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Marketing of Services

- a conceptual approach

Marketing management

Marketing of Services

Services: an act or performance that any party can offer to another that is essentially intangible and does not result in ownership of anything, may not be tied to physical product. Degree of intangibility different for different services

Marketing management

Service characteristics

Intangibility Perishability Ownership not transferred Ownership is limited to specific time and places Inseparability Heterogeneity
Marketing management

Services and marketing mix


Product Price Promotion Place People Physical evidence Process


Marketing management

Managing Services

Identify relevant target groups. Evaluate their expectations Identify your competitors Evaluate their competitors strength and weaknesses. Identify your service attributes Compare each factor by factor
Marketing management

Managing Services

Identify service differentiation factors Find the competitive advantage Promote the idea amongst you Stress the factors to the identified target group Act as an advisor not as a salesman Maintain close contact with the customer (both high and low prospect) Manage time for existing and new customers Set your own goals for evaluation
Marketing management

Service Differentiation and Positioning


Differentiation is the act of designing a set of meaningful diff. To distinguish company's offering from competitors Positioning is the act of designing the companys offer and image so that it occupies a distinct and valued place in mind of customers Determination of the levels of positioning Identify key attributes Locate attributes on a positioning map Evaluation of positioning options Marketing management Implementing positioning

Some research findings reasons for GAPS


Gaps between consumer expectations and management perception Gap between perception and service quality specification Gap between service quality specification and service delivery Gap between service delivery and external communication Gap between perceived service and expected service.
Marketing management

Necessities for service marketing Some key determinants..


Access Communication Competence Courtesy Credibility Reliability Responsiveness Security Tangible Attempt to know the customers
Marketing management

The Service-Profit Chain (Fig. 8-6)

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Marketing management

Marketing Strategies for Service Firms

Managing Service Differentiation

Managing Service Productivity

Develop differentiated offer, delivery, and image. Empower front-line employees, Become Customer obsessed, Set high service quality standards, Watch service performance closely.

Managing Service Quality


Train current or new employees better, Work on quality as well as quantity, Utilize technology Well-designed Web site

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Marketing management

CRM in service marketing Some facts

Customer acquisition costs are greater so try to retain them for your company Increase the CLV Maintain close and constant touch with the customers Identify your Key Customers Design suitable processes for them.
Marketing management

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CRM in service marketing Some facts


Constantly map consumer expectations Empathize the customers Apply ARM model to your business Involve him/ her in your company affairs Try and apply One to One Strategy

In short develop processes which provide structural bond with your customers
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Marketing management

Winning customers some strategies

Handle your customers They may have inquire personally or calls you show dissent, makes requests, shows dissonance, raises objections, intends to buy, buys, refuses to buy Listen to what he says Provide constant support and follow-up

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Marketing management

Winning Customers contd..


CUSTOMER IMITATION CUSTOMER CARE CUSTOMER DELIGHT CUSTOMER SATISFACTION CUSTOMER INDIFFERENCE CUSTOMER DISSATISFACTION CUSTOMER OUTRAGE
Marketing management

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Winning customers contd

Satisfied/ Delighted Customers -go for it again - tell his family family and his friends - advocates openly in Public - develops bond with the company Dissatisfied/ Outraged customers - Do nothing - Reject U - Tell friends and neighbours - Complains to the company - Sues the company
Marketing management

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Selling of services

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Suspecting Prospecting-identifying potential customers and qualifying them to determine if they are valid prospects Networking- process of acquiring new customers and existing ones and sales lead generation Define target mkt.-generate sales leadidentifying prospects thru present customers, former customers, cold calling, spotters, directories, referrals, personal contacts, trade Marketing management shows and exhibitions

Selling of services

Qualifying prospects the MAN approach Preparation for the call Pre-approach-whos the customer, what are his requirement, what info is required, how does he obtain info Call planning: Objectives-why to meet, what to look for, what to recommend, Strategy, making an appointment. Presentation and Documentation-visuals, testimonials,examples, guarantees, demos. Etc.
Marketing management

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Selling of services

Sales presentation activities: Approach, Probe for needs, convince the prospect, handle the objections, close, followup Handling objections: types of objections-timing, price, source, competition
Prospect sates objections (question or concern is posed) carefully Listen

confirm the response

Respond

clarify objections

Boomerang effect, compensation method, case history method


Marketing management

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Selling of services

Closing-When to close-looking and listening for buying signals, verbal and non buying signals Use a trial close, How to close ( alternative proposal, assumptive close, gift close, one more yes close, balance sheet close, direct close etc. Follow up and Post sale action-handle complaints promptly, maintain contact, reduce dissonance, show appreciation, keep serving the customers
Marketing management

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Thank You

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Marketing management