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HC2112: Service Marketing And Relationship

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HC2112: Service Marketing And Relationship

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Course Code: HC2112
University: Australian Catholic University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

The service marketing and relationship marketing of the organisation KFC is divided into the front stage and the backstage of maintaining services and relationship. HC2112: Service Marketing and Relationship.

There is a difference between consumer services and business services. The consumer services are related to the personal services of the consumer but the business services associated with both personal and professional uses of the population. KFC is famous food chain which is expanded their restaurant business all over the world and billions of customers who are willing to use these restaurants in because of its product quality and services. The service marketing and relationship marketing of this organisation are differentiated into two different stages within the internal structure of the organisation. Those are known as front stage and backstage depending on the necessity and type of elements. In this study, the song stage and backstage of this international business KFC will be analysed to understand the service counter and the managerial implication on this business explain to understand its implication on this backstage and front stage activities.
A flow chart on the backstage and front stage of the international business KFC
The service marketing and relationship marketing of the organisation KFC is divided into the front stage and the backstage of maintaining services and relationship. The front stage is subdivided into four type of services. Those are customer segmentation, value proposition, channels and customer relationship.
Customer segments- As an international business KFC mainly develop their customer segmentation procedure depending on each of the local market. There is a variable area of selecting the customer segmentation which includes the market, buyers and non-buyers customers, industry, Lifestyle, demographics, geographical location and profession (Batty & Gee, 2018). However, this organisation mainly focuses on the market their targeting and the lifestyle of the area which help in understanding the specification of customer expectation and satisfaction. The customer’s review is very much essential for this organisation for which they focus on giving the best quality to their customers.
Value proposition- Similarly, the value proposition of the organisation is dependent on the specific two areas those are qualitative and quantitative (Cho, Laine, Roberts, & Rodrigue, 2016). For instance, it can be said that the quantitative value proposition refers to the price and speed of services provided by KFC where the qualitative service is dependent on the customer experience in the time of having food in the KFC restaurants. For instance, it can be said that the product quality what the invention developed by KFC is counted within the newness category of creating a value proposition. The performance is related to the restaurant, and the better quality or faster services is part of this process. In addition to that the customisation and design the process by which the organisation can create value in the mind of the customers. In addition to that, the pricing is one of the major areas where the value proposition can be created (Crittenden, Crittenden & Pierpont, 2015). Finally, the Representation of the organisation and their contribution towards the environment also help the organisation in creating the value proposition for the organisational products and services.
Channels- in the restaurant business channels is one of the essential areas which needs to adequately maintained by the organisation because the selection of appropriate channels can affect developing better service marketing for the customers. However, there are five different phases of channels which have been maintained by KFC those are awareness, evaluation, purchase delivery and after sales (Farrer, 2015). The awareness of the channel Management process helps the organisation in getting the best quality of raw materials from the suppliers. However, the evolution process also associated with the value proposition because the best quality of evolution of the raw materials and other products will increase the quality of the product of KFC. For the purchase of product the organisation KFC offer service counters in different locations for which they allow both dining and take away facility for their customers. After delivery of the products to the customer, the organisation also offers services like if the customer is not satisfied the food quality or if there any problem with the food it becomes the responsibility of the organisation to take a step after the sales (Fu & Lee, 2016).
Customer relationship- The service counter of KFC have the most important area to maintain within this front stage activities, and that is the relationship with the customers. The relationship with the customer has three different types of motivators; those are customer acquisition, boosting sales and customer retention. For boosting of the cells of KFC, the organisation focuses on the innovation of new products and understanding the expectation of the customers. The concept of KFC products started with the process of innovation, and currently, the organisation is still building up its customer relationship depending on developing new products for the customer’s satisfaction. Except that for the process of customer acquisition and customer retention the organisation has their policies which are the reason behind their success at the global level (Kashif & Khattak, 2017).
The key activities of the organisation are mainly differentiated into three different segments. Those are the production, the problem solving and the network. The production of the organisational products is related to each of the front stages. In addition to that, the value proposition of the organisational products is related to the production. The network’s development is counted under the key activities, and there is a very close relationship with the networks and channels of the organisation (Li, 2015). Finally, there is various type of problems which are related to the customer segment, value proposition, customer relationship and channel Management which are all counted under the key activities of the backstage performance.
In addition to that, the key resources of the organisation are mainly categorised into four different segments. Initially, the physical resources include the equipment, manufacturing, machines, vehicles and buildings, which are required for the product development and for providing service to the customers (Lovelock & Patterson, 2015). Except that the financial resources are also essential for an organisation which can be either private loans, taking a line of credit from a bank, raising money or crowdfunding. It’s totally dependable on the funding used by KFC which is mainly taking credit from a bank. The human resources at the main and most important resource of this organisation which is differentiated on the various employees related to the restaurant activities designers and manufacturers. In addition to that in this process the organisation KFC also has to you some intellectual necessity which includes the patents, the licence and the list of customers (Martí-Parreño, Bermejo-Berros & Aldás-Manzano, 2017). International business like KFC needs a proper infrastructure depending on which the organisation able to create the structure for both the organisational profit and their employee’s satisfaction.
The key partners include the various partners and suppliers of the business model of KFC. It is totally dependable on this organisational, geographical location because KFC uses most of the raw materials from the local suppliers for giving the fresh resources to the customers (Nguyen, Nisar, Knox & Prabhakar, 2018). Except that the key partnership also includes the various businesses with which KFC able to develop the partnership in developing a new establishment. For example, it can be said that in most of the places KFC have their service counter within a shopping mall for which this organisation has to make a partnership with the owner or group of the mall.
Finally, the cost structure of the business is totally dependable on the key resources of the organisation. It is dependent on how is able to get most of the word key resources, and the course structure is developed by the organisational owner depending on the key resources. But the most important use of this course structure development is directly associated with the value proposition of the organisational product (Rosenbaum, Cheng, & Wong, 2016). The cost structure of this organisation KFC is different in each of the countries. Therefore it has been seen that in some countries KFC is providing moderate pricing in some countries the pricing of KFC is relatively high. However, the places where KFC is giving the moderate pricing is possible because of the key resources used in this countries are easily available. However, for the creation of value proposition which is a front page of the organisation this backstage element is very much effective (Tan, Oriade & Fallon, 2014).
Analysis of its managerial implication
In analysing the managerial implication of this organisation KFC it has to understand that the intangible elements usually dominate the value creation. KFC is associated with and developing innovative products for the customers which directly affect on the customers to get attracted, and also the competitiveness of the product decreases and the distinguished character of KFC get revealed in front of the customers. However, it has been seen that the initiatives of KFC provide their customers with an opportunity to visit the kitchen and understand the procedure of producing KFC fried chicken (Wu & Cheng, 2018). This process is very helpful because the customer interaction with the employee’s increases during this process and the facilities and Systems within this organisation can easily visible to the customers.
In addition to that, when the customers able to experience the services of KFC they will understand the appearance behaviour and attitude of the service. This process is not only helpful for developing a value proposition for these organisational products but also give and a different shape on the customer’s experience and satisfaction level. In addition to that, for this process, KFC has to give proper training to the employees from which they can easily entertain their customers, and they will be able to shape the behaviour of the customers. In addition to that, the time factor assumes great importance for the managerial area. And it also directly associated with developing the number of customers. An in time service for the customer will be spent wisely by the organisation (Rosenbaum, Cheng & Wong, 2016). The wasting of time is totally disliked by most of the customers, and therefore the customers want fast, and Quality Services from the organisation like KFC. for a meeting this agenda the employees of the organisation and organisational working structure has developed with providing instant food for the customers and this process helps the organisation in extending the service hours.
In light of the above discussion, it can be concluded that the backstage and front stage activities of KFC are complicated because of its huge structure and global appearance. The consumer services are relatively different from the business services, but the appropriate usage of managerial implications can develop the services faster than the business services provided in all over the world. 
Batty, R. J., & Gee, S. (2018). Fast food, fizz, and funding: Balancing the scales of regional sport organisation sponsorship. Sport Management Review, 12(2), 131-145
Cho, C. H., Laine, M., Roberts, R. W., & Rodrigue, M. (2016). The Frontstage and Backstage of Corporate Sustainability Reporting: Evidence from the Arctic National Wildlife Refuge Bill. Journal of Business Ethics, 12(3), 1-22.
Crittenden, W. F., Crittenden, V. L., & Pierpont, A. (2015). Trade secrets: Managerial guidance for competitive advantage. Business Horizons, 58(6), 607-613.
Farrer, J. (2015). Shanghai’s western restaurants as culinary contact zones in a transnational culinary field. In The Globalization of Asian Cuisines (pp. 103-124). Palgrave Macmillan, New York.
Fu, J. S., & Lee, A. Y. (2016). Chinese journalists’ discursive Weibo practices in an extended journalistic sphere. Journalism Studies, 17(1), 80-99.
Kashif, M., & Khattak, A. (2017). Ethical intentions among frontline employees working in the US-based fast food chains in Pakistan: The moderating role of love of money. British Food Journal, 119(7), 1547-1561.
Li, P. P. (2015). Both converging toward and diverging from global paradigms: The perspective of Yin-Yang balancing for the unity-in-diversity duality. Management and Organization Review, 11(4), 807-813.
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Martí-Parreño, J., Bermejo-Berros, J., & Aldás-Manzano, J. (2017). Product placement in video games: The effect of brand familiarity and repetition on consumers’ memory. Journal of Interactive Marketing, 38(2), 55-63.
Nguyen, Q., Nisar, T. M., Knox, D., & Prabhakar, G. P. (2018). Understanding customer satisfaction in the UK quick service restaurant industry: The influence of the tangible attributes of perceived service quality. British Food Journal.
Rosenbaum, M. S., Cheng, M., & Wong, I. A. (2016). Retail knockoffs: Consumer acceptance and rejection of inauthentic retailers. Journal of Business Research, 69(7), 2448-2455.
Tan, Q., Oriade, A., & Fallon, P. (2014). Service quality and customer satisfaction in Chinese fast food sector: A proposal for CFFRSERV. Advances in Hospitality and Tourism Research (AHTR), 2(1), 30-53.
Wu, H. C., & Cheng, C. C. (2018). What Drives Experiential Loyalty Toward Smart Restaurants? The Case Study of KFC in Beijing. Journal of Hospitality Marketing & Management, 27(2), 151-177.

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