Digital Marketing Strategies Quiz

Fundamentals of Service Marketing

• Services are actions or performances offered by one party to another, essentially intangible and not resulting in ownership.
• Services are experiences, use, or benefits, not ownership.
• Pure goods include food, chemicals, and books.
• Core goods include appliances, data storage systems, and vehicles.
• Core services include airlines and hotels.
• Pure services include teaching and medical advice.

IHIP

• Intangibility: Services cannot be touched, seen, or stored like physical products.
• Heterogeneity: Service experiences vary due to people involved; quality can differ.
• Inseparability: Services are created and consumed simultaneously; customers often participate.
• Perishability: Services cannot be stored or saved for later; unsold services result in lost revenue.

Criticism of IHIP

• Vargo and Lusch argue that IHIP is outdated, doesn't distinguish services from goods, focuses on manufacturers, and implies inappropriate strategies.

Blurred Lines Between Products and Services

• Some products integrate service components (e.g., software updates for electronics).

Customer Centricity

• Focusing on creating dual value for firms and customers leads to long-term customer loyalty, competitive advantage, and profitability.
• Determine target groups, understand and address customer needs, and optimize touchpoints/alternative approaches to meet those needs.

Value Creation Spheres

• Provider sphere: Value through service design and delivery.
• Joint sphere: Value is co-created during direct interactions between customers and providers.
• Customer sphere: Value is realized independently by the customer through experiences.

Challenges to Customer Centricity

• Organizational resistance.
• Organizational silos (focusing on internal goals instead of customer needs).
• Misaligned metrics with customer outcomes.
• Resource allocation issues.
• Resistance to change.
• Difficulty in combining online and offline customer data.

Customer Co-Creation & Participation

• Customers are active participants in creating value during service delivery.
• Customers contribute effort, knowledge, or inputs during service delivery stages.
• Different ways to participate include mandatory, replaceable, and voluntary participation.

Complaint Management & Service Recovery

• Service failure: A mismatch between customer expectations and delivered service.
• Why customers complain: Compensation, expressing frustration, providing feedback, and preventing similar failures.
• Proactively manage service failures to retain customer trust through root cause analysis and employee training for recovery.
• Barriers to complaint: Fear of confrontation, lack of complaint channels, belief complaints won't be addressed, and presence of other customers discourages complaints.

Service Recovery Journey Framework

• Pre-recovery stage: Customer awareness of failure, emotional responses, and seeking support.
• Recovery stage: Interaction between company and customer to resolve issues.
• Post-recovery stage: Customer evaluation of resolution leading to long-term perception of the company.

Effective Service Recovery Strategies

• Be proactive; identify and address failures.
• Conduct root cause analyses to prevent future issues.
• Train employees to make quick decisions and handle complaints.
• Use service guarantees to build trust (e.g., refunds).

Service Culture

• Shared values and behaviors that prioritize service excellence, both internally and externally, which results in a service climate with customer-oriented employee behavior.

Coordination, Cooperation, Capability, & Connection

• Harmonize activities, prioritize customer needs, train employees for customer-focused solutions, and foster relationships with external partners to generate better value.

Service Climate Importance

• Encourages a shift to service-oriented industries.
• Co-creates value through employee and customer collaboration.
• Builds a unique, sustainable competitive advantage.

Adaptive Service Behavior

• Employees adjusting behaviors and offerings to meet individual customer needs.

Service Offering

• Adapting services based on specific customer needs.

Understanding Customer Experience

• Customer experience encompasses firm-controlled direct interactions (e.g., customer service) and external touchpoints (e.g., social media reviews).
• Multidimensional: physical, emotional, cognitive, and social aspects.

Interactional perspective

• Real, imaginary, past, present, and future interactions can be direct and indirect which the customer perceives.

Service Experience Dimensions

• Tangibles (physical environment, appearance)
• Reliability (consistency)
• Responsiveness(speed in addressing needs)
• Assurance (knowledge, courtesy, and trust)
• Empathy (care and attention)

Recommendations by Lemon and Verhoef

• Seamless experience across pre, core, and post service
• Embrace a service ecosystem perspective
• Arrange internally facilitated customer experience management.

Service Development and Innovation

• Phase review process (sequential, planned process).
• Stage-gate process (flexible, iterative process).
• Gap model: identifies and closes gaps between expected and perceived service.
• Customer journey mapping
• Gap 1 - Listening Gap
• Gap 2 - Design and Standard Gap
• Gap 3 - Performance Gap
• Gap 4 - Communication Gap

Enhancing Customer Experience through Social Media

• Digital customer experience includes various brand touchpoints resulting in multidimensional influences on customer satisfaction and loyalty.
• Leverage platforms like social media platforms for engagement like updating flight status or creating content using other methods.

Influencer Marketing

• Using opinion leaders to influence consumer behavior based on trustworthiness, creativity, and authenticity to influence purchasing behaviors.
• Includes technological innovations like Al-powered technologies like Al chatbots and recommendations.

Social Media Marketing Strategy (SMMS)

• An SMMS focuses on leveraging social media for brand awareness, engagement, and conversions
• Contrast with traditional marketing strategies, which typically use one-way communication.
• Crucial dimensions of SMMS include defining goals, identifying target audiences, creating engaging content, scheduling posts, monitoring performance, and adapting strategies.

Social Commerce

• Using social media for direct product sales.

Social Content

• Valuable, engaging, and interesting content to foster customer relationships and increase brand awareness.

Social Monitoring

• Analyzing customer feedback and responding effectively to complaints and concerns.

Social CRM

• Collaborating with customers to provide value and foster long-term relationships, leading to increased customer loyalty, product innovation, and co-creation.

Sustainability in Services

• Environmental, social, and financial aspects of sustainability within service sectors.
• Includes initiatives like reducing waste, enhancing employee well-being, and promoting cost-effective operations that also generate revenue through sustainable services.
• Stakeholder theory influences decision-making around social responsibility.

Servitization

• Shifting from product sales to integrated product-service solutions.
• This transformation improves service offerings and provides value to customers.

Case Examples

• Volvo, Tesla, and Apple have implemented servitization models to improve revenue and customer experience.

Test your knowledge on digital marketing strategies and ethical considerations in customer engagement. This quiz covers various topics, including content creation, customer experience, and the role of influencers in marketing. Challenge yourself to see how well you understand the dynamics of digital marketing!