Study Question

1) How does marketing cars differ from marketing service for those same vehicles?

Automobile industry is something different. Marketing and promoting in the automobile industry

takes an extra skills. Marketing cars differs from the method of marketing services. Marketing

cars can be done in the orthodox way of marketing. Marketing cars works with the marketing

mix, which attempt to control the 4P’s (Product, Place, Price, Promotion). Automobile or the cars

are tangible products that are being sold in unit. The procedure of production a car and

consumption or usage of a car are separated process. On the other hand, marketing a service for

a car includes the 7P’s (Product, Place and Time, Price, Promotion and Education, Physical

Environment and People). Service industries face more challenges than its product counterpart

because of the people factor. Marketing a car will usually emphasis on the buying process of the

consumer, involving transection, to take ownership of the product. On the other hand in service,

monetary transection, time and effort are exchange for labor or skills, but the ownership of the

product is not seen or heard of. But a service is an intangible product that must offer superior

service in order to hold a competitive advantage. Products and Service can differ in many aspects:

 Intangibility

 Inseparability

 Non-standardization

 Perishability

 Regulation

 Word-of-Mouth

Marketing a car is easy because the product can be seen, touched or can be experienced. Through

pictures and illustrations, customers can already see the features of the product. Or can
experience the product on their own. On the other hand, as the service is can’t be seen or heard

off; making it tough for the customers to imagine what will actually happen if they get the service.

Car servicing need skill manpower and experienced labor. Here, product is the primary player.

Another difference of marketing a car from marketing a service is that, the latter cannot be

inventoried, which may cause customers to wait or not to avail the service anymore. Moreover,

marketing for car and marketing for service needs different people from different skill sets. One

personal will be skilled on automobile market while other will focus on customer satisfaction.

2) Compare and contrast the sales and service departments at Auto World.

The Sales Department in Auto world is accountable for engaging the customer and influence the

customer to buy the product. They are also accountable for notifying the customer about the car

models and new offerings that the customers would be interested in. Sales department also in

charge of giving alternatives or more options to the customer who weren’t able to buy brand new

cars where they offer the second hand or pre-owned ones. But usually they were persuaded to

buy brand new ones. Sales department always look for increasing revenue from the car sale.

They are target oriented and concentrate to fulfil their target.

On the other hand, the Service Department of Auto world is accountable for the servicing, repair

and maintenance of the cars. They are also accountable for answering the quires of the customers

and entertaining the concerns and problems of the customers. There are few concern a service

department should look upon:

 Appearance of service department

 Problems with inconvenient service time for customers

 Waiting area/ cue

  Services measures

 Customer orientation

 Not so good attitude of service department

So we can say that, a sales and service department of an auto world differs in many angle.

3) From a consumer is perspective, what useful parallels do you see between

operating a car sales and service dealership and operating health services?

In both the sales and service department always work for making the customers satisfied. Both

the department do it with their great quality product and smooth service experience. No matter

what is the vertical of my business or industry, it’s very important and significant that I have to

provide a good quality product and best quality service. Operating an automobile sales and service

dealership and operating health care services have many similarities, though have many

differences. As health service is basically depends on only service while automobile industry is

based on both product and service. In both vertical, there must have a customer oriented

strategy.

4) What advice would you give to Carol Sullivan Diaz?

I would advise Carol Sullivan to appoint Larry Winters as a new leader. As he can manage the

changed system since he has a great track record in auto mobile sales industry. He was once a

leading sales rep in Auto World. He has strong managerial capabilities and strong network in the

industry. Or she could also hire both financial and service manager to hold the financial assets

and service section.

For more effective motive, she might as well train her sisters to be in the place so that the

profits will still be within the company. Some other suggestions for her:

 Hire an experienced service management team

 She should get a business partner whom she can trust

 Revamp the service department

 Train the service staff

 Develop a customer oriented service strategy

 Make use of the technology for client records and service writing

 Expand the service delivery system

 Advertising and marketing tools and promotions should be efficiently use