Service Marketing and Relationship Marketing Report - HC2112 Analysis

This report provides a comprehensive analysis of service marketing and relationship marketing. Part 1 examines the "Gangnam Style" case using the 5W's framework to analyze its integrated marketing communication strategy. It explores how content, timing, and platforms contributed to the video's success. Part 2 focuses on service operations, using Farmhouse Kings Cross as a case study. It includes a flowchart illustrating front-stage and back-stage operations, discusses the significance of service encounters, and evaluates managerial implications within the restaurant setting. The report integrates relevant literature to support its findings and provides a detailed overview of service marketing principles and practical applications.

HC2112 SERVICE MARKETING AND RELATIONSHIP
MARKETING

Table of Contents
Part 1..........................................................................................................................................3
1. Analysis of Gangnam style case using 5W’s......................................................................3
2. Explanation of communications content adding value to consumers of Psy’s music........4
Part 2..........................................................................................................................................6
Introduction................................................................................................................................7
Discussion..................................................................................................................................7
Background of organization...................................................................................................7
Flowchart of backstage and front stage..................................................................................8
Significance of service encounter...........................................................................................9
Evaluation of managerial implications.................................................................................10
Summary..................................................................................................................................12
Reference list............................................................................................................................13
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Part 1
1. Analysis of Gangnam style case using 5W’s
The Gangnam style is a popular video since its launching month in July 2012. This
video has over 1.6 billion views since its launching. The case can be analyzed
through 5W model in integrated marketing communication process.
Who: Gangnam Style is a rap that has mainly targeted the young generation. Young
generation individuals are addicted to social media sites like youtube, which has
helped them to popularize the content. As said by Key and Czaplewski (2017),
social media platform helps to communicate with target consumers faster. YG
entertainment has about 2.5million subscribers before the releasing of Gangnam
style. These subscribers have played a great role in making the pop song popular.
Moreover, followers over twitter and facebook have also helped this song to achieve
high volume views.
What: consumers in integrated content marketing expects good quality contents. As
stated by Hardy (2018), quality contents with catchy features get popularised in
social media platforms quickly. Good content with unique characters increases
engagement of target audience. The pop song Gangnam style is unique due to its
dance moves. The Korean rapper has given some unique dance moves in the
youtube video that engaged target audience. Gangnam style video has maintained a
proper synergy between visuals and music that has attracted target audience.
Ambiguity is another feature of this video that has attracted its audience. In several
scenes, ambiguity can be seen that make people wonder what is going on.
When: YG entertainment has given adequate time to set up partnerships with
different other sites like Allkpop.com and essential player of music industry like
Will.I.am. Besides, they have gathered a large base of followers on their social
media pages. After these partnerships, they have released the song, which has
helped them to gain popularity in a short span of time. In the case study, it is
mentioned that Psy's marketing communication was initially based on youtube.
However, after proper planning of YG entertainment regarding integrated marketing
communication, this video was launched that can help to gain success.
Where: Few years age it is a simple question on marketing communications.
Different music videos were launched through traditional media like television, radio
and other means. However, the rise of social media and its popularity has opened an
effective means of marketing communication (Abashidze, 2017). The video of
Gangnam style was launched on youtube and this video was also available on twitter
and facebook accounts of the company. Releasing it on various social media sites
has increased its popularity and target customers were reached successfully.
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Launching on different social media sites has increased convenience of target
audience to access the video properly.
How: Gangnam Style is the most-watched youtube video ever with over 1 billion
views. K-pop sensation has generated near about $8 million revenue alone on
youtube, which can help to measure success of this communication strategy. High
volume views have been obtained on other social media pages containing this video
(Chung et al. 2016). These numbers can help to measure success of this integrated
marketing communication strategy.
2. Explanation of communications content adding value to consumers of Psy’s
music
The attractive content of the song was the main reason behind the success of the
“Gangnam Style” music video. The creator has used various colors to make to ey
soothing and attractive. The use of colors has attracted many kids towards this
video. As mentioned by Diaconu et al. (2016), content is the main factor that has the
maximum power to attract the audience. Success of this video was not limited to a
specific audience. It has been found that this video became popular across multiple
territories, genres, and sectors throughout the world. Language of the content was
not understandable for many of the audience members. However, people
appreciated the catchy music composition of the song. The creator has included
punchy chorus and catchy lyrics to attract the young generation towards this song.
As stated by Wu (2016), catchy contents help to make a video popular among wide
range of audiences. Making videos and uploading it on YouTube has become a
trend. It has become a way of communication with the audience. Video makers
connect the audience with their thoughts through this medium. In case of the
Gangnam video, Psy cleverly included dancers from a popular South Korean show
to make the content more attractive. People who followed that show were happy to
see their known faces in the video. This reason has made this video more popular.
Two well-known South Korean Entertainers have been included within this video to
add value to the consumers with enriched content.
The content of the Gangnam Style video has a great impact on the success of this
video. When a person watches a video on social media, he or she expects some
good content of their choice (Akdoğan and Altuntaş, 2015). In the case of this video,
the music is so catchy that it can attract anyone. Besides, the creator has
successfully ensured synergy between the visuals and the song. All the visuals were
fit into the rhythm of the song. This approach has helped to make this video popular.
It can be found that the content is a little bit silly. However, this content has
successfully entertained people. The audience was having fun while watching this
video and this is the key approach behind the success of Psy. intrigue and ambiguity
of this video have made the audience wonder what is going on. This fun video has
been shared by many people as they wanted to show this funny video to their friends
and family. Likes and views have increased accordingly and this video became one
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of the most viewed YouTube videos. As stated by Gözegir and Göçer (2018), making
fun of self makes a person acceptable to others. This kind of attitude entertains
people easily. Here, in this video, Psy is making fun of himself and this fact has
connected this artist with his viewers. Peer pressure is another big cause of the
success of this video. The content has been liked by people earlier and they are now
influencing others to see this video.
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Part 2
Executive summary
In this report, a service organization is selected to discuss its operation. A flowchart
is drawn, which shows back and front stage operations of this organization. In
addition, different importance of service encounter is discussed by the help of proper
literature. Managerial implications of this selected service organization are critically
evaluated in this report.
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Introduction
A company performs different operational activities. External dealings of a firm can
be stated as the product or service that consumers achieve from them. However,
there are lots more operations that a company performs in the back end, which
helped provide proper service to consumers. The back end operations play an
essential role to provide the best quality service to target consumers. This helps a
firm to gain competitive advantage of customer satisfaction. In this report, a food
service organization is selected named Farmhouse Kings Cross. Different backstage
and frontstage operations have been described through the help of flowchart. In
addition, evaluation of managerial implication is also done in this report.
Discussion
Background of organization
The Farmhouse Kings Cross restaurant is located in the Bayswater Road, Australia
and they are known for serving best quality Australian food with a simple, but elegant
gesture. The management of this organization believes in simplicity and it reflects on
their business. They have maintained everything in simpler form and aim of this
company is satisfying customers by providing the best quality food and services.
This organization is offering five courses set to its customers and dining is allowed at
6:30 pm or 8:30 as per the policy of this organization. On Sunday, they offer lunch at
2 pm (Farmhousekingscross.com.au, 2019). The innovation is the USP of this place.
They keep changing their menu. In every 4 weeks, they completely change their
menu. It means that management of this restaurant is efficiently managing all the
operations and encouraging internal stakeholders to maintain innovativeness of this
place. This organization has license to sell wines and one can get the best quality
Australian and French wine from this place. Good quality front stage and backstage
services can be found in this restaurant and the manager of this restaurant is
performing his role with efficiency.
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Management of Farmhouse Kings Cross
Front-stage operations
Duty of waiters
Cleaning staff
Reception
Taking bookings
Billing
Noting feedback and complaints
Taking orders
Serving food and drink
Asking for needs
Cleaning residues
Maintaining hygienic ambience
Back-Stage Operation
HRM
Managing suppliers
Kitchen work
Managing finance
Flowchart of backstage and front stage
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Front-stage operations are customer-oriented and these operations are done under
the supervision of the managers. As stated by Goretzki and Messner (2019), front-
stage staffs are the representatives of a restaurant and their performance directly
affect customers. In case of Farmhouse Kings Cross, front-stage operations include
reception work, duty of waiters and duty of cleaning staff. This restaurant has
recruited highly skilled staff at the reception. This department takes care of online
table booking, billing and noting customers' comments. Customers are free to call at
the reception for booking tables and they are always welcome to leave feedback or
complaints while visiting this place. The management of this restaurant review
customers' feedback and complaints minutely and takes necessary initiatives to
improve their performance. Waiters of this place are instructed to take orders, serve
food and drinks with decency and taking care of the needs of customers. They are all
well-groomed and they communicate with customers to understand their
requirements. As mentioned by Long (2018), it is important to maintain a good and
hygienic ambiance at the restaurant to attract maximum customers. Manager of this
restaurant personally looks after the performance of cleaning staff. These staffs are
trained for cleaning jobs and maintaining basic hygiene at the restaurant.
Cleanliness of this place is remarkable and it attracts many customers each day.
Overall performance of the front-stage is well-organized and the manager is actively
taking care of all aspects.
The backstage operation of this restaurant involves human resource management.
As opined by Sheth (2017), proper management of human resources helps an
organization to provide high-quality service and that reduces customer turnover. In
this restaurant, human resource management includes recruiting skilled staff in the
kitchen, which can help to increase the quality of food. Moreover, training of staff is
another HRM operation that increases performance of staff. Another backstage
operation is the management of accounting. This operation helps to eliminate any
issues regarding billing of customers and auditing. Management of supplier is
another essential operation, which helps to maintain a steady supply of raw
materials. Proper communication is maintained with the suppliers to maintain the
flow of production and gain consumer satisfaction. Kitchen work is a vital operation,
which helps to maintain the reputation of this restaurant. Good quality food is
essential to provide high-standard service and establish long term relationship with
them.
Significance of service encounter
Service encounter can be defined as a transactional interaction with target
consumers by representatives of an organization. These representatives in case of
Farmhouse Kings Cross is the service provider like waiters those who serve food,
receptionists, and managers. As opined by Beverungen et al. (2019), service
encounter is not limited to transactional interaction but also establishing a proper
relationship with customers. Moment of consumer interaction is considered as
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significant as an impression on consumers can be made through it. The real face of
organization can be represented on that particular moment. In Farmhouse Kings
Cross, different front stage operations like greeting the guests, collection of payment,
service by waiters help to create an impression on customers. As said by Ekstrand
and Damman (2016), the moment of interaction with consumers is called moments
of truth. Moment of truth has great significance because it helps in making
consumers of this restaurant happy or sad. Another essential significance of service
encounter is gaining loyalty of customers. In this, a dissatisfied customer can be
made loyal by increasing satisfaction rate, which can be done by providing good
quality service. A loyal customer acts as an asset, which helps in future risk
management. Farmhouse Kings Cross can increase satisfaction rate of customers
by providing good quality food and diverse range of dishes.
Consumers' quality perception can be impacted through service quality that can be
considered as important. If a customer feels happy with behavior and presence of a
representative then a good image about the restaurant is built. Hence, it can be said
that process of interaction of a representative like a manager, receptionist or waiter
helps to portrait organizational culture of this restaurant. Thus, Artto et al. (2016)
stated that an organization needs to pay attention to the process of customer
interaction by employees. Positive interaction will help to increase the image of the
organization and negative interaction can impact on competitive advantage of the
company. As service industry is becoming more competitive, hence, the significance
of service encounter is also increasing. However, if a combination of both
experiences occurs, then this can increase the feelings of uncertainty in a consumer
about the value of this organization. Therefore, the consumer will feel hesitant to
accept service again and will feel attracted towards competitors. For example, if a
customer in Farmhouse Kings Cross faces good experience with front house
representatives and negative experience with bookkeeping unit, then this can end up
with general experience. As mentioned by Sayın and Karaman (2018), service
interaction between consumers and concerned department of an organization helps
in promotion or demotion of long term relationship.
Service encounter is very important for the service industry and especially in the
foodservice industry. Lack of training of employees can impact on the encounter
process, which can have a direct impact on relationships with customers. Failure in
providing the desired level of interaction can change consumer perception and future
buying decisions. As said by Ekstrand and Damman (2016), consumers are an
essential mode of marketing as good experience of customers can motivate them to
share with others. Thus, service encounter is an essential process, which can be
properly designed and implemented to increase popularity and gain more revenue.
Evaluation of managerial implications
Managers need to play a crucial role in helping the restaurant to thrive in this
competitive environment. As stated by Goretzki and Messner (2019), managers
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need to produce innovative ideas and effective policies for helping the business to
advance and gain success. Different managerial implications in this organization
include managing quality of service and food. This is an essential role of
manager, to provide good quality service and food by overcoming different limitations
like cost limits. As stated by Mom et al. (2015), quality consistency can be
maintained through the help of effective strategies. In this restaurant, manager
adopts line method for increasing the quality of services, which impacts on consumer
perception.
Managers takes decision of menu, including various dishes that can help to satisfy
customers. It is an essential goal of Farmhouse Kings Cross to provide affordable
and different types of dishes to its customers. They change their menu every month,
which helps to increase its attractiveness among target customers. Managers take
essential decision like fixing prices and size of dishes (Daft, 2015). These decisions
are totally based on expectations of customers. Fulfillment of consumers
expectations helps a firm to provide proper value to them. Besides, service
encounter process is also considered as a managerial implication. The process of
service encounter can be done properly by increasing skills and abilities of
employees. Hence, job design and human resource management is another
managerial implication. This restaurant adopts different human resource
management strategies, which includes training and career development programs
for employees. As mentioned by Long (2018), an increase of technical,
communication and other skills can be increased through training and development
programs. Training process in Farmhouse Kings Cross is designed by evaluating
skills of different front and backstage groups such as waters and kitchen employees.
Moreover, materials and personal knowledge are used by managers to design jobs
for recruitment. This is done for providing proper support in the organizational
structure. Proper designing of jobs helps to recruit employees in the right numbers
and good quality support can be provided to customers.
Another essential managerial implication is monitoring and proper management
of inventory. It is an essential objective of Farmhouse Kings Cross to decrease the
inventory costs and at the same time supporting different operations. In this
organization, the task of inventory management is done through the help of
collaboration between managers and essential suppliers. They supervise their stocks
effectively and eliminate the risk of a shortage of resources. As said by Heizer et al.
(2017), improper monitoring of inventory causes a shortage of resources that
impacts on service quality. On the other hand, marketing is the most essential
managerial implication that helps to build a brand image of an organization. This
restaurant does its promotion through advanced technologies like website and
maintaining public relations. Designing of marketing strategies is done by assessing
needs of customers. Maintaining public relations help to increase engagement of
customers and their association with a firm gets increased (Liu et al. 2017). On the
other hand, improving the experience of customers is also considered as an effective
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strategy of marketing. Customers can share their good experience with family and
friends, which can help to attract others. Improvement and application of
technologies are also considered as an essential responsibility of management.
Applying suitable technologies on different operations like collection orders,
managing inventory, transactions and promotion can help to reduce operational time.
Thus, service efficiency can be increased and satisfaction of customers will increase
(Wirtz, 2017). This restaurant has undertaken different advanced technologies like
social media to conduct promotion. They use blogs, Twitter, email and website to
maintain communication with target customers. Information about different dishes
and offers are also provided through advanced technologies. These managerial
implications have helped this firm to provide supreme quality services and gain
competitive advantage.
Summary
From the above discussion, it can be concluded that proper collaboration between
front and backstage departments is essential for running a service business
successfully. Encountering different service such as greeting customers has various
benefits, which includes establishing a proper relationship with customers. Building a
strong and loyal consumer base can help a firm to avoid future risks. Back-stage
operations help to maintain quality of service and products. Managers play an
essential role to maintain operations of an organization properly. Different operations
like framing HRM strategies, marketing, and quality management are performed by
managers of Farmhouse Kings Cross. In addition, they are planning to improve
organizational structure and policies for providing prompt service to customers.
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