, pp. 20-21.

Activity 6.2

Go back to the beginning of this chapter and re-examine the total product concept.

1. Write down any similarities and differences between the total product concept and the augmented service offering.
2. Do you think the augmented service offering is required for services? Why?
3. Using the augmented service offering as a guide write down three facilitating services and three supporting services which exist at your organisation.
4. Do you still agree with what you have written in point 2?

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