Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing

8/3/2019 Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing

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Harsh Arora 1

Strategic Issues in Service

MarketingDay 7 & 8

Session 11 to 14Sem. III (Service Marketing)


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Objective

Ex-Ante Evaluation of Marketing Mix

Harsh Arora 2


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Ex-Ante Evaluation

Gathering knowledge about;

(New) Market

Market segmentation

Services

Policies

Attributes of new services

Improving or changing existing services

In depth discussions with consumers

Pre testing new ads

Harsh Arora 3


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Ex-Ante Evaluation

Market

Public gathering that is held for buying and sellingmerchandize.

Marketing:The anticipation, management, and satisfaction ofdemand through the exchange process. This is the process ofrevenue generation through customer satisfaction.

Objective of marketing

Make and retain customer and maintain profitablerelationship

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Ultimate goal of the marketers

Customer loyalty

A deeply held commitment to re-buy or repatronize a preferred product or service in thefuture despite situational influences andmarketing efforts having the potential to

cause switching behavior. (Richard L. Oliver, 1997)

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Ex-Ante Evaluation


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Current challenges in marketing

Customers are becoming more knowledgeableday by day.

Technology is improving at a very fast pace.

Competition has increased the choices to thecustomers.

Environment is a dynamic phenomenon.All are not same (heterogeneity)

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Ex-Ante Evaluation
http://images.google.co.in/imgres?imgurl=http://bp0.blogger.com/_DwmmYh12sUo/R3b-afHLzLI/AAAAAAAAAHg/dYWwkIBBLEI/s320/man-carrying-dollar-sign.jpg&imgrefurl=http://cruzangels.blogspot.com/&h=320&w=228&sz=10&hl=en&start=9&um=1&usg=__yS_f8mk1XU51ykjXiaB617_vwAE=&tbnid=7Nwd7BOEe_CYRM:&tbnh=118&tbnw=84&prev=/images%3Fq%3Dimages%2Bof%2B%2Bpresent%2Beconomic%2Bman%26um%3D1%26hl%3Den


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However customers switch brands..

Thus, customers are divided into 4 groupsbased on their brand loyalty status

Hard core loyal

Split loyal

Shifting loyal

switchers

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Ex-Ante Evaluation


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HOW TO MANAGE LOYALTY ????

In this scenario..

Harsh Arora 8


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Loyalty can be achieved if the customeris.

Satisfied

Therefore, Total Customer Satisfaction is

Perception expectation

But, it is said thatLink between customer satisfaction and

loyalty is not proportional

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Ex-Ante Evaluation


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According to Kotler, It is no longerenough to satisfy customers. You mustdelight them

So, how will you, as a part to anorganization, delight customer and thusloyal ???

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Ex-Ante Evaluation
http://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Den


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On an average 45 million customers visit its 29,000

restaurants in 121 countries (2003) People swarm because they do not solely love burgers

and want to buy it

Customers are not flocking to buy burgers, they flock to

buy a system

Harsh Arora 11

McDonalds system (QSCV)
http://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Den


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Customers are value-maximizers

They form an expectation of value and acton it

If the offer lives up to the value

expectation affect both satisfaction andrepurchase probability

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Ex-Ante Evaluation


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Therefore, the most important element fora business/marketer

VALUE

{Customer Perceived Value (CPV)}

total customer value total customer cost

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Ex-Ante Evaluation


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Harsh Arora14


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Ex-Ante Evaluation

What enables a producer to add ameaningful customer value to its product ?

The generic value chain model(Michael E. Porter, 1985-Competitive Advantage: Creating and

Sustaining Competitive Advantage)

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Ex-Ante Evaluation

Can we do the same currently

The total customer experience

How will you know this and imbibe this to

the product ???????

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Ex-Ante Evaluation

Analysis of consumer needs;

Consumers need in relation to

Customers acquisition/purchase experience

Use of the product/usage experience

Disposal of the product/replacement experience

Analysis

Empathic design Lead user analysis

Management of customer touch points

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Consumer need or customer need .

P & G used Mass Collaboration(Tapscott B. D. et.al.,2006)With this P&G gains access to expertise and creativity far beyond its own

domain, and it likely finds a solution more quickly and with a lowinvestment.

According to Tapscott et.al. Wikinomics represents the next historic step theare and science of mass collaboration where companies open up to the

world.

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Ex-Ante Evaluation


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Ex-Ante Evaluation

Mass Collaboration

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PROSUMERS

PARTNERS

SUPPLIERS

EMPLOYEES

MassCollaboration

CompanyConsideration


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Ex-Ante Evaluation

Results..

Identifying value drivers

From a customers perspective anything &everything can be important

Will adding more features to a product willimprove the customer experience ?

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Ex-Ante Evaluation

Identifying value drivers

Trade off analysis

Analysis which quantify the value created bydifferent combinations of price and product

positioning

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Harsh Arora 22

How to win Mens Heart

How to win Womens Heart


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Harsh Arora 23

Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing

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Transcript of Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing