logging in or signing up services marketing ravindra kumar gottapu 8886313212 rk12061981 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 893 Category: Education License: All Rights Reserved Like it (3) Dislike it (0) Added: July 12, 2010 This Presentation is Public Favorites: 5 Presentation Description No description available. Comments Posting comment... By: mk42781 (1 month(s) ago) sir plz send this ppt...i really need for. its a really good ppt persentation plz send this persentation to me at mk42781@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rtkz (1 month(s) ago) THIS PPT IS REALLY WONDERFUL..PLZ IF POSSIBLE MAIL IT TO ME AT REETIKAZ86@GMAIL.COM Saving..... Post Reply Close Saving..... Edit Comment Close By: selva8008 (10 month(s) ago) hi, pls sent this ppt to this mail id... iamagiftofgod@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: selva8008 (10 month(s) ago) i need this ppt.. sir ols send to my mail Saving..... Post Reply Close Saving..... Edit Comment Close By: pradnyapatil24 (15 month(s) ago) hi There, can u plz mail this ppt on: ppp_pratibha@yahoo.co.in, asap plz Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript SERVICE MARKETING : SERVICE MARKETING DEFINITION : DEFINITION Adrian Payne has defined service as an activity that has an element of intangibility associated with it and which involve the service provider interaction either with the customers or with the property belonging to the customer. Philip kotler, service is any activity of benefit that one party can offer to another that is essentially intangible and does not in the worship of anything INTRODUCTION : INTRODUCTION (the size of the service sector is increasing in almost all economies around the world) Service org is very widely in size. In developed countries like US,UK&Australia the service sector accounts for more than 60% of the GDP and generates three times more employments than the manufacturing sector. In India service account for about 56% of the country GDP in 2002. the share of service sector in GDP increased sharply from 43.69% in 1990-91 to 51%in 98-99. INTRODUCTION : INTRODUCTION While that of industry and agriculture has declined from 25.38% and 30.93%. Agriculture and manufacturing sectors are plays a very imp role to increasing GDP in India in 90s As the country development further and per capita income increased, people also start spending more on services like healthcare, insurance, legal communication and entertainment. This improves the market for services in the country. SERVICES IN THE MODERAN ECONOMY : SERVICES IN THE MODERAN ECONOMY Structure of service sector. CHARACTERISTICS OF SERVICES : CHARACTERISTICS OF SERVICES The major characteristics of services are Intangibility Heterogeneity Inseparability Perish ability Intangibility : Intangibility A product is physical entity, which can be touched. It can be seen, heard, smelt, and tasted even before purchasing. But a service is not tangible unless it experienced or consumed. EXAMPLE a bike is tangible good but its HP and mileage are services means intangible. Heterogeneity : Heterogeneity A machine can produce units identical in size, shape and quality. But a human being cannot work a uniformly through out the day. Heterogeneity can benefit the org.. Some customers want specific services which may not be needed by other customer in such cases, the org.. Can offer customized services to such customers and change a premium for them EXAMPLE Automobiles having small car, big car and premium car models Inseparability : Inseparability A service is consumed by the customer as soon as it is delivered by the employee. Thus, production and consumption occur simultaneously in case of service as opposed to product which are manufactured, inventoried and then consumed. EXAMPLE the interaction between patient and doctor is essential if the patient has to be treated for an illness. Perish ability : Perish ability Unlike products, services can not be inventoried or stored for feature consumption. EXAMPLE A hotel has 40 rooms but on a particular day, only 10 rooms are occupied. The hotel has an idle capacity of 30 rooms on that day. This is a loss of business. show rooms seasonally recruit additional employee CLASSIFICATION OF SERVICES : CLASSIFICATION OF SERVICES Classification based on degree of involvement of the customer. Classification based on the service tangibility. Classification based on skills and expertise required. Classification based on business orientation of service provider. Classification based on the type of end-user. Classification based on degree of involvement of the customer. : Classification based on degree of involvement of the customer. People processing Possession processing Mental stimulus processing Information processing People processing : People processing The customer is highly involved in the service process and need to be physically present in order to experience the services. EXAMPLE At school or training center for dance the students availing the service have to be present in person. Other examples for this pro.. Health care centers, passenger transport services, saloons, lodging fitness and educational sservices Possession processing : Possession processing The customer does not require to be present to experience the services but has to submit his property to the service provider for the latter to deliver the service. The service is directed at the possession and not at the customer. Example Car mechanism, laundry, postal, courier and freight transportation. Mental stimulus processing : Mental stimulus processing The attention of the customer must be directed on the service in order to experience the service. The service is directed at the mind of the customer Example Such services are advertising, entertainment and education consultancy services. Information processing : Information processing Service personnel to collect information , analyze it, interpret and offer appropriate advice to the client. Example A market research firm hired by a company collect information from customer to know their opinion about the company’s goods and services. Such examples are Accounting, insurance, legal services, programming, and data processing. Classification based on the service tangibility : Classification based on the service tangibility Highly tangibility Service linked to tangible goods Tangible goods linked to services Highly intangibility Highly tangibility : Highly tangibility In these services, the customer obtain a tangible product in hand though it may some times lost for only a small period of time. EXAMPLE If a person take cell a phone on rent, he obtain the tangible product (cell) that he can use for the period of contract. After complete contract cell is return to service provider. Service linked to tangible good : Service linked to tangible good Its Refers some org.. Offers a warranty period to customers who purchase products from them. During this period, they offer free service if the customer report any problem with that product. EXAMPLE motor bike servicing center, electronic goods, and machinery products. Tangible goods linked to services : Tangible goods linked to services Some services offer a tangible product along with the service requested by the customer. EXAMPLE airline services offer food and magazine to passenger market research firm provide clients with a detailed report of the research result Highly intangible : Highly intangible These are services which do not provide customers with any tangible product. EXAMPLE at a massage parlor, the customer might not get anything tangible, except for the relaxing experience. Classification based on skills and expertise required : Classification based on skills and expertise required Services can be categorized as follows based on the skills and expertise required by the services provider to offer the services PROFESSIONAL SERVICES NON-PROFESSIONAL SERVICES PROFESSIONAL SERVICES : PROFESSIONAL SERVICES These services require the service provider to be formally trained to deliver the service. EXAMPLE the service rendered by a doctor, a pilot and an IT consultant NON-PROFESSIONAL SERVICES : NON-PROFESSIONAL SERVICES The services do not require the service provider to undergo any training to deliver the service. EXAMPLE house keeping, baby sitting Classification based on business orientation of service provider : Classification based on business orientation of service provider Services can be categorized based on the service providers purpose of doing business. Not-for-profit organization : these service provider is to service for society not for profit. Ex.. government schools, and social service org Commercial organization : these service provider is to earn revenue and make profit. Ex.. airlines, insurance and restaurants Classification based on the type of end-user. : Classification based on the type of end-user. Services can be classified into categories based on the type of customer who consumes them Consumer services Business to Business services (B2B) Industrial services Consumer services : Consumer services These services are purchased by individual customer for their own consumption. EXAMPLE beauty care, physiotherapy and hair cutting Business to Business services (B2B) : Business to Business services (B2B) These services are purchased by organizations. EXAMPLE market research, consultancy and advertising are some of B2B services TATA to SVR advertise company Industrial services : Industrial services These services are generally based on a contract between organizations and service providers EXAMPLE machine installation and plant maintenance are some examples of such services. Relationship Marketing : Relationship Marketing Definitions According to Shani, D. and Chalasani, “Relationship marketing is an integrated and coordinated effort to identify, maintain, and build up a network with individual customer and employee. This is achieved through a mutual exchange and fulfillment of promises” Relationship Marketing : Relationship Marketing Benefits Long term relationship are beneficial for both customers and org… organizations, as already discussed, benefits for lower costs and increase profitability. The other benefits for is they already know the requirement and expectations of their customer base and therefore. The customer enjoy the service of the org.. That understand them and their requirements. Another benefit for them is that they have a reliable service provider. Relationship Marketing : Relationship Marketing 6 MARKET MODELS INFLUENCER MARKET Share holders, financiers, Govt media trade unions. RECRUITMENT MARKET INTERNAL MARKET SUPPLIER MARKET REFERAL MARKET Existing customers, intermediaries, consultancy CUSTOMER MARKET ORGANIZATION Strategy in Relationship Marketing Management : Strategy in Relationship Marketing Management MISSION & VISION SWOT ANALYSIS STRATEGY FORMULATION QUALITY AND RELATIONSHIP MARKETING THE SERVICES MARKETING TRIANGLE : THE SERVICES MARKETING TRIANGLE THE SERVICES MARKETING MIX : THE SERVICES MARKETING MIX The traditional marketing mix element are 4 which product, price, place and promotion. The marketing mix for services consists of 3 elements, namely, people, physical evidence and process to cater to the unique needs of services marketing. Thus the marketing mix for the services is considered to consists of 7P’s (in the case the service). THE SERVICES MARKETING MIX ELEMENTS : THE SERVICES MARKETING MIX ELEMENTS PEOPLE the term ‘people’ refers to all those persons who are involved in the production and consumption. they include the front-line employees of a service org.. And the customer purchasing the services EX.. The first interaction that any individual has with a company is through the receptionist who answer the telephone call. If reception is rude to the customer, its create a poor image of the company in the customer mind. Thus recruit the people with the right attitude THE SERVICES MARKETING MIX ELEMENTS : THE SERVICES MARKETING MIX ELEMENTS PHYSICAL EVIDENCE The intangibility element associated with services makes it difficult for customers to evaluate the quality of the services. Hence marketers in service org.. ,in their attempt to offer something tangible, provide the customers physical evidence of the service offered. Ex.. In star hotels and telecommunication service side the employee maintaining uniform. Business cards, display certificate, ISO No, cinema tickets and so on.. THE SERVICES MARKETING MIX ELEMENTS : THE SERVICES MARKETING MIX ELEMENTS PROCESS process management in service is essential to ensure consistent quality of service delivery. process involves transforming a certain input into the desired output. it is the process of the delivery that differentiates one service firm from another. Ex.. Courier services, FedEx differentiates itself from its competitors based on its delivery process. CONSUMER DECISION MAKING PROCESS : CONSUMER DECISION MAKING PROCESS Environmental factors MARKETING ACTIVITIES Need perception Search for information Evaluation of alternatives Purchase decision Post-purchase evaluation External sources: Personal sources Commercial sources Public sources Experiential sources Internal sources CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS It plays key role in a company success and have a deeper meaning in service marketing than being more requirement of the customer. Customer expectation are based on customer experience with the product or services. Customer do not expect service providers to fulfill all their requirements but only that they deliver what they have promised. They want to get a fair deal for the price they pay for service. CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS It can be measured along five dimensions of service quality : Assurance Empathy Reliability Responsiveness Service tangibility CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS Assurance (Promiseing) This refers to the ability of the service provider and his employees to use their knowledge and polite behavior to instill trust and confidence in customers regarding services. Empathy (Understanding) this refers to the service provider’s ability to show anxiety for customers and offer individual attention to teach customer. CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS Reliability this refers to the ability of the service provider to accurately perform the promised service. This dimension of service quality conveys whether the service provider keep his promise regarding efficient delivery of service, handling of customer complaints, pricing and so on.. CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS Responsiveness it refers to the willingness of the service provider and his staff to provide assistance and prompt service to customers. Tangiblesthis dimension of the service quality refers to those elements which provide tangibility to the service and include physical facilities, equipment of the service provider, dress and appearance of the service personal CUSTOMER PERCEPTION : CUSTOMER PERCEPTION Perception is the process of making a meaningful picture by selectively organizing a set of stimuli. in the marketing of services, perception can be defined as a customers judgment about the service experience to aspect of value of service delivery, service quality and customer satisfaction. Perceptions change over time, different from person to person, and from one culture to another. Customer perception : Customer perception Factors that influence customer Perception: 1. Service Encounter 2. Service Evidence 3. Image 4. Price Factors that influence customer Perception : Factors that influence customer Perception Service Encounter: It is the primer activity in customer perception. The customer estimate the quality of services throughout his/her interaction with a service provider. Ex.. At bank customers service encounter begins when he approaches the bank officials with queries, and is influenced by aspect such as time taken to meet the senior officer. when insurance claim is not receive properly he never take services with that same company. Every incident in the service encounter sum-up the customer satisfaction and his intention to repeat business with the service provider. Factors that influence customer Perception: : Factors that influence customer Perception: Types of service encounter: Remote encounter: its do not involve any direct human contact. Ex.. ATM, Telephone answering machine, voice mail, online billings and so on phone encounter: today every companies have started offering telephonic services like customer enquiry, registrations, reserving tickets, and taking orders. Face to Face encounter: Involve direct human contact between service provide and customer. Ex.. Restaurants, banks and grocery services. Factors that influence customer Perception : Factors that influence customer Perception Service Evidence: The intangibility characteristics of service make customers look for evidence of services in every interaction of the service provider. Service provider must manage even the minute tangible clues associated with their services. There are 3 types of service evidence: personal Process physical environment Service Evidence : Service Evidence Service personal: The ability of the personal to be enthusiastic, friendly and spontaneous will make the service experience pleasant one for customer. Ex.. Fast-food restaurant like McDonald make their service tangible, maintaining dress code, hiring friendly and have a pleasing appearance personals, environment, and graphic designs. Service Evidence : Service Evidence Service process: it involves various steps in the process of delivering a services. And the flow of operational activities. The service process is also evaluated on the basis of the number of flexible or standard policies and tech.. And or human modes involved in the delivering the services. Processes have been made similar and flexible with the help of advanced tech.. This help customer have a favorable perception of the services. Service Evidence : Service Evidence physical environment: it creates an impact on the customer perception. The P.E consists of the ambience offered by a service provider, and the design of interiors and exteriors of the service specialty. Ex.. A couple want to dine at dinner, they choose which restaurant in city is suitable for take dinner, they watch interior and exterior before experience. Factors that influence customer Perception : Factors that influence customer Perception IMAGE A customer’s perception of the service quality is also depend on the image of a service org.. In the mind of customers. Org.. Image is the customer’s perception about an org.. And this may be either at the local level or at the corporate level A customer who have a positive image about a company is likely to ignore some instances of poor services. Factors that influence customer Perception : Factors that influence customer Perception PRICE The price of a services has an impact on customer perception of the services. The price of the service influences customer perception of the value, quality, and satisfaction. Due to intangible nature of services, customers often assume price as an indicator of quality of services. STRATEGIC ISSUE FOR SERVICES MARKETINGTHE PROCESS OF MARKET SEGMENTATION : STRATEGIC ISSUE FOR SERVICES MARKETINGTHE PROCESS OF MARKET SEGMENTATION Age Sex Size and structure Of the family Income Education Nations States Localities Lifestyle personality Benefits Purchase occasion User status User rate Loyalty Buyer readiness and Marketing factor STRATEGIC ISSUE FOR SERVICES MARKETING : STRATEGIC ISSUE FOR SERVICES MARKETING Requirements for effective segmentation Segmentation is done by almost all marketers, but the exercise fail to achieve its objective if it does not take into consideration some basic factor. Measurability Accessibility Substitutability Action ability Measurability : Measurability The variable used for segmentation of the market should be easily understandable and assessable. Further, the variable should be contribute to determining the prospects for growth in each segment. Ex.. A firm that has no intermediates and sell its products directly to customers. It can easily get information relating to customer buying behavior, mode of payments, volume and products group. Accessibility : Accessibility This is refers to a firm ability to effectively reach out to the market segments through various distributors and promotion channels. The market should develop a marketing mix that is economical and reaches the chosen segment effectively. Ex.. If a service is aimed at attracting to teenagers segment, then the advertisements should be developed keeping the target segment in mind. Accessibility : Accessibility Marketers should choose their market segment in such away that the return on investment are earned quickly. Ex.. A very niche segment like young graduates working in shifts (like BPO sectors), might not be a good choice. Ideally, a large segment that has the capability of earning and sustaining profit should be targeted. Action ability : Action ability This refers to the ability of the firm to effectively design and manage marketing mix’s in order to attract and serve different segments. Marketer should use those bases that can track the segment with varying preference and need. These segments should exhibit variation in their market behavior and response differently to marketing mixes that are designed on an individual basis. Value chain in services : Value chain in services The concept value chain mgmt was first introduced by Michael porter in his book “competitive advantage: creating and sustaining superior performance(1985)”. The idea behind this concept was that an org.. Not a more collection of machinery, people, equipment and money that aim to manufacture and deliver products and services. According to porter, the activities carried out by any organization can be grouped into primary and support activities depend upon the types of products and services offered by an org.. Value chain in services : Value chain in services VC is first introduced by Michael Porter, to ensure that an org.. Receives a certain amount of profit margin, the value chain analysis should be performed and it should cover the entire value system where It operate. An org.. Can fallow the steps mentioned below: First, an org.. Is require to analyze its own value chain. This might involve assessing the costs related to each activity. Later, the customer value chain has to be evaluated Further, the org.. Should identify ways to obtain cost adv.. When compared to their competitor. Last, an org.. Should identify and implements ways that will enhance the value for the customer either by reducing costs or by increasing performance. Value chain of an organization : Value chain of an organization Planning and branding of service products : Planning and branding of service products the process of planning the market is not an easy and involves several steps: Identifying customer segmentation Developing measures for structural attractive ness Selecting customer segmentation Targeting strategy Single segment planning Selective specialization Product specialization Market specialization Customer loyalty : Customer loyalty The foundation of customer loyalty: The foundation for true loyalty lies in customer satisfaction. Highly satisfied customers are more likely to become loyal promoter of a firm. Consolidate their buying with one supplier, and spread positive word of mouth. In contrast, dissatisfactions drives customers away and is a key factor in switching behavior. PRICING OBJECTIVES : PRICING OBJECTIVES A pricings strategy of a firm depend largely on the objective of the firm and the way it wants to position itself in the market. Let us discuss some of the common objectives of the company. Survival: when a company fails to manage its business then to meet the changes in consumer need and expectations, or beating the competitions. It sets survivals as its basic objective with a hope of refreshing later. Ex… indian airlines faces competition then use low costs for its terminals Present profit maximization: A company sets this objective with the aim of increasing its current profits from its business. Company adopting this objective analyze the demand and cost at different prices . Slide 67: 3. Present revenue maximization: A company may set this price of its services so as to maximize the revenue from the sales. Company adopting this objective believe that by initially setting low price, the company can increase its market share. 4. prestige: A company that wants to position its service in the premium genre might change very high price from its customers Ex… Hilton and Oberoi hotels high quality and charge high price. 5. Product quality leader: a company that aim to position itself as a superior quality service provider charges high price to compensate for the cost incurred in providing premium quality services and its investments in research and development. Ex… health clubs charges high price than gym and other fitness centres. Pricing strategies for services : Pricing strategies for services Value strategies in pricing of services How can a service provider improve his pricing strategies so that they reflect the value delivered to the customer? In order to answer this question, service provider should be in position to determine what constitutes values for their target customers. Ex.. Some of IT comp.. In India concentrates on adding value to their existing services. They should then communicate this value to their customers through their pricing structure. Value strategies in pricing of services : Value strategies in pricing of services There are four strategies that can be used to create and communicate value to the customers. Satisfaction based pricing Service guarantees Benefit driven pricing Flat rate pricing Convenience pricing Relationship pricing Long term contracts Price bundling Efficiency pricing Satisfaction based pricing : Satisfaction based pricing This pricing method is adopted by service companies to remove the uncertainty in the minds of customers caused by the intangible characteristics of services. Service companies remove this uncertainty by adapting the strategies of the service guarantees, benefit driven pricing and flat rate pricing. let us now discuss these three. Service guarantee: service customer feel to satisfied when company provide them with service guarantee. Ex… Domino pizza has given service guarantee to its customers when delivery is not meet within 30 min its free pizza who have ordered. Slide 71: Benefit driven pricing : its enables customer to derive max value from the manner in which they use their service. Ex… if a service provider set up his photocopier to an office and charges them for the number of pages photocopied. Flat rate pricing : SELECTING THE APPROPRIATE CUSTOMER PORTFOLIO : SELECTING THE APPROPRIATE CUSTOMER PORTFOLIO The term of portfolio described collection of financial statements held by an investor or the array of the loans advanced by a bank. In financial services, the goal of portfolio analysis is to determine the mix of investment that is appropriate to one’s need, resources, and risk preference. We can apply the concept of portfolio to service with the established base of customers. Different segments offer different value of a service firm. Like investment, some type of customers may be more profitable than others in the short term, but others may have grater potential for long term growth. ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE Marketers should adopt a strategic approach to retaining and even terminating customers. Customer retention involves developing long-term cost-effective links with customers for the mutual benefits for the both parties. Recent research has conformed that most firms have several tiers of customers in terms of profitability and that these tiers often have quite different service expectations and needs ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE TIERING THE CUSTOMER BASE Customer tiers can be developed around various levels of profit contribution. Different needs (comfort, price and speed) and identifiable person profiles, such as demographics. Zeithaml, Rust and Lemon illustrated this principle through a four-level pyramid ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE PLATINUM: These customers who constitute a very small percentage of a firm customer base, are heavy users and contribute a large share of the profit generated typically, this segment is less price sensitive but expect highest levels in returns. GOLD The gold tiers form a larger percentage of customers than the platinum, but the individual customers contribute less profit than do platinum customers. Gold tier customers tend to be slightly more price sensitive and less committed to the firm. ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE IRON: These customers provide the bulk of customer base. Because theirs numbers given the firm economic scale, they are often important so that a firm can build and maintain a certain capacity level of infrastructure, which is often needed for serving gold and platinum customers. However iron customers in themselves are often only marginally profitable. LEAD: These customer tend to generate low revenues for a firm but often still require the same level of services as iron customers, which turns them into a loss making segment for a firm prospective. The role of marketing communication : The role of marketing communication Business communication plays a very important role in any org… as it helps the org… stay in touch with it internal as well as external customers. In fact an org… success in communicating effectively with it internal and external customers determine its success in business. Ex… if an insurance company fails to communicate the benefits of its policy to the customer, why will he be interested in insuring with the company. When the management of a consultancy decided to change its business model and fails to communicate it to its employee, can we imagine the resultant chaos and confusion The role of marketing communication : The role of marketing communication The marketing communications are two types: Internal communication External communication Internal communication A company internal customers include its front line personnel's, its employees different functions and departments and the mgmt. Internal communication enhance understanding and co operation among the employees of a department and between employees of different departments. A open communication channels team helps the org… retain and motivate them in the long run. An org… can use oral or written comm..., face to face or online communication and formal and informal communicates with its internal and external customers. Slide 79: Internal communication: Slide 80: External communication: A company external customers includes its suppliers, business and individual customers, foreign clients, regulatory boards and share holders. The main aim of external communication is to increase the awareness of a company's wide range of services, performance, and its environmental policies to all the stake holders. communication tools: Laptop Written communication Internet Telephones and mobile phones Facsimile machine and personal digital assistant COMMUNICATION STRATEGY : COMMUNICATION STRATEGY A company communication strategies help it project a desire image and position itself in the market. And to bring about awareness of their products and service among their target audience. For using perfect strategy in communication so many problems are effected. So these situations may arise due to Technology Financial constraints Content or delivery of the messiage Slide 82: Technology: its helps an org… to communicate in a fast and efficient manner. At the same time it can also be a source of problems that crop up in the course of conducting business. Ex… Banks provides ATM to their customers. Financial constraints: Some org… may not have sufficient funds to install a good communication system in their offices. This is the drawback because of inadequate facilities, so these org… fail to performance to its customers. Slide 83: Content: some times org… fails to communicates effectively due to in sufficient or destroyed content of the message. Ex… a hotel announced holiday package that 3 days 2 night offer for couple but in message said 3days 2night for family means family contains couple and kids. This may will problem for org. Delivery: communications issues in delivery arise due to wrong timing, wrong message and targeting the wrong audience. Ex… 1. telemarketing ex.. Calling working times Ex… 2. a insurance agent who does not know any information about certain policy then…… Ex… 3. cell phone offers THE MARKETING COMMUNICATION MIX : THE MARKETING COMMUNICATION MIX A company promotion campaign can consists of various communication programs developed by it. The main aim of these program is to inform the customer about the benefits provided by a service provider through his service and also through the campaign. Some elements of communication/promotion mix: Personal selling, direct marketing, public relations, sales promotion and advertising. Positioning strategies in market : Positioning strategies in market Positioning is a very important aspect of marketing a product or a service. Michael porter suggested that firm should concentrate on one single strategy and excel in that rather than trying to be good at everything. According to him, when companies try to do this, they lose focus and are beaten by firm which have excelled in positioning themselves based on one single strategy. These broad frameworks provide the firm with the basic foundation on which to build their positioning. These specific positioning strategies can be based on an attribute or benefit of the service or the consumer or competitor of the services. Positioning strategies in market : Positioning strategies in market Some of these specific strategies are discussed below Attribute positioning Benefit positioning Use/application positioning User positioning Competitor positioning Quality/price positioning Positioning strategies in market : Positioning strategies in market Attribute positioning: A service provider positions itself based on an attribute or a feature. Ex.. Malayala manorama positions itself as the no.1 daily in India with the most number of readers. Benefit positioning: most service providers resort to benefit positioning as the general psyche of the customer is to analyze the benefit that he derive by using a particular service. Ex.. First icici bank and citi bank introduced ATM to their customers Use/application positioning: the service is positioned as the best for a certain application. Ex.. SBI positions itself as the best in the business where educational loans are concerned. Positioning strategies in market : Positioning strategies in market User positioning: the service is positioned for a specific target group of users. Ex.. India positions itself as the destination for tourists seeking inner peace. Competitor positioning: the service is positioned by the provider against a competitors service offering. Ex.. IIPM positions itself against the IIMs. Its ad says “dare to think beyond the IIMs.” Quality/price positioning: a service is positioned in the market as possessing a certain quality standard or at a particular price. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
services marketing ravindra kumar gottapu 8886313212 rk12061981 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 893 Category: Education License: All Rights Reserved Like it (3) Dislike it (0) Added: July 12, 2010 This Presentation is Public Favorites: 5 Presentation Description No description available. Comments Posting comment... By: mk42781 (1 month(s) ago) sir plz send this ppt...i really need for. its a really good ppt persentation plz send this persentation to me at mk42781@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rtkz (1 month(s) ago) THIS PPT IS REALLY WONDERFUL..PLZ IF POSSIBLE MAIL IT TO ME AT REETIKAZ86@GMAIL.COM Saving..... Post Reply Close Saving..... Edit Comment Close By: selva8008 (10 month(s) ago) hi, pls sent this ppt to this mail id... iamagiftofgod@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: selva8008 (10 month(s) ago) i need this ppt.. sir ols send to my mail Saving..... Post Reply Close Saving..... Edit Comment Close By: pradnyapatil24 (15 month(s) ago) hi There, can u plz mail this ppt on: ppp_pratibha@yahoo.co.in, asap plz Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript SERVICE MARKETING : SERVICE MARKETING DEFINITION : DEFINITION Adrian Payne has defined service as an activity that has an element of intangibility associated with it and which involve the service provider interaction either with the customers or with the property belonging to the customer. Philip kotler, service is any activity of benefit that one party can offer to another that is essentially intangible and does not in the worship of anything INTRODUCTION : INTRODUCTION (the size of the service sector is increasing in almost all economies around the world) Service org is very widely in size. In developed countries like US,UK&Australia the service sector accounts for more than 60% of the GDP and generates three times more employments than the manufacturing sector. In India service account for about 56% of the country GDP in 2002. the share of service sector in GDP increased sharply from 43.69% in 1990-91 to 51%in 98-99. INTRODUCTION : INTRODUCTION While that of industry and agriculture has declined from 25.38% and 30.93%. Agriculture and manufacturing sectors are plays a very imp role to increasing GDP in India in 90s As the country development further and per capita income increased, people also start spending more on services like healthcare, insurance, legal communication and entertainment. This improves the market for services in the country. SERVICES IN THE MODERAN ECONOMY : SERVICES IN THE MODERAN ECONOMY Structure of service sector. CHARACTERISTICS OF SERVICES : CHARACTERISTICS OF SERVICES The major characteristics of services are Intangibility Heterogeneity Inseparability Perish ability Intangibility : Intangibility A product is physical entity, which can be touched. It can be seen, heard, smelt, and tasted even before purchasing. But a service is not tangible unless it experienced or consumed. EXAMPLE a bike is tangible good but its HP and mileage are services means intangible. Heterogeneity : Heterogeneity A machine can produce units identical in size, shape and quality. But a human being cannot work a uniformly through out the day. Heterogeneity can benefit the org.. Some customers want specific services which may not be needed by other customer in such cases, the org.. Can offer customized services to such customers and change a premium for them EXAMPLE Automobiles having small car, big car and premium car models Inseparability : Inseparability A service is consumed by the customer as soon as it is delivered by the employee. Thus, production and consumption occur simultaneously in case of service as opposed to product which are manufactured, inventoried and then consumed. EXAMPLE the interaction between patient and doctor is essential if the patient has to be treated for an illness. Perish ability : Perish ability Unlike products, services can not be inventoried or stored for feature consumption. EXAMPLE A hotel has 40 rooms but on a particular day, only 10 rooms are occupied. The hotel has an idle capacity of 30 rooms on that day. This is a loss of business. show rooms seasonally recruit additional employee CLASSIFICATION OF SERVICES : CLASSIFICATION OF SERVICES Classification based on degree of involvement of the customer. Classification based on the service tangibility. Classification based on skills and expertise required. Classification based on business orientation of service provider. Classification based on the type of end-user. Classification based on degree of involvement of the customer. : Classification based on degree of involvement of the customer. People processing Possession processing Mental stimulus processing Information processing People processing : People processing The customer is highly involved in the service process and need to be physically present in order to experience the services. EXAMPLE At school or training center for dance the students availing the service have to be present in person. Other examples for this pro.. Health care centers, passenger transport services, saloons, lodging fitness and educational sservices Possession processing : Possession processing The customer does not require to be present to experience the services but has to submit his property to the service provider for the latter to deliver the service. The service is directed at the possession and not at the customer. Example Car mechanism, laundry, postal, courier and freight transportation. Mental stimulus processing : Mental stimulus processing The attention of the customer must be directed on the service in order to experience the service. The service is directed at the mind of the customer Example Such services are advertising, entertainment and education consultancy services. Information processing : Information processing Service personnel to collect information , analyze it, interpret and offer appropriate advice to the client. Example A market research firm hired by a company collect information from customer to know their opinion about the company’s goods and services. Such examples are Accounting, insurance, legal services, programming, and data processing. Classification based on the service tangibility : Classification based on the service tangibility Highly tangibility Service linked to tangible goods Tangible goods linked to services Highly intangibility Highly tangibility : Highly tangibility In these services, the customer obtain a tangible product in hand though it may some times lost for only a small period of time. EXAMPLE If a person take cell a phone on rent, he obtain the tangible product (cell) that he can use for the period of contract. After complete contract cell is return to service provider. Service linked to tangible good : Service linked to tangible good Its Refers some org.. Offers a warranty period to customers who purchase products from them. During this period, they offer free service if the customer report any problem with that product. EXAMPLE motor bike servicing center, electronic goods, and machinery products. Tangible goods linked to services : Tangible goods linked to services Some services offer a tangible product along with the service requested by the customer. EXAMPLE airline services offer food and magazine to passenger market research firm provide clients with a detailed report of the research result Highly intangible : Highly intangible These are services which do not provide customers with any tangible product. EXAMPLE at a massage parlor, the customer might not get anything tangible, except for the relaxing experience. Classification based on skills and expertise required : Classification based on skills and expertise required Services can be categorized as follows based on the skills and expertise required by the services provider to offer the services PROFESSIONAL SERVICES NON-PROFESSIONAL SERVICES PROFESSIONAL SERVICES : PROFESSIONAL SERVICES These services require the service provider to be formally trained to deliver the service. EXAMPLE the service rendered by a doctor, a pilot and an IT consultant NON-PROFESSIONAL SERVICES : NON-PROFESSIONAL SERVICES The services do not require the service provider to undergo any training to deliver the service. EXAMPLE house keeping, baby sitting Classification based on business orientation of service provider : Classification based on business orientation of service provider Services can be categorized based on the service providers purpose of doing business. Not-for-profit organization : these service provider is to service for society not for profit. Ex.. government schools, and social service org Commercial organization : these service provider is to earn revenue and make profit. Ex.. airlines, insurance and restaurants Classification based on the type of end-user. : Classification based on the type of end-user. Services can be classified into categories based on the type of customer who consumes them Consumer services Business to Business services (B2B) Industrial services Consumer services : Consumer services These services are purchased by individual customer for their own consumption. EXAMPLE beauty care, physiotherapy and hair cutting Business to Business services (B2B) : Business to Business services (B2B) These services are purchased by organizations. EXAMPLE market research, consultancy and advertising are some of B2B services TATA to SVR advertise company Industrial services : Industrial services These services are generally based on a contract between organizations and service providers EXAMPLE machine installation and plant maintenance are some examples of such services. Relationship Marketing : Relationship Marketing Definitions According to Shani, D. and Chalasani, “Relationship marketing is an integrated and coordinated effort to identify, maintain, and build up a network with individual customer and employee. This is achieved through a mutual exchange and fulfillment of promises” Relationship Marketing : Relationship Marketing Benefits Long term relationship are beneficial for both customers and org… organizations, as already discussed, benefits for lower costs and increase profitability. The other benefits for is they already know the requirement and expectations of their customer base and therefore. The customer enjoy the service of the org.. That understand them and their requirements. Another benefit for them is that they have a reliable service provider. Relationship Marketing : Relationship Marketing 6 MARKET MODELS INFLUENCER MARKET Share holders, financiers, Govt media trade unions. RECRUITMENT MARKET INTERNAL MARKET SUPPLIER MARKET REFERAL MARKET Existing customers, intermediaries, consultancy CUSTOMER MARKET ORGANIZATION Strategy in Relationship Marketing Management : Strategy in Relationship Marketing Management MISSION & VISION SWOT ANALYSIS STRATEGY FORMULATION QUALITY AND RELATIONSHIP MARKETING THE SERVICES MARKETING TRIANGLE : THE SERVICES MARKETING TRIANGLE THE SERVICES MARKETING MIX : THE SERVICES MARKETING MIX The traditional marketing mix element are 4 which product, price, place and promotion. The marketing mix for services consists of 3 elements, namely, people, physical evidence and process to cater to the unique needs of services marketing. Thus the marketing mix for the services is considered to consists of 7P’s (in the case the service). THE SERVICES MARKETING MIX ELEMENTS : THE SERVICES MARKETING MIX ELEMENTS PEOPLE the term ‘people’ refers to all those persons who are involved in the production and consumption. they include the front-line employees of a service org.. And the customer purchasing the services EX.. The first interaction that any individual has with a company is through the receptionist who answer the telephone call. If reception is rude to the customer, its create a poor image of the company in the customer mind. Thus recruit the people with the right attitude THE SERVICES MARKETING MIX ELEMENTS : THE SERVICES MARKETING MIX ELEMENTS PHYSICAL EVIDENCE The intangibility element associated with services makes it difficult for customers to evaluate the quality of the services. Hence marketers in service org.. ,in their attempt to offer something tangible, provide the customers physical evidence of the service offered. Ex.. In star hotels and telecommunication service side the employee maintaining uniform. Business cards, display certificate, ISO No, cinema tickets and so on.. THE SERVICES MARKETING MIX ELEMENTS : THE SERVICES MARKETING MIX ELEMENTS PROCESS process management in service is essential to ensure consistent quality of service delivery. process involves transforming a certain input into the desired output. it is the process of the delivery that differentiates one service firm from another. Ex.. Courier services, FedEx differentiates itself from its competitors based on its delivery process. CONSUMER DECISION MAKING PROCESS : CONSUMER DECISION MAKING PROCESS Environmental factors MARKETING ACTIVITIES Need perception Search for information Evaluation of alternatives Purchase decision Post-purchase evaluation External sources: Personal sources Commercial sources Public sources Experiential sources Internal sources CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS It plays key role in a company success and have a deeper meaning in service marketing than being more requirement of the customer. Customer expectation are based on customer experience with the product or services. Customer do not expect service providers to fulfill all their requirements but only that they deliver what they have promised. They want to get a fair deal for the price they pay for service. CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS It can be measured along five dimensions of service quality : Assurance Empathy Reliability Responsiveness Service tangibility CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS Assurance (Promiseing) This refers to the ability of the service provider and his employees to use their knowledge and polite behavior to instill trust and confidence in customers regarding services. Empathy (Understanding) this refers to the service provider’s ability to show anxiety for customers and offer individual attention to teach customer. CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS Reliability this refers to the ability of the service provider to accurately perform the promised service. This dimension of service quality conveys whether the service provider keep his promise regarding efficient delivery of service, handling of customer complaints, pricing and so on.. CUSTOMER NEED AND EXPECTATIONS : CUSTOMER NEED AND EXPECTATIONS Responsiveness it refers to the willingness of the service provider and his staff to provide assistance and prompt service to customers. Tangiblesthis dimension of the service quality refers to those elements which provide tangibility to the service and include physical facilities, equipment of the service provider, dress and appearance of the service personal CUSTOMER PERCEPTION : CUSTOMER PERCEPTION Perception is the process of making a meaningful picture by selectively organizing a set of stimuli. in the marketing of services, perception can be defined as a customers judgment about the service experience to aspect of value of service delivery, service quality and customer satisfaction. Perceptions change over time, different from person to person, and from one culture to another. Customer perception : Customer perception Factors that influence customer Perception: 1. Service Encounter 2. Service Evidence 3. Image 4. Price Factors that influence customer Perception : Factors that influence customer Perception Service Encounter: It is the primer activity in customer perception. The customer estimate the quality of services throughout his/her interaction with a service provider. Ex.. At bank customers service encounter begins when he approaches the bank officials with queries, and is influenced by aspect such as time taken to meet the senior officer. when insurance claim is not receive properly he never take services with that same company. Every incident in the service encounter sum-up the customer satisfaction and his intention to repeat business with the service provider. Factors that influence customer Perception: : Factors that influence customer Perception: Types of service encounter: Remote encounter: its do not involve any direct human contact. Ex.. ATM, Telephone answering machine, voice mail, online billings and so on phone encounter: today every companies have started offering telephonic services like customer enquiry, registrations, reserving tickets, and taking orders. Face to Face encounter: Involve direct human contact between service provide and customer. Ex.. Restaurants, banks and grocery services. Factors that influence customer Perception : Factors that influence customer Perception Service Evidence: The intangibility characteristics of service make customers look for evidence of services in every interaction of the service provider. Service provider must manage even the minute tangible clues associated with their services. There are 3 types of service evidence: personal Process physical environment Service Evidence : Service Evidence Service personal: The ability of the personal to be enthusiastic, friendly and spontaneous will make the service experience pleasant one for customer. Ex.. Fast-food restaurant like McDonald make their service tangible, maintaining dress code, hiring friendly and have a pleasing appearance personals, environment, and graphic designs. Service Evidence : Service Evidence Service process: it involves various steps in the process of delivering a services. And the flow of operational activities. The service process is also evaluated on the basis of the number of flexible or standard policies and tech.. And or human modes involved in the delivering the services. Processes have been made similar and flexible with the help of advanced tech.. This help customer have a favorable perception of the services. Service Evidence : Service Evidence physical environment: it creates an impact on the customer perception. The P.E consists of the ambience offered by a service provider, and the design of interiors and exteriors of the service specialty. Ex.. A couple want to dine at dinner, they choose which restaurant in city is suitable for take dinner, they watch interior and exterior before experience. Factors that influence customer Perception : Factors that influence customer Perception IMAGE A customer’s perception of the service quality is also depend on the image of a service org.. In the mind of customers. Org.. Image is the customer’s perception about an org.. And this may be either at the local level or at the corporate level A customer who have a positive image about a company is likely to ignore some instances of poor services. Factors that influence customer Perception : Factors that influence customer Perception PRICE The price of a services has an impact on customer perception of the services. The price of the service influences customer perception of the value, quality, and satisfaction. Due to intangible nature of services, customers often assume price as an indicator of quality of services. STRATEGIC ISSUE FOR SERVICES MARKETINGTHE PROCESS OF MARKET SEGMENTATION : STRATEGIC ISSUE FOR SERVICES MARKETINGTHE PROCESS OF MARKET SEGMENTATION Age Sex Size and structure Of the family Income Education Nations States Localities Lifestyle personality Benefits Purchase occasion User status User rate Loyalty Buyer readiness and Marketing factor STRATEGIC ISSUE FOR SERVICES MARKETING : STRATEGIC ISSUE FOR SERVICES MARKETING Requirements for effective segmentation Segmentation is done by almost all marketers, but the exercise fail to achieve its objective if it does not take into consideration some basic factor. Measurability Accessibility Substitutability Action ability Measurability : Measurability The variable used for segmentation of the market should be easily understandable and assessable. Further, the variable should be contribute to determining the prospects for growth in each segment. Ex.. A firm that has no intermediates and sell its products directly to customers. It can easily get information relating to customer buying behavior, mode of payments, volume and products group. Accessibility : Accessibility This is refers to a firm ability to effectively reach out to the market segments through various distributors and promotion channels. The market should develop a marketing mix that is economical and reaches the chosen segment effectively. Ex.. If a service is aimed at attracting to teenagers segment, then the advertisements should be developed keeping the target segment in mind. Accessibility : Accessibility Marketers should choose their market segment in such away that the return on investment are earned quickly. Ex.. A very niche segment like young graduates working in shifts (like BPO sectors), might not be a good choice. Ideally, a large segment that has the capability of earning and sustaining profit should be targeted. Action ability : Action ability This refers to the ability of the firm to effectively design and manage marketing mix’s in order to attract and serve different segments. Marketer should use those bases that can track the segment with varying preference and need. These segments should exhibit variation in their market behavior and response differently to marketing mixes that are designed on an individual basis. Value chain in services : Value chain in services The concept value chain mgmt was first introduced by Michael porter in his book “competitive advantage: creating and sustaining superior performance(1985)”. The idea behind this concept was that an org.. Not a more collection of machinery, people, equipment and money that aim to manufacture and deliver products and services. According to porter, the activities carried out by any organization can be grouped into primary and support activities depend upon the types of products and services offered by an org.. Value chain in services : Value chain in services VC is first introduced by Michael Porter, to ensure that an org.. Receives a certain amount of profit margin, the value chain analysis should be performed and it should cover the entire value system where It operate. An org.. Can fallow the steps mentioned below: First, an org.. Is require to analyze its own value chain. This might involve assessing the costs related to each activity. Later, the customer value chain has to be evaluated Further, the org.. Should identify ways to obtain cost adv.. When compared to their competitor. Last, an org.. Should identify and implements ways that will enhance the value for the customer either by reducing costs or by increasing performance. Value chain of an organization : Value chain of an organization Planning and branding of service products : Planning and branding of service products the process of planning the market is not an easy and involves several steps: Identifying customer segmentation Developing measures for structural attractive ness Selecting customer segmentation Targeting strategy Single segment planning Selective specialization Product specialization Market specialization Customer loyalty : Customer loyalty The foundation of customer loyalty: The foundation for true loyalty lies in customer satisfaction. Highly satisfied customers are more likely to become loyal promoter of a firm. Consolidate their buying with one supplier, and spread positive word of mouth. In contrast, dissatisfactions drives customers away and is a key factor in switching behavior. PRICING OBJECTIVES : PRICING OBJECTIVES A pricings strategy of a firm depend largely on the objective of the firm and the way it wants to position itself in the market. Let us discuss some of the common objectives of the company. Survival: when a company fails to manage its business then to meet the changes in consumer need and expectations, or beating the competitions. It sets survivals as its basic objective with a hope of refreshing later. Ex… indian airlines faces competition then use low costs for its terminals Present profit maximization: A company sets this objective with the aim of increasing its current profits from its business. Company adopting this objective analyze the demand and cost at different prices . Slide 67: 3. Present revenue maximization: A company may set this price of its services so as to maximize the revenue from the sales. Company adopting this objective believe that by initially setting low price, the company can increase its market share. 4. prestige: A company that wants to position its service in the premium genre might change very high price from its customers Ex… Hilton and Oberoi hotels high quality and charge high price. 5. Product quality leader: a company that aim to position itself as a superior quality service provider charges high price to compensate for the cost incurred in providing premium quality services and its investments in research and development. Ex… health clubs charges high price than gym and other fitness centres. Pricing strategies for services : Pricing strategies for services Value strategies in pricing of services How can a service provider improve his pricing strategies so that they reflect the value delivered to the customer? In order to answer this question, service provider should be in position to determine what constitutes values for their target customers. Ex.. Some of IT comp.. In India concentrates on adding value to their existing services. They should then communicate this value to their customers through their pricing structure. Value strategies in pricing of services : Value strategies in pricing of services There are four strategies that can be used to create and communicate value to the customers. Satisfaction based pricing Service guarantees Benefit driven pricing Flat rate pricing Convenience pricing Relationship pricing Long term contracts Price bundling Efficiency pricing Satisfaction based pricing : Satisfaction based pricing This pricing method is adopted by service companies to remove the uncertainty in the minds of customers caused by the intangible characteristics of services. Service companies remove this uncertainty by adapting the strategies of the service guarantees, benefit driven pricing and flat rate pricing. let us now discuss these three. Service guarantee: service customer feel to satisfied when company provide them with service guarantee. Ex… Domino pizza has given service guarantee to its customers when delivery is not meet within 30 min its free pizza who have ordered. Slide 71: Benefit driven pricing : its enables customer to derive max value from the manner in which they use their service. Ex… if a service provider set up his photocopier to an office and charges them for the number of pages photocopied. Flat rate pricing : SELECTING THE APPROPRIATE CUSTOMER PORTFOLIO : SELECTING THE APPROPRIATE CUSTOMER PORTFOLIO The term of portfolio described collection of financial statements held by an investor or the array of the loans advanced by a bank. In financial services, the goal of portfolio analysis is to determine the mix of investment that is appropriate to one’s need, resources, and risk preference. We can apply the concept of portfolio to service with the established base of customers. Different segments offer different value of a service firm. Like investment, some type of customers may be more profitable than others in the short term, but others may have grater potential for long term growth. ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE Marketers should adopt a strategic approach to retaining and even terminating customers. Customer retention involves developing long-term cost-effective links with customers for the mutual benefits for the both parties. Recent research has conformed that most firms have several tiers of customers in terms of profitability and that these tiers often have quite different service expectations and needs ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE TIERING THE CUSTOMER BASE Customer tiers can be developed around various levels of profit contribution. Different needs (comfort, price and speed) and identifiable person profiles, such as demographics. Zeithaml, Rust and Lemon illustrated this principle through a four-level pyramid ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE PLATINUM: These customers who constitute a very small percentage of a firm customer base, are heavy users and contribute a large share of the profit generated typically, this segment is less price sensitive but expect highest levels in returns. GOLD The gold tiers form a larger percentage of customers than the platinum, but the individual customers contribute less profit than do platinum customers. Gold tier customers tend to be slightly more price sensitive and less committed to the firm. ANALYZING AND MANAGEING THE CUSTOMER BASE : ANALYZING AND MANAGEING THE CUSTOMER BASE IRON: These customers provide the bulk of customer base. Because theirs numbers given the firm economic scale, they are often important so that a firm can build and maintain a certain capacity level of infrastructure, which is often needed for serving gold and platinum customers. However iron customers in themselves are often only marginally profitable. LEAD: These customer tend to generate low revenues for a firm but often still require the same level of services as iron customers, which turns them into a loss making segment for a firm prospective. The role of marketing communication : The role of marketing communication Business communication plays a very important role in any org… as it helps the org… stay in touch with it internal as well as external customers. In fact an org… success in communicating effectively with it internal and external customers determine its success in business. Ex… if an insurance company fails to communicate the benefits of its policy to the customer, why will he be interested in insuring with the company. When the management of a consultancy decided to change its business model and fails to communicate it to its employee, can we imagine the resultant chaos and confusion The role of marketing communication : The role of marketing communication The marketing communications are two types: Internal communication External communication Internal communication A company internal customers include its front line personnel's, its employees different functions and departments and the mgmt. Internal communication enhance understanding and co operation among the employees of a department and between employees of different departments. A open communication channels team helps the org… retain and motivate them in the long run. An org… can use oral or written comm..., face to face or online communication and formal and informal communicates with its internal and external customers. Slide 79: Internal communication: Slide 80: External communication: A company external customers includes its suppliers, business and individual customers, foreign clients, regulatory boards and share holders. The main aim of external communication is to increase the awareness of a company's wide range of services, performance, and its environmental policies to all the stake holders. communication tools: Laptop Written communication Internet Telephones and mobile phones Facsimile machine and personal digital assistant COMMUNICATION STRATEGY : COMMUNICATION STRATEGY A company communication strategies help it project a desire image and position itself in the market. And to bring about awareness of their products and service among their target audience. For using perfect strategy in communication so many problems are effected. So these situations may arise due to Technology Financial constraints Content or delivery of the messiage Slide 82: Technology: its helps an org… to communicate in a fast and efficient manner. At the same time it can also be a source of problems that crop up in the course of conducting business. Ex… Banks provides ATM to their customers. Financial constraints: Some org… may not have sufficient funds to install a good communication system in their offices. This is the drawback because of inadequate facilities, so these org… fail to performance to its customers. Slide 83: Content: some times org… fails to communicates effectively due to in sufficient or destroyed content of the message. Ex… a hotel announced holiday package that 3 days 2 night offer for couple but in message said 3days 2night for family means family contains couple and kids. This may will problem for org. Delivery: communications issues in delivery arise due to wrong timing, wrong message and targeting the wrong audience. Ex… 1. telemarketing ex.. Calling working times Ex… 2. a insurance agent who does not know any information about certain policy then…… Ex… 3. cell phone offers THE MARKETING COMMUNICATION MIX : THE MARKETING COMMUNICATION MIX A company promotion campaign can consists of various communication programs developed by it. The main aim of these program is to inform the customer about the benefits provided by a service provider through his service and also through the campaign. Some elements of communication/promotion mix: Personal selling, direct marketing, public relations, sales promotion and advertising. Positioning strategies in market : Positioning strategies in market Positioning is a very important aspect of marketing a product or a service. Michael porter suggested that firm should concentrate on one single strategy and excel in that rather than trying to be good at everything. According to him, when companies try to do this, they lose focus and are beaten by firm which have excelled in positioning themselves based on one single strategy. These broad frameworks provide the firm with the basic foundation on which to build their positioning. These specific positioning strategies can be based on an attribute or benefit of the service or the consumer or competitor of the services. Positioning strategies in market : Positioning strategies in market Some of these specific strategies are discussed below Attribute positioning Benefit positioning Use/application positioning User positioning Competitor positioning Quality/price positioning Positioning strategies in market : Positioning strategies in market Attribute positioning: A service provider positions itself based on an attribute or a feature. Ex.. Malayala manorama positions itself as the no.1 daily in India with the most number of readers. Benefit positioning: most service providers resort to benefit positioning as the general psyche of the customer is to analyze the benefit that he derive by using a particular service. Ex.. First icici bank and citi bank introduced ATM to their customers Use/application positioning: the service is positioned as the best for a certain application. Ex.. SBI positions itself as the best in the business where educational loans are concerned. Positioning strategies in market : Positioning strategies in market User positioning: the service is positioned for a specific target group of users. Ex.. India positions itself as the destination for tourists seeking inner peace. Competitor positioning: the service is positioned by the provider against a competitors service offering. Ex.. IIPM positions itself against the IIMs. Its ad says “dare to think beyond the IIMs.” Quality/price positioning: a service is positioned in the market as possessing a certain quality standard or at a particular price.