“Marketing is not the art of finding clever ways todispose of what you make. It is the art of creatinggenuine customer value." -Philip Kotler Companies must pay attention to the fact that customers are getting more educated and have better tools such as the Internet at their disposal to buy with more discrimination. Power has been passing from the manufacturer to the distributor, and now is passing to the customer. The customer is King.
• Edward Louis Bernays• Austrian-American pioneer in the field of public relations and propaganda• Influence public opinion towards supporting American participation in World War• First Public Relations course at New York University in 1923
7 P’s of Service Marketing Product Price Promotion Place People Physical evidence Process
You can’t just ask what customers theywant and then try to give that to them.By the time you get it built, they’ll wantsomething new.Steve JobsApple Inc
• Marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying ‘Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’
Price....• The prices are being charged in accordance with:• Pricing vary from region to region.
Pricing strategies… PenetrationResearch Competition Product line
People Include...Others like: Technicians Other Employees Dealers
Process• That “P” of marketing mix which let customers get the best of the products
Challenge !! -- CUSTOMER-DEFINED SERVICE STANDARDSChallenge !! CUSTOMER-DEFINED SERVICE STANDARDSCustomer-Defined Standards:Customer-Defined Standards:operations standards set to correspond tooperations standards set to correspond to customer expectations and priorities rather customer expectations and priorities rather than than to to company company concerns concerns such such as as productivity or efficiency productivity or efficiency
Process for Setting Customer-Defined Standards 1. Identify existing or desired service encounter sequence 2. Translate customer expectations into behaviors/actions 2. Translate customer expectations into behaviors/actions 3. Select behaviors/actions for standards 3. Select behaviors/actions for standards 4. Set hard or soft standardsMeasure by audits or Measure by 5. Develop feedback mechanisms 5. Develop feedback mechanisms operating transaction- Hard Soft data based surveys 6. Establish measures and target levels 6. Establish measures and target levels 7. Track measures against standards 7. Track measures against standards 8. Provide feedback about performance to employees 8. Provide feedback about performance to employees 9. Update target levels and measures 9. Update target levels and measures
Factors Necessary for Appropriate Service StandardsTranslation of customer expectations into specific service quality standards depends on the degree to which tasks and behaviors to be performed can be standardized (routinized). Standardization of service can take three forms.1. Substitution for personal contact and human effort (e.g., on-line service, voice mail, ATM)2. Improvement in work methods3. Combinations of (1) and (2)
Challenges in Service Marketing Giving a feel for the “product” Managing Demand Fluctuations Maintaining Quality Cost Containment Attitudinal block in using proven principles in service marketing
CHALLENGES Demanding markets, culture and environments Rapidly changing markets Youthful and growing populations Limited income and space Weak supply and distribution channels Underdeveloped infrastructure
Plans to beat the challengesDelve into customers Focus on family values
Aid to the distributorsAmend pricing tactics
People share, read and generallyengage more with any type ofcontent when it’s surfaced throughfriends and people “they know andtrust”.Malorie LuchichFacebook Spokesperson
Can these Challenges be converted into Opportunities ?