E Marketing Week11


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Services marketing online

Week 11 of 13 of the 2007 Internet Marketing Course. Content is based in part on Dann, S and Dann S 2004 Strategic Internet Marketing 2.0, Milton: Wiley. Diagrams taken from the Dann and Dann text are copyright to their respective copyright holders.

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E Marketing Week11

  1. 1. MKTG7037 / MKTG2032 E-marketing Week XI
  2. 2. Course Structure Chapter 15 International marketing 21 May 12 Chapter 14 Relationship marketing 28 May 13 Chapter 13 Services marketing online 14 May 11 Chapter 12 Distribution 7 May 10 Chapter 11 Pricing strategies 30 April 9 Chapter 10 Promotion 2: the internet as a promotional medium 23 April 8 Chapter 9 Promotion: the internet in the promotional mix 2 April 7 Chapter 8 The role of product in internet marketing 26 March 6 Chapter 7 The internet in marketing strategy 19 March* 5 Chapter 6 Applications for business and non-business 12 March 4 Chapter 5 Creating cybercommunities 5 March 3 Chapter 4 Consumer behaviour 26 February 2 Chapter 3 Unique features of internet-based marketing 19 February 1 Topic(s)/Task(s) Week beginning Week No
  3. 3. Assessment Due Dates <ul><li>Task Weighting Due </li></ul><ul><li>Essay Registration 01 March 16 </li></ul><ul><li>Solo Assignment 20 March 26 </li></ul><ul><li>Group-Optional Essay 29 May 21 </li></ul><ul><li>Final Examination 30 June </li></ul><ul><li>Online Forum 20 During semester </li></ul>
  4. 4. Any questions about the assignment?
  5. 5. A follow up from previous weeks
  6. 6. Icanhascheezburger.com social media link strategy <ul><li>Subscribe to this feed </li></ul><ul><li>Google Bookmark This </li></ul><ul><li>Email this </li></ul><ul><li>Stumble It! </li></ul><ul><li>Save to del.icio.us </li></ul><ul><li>Digg This! </li></ul><ul><li>Bookmark With Yahoo! Bookmarks </li></ul><ul><li>Twit This! </li></ul><ul><li>Submit to Reddit </li></ul><ul><li>Add to Technorati Favorites! </li></ul><ul><li>Share on Facebook </li></ul>
  7. 7. Online services <ul><li>http://30boxes.com/welcome.php </li></ul><ul><li>http://www.socializr.com/ </li></ul><ul><li>http://twittervision.com/ </li></ul>
  8. 8. Services marketing
  9. 9. Goods versus Services Source : A. Parasuraman, V.A. Zeithaml, and L. L. Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research,” Journal of Marketing 49 (Fall 1985), pp. 41–50.
  10. 10. The intangibility continuum <ul><li>Purely intangible service outcomes </li></ul><ul><li>Intangible service outcome bundled with a product </li></ul><ul><li>A tangible service outcome </li></ul><ul><li>A tangible service outcome bundled with a product </li></ul>
  11. 11. Implications of Intangibility <ul><li>Services cannot be inventoried </li></ul><ul><li>Services cannot be easily patented </li></ul><ul><li>Services cannot be readily displayed or communicated </li></ul><ul><li>Pricing is difficult </li></ul>
  12. 12. Implications of Heterogeneity <ul><li>Service delivery and customer satisfaction depend on employee and customer actions </li></ul><ul><li>Service quality depends on many uncontrollable factors </li></ul><ul><li>There is no sure knowledge that the service delivered matches what was planned and promoted </li></ul>
  13. 13. Implications of Simultaneous Production and Consumption <ul><li>Customers participate in and affect the transaction </li></ul><ul><li>Customers affect each other </li></ul><ul><li>Employees affect the service outcome </li></ul><ul><li>Decentralization may be essential </li></ul><ul><li>Mass production is difficult </li></ul>
  14. 14. Implications of Perishability <ul><li>It is difficult to synchronize supply and demand with services </li></ul><ul><li>Services cannot be returned or resold </li></ul>
  15. 15. Service/good analysis process Source: Langford, B. E. & Cosenza, R. M. 1998, ‘What is service/good analysis?’, Journal of Marketing Theory and Practice , Winter, pp. 16–26.
  16. 16. Challenges for Services <ul><li>Defining and improving quality </li></ul><ul><li>Designing and testing new services </li></ul><ul><li>Communicating and maintaining a consistent image </li></ul><ul><li>Accommodating fluctuating demand </li></ul><ul><li>Motivating and sustaining employee commitment </li></ul><ul><li>Coordinating marketing, operations, and human resource efforts </li></ul><ul><li>Setting prices </li></ul><ul><li>Finding a balance between standardization versus personalization </li></ul><ul><li>Ensuring the delivery of consistent quality </li></ul>
  17. 17. Online Service Delivery
  18. 18. Impact of online delivery for traditional service concepts <ul><li>Reduce time dependence </li></ul><ul><li>Consistent service delivery </li></ul><ul><li>Consistent imagery and branding </li></ul><ul><li>Customer-led customisation </li></ul><ul><li>Consumer empowerment </li></ul><ul><li>Effective separation of product and consumption </li></ul>
  19. 19. Classification of service products: <ul><li>People-directed versus thing-directed services </li></ul><ul><ul><li>People directed is applied directly to the consumer </li></ul></ul><ul><ul><ul><li>people directed services aimed at people’s minds </li></ul></ul></ul><ul><ul><li>Thing-direct </li></ul></ul><ul><ul><ul><li>Virtual goods? </li></ul></ul></ul><ul><li>Customisation versus standardisation </li></ul><ul><li>Discrete versus continuous service </li></ul>
  20. 20. Services online <ul><li>People directed or thing directed? </li></ul><ul><ul><li>http://www.stashmycomics.com/default.asp </li></ul></ul><ul><ul><li>http://www.eyemelt.com/ </li></ul></ul><ul><ul><li>http://www.yvoschaap.com/wpthemegen/ </li></ul></ul>
  21. 21. Customisation <ul><li>You know I was going to say Twitter, right? </li></ul><ul><li>Well, maybe not. </li></ul>
  22. 22. Customer support <ul><li>Online service as the core product </li></ul><ul><li>Online service as the augmented product </li></ul><ul><ul><li>Other uses of online services as part of the augmented service product are: </li></ul></ul><ul><ul><ul><li>To be a venue for entertainment to create and sustain brand loyalty </li></ul></ul></ul><ul><ul><ul><li>Reinforcement of the decision to purchase </li></ul></ul></ul><ul><ul><ul><li>Additional services which complement existing products </li></ul></ul></ul>
  23. 23. Search behaviours and service type <ul><li>The way in which consumers seek information, choose services and evaluate their effectiveness depends on the characteristics of the service-product combination in question </li></ul><ul><li>Attributes that determine style of consumer search behaviour are: </li></ul><ul><ul><li>Search attributes </li></ul></ul><ul><ul><li>Experience attributes </li></ul></ul><ul><ul><li>Credence attributes </li></ul></ul>
  24. 24. Search attribute products <ul><li>In terms of consumer behaviour, search attribute products: </li></ul><ul><ul><li>Have relatively low levels of perceived risks </li></ul></ul><ul><ul><li>Can be evaluated prior to purchase </li></ul></ul><ul><ul><li>Involve relatively low search times </li></ul></ul><ul><ul><li>Have decisions made about them strongly influenced by mass media such as advertising </li></ul></ul>
  25. 25. Other service issues <ul><li>Training the customer to be a co-producer </li></ul><ul><li>Technology as the means, not the end </li></ul>
  26. 26. Weak links in customer-technology interface <ul><li>Weak links in customer-technology interface that marketers need to be aware of: </li></ul><ul><ul><li>Automated idiocy </li></ul></ul><ul><ul><li>Time sink </li></ul></ul><ul><ul><li>‘ Law of the hammer’ </li></ul></ul><ul><ul><li>Technology lock </li></ul></ul><ul><ul><li>The last inch </li></ul></ul><ul><ul><li>High-tech versus high-touch </li></ul></ul>
  27. 27. Smooth delivery of Internet services <ul><li>To ensure delivery of Internet-based services is smooth and effective, the following steps need to be taken: </li></ul><ul><ul><li>Provide marketer with input into the technology of customer interface design </li></ul></ul><ul><ul><li>Stay customer- and not machine-focused </li></ul></ul><ul><ul><li>Make services technology invisible to the customer </li></ul></ul><ul><ul><li>Insist on flexibility and less complexity </li></ul></ul>
  28. 28. Discussion Questions for the Board <ul><li>Answer either… </li></ul><ul><ul><li>What are the three types of service attribute? How do these differ from each other? </li></ul></ul><ul><li>OR </li></ul><ul><ul><li>Is technology a means to an end or the end in itself? Should services adopt technologies that might be beneficial in the future or use only proven technologies for service delivery? </li></ul></ul>