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Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
Servicemarketing
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Servicemarketing

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service Marketing PPT

service Marketing PPT

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  • Why can people be satisfied after visiting McDonald’s and dissatisfied after visiting a fancy restaurant (http://www.forbes.com/2004/10/14/cx_cv_1014feat.html)??? Marketing instruments impact customer expectations as well as customer perceptions!
  • It can be 5 times more expensive to attract a new customer than keeping an existing one! Satisfied “repeating customers” spread positive word-of-mouth (unhappy customers spread negative word-of-mouth!!! - also, it has been found that it is more likely that unhappy customers express their negative experiences than happy customers telling their positive experiences)
  • In services: Use tangible products as quality indicators for intangible offerings In products: Use intangible elements to add extra-value to tangible offerings
  • Transcript

    • 1. Service Marketing
    • 2. Marketing Basics What is Marketing??? Think about organizations/companies (Google, Trader Joe’s, The San Jose Chamber of Commerce, World Wildlife Fund, …) as well as individuals (politicians, professional athletes, …)  They all do marketing! How and why?
    • 3. Marketing Basics Marketing consists of activities designed to generate and facilitate exchanges intended to satisfy human or organizational needs or wants.
    • 4. Marketing Basics Importance of Marketing: Personally - in daily life, in career aspirations, in better informed consumer purchases Organizationally - only marketing directly produces revenue; marketing success depends on customer satisfaction Domestically - employment and costs, creation of utility Globally - closed, national markets no longer exist and companies compete in markets worldwide
    • 5. Marketing Basics Evolution of Marketing: Product-orientation Stage “make all you can” 1. Demand exceeds available supply. 2. All that is made can be sold. 3. Focus is on engineering and generating output, not the customer. 4. Epitomized between late 1800s and early 1930s. “The American public can have any color car it wants so long as it’s black.” Henry Ford, referring to the Model T. Sales-orientation Stage “sell all you make” 1. Supply frequently exceeds demand. 2. Focus is on promotion and pricing; objective is to sell all the inventory. 3. Hard-sell techniques create stereotype of pushy, annoying salesperson. 4. Epitomized between early 1930s and 1950s.
    • 6. Marketing Basics Evolution of Marketing: “make what you can Market-orientation Stage sell” 1. Variety in markets, variety in products. 2. Employs full marketing mix. 3. Focus is on customer needs and satisfaction; profitability over volume. 4. Most typical current orientation. “make it together with the customer” Service Dominant Logic 1. Service industries gain more and more importance 2. Ideas generated in the service field spread to other sectors (like industrial marketing, marketing for consumer goods, …) 3. “Intangible product features”
    • 7. Marketing Goals There are three main objectives that are followed by the marketing discipline: • Customer satisfaction and (service) quality • Stimulation of market exchanges and customer retention • Branding of services, products, and companies
    • 8. Marketing Goals 1. Customer satisfaction and (service) quality delivered (perceived) expected service/product ≥ service/product*  customer satisfaction delivered (perceived) expected service/product < service/product*  customer dissatisfaction * requires a “positive expectation”
    • 9. Marketing Goals 2. Stimulation of market exchanges and customer retention - Customer satisfaction is a main determinant for stable and voluntary buying relationships - Compliance management plays an important role in retaining customers - Stimulation of market exchanges and customer retention is supported by a strong service/product/company brand
    • 10. Marketing Goals 3. Branding of services, products, and companies Brand contacts by Gronroos (2000), p.288
    • 11. The GAP Model Causes of Gaps Promoted Expectation Inflated Expectation G4 Communication Real Expectation Management’s G1 MarketingService PerceivedQuality Customer Expectation G2 Design Service Design Spec. G3 Conformance Service Service Received Delivered Service Provider’s Customer’s Assessment Assessment
    • 12. Requirements of a Service Marketing approach - Closing the “Gaps” (and thereby achieving customer satisfaction, retention, and brand building) with the help of the marketing instruments - The “classic” marketing concept consists of 4 instruments (“4Ps”): - Product - Price - Promotion (also communication) - Place (also distribution) - Due to the specialties of services (intangibility, inseparability, heterogeneity, perishability) some speak of the 5P-approach by adding a 5th instrument: “People”
    • 13. Co-Creation - One of the (if not THE) essential advantage(s) of service management and service marketing is that service development in most of the cases requires the participation of both the supplying company and the customer - Thus, services are “co-created” - Impact on the marketing goals: - Easier to anticipate and to react to customer expectations  stimulation of market exchanges and customer retention - Direct contact with employees of the service provider impacts the customer’s brand building process - However, co-creation depends on the abilities of the customer and the provider to express, anticipate, and react to the needs of the counterpart!
    • 14. The Integrated Service Marketing Model Level of Information Initial Market Research Idea generation Market Initial market information research Service expectations Buying decision Integration into the service production process quality perception/ (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 15. The Integrated Service Marketing Model Initial Market Research - Capturing market trends, market sizes, market potentials - What do customers expect? - Market research can be performed in a formal way (e.g. standardized questionnaires, telephone interviews, …) or informally (checking competitors’ websites, ask experts, visit trade shows, …) - Design of marketing instruments relies on adequate market and customer information
    • 16. The Integrated Service Marketing Model Level of Information Strategic Service Definition Idea generation Market Initial market information research Service expectations Strategic service definition Buying decision Integration into the service production process quality perception/ (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 17. The Integrated Service Marketing ModelStrategic Service Definition - Dominated by product, price, and distribution decisions - Product: service design including the service environment (service encounter), service components, service production process (including communication) - Price: setting prices on the basis of costs, competitor prices, and demand; price segmentation as major pricing tool (also: Yield Management) - Distribution: importance of the service location varies (where do customers and producers meet?), services cannot be distributed like products - The service definition impacts expectations and perceptions of consumers!
    • 18. The Integrated Service Marketing Model Level of Information Initial Service Communication Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the service production process quality perception/ (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 19. The Integrated Service Marketing ModelInitial Service Communication - Raising awareness and “convincing customers” - Typical instruments are: - TV commercials - Advertisements in newspapers, magazines (also billboards) - Direct marketing - Events (incl. trade shows) - Sponsoring - Sales promotions - Online marketing - Public relations - Word-of-mouth - Instruments have to be adjusted to each other! - Initial service communication has a huge impact on consumer expectations!
    • 20. The Integrated Service Marketing Model Level of Information Service Production (Co-Creation) Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the Service production service production process quality perception/ (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 21. The Integrated Service Marketing ModelService Production (Co-Creation) - Mainly impacted by the service encounter and interpersonal communications - Service performing employees often have a huge influence on the customer’s service perception - It is not only important to communicate the service to consumers (external communication) but also within the organization (internal communication) - the latter is also called “internal marketing” - Important to balance employee behavior with initial communication instruments (“integrated marketing communication”)
    • 22. The Integrated Service Marketing Model Level of Information After Sales Support Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the Service production service production process quality perception/ After sales support (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 23. The Integrated Service Marketing ModelAfter Sales Support - Communicative instruments to ensure customer satisfaction and to stimulate customer retention - Ensure that customer perceptions have at least met their expectations - Otherwise: compliance management
    • 24. The Integrated Service Marketing Model Marketing implementation Level of Information Marketing Implementation Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the Service production service production process quality perception/ After sales support (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 25. The Integrated Service Marketing ModelMarketing Implementation - Information management plays a crucial role in service marketing - Information is not only gathered during initial market research but also during the whole service (marketing) process - Also, information can be spread not only during the initial communication phase but also (and especially) during the service production process - Important to ensure an effective information flow within the company
    • 26. The Integrated Service Marketing Model Marketing implementation Level of Information Information gathering Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the Service production service production process quality perception/ After sales support (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 27. The Integrated Service Marketing Model Marketing implementation Level of Information Information transfer Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the Service production service production process quality perception/ After sales support (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 28. The Integrated Service Marketing Model Marketing implementation Level of Information Internal information processing Idea generation Market Initial market information research Service expectations Strategic service definition Initial service communication Buying decision Integration into the Service production service production process quality perception/ After sales support (dis-) satisfaction Marketing process of service Buying process of the customer (to companies be influenced by the service firm)
    • 29. Conclusion - Coordination of all marketing instruments - Achievement of marketing goals: - Service marketing offers several opportunities to balance customer expectations with customer perceptions - Customer satisfaction (service quality) is a main factor that impacts customer retention - Continuous and constant service quality accompanied by continuous, constant, and balanced communication efforts lead to the development of a strong brand image - Growing impact of service marketing on the whole marketing field
    • 30. Case Study Questions 1. Evaluate the Zipcar venture. What are the strengths, opportunities, weaknesses, and threats of the business model? 2. How does the Zipcar idea fit the “Integrated Service Marketing Model”? Please apply the case to the several marketing instruments that are discussed in the model. 3. What are the main drivers of customer satisfaction at Zipcar? 4. Describe the process of co-creation at Zipcar! 5. What are the success factors of Zipcar’s promotional strategy? Please consider also the impact of environmental issues on the marketing success of Zipcar. 6. Imagine that Zipcar aims on entering the Chinese market. What factors have to be covered in an according market research study? Would you recommend China as target market? Please search for additional information to answer the case study questions!

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