Services Marketing PDF

CH.10 Services Marketing Di0ers From Product Marketing - Intangibility: Services are intangible, meaning they don't have physical characteristics. This makes it di;icult to assess their quality and value. - Inseparability: Services are consumed at the same time they are provided. For...

CH.10 Services Marketing Di0ers From Product Marketing - Intangibility: Services are intangible, meaning they don't have physical characteristics. This makes it di;icult to assess their quality and value. - Inseparability: Services are consumed at the same time they are provided. For example, a car wash is a service that is consumed while it is being provided. - Inconsistency: The quality of services can vary from one provider to another. This is because the level of skill and expertise of the service provider can vary. - Inventory: Services are perishable and can't be stored. For example, unsold airline seats or empty movie theater spots are perishable services. Providing Great Service: The Gaps Model: - Knowledge Gap: Not knowing customer expectations. Close it: Research & listen. - Standard Gap: Not translating expectations into standards. Close it: Set clear standards. - Delivery Gap: Failing to deliver the service as planned. Close it: Empower & resource employees. - Communication Gap: Misleading customers. Close it: Communicate clearly & manage expectations. - Standard Gap: Customers perceiving service worse than it is. Close it: Highlight positives & manage negatives. Increase Service Recovery - Listen to the customer: Customers can become very emotional about service failure Customers want to be heard - Resolve problems quickly: The longer it takes to resolve service failure the more irritated the customers It is in the firms' best interest to solve problems quickly - Provide a fair solution : When handling returns or other services issues, it is important to use procedures that are perceived to be fair by the customers. Ch.11 Five C’s of Pricing - Costs: Understanding production and delivery costs helps determine the minimum price needed to cover expenses. - Competition: Analyzing competitor pricing helps set competitive prices and gain market share. - Customers: Understanding customer needs and willingness to pay ensures prices are attractive to the target market. - Channel memebrs: The chosen distribution channels can impact pricing decisions, such as lower prices for online sales. - Company Objectives: Pricing strategies should align with business goals, such as maximizing profit or increasing market share. Pricing Method: - Cost: Represents the internal costs of production and delivery, influencing cost-based pricing strategies. - Value: Represents the perceived value of the product or service to the customer, influencing value-based pricing strategies. - Competitor: Represents competitor pricing strategies, influencing competitive pricing strategies. Di;erent Pricing Strategy  - Price Skimming: This strategy involves setting a high initial price for a new product or service to capture early adopters who are willing to pay a premium. The price is then gradually lowered over time to attract price-sensitive customers. - Market Penetration Pricing: This strategy involves setting a low initial price for a new product or service to quickly gain market share and discourage competitors. The goal is to attract a large customer base early on and build brand loyalty. 1. Pricing Tactics – Consumers - Price Lining: This strategy sets prices for a product line at specific points to create distinct quality or value perceptions for customers. - Bundling: This tactic offers a package of two or more products or services at a discounted price compared to buying them individually. - Leader Pricing: This strategy sets a very low price on a popular item to attract customers and encourage them to purchase other, higher-priced items. B-B Pricing Tactic - Seasonal Discount: This is a price reduction o;ered during o;-peak seasons to encourage sales and reduce inventory. - Cash Discount: This is a discount o;ered to customers who pay their invoices promptly. - Allowances: These are special price reductions or payments o;ered to channel members for performing marketing or other promotional activities. - Quantity Discount: This is a discount o;ered for purchasing larger quantities of a product. - Uniform Delivered vs. Geographic Pricing: This refers to two di;erent pricing strategies for shipping. - Uniform Delivered Pricing: The seller pays the same shipping cost to all customers, regardless of their location. - Geographic Pricing: Shipping costs are calculated based on the customer's location and distance from the seller. Legal & Ethical Aspects Of Pricing – Predatory Pricing - When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business - Loss leader pricing and strategy is a marketing approach where a product is intentionally sold at a loss or minimal profit to attract customers. The marketing strategy is to entice shoppers with the discounted item, hoping they will make additional purchases of higher- margin products. - Price Discrimination When firms sell the same product to di;erent resellers (wholesalers, distributors, or retailers) at di;erent prices, usually, larger firms receive lower prices. - Bait and Switch: when a product is advertised at a bargain price but is not available for sale in reasonable quantities even though the nature of the market, the nature and size of the business, and the nature of the advertisement suggest there should be available stock at a reduced price. CH.13 Factors For Establishing A Relationship With Retailers - Choosing Retail Partners: This involves selecting the most suitable retailers based on factors like target audience and distribution capabilities. - Identifying Types of Retailers: This involves understanding the di;erent types of retailers available and assessing which ones are the best fit for the product or brand. - Developing a Retail Mix Strategy: This involves creating a comprehensive plan outlining the targeted retailers, desired distribution level, and overall approach to managing retail relationships.  - Managing a Multichannel Strategy: This involves developing and implementing a strategy that integrates online and o;line channels to create a seamless customer experience across all touchpoints. Omnichannel Strategy: A strategy that creates a consistent experience for consumers across all distribution channels. E0ective Omnichannel Retailing - Integrated CRM: A unified CRM system is crucial to connect data across all channels and provide a consistent customer experience. - Brand Image: Maintaining a consistent brand image across all channels is essential for building customer trust and loyalty. - Pricing: Consistent and competitive pricing across all channels ensures fair and transparent pricing for customers. - Supply Chain: A robust and e;icient supply chain is critical to ensure product availability and meet customer expectations across all channels. Benefit Of The Internet Channels – for Retailers Potential to o;er a greater selection of products - Provide customers with more personalized information - Retailers can collect information about consumer shopping behaviour - Retailers can enter new markets economically Develop a Retail Strategy: - Product: The goods or services o;ered by the retailer. - Price: The pricing strategy used, including discounts, promotions, and payment options. - Promotion: The marketing and communication e;orts used to reach and engage customers. - Place: The distribution channels used, such as physical stores, online platforms, or mobile apps. - Personnel: The employees who interact with customers, such as sales sta;, customer service representatives, and delivery drivers. - Presentation: The overall presentation of the products and services, including store layout, décor, and branding. - Process: The systems and procedures involved in delivering products and services to customers, such as order fulfillment, returns, and customer service. Ch.14: communication process - The Sender (Firm) initiates the message, such as a brand like Pepsi. - The Transmitter encodes the message into a suitable format, like creating an ad. - The Communications Channel (Media) transmits the message, such as a newspaper. - The Receiver (Consumer) decodes the message based on their own understanding. - Feedback is the receiver's response to the message, such as purchasing the product. - Noise from the Environment can interfere with the e;ective transmission and reception of the message. Integrated marketing communication (IMC): advertising, personal selling, sales promotion, public relations, direct marketing, digital, social and mobile media—in combination to provide clarity, consistency, and maximum communicative impact. - Identify Target Audience: Clearly define the specific group of people you want to reach with your marketing e;orts. - Set Objectives: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for your marketing campaign.  - Determine Budget: Allocate a budget for your marketing activities to determine which channels and tactics you can realistically use. - Convey Message: Develop the core message you want to communicate to your target audience in a compelling and memorable way. - Evaluate and Select Media: Choose the most e;ective channels (e.g., social media, TV, print) to reach your target audience based on cost, reach, and the nature of your message. - Create Communication: Develop your marketing materials, such as ads, brochures, website content, and social media posts. - Assess Impact: Track the results of your campaign to measure its e;ectiveness and use the data to refine future marketing e;orts. Integrated Marketing Communications Tools - Advertising: This includes traditional and digital channels like TV, radio, print, and online platforms. - Public Relations (PR): This involves managing media relations and building positive brand image through press releases and events. - Sales Promotion: This includes short-term incentives like discounts, coupons, and contests to encourage immediate sales. - Direct Marketing: This involves communicating directly with customers through channels like email, direct mail, and telemarketing. - Social Media Marketing: This involves using social media platforms to engage with customers and build brand awareness. - Digital Marketing: This encompasses a broad range of online marketing activities, including SEO, SEM, content marketing, and email marketing. - Personal Selling: sales call and telemarketing CH.15 Advertising – The AIDA Model - Attention: The first step is to grab the customer's attention through eye-catching visuals or a strong opening statement. - Interest: Once you have their attention, generate interest in the product or service by highlighting its benefits. - Desire: Create a desire for the product or service by appealing to the customer's emotions and aspirations. - Action: Motivate the customer to take action, such as making a purchase or requesting a quote. Personal Selling - Face to Face, Video Conferencing, Telephone or Internet - Value Added: Build Relationships, Educate and Provide Advice, Save Time and Simplify Buying The Personal Selling Process - Generate and Qualify Leads: Identify and screen potential customers to determine their suitability and potential as paying clients. - Preapproach: Conduct research on the potential client and plan the sales call, setting objectives and determining the best approach to connect. - Sales Presentations and Overcoming Objections: Present the value proposition, address customer concerns, and e;ectively handle objections raised by the prospect. - Closing the Sale: Secure the sale by summarizing benefits, o;ering incentives, and negotiating terms.  - Follow-Up: Thank the customer, address post-sale concerns, gather feedback, and build long-term relationships. CH.16 Choosing a Global Market Entry Strategy - Exporting involves selling products or services to customers in other countries with minimal risk and control. - Franchising grants the right to use the company's brand and business model to franchisees in other countries, o;ering moderate risk and control. - Strategic Alliances involve cooperative agreements with other companies to share resources and achieve common goals, with moderate risk and shared control. - Joint Ventures involve creating a new company with a local partner, o;ering increased control but higher risk due to shared ownership. - Direct Investment involves establishing a wholly-owned subsidiary in the foreign market, providing the highest control but also carrying the highest risk. Ethical Issues in Global Marketing: Environmental Concerns - Waste Management, Many developing countries don’t manage waste well Components of a Country Market Assessment - Political: This includes factors like political stability, government regulations, trade policies, and legal systems. - Economic: This encompasses economic growth, inflation, exchange rates, income levels, and consumer spending power. - Technology & Infrastructure: This considers factors like technological infrastructure (telecommunications, internet access), transportation and logistics, and access to resources. - Sociocultural: This includes cultural factors like language, religion, values, norms, and social structures that can influence consumer behavior and market dynamics. Analyzing The Political & Legal Environment - Tariff: A tax imposed on imported goods, making them more expensive for domestic consumers. - Quota: A limit on the quantity of a good that can be imported into a country. - Boycott: A government-imposed ban on trade with a particular country or the products of a particular country. - Trade Agreement: A formal agreement between two or more countries to reduce trade barriers and promote trade between them. Examples include free trade agreements and regional trade agreements. - Trade Sanction: A trade penalty imposed on a country, often for political or economic reasons. This can include tariffs, quotas, or embargoes (complete bans on trade). - Exchange Control: Government regulations that limit the amount of foreign currency that can be bought or sold. Push Strategy: This involves actively pushing products or services to customers by incentivizing intermediaries like wholesalers and retailers to stock and promote them. Pull Strategy: This focuses on creating demand for products or services by attracting customers to them through tactics like content marketing, social media, and SEO. CH.17  - Consumerism: A social movement aimed at protecting consumers from business practices that infringe upon their rights. - Corporate Social Responsibility (CSR): Voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. Who is impacted by CSR initiatives? - Environment: CSR initiatives aim to minimize environmental impact through practices like reducing pollution and conserving resources. - Society: CSR initiatives benefit society by supporting local communities, promoting social justice, and improving the quality of life. - Employees: CSR initiatives can improve employee morale, attract talent, and create a positive work environment. - Marketplace: CSR enhances a company's reputation and builds trust with customers, leading to increased brand loyalty. - Customers: Socially conscious customers value businesses that are responsible, and CSR initiatives attract and retain these customers. A Framework for Ethical Decision Making: - Step 1: Identify Issues: Clearly define the ethical dilemma by recognizing the situation, stakeholders involved, and relevant ethical principles. - Step 2: Gather Information and Identify Stakeholders: Collect data, identify all affected parties, and understand their interests and concerns. - Step 3: Brainstorm and Evaluate Alternatives: Explore various courses of action, assessing each based on ethical implications, potential consequences, and feasibility. - Step 4: Choose a Course of Action: Select the most appropriate course of action, considering ethical principles, stakeholder impact, and develop a plan to implement it. Casa study: 1. Identify the Issue: Clearly define the central problem or issue presented in the case study. 2. Analysis: Thoroughly examine the facts, data, and information provided to understand the situation fully. 3. Identify Alternatives: Explore and brainstorm potential solutions or courses of action to address the issue. 4. Apply Selection Criteria: Evaluate each alternative based on criteria such as feasibility, cost- effectiveness, and ethical implications. 5. Select Final Solution: Choose the solution that best addresses the issue based on the evaluation and justification. 6. Provide Action Plan: Develop a detailed plan for implementing the chosen solution, outlining steps, timelines, and responsibilities.