Great!

Let’s finish strong with Module 4: Market

Segmentation & Other Strategies in Services — this
module is key for applying and evaluating service
strategies, which maps directly to:

CO3: Recognize challenges in different service industries

CO4: Analyze service marketing strategies

CO5: Evaluate those strategies in real or case-based

situations

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Module 4: Topics Covered (Units 13–16)

1. Market Segmentation, Targeting, and Positioning (STP)

in Services
2. Managing Demand and Capacity in Services

3. Branding, Advertising, and Internal Marketing

4. Role of Employees in Service Delivery

---

1. STP for Services (Unit 13)

Segmentation

Dividing the service market based on:

Demographics (age, income)

Behavior (usage, loyalty)

Psychographics (lifestyle, personality)

Targeting

Choosing which segment(s) to focus on.

Positioning

Creating a unique image in the customer's mind using

USP (unique selling proposition).

Example:

Luxury hotel: Targets high-income travelers → positions

itself as premium experience.

Budget airline: Targets price-sensitive travelers →

positions as affordable and no-frills.
CO4 Focus: Analyze how brands use STP to attract
specific service users.
CO5 Focus: Evaluate how effective that STP strategy is in
real cases.

---

2. Managing Demand and Capacity (Unit 14)

Challenge: Services are perishable and cannot be stored.

Goal: Balance demand with available service capacity.

Strategies:

Demand side: Use pricing, promotions, peak-hour

discounts
→ e.g., Happy Hours, weekend hotel packages

Capacity side: Hire part-time staff, cross-train

employees, use tech (self-check-ins)
Example:
Swiggy uses surge pricing and promotions to handle
peak meal times.

CO3/CO4: Analyze how different services handle

demand fluctuations (e.g., hospitals vs. cinemas).
CO5: Evaluate the success/failure of demand/capacity
management in a case.

---

3. Branding, Advertising & Internal Marketing (Unit 15)

Branding in Services

Builds trust in intangible offerings

Key elements: Name, logo, tagline, emotional appeal

Example: Amul – “Taste of India” emotionally connects

to Indian households.

Advertising

Services rely on emotional, experience-based messaging

Often uses testimonials, visuals, service guarantees

Internal Marketing

Marketing to employees to ensure they understand,

believe in, and deliver the brand promise

Involves training, motivation, culture

Example:
Zappos trains employees to go above and beyond in
customer service — strong internal marketing.
---

4. Role of Employees in Service Delivery (Unit 16)

Employees are:

Part of the product (e.g., therapist, waiter, nurse)

Influence customer satisfaction

Brand ambassadors (how they behave affects brand

perception)

Strategies to manage employees:

Hire for attitude, train for skill

Use motivation techniques (bonuses, recognition)

Encourage customer feedback loops

CO4/CO5: Analyze how employee behavior affects the
service experience and suggest improvements in a case
scenario.

---

Study Tips for Module 4

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Real-World Example: Café Chain

---

Would you like a one-pager summary, case study

practice, or help with possible exam-style questions
from this module?
 Great! Let’s analyze how different service businesses
apply the 7 Ps by comparing across various industries
like airlines, banks, hospitals, restaurants, and online
services. This directly helps you fulfill CO4 (Analyze
service marketing techniques across contexts).

---

Analysis of 7 Ps Across Service Industries

CO4 Focus: Application in real businesses

---

Key Analytical Takeaways

1. Customization Based on Industry

Airlines and hotels use dynamic pricing due to
perishability of time slots.

Hospitals and banks emphasize process and people,

where trust is critical.

Restaurants focus on physical evidence and ambience

for brand positioning.

2. Promotion Strategies Vary Widely

High-involvement services (like healthcare and

consulting) rely more on word-of-mouth, PR, and
personal selling.

Low-involvement services (like fast food, e-learning) use

ads, offers, and influencer marketing.

3. Technology’s Role
In online services, place and process become fully
digital.

Traditional services (like hospitals, salons) use tech to

support rather than replace physical delivery.

4. People as Differentiators

In services like airlines and restaurants, customer-facing

staff are key to competitive advantage.

Instructors and consultants are brand representatives in

online education and professional services.

---

Pro Tip for Exams (CO4):

When you get a question like:

> "Analyse how XYZ service applies the 7 Ps."

Follow this structure:

1. Industry Overview (e.g., "XYZ is a hotel focused on

mid-tier travelers.")

2. Apply each P briefly (2–3 lines each)

3. Highlight 1–2 strategic decisions they made (e.g.,

“They use budget branding + premium-level physical
evidence.”)

4. Wrap-up with insight ("Their success depends on

balancing low cost with high perceived value.")
---

Would you like a few sample answers or case study-style

questions for practice next?

Okay, let's move on to Module 2. Based on your syllabus

structure and the revised COs, Module 2 primarily aligns
with CO2: Describe the ethical values and their
significance in personal and professional contexts.

Here are the notes for Module II, structured around this
CO and the likely units (Units 5-9 from the original
syllabus).

Module II: Values of Business Ethics (Units 5-9)

Target CO2: Describe the ethical values and their

significance in personal and professional contexts.
(Cognitive Level: E - Evaluate - Note: As mentioned
before, "Describe" and "significance" lean towards
Understand/Analyse, but we'll use the syllabus level E
for depth if required, focusing on the importance as the
"evaluation" aspect).

Focus: Understanding what ethical values are, their

types, and why they are important (their significance) in
both our personal lives and in the business world,
including how they apply to specific ethical issues.

1. Ethical Values - Nature, Scope, Features, Importance

(Unit 5) - The Core of CO2

What are Ethical Values?

They are deeply held beliefs or principles that guide our

judgment about what is good or bad, right or wrong,
desirable or undesirable.

They are fundamental standards that influence our

choices and actions.
Think of them as an internal compass for behaviour.

Nature:

They are not static; they can be influenced by culture,

upbringing, experiences, and personal reflection.

They are often hierarchical; we may prioritize some

values over others in different situations.

Scope:

Personal Context: Values guide individual decisions

about relationships, lifestyle, personal goals, honesty in
daily life. E.g., valuing honesty means you tell the truth
even when it's difficult.

Professional/Business Context: Values guide behaviour

within a workplace, influencing how decisions are made,
how colleagues are treated, how customers are served,
and how business is conducted. E.g., valuing integrity
means you don't engage in deceptive practices.
Societal Context: Shared values form the basis of laws,
social norms, and expectations within a community or
nation.

Features:

Prescriptive: They tell us what we should do or strive for.

Motivational: They can inspire us to act in certain ways.

Evaluative: They help us judge our own and others'

actions.

Relative vs. Universal Debate: Some argue values are

culturally relative, while others believe in universal
ethical values (e.g., respect for human life, fairness).

Importance/Significance (Directly addressing CO2): Why

do these values matter?

Guidance for Decision Making: Values provide criteria for

making choices, especially in complex situations with
ethical dilemmas.

Foundation for Ethical Behaviour: They are the root from

which ethical actions spring. Strong values lead to
consistent ethical conduct.

Building Character and Reputation: Living by strong

values builds personal integrity and earns the trust and
respect of others.

Creating a Positive Workplace Culture: Shared ethical

values among employees can foster a supportive,
trusting, and productive work environment.

Enhancing Credibility and Trust: Companies that visibly

operate based on strong ethical values build trust with
customers, employees, investors, and the public. This is
crucial for long-term success (links to Module IV/CO4).

Reducing Risk: Adherence to values reduces the

likelihood of unethical or illegal behaviour that could
harm the company or individuals.

2. Types of Values, Ethics Committees (Unit 6) -

Expanding on CO2

Types of Values:

Terminal Values: Desirable end-states of existence; the

goals we want to achieve in life (e.g., happiness, security,
wisdom, freedom, a world at peace).

Instrumental Values: Desirable modes of conduct or

behaviour used to achieve terminal values (e.g., honesty,
courage, responsibility, ambition, kindness).

Personal Values: Values individuals hold for themselves.

Professional Values: Values specific to a profession (e.g.,

confidentiality for doctors/lawyers, objectivity for
accountants/journalists).

Organizational Values: Values promoted and ideally

practiced within a company.

Ethics Committees (in Organizations):

What they are: Formal bodies within a company (often

linked to the board or senior management) responsible
for overseeing ethical standards.

Role/Functions:

Developing and reviewing the company's code of ethics.

Advising on ethical dilemmas faced by employees or the

company.

Overseeing ethics training programs.

Investigating potential violations of the code of ethics or

company policy.

Promoting an ethical culture within the organization.

Significance (for CO2): Ethics committees are a
mechanism by which organizations try to uphold and
reinforce ethical values (personal and professional)
among their employees and throughout their
operations. They demonstrate a commitment to ethical
conduct and provide a resource for navigating ethical
challenges, contributing to the significance of values in
the professional context.

3. Specific Ethical Issues in Business (Units 7, 8, 9) -

Demonstrating Significance (CO2)

This is where you see how ethical values are applied (or
not applied) to real-world business situations. The
significance of values becomes clear when considering
the problems that arise when they are ignored.

Ethical Issues in Privacy and Trust (Unit 7):

Issues: Collecting and using personal data without

consent, monitoring employees, cybersecurity and data
breaches, truthfulness in communication, building and
maintaining trust with stakeholders.

Significance of Values (for CO2): Values like respect for

privacy, confidentiality, honesty, and fairness are hugely
significant here. Ignoring privacy rights erodes trust.
Lack of honesty in communication damages reputation.
Data breaches highlight the importance of responsibility
and security values.

Ethical Issues in the Digital World (Unit 8):

Issues: Digital misinformation/fake news, biased

algorithms, data ownership, digital divide, cyberbullying,
intellectual property theft, anonymity vs. accountability
online.

Significance of Values (for CO2): Values like accuracy,

fairness (especially in AI/algorithms), accountability (for
online actions/content), respect (for digital
property/personas), and integrity are critical. These
values help navigate the complex ethical landscape
created by new technologies.
Ethical Issues in Marketing (Unit 9):

Issues: False or deceptive advertising, targeting

vulnerable populations, manipulating consumer
behaviour, planned obsolescence, unethical pricing,
privacy in data-driven marketing.

Significance of Values (for CO2): Values like honesty,

fairness, truthfulness, respect (for consumer autonomy),
and transparency are essential. Unethical marketing
destroys consumer trust, harms competitors, and can
lead to legal issues. Adherence to these values is
significant for maintaining reputation and consumer
relationships.

Ethical Issues in Finance and Accounting (Unit 9, and

related to original CO8):

Issues: Financial statement fraud, insider trading,

earnings management, aggressive accounting practices,
executive compensation, conflicts of interest for
analysts/auditors, bribery and corruption.

Significance of Values (for CO2): Values like integrity,

objectivity, accuracy, confidentiality, professional
competence, and accountability are paramount. Failures
in financial ethics (as seen in scandals like Enron or
Satyam) destroy investor confidence, collapse
companies, and can trigger economic crises. The
significance of these values lies in ensuring financial
markets are fair and reliable, crucial for both business
and economic stability.

Overall Significance for CO2:

Module II demonstrates that ethical values are not just

abstract concepts. They have profound significance
because they:

Shape individual behaviour (personal context).

Guide professional conduct within organizations

(professional context).
Provide the ethical lens through which we identify and
attempt to resolve specific dilemmas in areas like
finance, marketing, and the digital world.

Their presence (or absence) directly impacts trust,

reputation, and the overall ethical health of a person, a
profession, or a company.

Extra Notes on Module II:

Link to Module I: Module I introduced the concept and

relevance of business ethics. Module II dives into the
content of ethics – the actual values that underpin
ethical behaviour in business.

Link to Module III (Culture): The ethical values that are

actually practiced in an organization are heavily
influenced by its culture. A strong ethical culture
reinforces positive values, while a weak one can
undermine them, even if a code of ethics exists. The
"significance" of values is truly felt when they are
embedded in the culture.

Link to Module IV (Governance): Corporate Governance

provides structural mechanisms (like Audit Committees
or Whistleblower policies) that support the
implementation of certain ethical values (like integrity,
transparency, accountability), particularly in areas like
finance. Good governance relies on key individuals (like
independent directors) upholding strong ethical values.

By studying Module II, you should be able to define

ethical values, list different types, describe the role of
ethics committees, and most importantly, articulate why
these values are significant by explaining the ethical
challenges that arise in specific business functions when
these values are compromised. You should be able to
use examples from the specific issues units (7, 8, 9) to
illustrate this significance.

Okay, let's break down Units 8 and 9 of Module II. These

units move from the abstract concepts of values and
ethics committees to the practical (and often
challenging) application of ethics in specific business
areas.

The key is to see these units as examples that illustrate

the significance of ethical values (which is the core of
CO2) in real-world business contexts.

Unit 8: Ethical Issues in the Digital World

Context: This unit deals with the ethical challenges

created by digital technology, the internet, social media,
data collection, and artificial intelligence (AI). The digital
world is fast-changing and global, which creates new
ethical dilemmas that traditional rules didn't always
anticipate.

What makes it difficult?

Scale: Data can be collected and spread to millions

instantly.

Anonymity: The internet can sometimes allow people to

act unethically without easily being identified.

Speed: Information (and misinformation) spreads

incredibly fast.

Complexity: Technologies like AI are complex, and their

ethical implications aren't always obvious.

Key Ethical Issues & Why they are Problems (Illustrating

Significance of Values):

Privacy and Data Collection:

Issue: Companies collect vast amounts of personal data

(what you search, what you buy, where you go) often
without clear or explicit consent, and use it for profiling,
targeted advertising, etc.

Ethical Conflict: The company's desire to use data for

profit/efficiency vs. an individual's right to privacy and
control over their personal information.
Values Challenged: Privacy, Respect for individuals,
Honesty (if consent isn't truly informed), Responsibility
(to protect data).

Significance: Ignoring privacy rights erodes individual

autonomy and trust. Data breaches (when collected data
is stolen) can lead to identity theft, financial loss, and
severe reputational damage for the company, destroying
stakeholder trust and potentially threatening
sustainability.

Misinformation and Fake News:

Issue: The ease of spreading false or misleading

information online, often deliberately, for political,
financial, or malicious reasons.

Ethical Conflict: Freedom of expression vs. the public's

right to accurate information and the harm caused by
lies. Companies (platforms) grapple with their
responsibility for content.
Values Challenged: Truthfulness, Honesty, Responsibility
(of platforms and users), Fairness (to those
misrepresented).

Significance: Misinformation can manipulate public

opinion, cause real-world harm (e.g., health
misinformation), damage reputations unfairly, and
undermine democratic processes. It highlights the
critical significance of values like truthfulness and
responsibility in the digital age.

Biased Algorithms and AI:

Issue: AI systems and algorithms used for things like

hiring, loan applications, or criminal justice risk
assessment can inherit and even amplify existing societal
biases (e.g., racial, gender) present in the data they were
trained on.

Ethical Conflict: Efficiency and automation vs. ensuring

fairness, equity, and non-discrimination in automated
decisions.
Values Challenged: Fairness, Equity, Non-discrimination,
Accountability (who is responsible for a biased AI
decision?).

Significance: Biased AI can lead to discriminatory

outcomes in critical areas of life, exacerbating social
inequalities. It shows the significance of building fairness
and accountability into technology design.

Cybersecurity and Data Breaches:

Issue: The ethical obligation of companies to protect the

data they hold from hacking and breaches.

Ethical Conflict: Responsibility to safeguard information

vs. negligence or inadequate investment in security.

Values Challenged: Responsibility, Security, Diligence.

Significance: Failure to protect data is not just a technical

issue but an ethical one. It breaks the trust placed in the
company to handle sensitive information safely. Data
breaches can cause immense harm to individuals and
companies, again impacting trust and sustainability.

In Summary for Unit 8: This unit shows that the basic

ethical values (like honesty, fairness, privacy,
responsibility) discussed in earlier units are highly
relevant, and their significance is dramatically
highlighted by the new and challenging ways they are
tested in the digital world. Ignoring these values leads to
severe consequences for individuals, companies, and
society.

Unit 9: Ethical Issues in Marketing and

Finance/Accounting

Context: These are two fundamental functional areas of

any business. Both involve interactions with external
parties (customers/investors) and internal handling of
critical resources (money, financial information), making
them prime locations for ethical challenges.
Ethical Issues in Marketing:

Context: Marketing involves communicating with and

trying to persuade consumers. This creates ethical issues
related to truthfulness, manipulation, and vulnerability.

Key Issues (Illustrating Significance of Values):

Deceptive Advertising: Making false or exaggerated

claims about a product or service.

Ethical Conflict: Boosting sales vs. telling the truth to

consumers.

Values Challenged: Honesty, Truthfulness, Transparency,

Fairness.

Significance: Destroys consumer trust in the brand and

advertising in general, leads to legal penalties, harms
honest competitors. Shows the vital significance of
honesty in building long-term customer relationships.
Targeting Vulnerable Populations: Marketing potentially
harmful products (e.g., unhealthy food, gambling,
payday loans) to children, the elderly, or financially
desperate individuals.

Ethical Conflict: Maximizing profit vs. protecting those

who are easily influenced or harmed.

Values Challenged: Responsibility, Fairness, Respect.

Significance: Causes direct harm to vulnerable

individuals and groups, leads to public outrage and
boycotts, damages company reputation. Highlights the
significance of responsibility and fairness in marketing
practices.

Planned Obsolescence: Designing products to become

obsolete (stop working or become unfashionable)
quickly to encourage repeat purchases.

Ethical Conflict: Driving sales vs. product durability,

consumer value, and environmental impact.
Values Challenged: Fairness, Responsibility
(environmental, consumer).

Significance: Frustrates and harms consumers,

contributes to waste, damages long-term trust. Shows
the significance of values like fairness and responsibility
extending to product design and lifecycle.

Ethical Issues in Finance and Accounting:

Context: These areas deal with money, investments, and

financial reporting. Opportunities for self-enrichment
and hiding information are high, making ethical
oversight crucial. This is where many major corporate
scandals occur.

Key Issues (Illustrating Significance of Values):

Financial Statement Fraud: Intentionally misrepresenting

a company's financial health (e.g., inflating revenue,
hiding debt). (Think Enron, Satyam).
Ethical Conflict: Pressure to show performance vs.
truthfulness and accuracy in reporting.

Values Challenged: Integrity, Honesty, Accuracy,

Accountability, Objectivity.

Significance: Destroys investor confidence (trust), causes

massive financial losses for shareholders and employees
(jobs), leads to company collapse (sustainability failure),
results in severe legal penalties. This dramatically
demonstrates the significance of integrity and accuracy
in financial reporting – their absence can bring down
empires.

Insider Trading: Buying or selling stocks based on

confidential, non-public information.

Ethical Conflict: Personal gain vs. fairness and equal

access to information for all investors.

Values Challenged: Fairness, Integrity, Legality.

Significance: Undermines the fairness and integrity of
financial markets, makes average investors lose trust, is
illegal. Shows the significance of fairness in maintaining
functional capital markets.

Executive Compensation: Setting excessively high pay for

top executives, especially when not tied to performance
or when the company is struggling.

Ethical Conflict: Rewarding top leadership vs. fairness to

employees, shareholders, and society, and linking pay to
value creation.

Values Challenged: Fairness, Accountability,

Responsibility.

Significance: Can create internal resentment, public

criticism, signal poor governance, and potentially
incentivize short-term risk-taking over long-term
sustainability. Highlights the significance of fairness and
accountability in compensation practices.
Conflicts of Interest (e.g., for Auditors/Analysts):
Situations where personal interests (like financial ties)
could improperly influence professional judgment (e.g.,
an auditor overlooking fraud at a client company where
they have personal investments).

Ethical Conflict: Professional duty to be objective vs.

personal gain or relationships.

Values Challenged: Objectivity, Independence, Integrity.

Significance: Leads to biased advice or unreliable audits,

misleading investors and other stakeholders. Crucial for
maintaining trust in financial professionals and the
financial system itself.

In Summary for Unit 9: These issues show how

fundamental ethical values (like honesty, fairness,
integrity, accountability, objectivity, responsibility) are
constantly challenged in the profit-driven areas of
marketing, finance, and accounting. Their significance is
evident in the severe negative consequences – loss of
trust, financial ruin, legal trouble, reputational damage,
and even economic instability – that occur when these
values are disregarded.

How to Understand These Units:

Instead of just memorizing lists of issues, think of each

issue as a scenario where a company or individual faced
an ethical choice.

Identify the Choice: What was the conflicting interest or

pressure? (e.g., Make more money vs. Tell the truth?)

Identify the Value(s) at Stake: Which ethical principle

was being tested? (e.g., Honesty, Fairness,
Responsibility?)

Identify the Outcome: What happened when the ethical

value was ignored? (e.g., Scandal, loss of trust, legal
trouble, financial collapse?)
State the Significance: Why does this outcome prove
that the ethical value is significant in business? (e.g.,
"This shows the significance of integrity in finance, as its
absence led to the destruction of the company and
investor trust.")

Units 8 and 9 are practical demonstrations of why the

ethical values discussed in Units 5 and 6 are so
important (their significance) in different parts of the
business world. They provide concrete examples for
CO2.