Santa Clara University

Intra-Campus Memorandum
TO: FR: RE:

MKTG 590 Class Professor Dale D. Achabal

Service Output Demands Audit (SODA) 1

1. Pick a product you enjoy shopping for and conduct this exercise with that product in mind. 2. List all of the marketing channel Service Outputs associated with this product for you personally, and the weights you associate with each (i.e. how relatively important each Service Output is to you). Use Template A. Remember that price is not a service output! 3. For each of your desired Service Outputs, identify a retail shopping outlet characteristic, attribute or activity that could be measured to assess a retailers relative strengths or weaknesses in meeting that specific Service Output. Use Template B. 4. Visit two different types of retailers for the product you are using for this exercise and assess each ones relative strengths and/or weaknesses against each of the criteria you identified in Step 3. Use Template C. 5. For one of the retailers you visited, summarize your findings into a set of recommendations on the following issues (2 pg. max): If this retailer were targeting a large segment of consumers who shared your own service output demands, how well positioned are they relative to their retail competitors? What is the price difference between the two retailers? Is the price difference justified, in your mind, by differences in valued service outputs? That is, does the higher-priced retail outlet offer a sufficiently higher level of service outputs to justify the higher price? What new retail approaches might emerge and threaten this retailers competitive advantage? What steps might this retailer take to protect its marketplace position going forward?

This exercise was adapted from Professor Anne Coughlan, Kellog School Northwestern University and Rick Wilson, Principal at Chicago Strategy Associates.

Template A: Service Outputs Desired Your Name: ______________________________ Company: _____________________________

Product Selected for Exercise: _____________________________ Take a minute to imagine your ideal shopping experience for this product. What Service Outputs would ideally be met as you think about your ideal shopping experience? (e.g., I would like to have a retail location close to where I live or I would like a trained salesperson to educate me, etc.). You should list many different Service Outputs as you imagine your entire ideal shopping experience all the way from gathering information and learning about the product to shopping, making a decision. List according to the relative importance to you of each service output. Column 1
Service Output Demands You Have for this Product

Column 2
Reasons Why This Service Output is Important to You

Column 3
Weight You Attach to this Service Output (Total=100)

TOTAL = 100

Retail Service Output Audit Assignment Template B: Tying Service Outputs to Retailer Characteristics

Now think about what attributes, activities or characteristics of a retailer you might measure to determine how successful they are at meeting each Service Output need you have. (e.g., If a Service Output need was I would like a trained salesperson to educate me, then you might measure how knowledgeable and helpful the sales people were at the retailer, etc.). Be sure that the measurement criteria are ones that can be observed and/or measured.
Service Output Demands You Have for this product (From Template A Col 1) Retailer Characteristics, Activities, or Attributes to Measure to Determine Ability to Deliver on Service Output Need

Template C: Retail Audit Worksheet (Part One) Retailer One Audited: ___________________
Service Output Need Attribute to Measure at Retailer

Location: _______________
Service Output Retailer Retailer Performance Score* (Wt. x Rating)

Retailer Performance Observations

Rating
(1-5)

Weight
(Template A Col 3)

OVERALL RETAILER PERFORMANCE

Total = 100

Total =

*Use a performance score range of 1 to 5 where 1 represents extremely poor performance and 5 represents extremely strong performance against Service Output expectations. Overall Retailer Performance equals the sum of Retailer Performance Scores {Service Output Weight x Retailer Rating over all Service Outputs). PRICE OF PRODUCT AT THIS RETAILER: ________________

Template C: Retail Audit Worksheet (Part Two) Retailer Two Audited: ___________________
Service Output Need Attribute to Measure at Retailer

Location: _______________
Service Output Retailer Retailer Performance Score* (Wt. x Rating)

Retailer Performance Observations

Rating
(1-5)

Weight
(Template A Col 3)

OVERALL RETAILER PERFORMANCE

Total = 100

Total =

*Use a performance score range of 1 to 5 where 1 represents extremely poor performance and 5 represents extremely strong performance against Service Output expectations. Overall Retailer Performance equals the sum of Retailer Performance Scores {Service Output Weight x Retailer Rating over all Service Outputs). PRICE OF PRODUCT AT THIS RETAILER: ________________