1. International Service Marketing
MBA Programme / Uni Graz
Hector Perez
March 21, 2015

2. Agenda
1. Particularities of the (International) Marketing of Services
2. Marketing Plan example: Caribbean Markets for Bancassurer
3. Discussion on the cultural differences with North- and Latin-
America
4. Free discussion
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3. Today´s presenter
Hector Perez
• Born in Mexico City. Mexican and Canadian Citizen.
• Undergraduate education in Business in the USA, post-Graduate
studies in the KFU, Graz
• Professional experience first in Consumer Products and then in
Insurance (New York Life, American Express, Marsh, Scotia Bank)
• In Munich Re Life since 2010
• Product experience: Life, Health + P&C and Casualty
• Channel experience: Mass Markets and Bancassurance (tmktg,
digital, branch and worksite)

4. “Services make 68% of the value of the
international foreign commerce of
Austria”
Source 2015 BMWFJ

5. What is different about the marketing of
international services?
A lot actually !

6. Competitive Drivers in the Service Industry
1. Relative low overall entry barriers
2. Minimal opportunities for economies of scale
3. High transportation costs
4. Erratic sales fluctuations
5. No advantage in size with dealing with buyers or suppliers
6. Product Substitution
7. Customer Loyalty
8. Exit barriers
9. Government regulation
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7. Competitive Service Strategies
1. Overall Cost Leadership
2. Seeking out Low-cost customers
3. Standardizing / Reducing the personal element in Custom service
4. Service Delivery
5. Reducing Network costs
6. Taking Service operations off-line
7. Differentiation
8. Making the intangible-tangible
9. Customizing the standard product (service)
10.Reducing perceived risk
11.Giving attention to personal training
12.Controlling Quality
13.Focus
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8. Direct Recipient of the Services
Nature of the
Service Act
People Things
Tangible Actions Directed at people´s bodies
Health care
Passenger transportation
Beauty Salons
Fitness Studios
Restaurants
Haircutting
Directed at goods and other
physical possessions
Freight and transportation
Industrial equipment repair and
maintenance
Janitorial Services
Laundry and dry cleaning
Landscaping / lawn care
Veterinarian care
Intangible Actions Services directed at people´s minds
Education
Broadcasting
Information services
Theaters
Museums
Services directed at intangible
assets
Banking
Legal services
Accounting
Securities
Insurance
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Source: Service Management for Competitive Advantage Fitzsimmons 1994 McGraw Hill

9. Relationship between service organization and customers
Membership relationship No formal Relationship
Continuous delivery of services Telephone subscription
College enrollment
Banking
Automotive Associations
Radio Station
Police Protection
Lighthouse
Public highway
Direct Transactions Long distance phone calls
Opera Abonnement
Transit pass
Shareware
Car Rental
Mail service
Toll highway
Payphone
Movie Theater
Public transportation
Restaurant
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Source: Service Management for Competitive Advantage Fitzsimmons 1994 McGraw Hill

10. Extent to which the services are customized
High Low
High Professional Services
Surgery
Taxi Service
Beautician
Plumber
Tutorial services
Gourmet restaurant
Education (large classes)
Prevention health programmes
College food services
Low Telephone services
Hotel services
Retail Banking (excl. major loans)
Public transportation
Routine appliance repair
Movie Theater
Spectator sports
Fast Food restaurant
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Extent to which the characteristics of the services can be
customized
Extending which customer
contact personnel exercise
judgment in meeting
individual customer needs
Source: Service Management for Competitive Advantage Fitzsimmons 1994 McGraw Hill

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12. Discussion on Doing Business in North- and Latin-America
Selected countries

13. 10 Tips for doing business with….
• Demonstrate a can-do, problem-solving attitude and a willingness to innovate and take
calculated risks.
• Respect diversity; it is an important part of corporate life and must be taken very seriously. All
Americans expect to be treated equally.
• Explicit and straightforward communication style, avoiding direct criticism or open conflict.
• Focus on being decisive and getting things done quickly. Time is money, a missed opportunity
wasteful.
• Take individual accountability for results; while teamwork has increased in importance, the
individual is still the primary focus.
• Expect to encounter an informal business culture with a relatively flat organisational structure.
Most people in an American workplace will be on first-name terms.
• Make a good impression through a simple, but factual and persuasive, presentation. Selling is
important, although delivering results is what ultimately matters.
• Expect to engage in a brief of 'small talk' at the beginning, to move quickly to getting down to
business.
• Be punctual to meetings, stick to the agenda, expect action items that can be implemented
quickly.
• Try to get to the main point in a discussion quickly; don't feel you need to provide all the
contextual background at once. Questions are likely once the main point has been identified.
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14. 10 Tips for doing business with….
• Maintain a friendly but polite attitude. In general terms, Canadians are slightly reserved.
• Make sure you are well informed and knowledgeable about the details of your proposals.
Thoroughness is valued, evasive answers are not. Expect a polite, but probing debate.
• Be careful to avoid inflated statements about your company or products. Discussion and
demeanor in meetings should be calm and measured.
• Be aware that Canadians are tolerant and reasonable and will expect and admire these
attributes
• Avoid making any statement that conveys the idea that Canadians are just like Americans, it is
likely to cause a strong reaction.
• Always be approachable and accessible, and do what you say you do.
• Always be punctual for meetings. Canadians are pragmatic and do not like to waste time
unnecessarily.
• Make sure to translate your business materials into French in French-speaking areas.
• Show great respect for diversity. Canada is one of the world's most multicultural countries.
• Recognise that a person's authority in Canada is related to his or her position and
responsibility, not name, social status, class, or gender.
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15. 10 Tips for doing business with….
•
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• Business is personal in Mexico. Mexicans to do business with those they know and
trust.
• Be aware that first names are rarely used at the beginning of a relationship. Wait to be
invited to address someone by his/her first name. Use formal titles.
• Make business appointments in advance. Confirm them a few days before. It is
customary for a number of secretaries to process call. Use mobile numbers when
possible. Don’t leave VM’s
• Recognise that Mexico is a hierarchical society, and expect business deals to be made
at the highest levels. Ensure you are dealing at the right level.
• Expect a more relaxed attitude to time (time is not money; money is for enjoying life).
• Given Mexican exposure to other countries, you may find an accommodation toward
time
• Accept and extend invitations. Socialising is important and an accepted way of getting
to know your Mexican counterpart.
• Recognise that there can be a gap between the executive level and the execution
levels in Mexico business.
• The Mexican executive may agree with you, but must seriously consider how the rest
of the company will execute agreements.
• Expect meetings to stray from the agenda and run over time. Be patient..

16. 10 Tips for doing business with….
• Face-to-face meeting is preferred to written communication.
• Personal relationships are key to doing business in Brazil.
• Meetings conducted at a casual, unhurried pace. Don't get right down to business.
Engage in conversation first. Wait.
• Recognise that Brazil is a group culture - don't do anything to cause a Brazilian to lose
face.
• Expect decisions to be made by the highest ranking individual; people you negotiate
with will often not have decision making authority.
• Remember that flexibility is essential. Try to confirm meetings in writing. Appointments
might be cancelled or changed at the last minute. Do not appear to be impatient.
• Be prepared to be interrupted in conversations. Brazilians are expressive and passionate
conversationalists.
• Expect lenghty negotiations. Brazilians will take time in reviewing details. Do not try to
rush them.
• Dress well, but conservatively - dark coloured business suits.
• Have the other side of your business card translated into Portuguese; present the
Portuguese side
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17. Thanks for your attention
Hector Perez