CASE 1

SULLIVAN FORD AUTO WORLD

OVERVIEW

The owner of a Ford car dealership dies unexpectedly. His 28-year-old daughter, a health care manager with an MBA degree, temporarily takes command. She is shocked to find that the once-thriving dealership is losing money and realizes that she must choose between selling the business at an unfavorable price, or working to turn it around. She suspects that improving the performance of the service department will be the key to saving the business.

STUDY QUESTIONS

1. How does marketing cars differ from marketing services for those same vehicles?

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

3. From a consumer perspective, what
service marketing) |
|Sales department Environment (well-designed attractive showroom |Service departments known sometimes as the garage are less in |
|and facility) |shape than sales departments. We note that auto dealers are |
| |getting more to appreciate their service departments. E.g. |
| |Lebanese Kettaneh’s garage is as modern as its showroom. |
|Customers walk in |Customers make appointment to service their cars |
|Employees of sales department must possess excellent |Employees of the service department must possess higher technical|
|communication skills where by the communication with the client |skills |
|can be higher of that in the service department | |
|Customer satisfaction is easily attained (purchase of the car) |Customer satisfaction is harder to attain (purchase of a service)|

3. From a consumer