International Services and Industrial Marketing

INTERNATIONAL SERVICES AND INDUSTRAIL MARKETING

2005

EXECUTIVE SUMMARY

In the course of rendering service to clients , it demands that the organisation is intimated with its customers to know how to effectively satisfy them . The Footsteps business engages in rendering services to tourists on visit to historical sites . The report looked at those internal structures of the organisation , such as , the specialisation of members of the organisation , division of labour , centralisation of authority , the clash between the introduction of modern management techniques and the orthodox style of management that hitherto embarked

br on . The Intimacy theory and the theoretical frameworks for this report

Tourists visit to historical sites was blueprinted showing the sequence and flow of activities . A SWOT analysis is used to analyse the internal strategy of the organisation

Recommendation such as the use of modern management techniques recruitment of qualified experts to man its operational functions . Also it is recommended that there should be decentralisation of authority so as to encourage innovative ideas from members of the organisation

The report ended by taking a look at the reflection of the learning process of the group member

CONTENT LIST

INTRODUCTION

OVERVIEW OF FOOTSTEPS BUSINESS

INTIMACY THEORY AND BLUEPRINTING OF SERVICE ORGANISATION

BLUEPRINT OF TOURISTS VISIT TO FOOTSTEPS HISTORICAL SITES

ASSESSMENT OF INTERNAL FACTORS THAT SUPPORT THE FOOTSTEPS EXTERNALLY FACING PROCESSES

RECOMMENDATIONS ON HOW TO IMPROVE ON THE ORGANISATION 'S SERVICES

REFLECTION ON THE GROUP LEARNING PROCESSES

BIBLIOGRAPHY

INTRODUCTION

The quality of services an organization renders to its clients goes a long way to determine the rate of which the number of client increase the organization will have . If such organization is a business concern the quality of services it makes will position it to have an edge over its competitors

Good interaction with customers and clients would enable an organization to increase i8ts efficiency and effective services . In this view Osuagwu (2002 :14 , has it that marketing managers need interactive marketing to deliver consistently high service quality and achieve client satisfaction , every organizational staff must be exposed to the theory and practice of relating to marketing and services to customer , has the perspective that , the basic unit is the personal consumer rather than the business- to- business one . Altruistic concern for the consumer rather than equitable exchange (Stern , 1997

This report will therefore concentrate on those internal factors that support the external procession in Footsteps Business . Blueprint of a unit of its service would be carried out . And based on this recommendation for its effective and efficient service delivery would be proffered

OVERVIEW OF FOOTSTEPS BUSINESS

Footsteps business is an entrepreneurial business venture , in the tourism industry . Roger and Judith Ironridge established the business in 1983 . The couples are both history graduates and teachers , who later on due to their love for their profession established the Footsteps Business . The business is based on exploration of historical site , based on extensive research work . Clients are giving the opportunity to tour these sites , so as to satisfy their curiosity . The Footsteps Business employed the service of Tour Guides , who lead customers to the tour sites . Other family member were enlisted to the business as it began to expand . Thus Izzy , the daughter to the Ironridge , a master hold in Business Management , and Max , her fiancy , who specializes in technological development and e- commerce , were introduced to the business . This is due to the lacuna in contemporary management skills in the Ironridges

The introduction of the duo brought with it contradictions in the management of the organization . This is as a result of the orthodox management practices , whereby Roger Judith gave more concentration to researching on historical sites , and neglects the adoption of modern management business techniques . Hence , the entrepreneurial strategy of the business did not give room for the expansion of the business

The expansion of the organization , led it to establish other service accessories to its clients . These include provision of restaurants and Inn services to clients on tour . Also , themed holidays were embarked upon . The Footsteps Business made tours to places like Lincoln , York and Edinburgh . Here , guests were guided to excellent history and culture of the place they visited

INTIMACY THEORY AND SERVICE MARKETING

Several theories abound for industrial service marketing . The focal point here will be on the Intimacy theory and In for an organization to satisfy the wants of its clients , it become expedient that the organization through its management form a bound of intimacy with those who are end- users of their services According to Berry and Thompson (1982 , the rationale for introducing the intimacy theory is in threefold : first , it accounts for the influence of emotion in relationships as well as that of cognition second , it allows insight into the deterioration of relationships as well as into their formation and maintenance and third , it emphasizes the association between relationship stages and persuasive communication that enhance the services firm ability to apply relationship management to advertising as well as to personal sales

The intimacy theory is considered as most generalizable to services marketing than other relationship theories . In this view Stern (1997 Dwyer , Schurr , and Oh (1987 ) have it that , in business- to - business relationships , economic theories ( social exchange and equity ) are grounded on assumption of rational behavior and mutual acceptance of reciprocity

The term intimacy ' is derived from the Latin word `initimus , meaning inner ' or inmost (pertiman and Fehr 1987 :15 . Oden (1974 :3 sees intimacy as a . knowledge of the core of something , an understanding of the inmost parts , that which is indicative of one 's deepest nature and marked by close physical , mental , and social association

Thus , for efficient and effective service delivery , it requires that the level of intimacy between the service organisation and their clients is very high . Also , the perception of consumers ' needs by the organisation through its intimacy with the clients , would bring about corrective measures and proffer other way of service improvement for the organisation

upheld the satisfaction of customers through the operationalising a quality service delivery , in every stages of an organisation 's strategy and process

Randall (1993 :7 , has it that operational philosophy based on the premise that providing customers with good quality services (or products ) on a consistent basis . This is crucial for the survival and prosperity of organisations (Ibid

operate within a business by focusing on customers . management focuses first and foremost on consistently satisfying customers and their needs ' The primary focus is the customers , not the competitor as in competitive strategy (Osuagwu , 2002 : 867 . the practice of TQM is gaining recognition because the forces of competition around quality have been set in motion . In this view , Cole (1993 ) has it that those firms that achieve only partial success in implementing TQM may fall behind in the competitive struggle because competitors are improving quality rapidly . Success comes to those firms that can fully internalise and adapt the new TQM strategy to their own business environments

Theorising the intimacy theory and Business Strategy , it is seen that the level of intimacy of the Footsteps Business to its customers is not too high . The entrepreneurs concentrate themselves more with researching in historical sites . The customer - management intimacy is left in the hands of the tour guards

research on historical sites the Footsteps Business carries out quality research on this , but in its administrative aspect , due to the lack of application of modern management technique it is seen that there is lapses in the administration of the organisation . The application of the intimacy theory and TQM to the Footsteps Business would result in the improvement of service delivery to the organisation 's clients

BLUEPRINTING OF SERVICE ORGANISATION

The focus of many blueprinting efforts is on short- term exceptional improvement in specific organisational units . Often the primary objective is cost reduction or isolated solutions to customer complaints (Baum , 1990 :45

Blueprinting is carried out on a unit of an organisation activity , so as to see the sequence flow of activity and way to proffer solution in the improvement of the organisation 's activity . Randall (1993 :9 , has it that The perceptual blueprinting technique was designed to identify the service delivery system as perceived by customers and employees , and to identify any failpoints in the system which results in poor service quality being delivered

BLUEPRINT OF TOURISTS VISIT TO FOOTSTEPS HISTORICAL SITES

The Footsteps Business blueprint on tourists ' visit to historical sites , it shows that the backstage internal activities commence with the conduction of research on historical sites . The researcher then passes his findings to members of his tourist guides . Customers contact the administrative organ of the business to book their reservation for the trip to the historical sites . It is the duty of the tourist 's guide to accompany these clients to the sites

The source of this blueprinting comes from the experience shared by customers who had embarked on historical tours . And also employees of historical tourist 's sites share their internal process of operation in their organisations

ASSESSEMENT OF FOOTSTEP BUSINESS INTERNAL FACTORS THAT SUPPORT THE EXTERNAL PROCESSES IN THE ORGANISATION

The Footsteps Business conforms to those observed characteristics associated with small- scale entrepreneurial business venture . And it is also seen that there is a sharp contrast of characteristics of the Footsteps Business and those associated with large- scale entrepreneurial venture

The conformity of the Footsteps Business to other entrepreneurial venture is enumerated below

The decision-making procedure of the Footsteps Business is centralized and controlled by Roger and Judith . While both couple operates in their separate area of supremacy , the business decision flows from them , no room for inviting decision or discretionary display from within or outside the business . Even when Izzy and Max came to partake in the business the decision making process was still centralized . This scenario of things conforms to the characteristics of a small- scale business outfit

Another area where the Footsteps business conforms to other small entrepreneurial ventures is in its informal organizational structure The structure that exists in the Footsteps Business has no clear defined responsibilities for the managers of the business while Roger concentrate in the research of new historical fact , Judith who hitherto is responsible for the administration of the business still turns to Roger to partake in some of this administrative functions . Also , she gives no room for delegation of functions to those employed by the business

The imposed degrees of structure , formalization and routine dissemination of functions is another characteristics of the Footsteps Business that conforms with other small- scale business . In this aspect there is conformity to the same pattern of carrying out the business activities , with little room for transformation and modification to current management techniques and technological advancement

Sticking to the same old knowledge and pattern of operation is another area of conformity with operational pattern of other small entrepreneurial venture . The introduction of Izzy and Max to the Footsteps Business , this gave them a partial ad hoc control of the operational system of the business . This control level is just temporal and could be terminated in the shortest time . This partial ad hoc control- system links the Footsteps Business with what ensures in other small entrepreneurial ventures

In the operational level of Footsteps Business that contradicts other entrepreneurial ventures , this is mostly in contracts with those characteristics of large- scale entrepreneurial ventures

Most large-scale entrepreneurial ventures operate under the principle of delegation of functions , they also consult specialist who specializes in functional area and embraces a participative organizational setup . It is seen that the Footsteps business lacks these strategic management processes . There is no room for delegation of functions , no consultative forum with specialists , and there is no participative practice in the activities of the business

As enumerated before , the Footsteps Business operates a centralized decision making system . This decision structural set-up differs from what exist in large-scale entrepreneurial venture , where they operate a de-centralized decision -making system

There is , also , absence of teamwork in the Footsteps business . Roger operates separately in his research investigation while the wife Judith , suffers in silence over the burdensome administrative functions she operates . In a typical large- scale firm , the principle of `espirit de corps ' is operational

A formal structure , system and a reward network characterize the large- scale entrepreneurial venture . This is absence in the Footsteps Business and most small- scale entrepreneurial outfits

The Footsteps Business stick to its old entrepreneurial innovations even as the years past by . This contracts with what ensures in large-scale business . Most large- scale entrepreneurial venture lost their entrepreneurial operational impetus as the business expands . Thus the business gets diluted or lost as the business expands in its operational levels

The procurement procedure of the Footsteps business has being based on its ability to pursue a vigorous research work on it historical sites this has aided the increase in the number of staff patronage to the business . Thus , the procurement procedure lies in its seeking for historical sites to research on , and also it best way to analyze , and explain to its tour guides

In the view of Bunn and Perrault (1993 ) Task uncertainty strongly influences how buyers approach and carry out purchase decisions . Not surprisingly , when buyers are confident in making their purchase decisions , as in a standard rebuy situation , they will usually rely on routine procedural controls and avoid spending time searching for information or conducting formal analysis of their alternatives . Yet task uncertainty does not necessarily motivate buyers to seek more information or employ formal tools and techniques to clarify the purchasing situation . Instead , uncertainty may discourage information seeking , a reaction known as the "threat rigidity " effect

The above shows that when an organization embark on a well articulate procurement process , this goes a long way to aid the organization , in its efficient delivery of services to its clients and the attainment of its goals effectively

Customer tends to behave in diverse ways in regard to the services they enjoy from an organization . If such organization does little in adequately satisfying the need of its customers , these customers tend to look for someone else to derive their satisfaction . Thus , the end result of this is that such organization tends to loose its customer to its competitors . It is also seen that clients and customers tend to stick to a source where they derive the satisfaction of their wants . No matter the emergence of other organizations , if these customers will continue to patronize the organization that has being satisfying their needs even for a long time to come

RECOMMENDATIONS ON HOW THE FOOTSTEPS BUSINESS CAN ACHIEVE IMPROVEMENT IN ITS SERVICE OPERATIONS

For an effective and efficient management in large or small-scale business , it is imperative that a broad programme of action underlines the decision actions on set goals and objectives . Thus , it is necessary for the business to have a clearly spelt out business strategy

Griffin and Ebert (1996 , have it that , every business organization small or large , should have goals and objectives , and deciding what the business organization intends to achieve is the first step towards efficient and effective management

Having seen the procurement procedure of the Footsteps Business , it is pertinent that the areas of the business strength , weakness opportunities and threats to the are highlighted , before recommending a business strategy that would bring about effectiveness and efficiency to the entrepreneurial venture

Having studied the Footsteps Business , it is discovered that the entrepreneurial strength lies in the motivational factor for Roger and Judith . Both of them are motivated through the likeness they share for their kind of business , and not the profit maximization . This has led them to carry out in-depth historical research , and tourists and travelers are at an advantage with the thorough research embarked by the duo

Another area of strength for the business is the preservation of the entrepreneurship impetus that the business is crated upon . For more than 20 years , the business retained its ' focus on primary task of genuine historical research and good service to satisfy their clients

Area of weakness of the business lies in the fact that the managers , of the Footsteps Business , don 't give room for modern management techniques . The old way of doing things is sacrosanct . This tends to retard the level of growth of the business . Also , there is poor structuring of the management of the business . There is a need to seek the help of experts in management and technological improvement (such as Izzy and Max

Vast opportunities abound for the Footsteps Business the level of competition is not in the increase . The business can explore these vast opportunities through result oriented planning and embarking on effective management practices

The threat to the business lies in the introduction of other experts and subordinates to manage the business . As time goes by , the business may loose its ' entrepreneurship impetus , because this is the motivational factor for the Ironridge

Thus , it is recommended that the Footsteps Business should hire experts in management and technology which have contemporary knowledge of in their profession , and also , the vital point here , is that , these recruited expert should share the same interest as Roger and Judith , so that the team could work harmoniously to the development of the business

It is also recommended that decision making should not be centralized but participatory and de-centralized where discretionary view are welcome and upheld . This will bring more innovative ideas that would contribute in the better management of the business

Kontes and Mankins (1992 , Przybylowicz and Faulkner (1993 ) and Covin and Miles (1999 , buttress the fact that the issue of core competence has been seen as a basis of advantage for small business enterprises Thus , they opined that , strong and consistent emphases on competitors in addition to an economic framework for investment decisions , are of managerial importance to the success of small and large business enterprises

In the light of the forging , it is recommended that the Footsteps Business adopt a managerial strategy that would make it be at an advantage over its competitors this can be attained through effective division of labor , de-centralized decision making and the practice of modern management techniques . Also its zeal to bring about more customer satisfying services , this will go a long way in retaining the customer to the Footstep Business

REFLECTION ON LEARNING PROCESS

The group assignment brought about every member of the group contributing to the build up of the to adopt were sought from group members . The group members decided that the intimacy theory and the most feasible theories for this report . The group member reached a consensus that the tourist 's visit to historical sites , in the Footstep Business , should be blueprinted

The strength of the group members lies in the sharing of ideas , and contribution of ideas to pressing issues . Also , each group member took turn to write a segment of the report

The weakness comes in form of lack of adequate time to meet and deliberate on the scheme of the report . This is as a result of other assignment that demands our attention . The decision to allocate the

BIBLIOGRAPHY

Baum , Stephen H (1990 ) Making Your Service Blueprint Pay Off ' the Journal Of Services Marketing summer , 4 , 3 ABI / INFORM Global . Pp 45-46

Berry and T .W . Thompson (1982 , Relationship Banking : The Art of Turning Customers into Clients , Journal of Retail Banking (June0 , pp 64- 73

Clark , M .S . and Mills , J (1993 , The Difference Between Communal and Exchange Relationships , Personality and Social Phychology Bulletin , 19 December , pp . 684-691

Cole , R .E (1993 , colifornia Management Review , vol 51 ( April , pp 11- 27

Covin , J .G Miles , M .P (1999 , Corporate Entrepreneurship and the pursuit of competitive advantage Entrepreneurship : Theory Practice Sring , Pp . 47- 63

Griffin , R .W Ebert , R .J (1996 , Business , New Jersey : prentice Hall Inc

Kontes , R Mankins ,M (1992 . Is Global Marketing Leadership Worth it ' Across The Board , vol .29 No . 10 , Pp 13- 15

Lears , Jackson (1994 , Fables of Abundance : a Cultural History of Advertising in America , New York : Basic Books

Lovelock and Wirtz (2004 , Part iii , Managing the Servuice Delivery Procession ' Pp . 234-7

Michele D . Bunn and William D . Perrault , Jr (1993 . Organizational Buying Contexts and the Procurement Process Report No . 93-106 ,40 pages

HYPERLINK "http /www .msi .org /msi /publication_summary .cfm ?publication 348 http /www .msi .org /msi /publication_summary .cfm ?publication 348 (2 /06 /2005

Oden , Thomas C (1974 , Game free : A Guide to the meaning of Intimacy new York : Harper and Row

Oakland , J .S (1993 , Heinemann

Osuagwu , Linus (2002 , Marketing Principles Management (Second Edition , Lagos : Grey Resources Limited

Perlman , D . and B . Fehr (1987 , The Development of Intimate relationships ' in Daniel Perlman and Steve Duck (eds ) Intimate Relationships : Development , Dynamics and Deterioration , Newbury Park Sage , pp . 13 -42

Porter , M .E (1980 , and Competitive Strategy , New York : Free Press

Randall , Lyn (1993 , Perceptual Blueprinting in Managing Service Quality , May . Pp 7- 12

Stern , Barbara B (1997 , Advertising Intimacy : Relationship Marketing and the services consumer . Vol . 26 , issues 4

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Point of orientating tourist guides

Orientated tourists guides on research findings

Support Process

Tourist guides visits site to get first hand information

Tourist guides interact with management on the protocol to embark on

Observation and conclusion on conducted research

Conduct research on historical site

Researcher visit historical sites

Planning on sites to visit for historical research

Client Departure from tourist site

Tour guides lead clients to historical spots and explains findings to tourists

Client eats in restaurants and Inns

Clients and Tour guides travel to tour site

Line of interaction

Tourist guides

Clients visit admin . office and book for tour travel

Admin . arrange for tour date and record appointment

Admin . plans for travel arrangement Inns and Restaurants for client convenience

Client satisfaction ...