Service Marketing and Relationship Marketing Analysis - BUS 101

This report provides a comprehensive analysis of service marketing and relationship marketing, divided into two parts. Part 1 presents a case study on Psy's 'Gangnam Style,' utilizing the 5 Ws model to examine integrated marketing communication and the impact of content on consumer value. It explores how communication strategies contributed to the video's success. Part 2 shifts focus to the operational aspects of service organizations, using Retail Food Group Limited as a case study. It outlines back-stage and front-stage operations, the significance of service encounters, and their managerial implications. The report examines the company's operations, including raw material production, warehousing, distribution, and marketing, highlighting the importance of customer interaction and overall business efficiency. Overall, the report emphasizes the importance of understanding marketing strategies and operational processes in achieving business objectives.

Service Marketing and
Relationship Marketing

Table of Contents
PART 1...............................................................................................................................1
Introduction.....................................................................................................................1
Analysis of Gangnam Style case by using 5 Ws model in the integrated marketing
communication planning process...................................................................................1
The ways how communication content adds value to Psy's music consumers and
their impacts on video's success....................................................................................2
Conclusion......................................................................................................................3
PART 2...............................................................................................................................4
Introduction.....................................................................................................................4
Overview of the chosen organization.............................................................................4
Flowchart of the back stage and front stage operations, importance of service
encounter and its managerial implications.....................................................................4
Conclusion......................................................................................................................9
REFERENCES................................................................................................................10

PART 1
Introduction
Relationship marketing refers a strategy that is being designed and developed to
increase and foster customers' loyalty as well as long term engagement (Verma,
Sharma and Sheth, 2016). This whole study is divided into 2 parts. Part one is a short
case study on Gangnam style. Psy is a South Korea rapper and musician of a hit music
video “Gangnam style”. This study is going to show the importance of integrated
marketing communication and its 5 Ws model. This 5 Ws model shows each and every
detail about marketing. Further it will also show the importance of communication
content and the ways as how it adds value to all customers and viewers of the song
Gangnam style.
Analysis of Gangnam Style case by using 5 Ws model in the integrated marketing
communication planning process
Integrated marketing communication can be defined as a procedure of combining
activities across different communication methods (Finne, Å. and Grönroos, C., 2017). A
company can make its marketing communication more effective by aligning it with its
marketing strategy which should be goal-oriented. The main aim of different
organizations and individuals of integrated marketing communication is to deliver a
particular message to target audience. Integrated marketing communication help the
company in making marketing more effective as this depends on several
communication methods.
Gangnam style is the 18th K-Pop single by the South Korean musician Psy. The 5
way model of integrated marketing communication explains and shows each element
which need to be considered while implementing marketing activities. 5 Ws elements in
the context of Gangnam style includes:
Who: It includes the right type of actions that can can contribute to an
exceptional service. In the song of Gangnam style, there are some characters are being
used. Singer and musician of this song is Psy whose real name is Park Jae Sang and
Hyuna who is a member of the Korean Pop girl, who played Psy's Boo in the first trailer
and Gangnam video.
What: It includes the main message and content of service that can contribute to
an exceptional experience. In the context of Gangnam style, the meaning of this song is
big brother is Gangnam style. It also refers to a lifestyle that is associated with the
Gangnam district.
Why and how: It includes the reason as why an individual and company wants
to offer services. For accomplishing goals how will they provide them. Gangnam style
song became popular because of its dance moves. Song also became popular as it is
more despite and catchy in a Korean. Its dance style was just amazing and unique from
other. The main aim of Psy of launching this song to make its local K-Pop fans
entertained. People of Gangnam district are more trendy and hip (DiMarco, 2017).
When: It is stated that Phy recorded label YG entertainment that had been
building up the foundation for wider range or maximum reach across a number of
channels, before launching this unique video. It is also stated that Phy studied very hard
to find and attractive and unique dance style and for that he stayed up late for almost 30
nights to come up with the unique Gangnam style.
1

Where: It includes the place and platform from where targeted customers can
get offering services. Gangnam style video and song became popular on You tube as it
was released in the year of 2012. At the same date only, it made approximate 500,000
views. Initially it was being covered by online technology publications. After it, they lead
to coverage by traditional media powerhouses.
So, it can be said that the success of this song and video is a catchy rhythm and
attractive dance moves.
The ways how communication content adds value to Psy's music consumers and their
impacts on video's success
There are some ways and elements of communication content that help in
adding value to consumers and have great impact on service and products' success.
Particularly by making an effective use of social media and You tube. The media
account and socio cultural focus was one of the main factor and communication content
of Psy who impacts on its video's success (Critical Success Factors of communication
content of Gangnam style's video, 2019).
 The main important factors which contributed in the success of this video's
success is it was funny, so everybody wants to enjoy it and just go with its flow.
So, it can be said the content should be easy to understand.
 The message and tune of this song is eye-catching as it gives opportunity to all
viewers to participate and enjoy it. It is also stated that people and even children
try their hand at the Gangnam style dance. So, it can be said that communication
content should be enjoyable.
 Psy's video was different as compare to its competitors that helped in to grab
viewers' attention. They liked the video because of its unique moves and lyrics as
even people were talking about videos. So, it shows that the importance of
communication content that adds value to consumers (Rathore, Ilavarasan and
Dwivedi, 2016).
 Back story is other main factors which Psy involved in its communication content.
Gangnam is a district and the main reason of Psy of making this song is to
entertain the people of Gangnam. It is based on socio cultural element. So it can
be said that social factors play an important role while planning and making
decisions about marketing and communication content.
With more than and approximate 1 billion by which he generated approximate $8 billion
revenue on YouTube alone.
2

Conclusion
From the above study it has been summarized that integrated marketing
communication and its important 5 Ws model played a vital role. It helped an individual
in attracting a wider range of customers and influence them to buy offered services. It
has also shown some ways by which communication content add value to customers.
Its uniqueness, ways of delivering message has a positive impact on the success of
marketing and services.
3
Illustration 1: Real communication content Gangnam marketing style

PART 2
Introduction
Part 2 is all about the operations of service organization. Business operations
refers to the combinations of all the activities conducted by organization for the purpose
of running and achieving organizational objectives is known as Business Operations
(Heizer, Render and Munson, 2017). This report will highlight the back stage & front
stage operations, service encounters' importance and managerial implications of it.
Overview of the chosen organization
Retail food group limited company is an Australian company. Its headquarters is
in Southport, Queensland, Australia. It is a public listed company who are working under
certain industries such as – Food, Coffee Roasting, Beverage. Coffee and QSR
Restaurants. This company was founded in year 1989.
Flowchart of the back stage and front stage operations, importance of service encounter
and its managerial implications
FLOWCHART OF BACK STAGE OPERATIONS IN RETAIL FOOD GROUP LIMITED
COMPANY
Back Office refers to the part of the organization where those operations are
conducted in order to provide assistance to the front office operations. It is related to the
production of the goods and services offered by the company (Gibson and Parkman,
2018). Moreover, it is also can be called as the portion of business where there is no
direct relationship between customers and employees who are working there. Following
operations are conducted by Retail Food Group Limited Company under the back office
which are as follows -
Production of Raw Materials at Farms – In this stage of back office operations, Retail
Food Company produce related goods and services in their farm where they either
produce raw materials or demand it from suppliers so that employees of organization
can produce required amount of goods in order to fulfil the demand of customers.
Production of goods are done with the help of machineries, techniques and tools.
Reaching Warehouses – The next stage of the back office operation is that company
supply their finished goods from farms to warehouses. Warehouses is a kind of storage
houses where products are safely and securely store for 2 days to 14 days. It helps in
managing supply chain management which is considered to be an important front
operation of firm which is a part of operation management of the Retail Food Group
Company (Thomé, Scavarda and Scavarda, 2016).
Delivering to Stores – In order to fulfil the demand of the customers, the next step of
back office operation is conduct which is known as delivery of goods at various stores.
There are around 1150 stores established in Australia and New Zealand. Delivery of
goods at every store of the company is an essential function. Without this, company
won't be able to sell their products to the customers.
Promoting through Social Media – It is the responsibility of back office employees to
create awareness about the products, company is producing. It is done by marketing
department of Retail Food Group. They are considered to be the part of the back office.
This company is using traditional as well as modern marketing tools but highly focus on
the promotion of their goods through social media.
4

Selling the products to Customers – It is very important part of the company's
operations. This is directly related to the organizational objectives of Retail Food Group
Limited. It help company to fulfil their customers demand and producer's supply which is
beneficial for the firm's brand image as well as profitability. It also required a lot of
strategies which is prepared and implement by the front office employees as these
strategies are prepared according to the target customers.
Providing Employment – This operation of Retail Food Company is very important for
overall organization. In this stage of back office operation, Firm is giving employment
opportunities to various parties who are involved in the production of the goods to after
sales services. Employees, workers and farmers are considered to be an immense part
of the company and without them, no company can manage and conduct its all the
operations whether it is related to the back office or front office (Dobrzykowski,
McFadden and Vonderembse, 2016).
5

FLOWCHART OF FRONT STAGE OPERATIONS IN RETAIL FOOD GROUP LIMITED
COMPANY
Front office refers to the part of organization in which employees directly interact
and communicate with the customers (Adebanjo, Laosirihongthong and Samaranayake,
2016). It is also known as the combinations of activities which involves around sales
and marketing of the products and services offered. That is the reason, front office is
considered to be the main face of the organization and their biggest responsibility is to
make good impression on consumers so that they can come to the firm in order to
purchase goods and services.
Operation management: Operation management is an important part and
administration of all business practices that helps the company yo create the superior
level of efficiency in their business. It is the main function which convert raw materials
as well as labour into services with the main aim of maximizing profits. By focusing on
this function, retail food group limited can perform further functions effectively.
Goods and service: Goods and services refers all those things and items which
consumers buy for accomplishing their needs. A company earn money in the exchange
and by selling of items is called services and goods. Retail food group Australia limited
sells coffee, pizza, beverages to customers for making profits and increasing sales.
Pricing and products: Pricing is other main factor that can influence operations of its
business. There is a requirement for Retail food group Australia limited to keep its
prices lower as much as possible for becoming the market leader in the industry. Pricing
is the main factor which is being considered by customers while making buying
decision. Pricing and products strategy also help them in maintaining a brand image in
the market (Maglio and et.al., 2018).
Quality management: It is stated and said that the front stage operations of this
company involves quality management. Quality is also main factor rather than pricing
which customers prefer. Nowadays customers are becoming more aware about their
health, and they only prefer qualitative and healthy food products. So, it is important for
Retail food group Australia limited to focus on quality management and develop a
quality standard.
Demand and supply management: Capacity design and management between
demands of products and its supply is an important factor which need to be considered.
This food retail company focuses on managing a balance between demand and supply
which help them in satisfying customers by providing them products at the time when
they need.
Location strategy: Location strategy of food retail company of Australia is one of the
main strategy that help it in getting success. This industry operates in approximate 1150
locations of Australia and New Zealand. It wants to keep and open its store in every
possible areas for expanding business and increasing sales. By developing and having
stores in several locations it can attract wider range of customers and make them aware
about the importance of its products.
Production process: An effective production process is responsible for satisfying
customers. If there is an error and appropriate manner of production process can
dissatisfy customers. So, Retail food group Australia limited focus on catering needs of
its employees as well as adopting several approaches related to this process such as
six sigma.
6

Motivating employees: Employees play a key role in the success of an organization.
Employees perform all functions like customers services, production of products, sales,
marketing and all these functions help the company in accomplishing its pre-determined
goals (Radnor and et.al., 2015). For increasing overall productivity it is important to
motivate employees. By providing rewards and other benefits to employees, this food
retail motivate its employees and improve employees relationship as well.
SIGNIFICANCE OF SERVICE ENCOUNTER IN RETAIL FOOD GROUP LIMITED
COMPANY
Meaning of Service Encounter
Service encounter refers to the interactions which is happen between two person
in which one person is considered to be service provider while another is customers.
Thus, from the point of views of customers, when a customers interact with the service
7

organization, it is said to be service encounters which is also known as Moment of Truth
(Kalra and Cousins, 2016).
It's importance in the context of Retail Food Group
Service encounter is very important for the company as it plays crucial role in the
success of the organization. When customers first time interact with the company and
consume the services which is being provided. If that service quality is match with the
expectation of the customers. In that case, initial encounter create the best brand image
in the mind of customers which is very beneficial for the company. It also help in having
multiple encounter between company and customers as the initial encounter was good
experience for the customers which results in customers to become loyal towards firm.
Customers loyalty and customer satisfaction are considered to be parameters of the
company's success. It also create an opportunity for the organization to establish a
perceptions toward the firm which decide the success of Retail Food Group. Service
encounter also helps in improving the quality of services as it can be measure in two
terms – good encounter or bad encounter. It is also very valuable for enterprise as it
helps in employees to handle the customers issues related to services calmly and
effectively which is the key of good relationship between company and customers.
Thus, for the success running of the business in the long time, service encounter is very
important aspect for Retail Food Group (Hitt, Xu and Carnes, 2016).
Analysis of managerial implications due to business operations
Business operations of the Retail Food Group Company includes Process,
Location, Technology and Staffing (Cohen and Tomlin, 2015). These four elements
affect management in many ways which are such as -
Process – Business process refers to the steps of chains through which company can
conduct their activities in a proper systematic manner. It affects management by
increasing their productivity and efficiency. It also helps management team not to do
duplicate work which lead to non wastage of resources and efforts. Due to process in
which every work in done in a series. In case any step stops, it will lead to stoppage of
whole activities of the organization which lead management to bear cost.
Location – Location is the place where company produce and sell their products to the
customers. It is very important component for the management. Correct location will
help management to easily interact with their customers which will lead to enhancement
in service quality and customer satisfaction. Wrong choice of location can lead
management to face a lot of issues regarding supply of goods.
Technology – Technology involves equipment, tools, techniques and methods to do
operations of the company. It keeps change with passing time. It helps in improving in
business operations which lead to good quality services deliver to the customers as well
as improvement in employees' performance. These two aspects will lead management
to able to achieve its organizational objectives and goals. Negative impact of technology
on management is that they have to bear a lot of cost on the purchasing as well as
maintenance of technology in the firm.
Staffing – Staffing refers to the process of hiring, training and retaining employees in
the company. It is very important aspect for the management as employees of the
organization are helpful in achieving the goals. If management is not able to keep their
employees satisfied, it will lead management team to face issues related to employees
turnover and employer brand image (Haksever and Render, 2017).
8

Conclusion
From the above study, it has been concluded that business operations are very
important part of the organization. There are two types of operations – back office
operations and front office operations. Both are necessary for each other as well as for
organization too. Service encounter is very crucial terminology which is being in the
context of customer services. Business operations affects management in many ways,
thus analysis of the operations is very important function of management team.
9

REFERENCES
Books and Journals
Adebanjo, D., Laosirihongthong, T. and Samaranayake, P., 2016. Prioritizing lean
supply chain management initiatives in healthcare service operations: a
fuzzy AHP approach. Production Planning & Control. 27(12). pp.953-966.
Cohen, M. and Tomlin, B. eds., 2015. Call for Papers—Special Issue of Manufacturing
& Service Operations Management: Innovations in Supply Chain Interfaces
and Structure. Manufacturing & Service Operations Management. 17(2).
pp.270-270.
DiMarco, J., 2017. Communications Writing and Design: The Integrated Manual for
Marketing, Advertising, and Public Relations. John Wiley & Sons.
Dobrzykowski, D.D., McFadden, K.L. and Vonderembse, M.A., 2016. Examining
pathways to safety and financial performance in hospitals: A study of lean in
professional service operations. Journal of Operations Management. 42.
pp.39-51.
Finne, Å. and Grönroos, C., 2017. Communication-in-use: customer-integrated
marketing communication. European Journal of Marketing. 51(3). pp.445-
463.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality
perspectives. Routledge.
Haksever, C. and Render, B., 2017. Service and Operations Management. World
Scientific Publishing Company.
Heizer, J., Render, B. and Munson, C., 2017. Operations management. Pearson
Education Limited.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations
management research. Journal of Operations Management. 41. pp.77-94.
Kalra, T. and Cousins, P.D., 2016, April. Towards a typology of professional service
operations: implications for quality management. In 23rd EurOMA
Conference.
Maglio, P.P., and et.al., 2018. Handbook of Service Science, Volume II. Springer
Publishing Company, Incorporated.
Radnor, Z.J., and et.al., 2015. Public service operations management: A research
handbook. Routledge.
Rathore, A.K., Ilavarasan, P.V. and Dwivedi, Y.K., 2016. Social media content and
product co-creation: an emerging paradigm. Journal of Enterprise
Information Management. 29(1). pp.7-18.
Thomé, A.M.T., Scavarda, L.F. and Scavarda, A.J., 2016. Conducting systematic
literature review in operations management. Production Planning &
Control. 27(5). pp.408-420.
Verma, V., Sharma, D. and Sheth, J., 2016. Does relationship marketing matter in
online retailing? A meta-analytic approach. Journal of the Academy of
Marketing Science. 44(2). pp.206-217.
10