2.Overview of Theories
6.16 Journal entries
6.2CRA for Report
In the modern sociality, people spend long time in their areas, therefore they do not have enough knowledge or time to do or work in other areas. Since this problem is appeared, service is becoming more important than old days when especially the world always developing fast. As many sociologists believe when the community is developing, the service industries will increase rapidly. Therefore, the more developed countries had higher percentage of service industries. In this essay, it will give the ideas of the description for two marketing theories of flower of service and pricing strategy. By analysing the theories to indentify the key point of concept and find the weakness of company strategy. And in the next part , it will give the example by choosing the 2 journals as the case which is Land mark restaurant and Hungary Jacks to link with the 2 theories, to identify and easier understanding the success factors for each company. Followed by the Dr. Doyle and Stern believe the more studies and researches can help people to obtain the core of truth. (2006)
2.Overview of the theories
In the marketing field, service and product are the important elements to influence the degree of the customers’ satisfaction.(Ruyter and Lemmink, 1996) Many marketing researchers have created many concepts and theories about service to help the companies to understand the marketing process in order to make more profits. In this paragraph, there are two service marketing theories will be analysed to help understanding how the business can get profits and survive in the competition.
The first theory is flower of service as the figure 1 which can analyse the core of service and other attaching service. It can be seen clearly in the chart that in the middle of the flower is the core service which is the most significant one such as providing food for restaurant. The other eight attaching service are information, payment, billing, order, taking consultation, hospitality, safe keeping and exceptions. The eight attaching factors can be separate into two parts there are facilitating services and enhancing services. Both of two supplement service have to considered in detail for business plan to enhance the service quality, because the consumer are fastidious group, they care each part of service. Therefore the well trained staffs and mangers play the important role of business; otherwise, it is hard to cover each part of service in depth. The marketers believe that a perfect management and plan of the business has to have whole eight service factors. Otherwise, there will have some weaknesses in the business to reduce the quality of service and affect the profits.
Figure 1: flower of service
Another theory is pricing strategy. According to Dr. Kotler & Armstrong (2007) believe that price is always a key element to influence the consumers’ behaviour. The figure 2 illustrates that pricing strategy is affected by three reasons which are costs, competition and value of customer. it also means, the company have to consider the each parts to make right price strategy in order to increase the market share and profits. The first factor of setting an excellent pricing strategy is the costs. The costs decided the profits of the company decision. If a firm can control its cost, it will make more money. Therefore, the cost which is can separate in many parts as the cost of training and goods, it is a main element to influence the pricing directly. The second one is competition. Business can not always the only one choice in their areas, the competitive always share the whole market. If the competitive prices of products are powerful and the products have high quality, the firm can occupy more market share. Otherwise, it may loss the market...