Marketing Paychex Case Study to Define the Essay

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Marketing

PAYCHEX Case Study

To define the service concept of PAYCHEX it is first necessary to look at the customer benefit concept, as this will drive the service concept. The customer benefits relate to the core benefits which firms receive from using a service (Speh & Hutt, 2012). In the case of PAYCHEX there is the provision of a range of HR services, which can provide a great deal of convenience to small and medium sized businesses, reducing their need for skilled labor that is needed for financial functions, such as payroll, filling tax payments and administering of retirement plans. The benefit can reduce the stresses and pressures in a HR department and benefit the firm with the ability to rely on a proven service where there are a high level of skills and knowledge, which may not have been available directly to the firm due to the costs of direct provision. The effect is to reduce the opportunity cost associated with payroll and other HR services, to allow the firm to focus in the issues that are important for operations without worrying about some of the bureaucratic aspects of running a business.

The service concept will be the articulation of the service concept, defining the services that will be provided.

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The basic services may be defined by function, the firm offers outsourcing payroll services, including flexibility with the ability of a client to use a single service or a bundle of services including payroll completion, filling of tax payments and administration of the retirement plans. However, the service concept goes behind just the functionality, it incorporates the way that the services For PAYCHEX there is an integrated service offered which can grow as the business grows in order to offer long-term solutions. The services may be flexible and responsive, and they will definitely be professional, prompt and compliant with any legislation.

Question 2

When potential look at a service, it is not the functionally that is purchased, but the benefits the functionality will provide (Speh & Hutt, 2012). Kotler & Keller (2011) illustrate this concept by noting that people do not buy drills, they buy the ability to make a hole, and they do not buy a bed, but the ability to get a good nights sleep. While the context in business to business sales differs, the concept remains the same; the sales of a service to a business should focus on the benefits it will provide. If the management of a firm does not perceive a….....

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