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Transcript of Sm Originally
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ISSUES IN SERVICEMARKETING
Done by:
Afzal Shamsudeen MBA/7037/10Chandu Sathyan MBA/7027/10Mohammed Salih MBA/7025/10Mohsin Mohammed Ali MBA/7017/10
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OBJECTIVES: Issues in service marketing
After sale service
Benefits of after sale service Customer relationship management
Marketing Programmes
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ISSUES IN SERVICES
MARKETING2) Place
Since services are intangible, they cannot be stored, transported orinventoried. It cannot be separated from selling. It can be reducedto a great extent by involving intermediaries.
3) PromotionConsumer in the case of services prefer more personal information.
It is require to make the intangible aspects of the service tangiblethrough proper communication.
The objective of promotion with respect to services is the following:
Develop personal relationship with customer Make honest and sincere impression on the customer Make use of indirect selling
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ISSUES IN SERVICES
MARKETING4) People
Service cannot be separated from serviceproviders. If people do not meet customerexpectation, the service will also not meet.
So, it is better to invest in people quality inservices business. Attraction, development,motivation and retention of qualifiedemployee is mandatory.
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ISSUES IN SERVICES
MARKETING5) Physical Evidence
Physical evidence refers to physical environment, facilitiesand atmosphere of service providing point. goodphysical existence helps in increasing the perception
of customers.Physical evidence has three parts:
ambient factors: such as temperature, humidity,circulation etc.
design factors: architecture, color scheme, materials
used, shape and style of accessories. social factors: appearance, behavior and number of
service personnel & quality and quantity of othercustomers
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ISSUES IN SERVICES
MARKETING6)Process management
Process management issues are availabilityof services and their consistent quality. Itstarts from process planning and control tooperations planning, facilities design,scheduling, inventory planning and control,quality control, operation control and
forecasting and long-term planning.
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After sale serviceServices offered by the service provider to the customer
after the purchase which are accompanied with theusage of the service.
The service you provide to your customers is crucial to
your business success. For many customers, after-sales service is what makes one supplier stand outfrom another, often more than main service or price.
Good customer service can attract new business and cancreate a loyal customer base.
In case of some services, after sales service is mandatorycomponent. For others it becomes an optionalcomponent.
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How to excel in providing after
sales service?? Providing exceptional & customized
customer service
Go the extra mile for your customersby giving more than they expect.
Handling customer complaintsefficiently & satisfactorily.
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AFTER SALES SERVICE
STRATEGIES Strategy One: Maintain But Actively
Develop.
Strategy Two: Document the Good News
Strategy Three: Educate the Customer onNew Developments
Strategy Four: Generate Referrals
Strategy Five: Rethink the Understanding
of Customer Needs Strategy Six: Influence Future Decision
Criteria
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BENEFITS FOR CUSTOMERSIt is in the best interest of the organization to build and maintain aloyal customer base. But customers themselves also benefit fromlong term associations.
1)Confidence benefitsIt comprises of feelings of trust or confidence in the provider
along with the sense of reduced anxiety and comfort in knowingwhat to expect.
2)Social benefitsThe personal relationship developed between the customer and
service provider are important to the customers quality of life, which
are beyond the technical benefits of the service provider.
3)Special treatment benefitsThis includes getting the benefits of doubt, being given a special
price or getting preferential treatment.
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BENEFITS FOR FIRMS
1. Economic Benefitsincreased revenue over a period of timereduced marketing and administrative costability to maintain profit level without reducing price
increased purchases over timelower cost due to less marketing expenditure
2. Customer Behavior BenefitsAdvertising provided through word of mouth promotion by
satisfied customersCustomer voluntary performance (includes suggestions made
by customers to see the provider do well)Providing social benefits to the other customer in the form of
friendship or encouragement
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BENEFITS FOR FIRMS
3. HRM benefits
Customers help in co production of service byassisting in service delivery process
Employee retention. Employees like to work forcompanies who have a satisfied customer base,because it makes their works easier. They canspend most of the time in fostering relationshipwith existing customers. This leads to higherservice quality and reduced cost of employee turn
over.
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BUILDING CUSTOMER
RELATIONSH
IPS CRM Customer relationship
management
The overall process of building andmaintaining profitable customerrelationships by delivering superiorcustomer value and satisfaction. It
deals with all aspects of acquiring,keeping and growing customers.
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WHAT IS MARKETING- CRM
The process of building profitable
customer relationships by creatingvalue for customers and capturingvalue in return
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CAPTURING VALUE FROM
CUSTOMERS
CustomerLoyalty andRetention
Share of
Customer Customer
Equity
Customer delightleads to
emotionalrelationships andloyalty
CustomerLifetime Valueshows true worthof a customer
Key ConceptsKey Concepts
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CAPTURING VALUE FROM
CUSTOMERS
CustomerLoyalty andRetention
Share ofCustomer
CustomerEquity
Share ofcustomers
purchase in aproduct category.
Achieved throughoffering greatervariety, cross-selland up-sellstrategies.
Key ConceptsKey Concepts
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CAPTURING VALUE FROM
CUSTOMERS
CustomerLoyalty andRetention
Share ofCustomer
CustomerEquity
The combinedcustomer lifetimevalues of all currentand potentialcustomers.
Measures a firmsperformance, but in a
manner that looks tothe future.
Choosing the bestcustomers is key
Key ConceptsKey Concepts
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EMERGING MARKETING
PROGRAMMES
1. Frequency Marketing
2. Relationship Marketing3. After-Marketing
4. Service Guarantees
5. Minimizing the Risk of Payout
6. Effective Defection Management
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FREQUENCY MARKETING Marketing technique to make existing
customers keep purchasing from thesame provider.
Firms collect data on its bestcustomers and determine theirrelationship
These customers are contacted on apersonal level.
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RELATIONSH
IP MARKETING Based on developing long-term
relationship with customers.
Emphasizes more on the quality andprice ratio, which is vital forcustomer retention.
Most often used by industrialmarketers.
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AFTER-MARKETING Refers to marketing after sales is
been made.
It includes: Identifying customers and building a
customer database.
Measuring customer satisfaction andcontinuously making improvements on
their feedback. Establishing formal customer
communication programmes.
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SERVICE GUARANTEE According to Hart SG could be another
method of customer retention. It facilitates
Customer loyalty reinforcement
Building market share
Improving overall service quality
Types of guarantees:
1) Implicit2) Specific result
3) Unconditional
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MINIMIZING TH
E RISK OF PAYOUT Payout refers to the amount of money
spent by a service firm to fulfill an
invoked guarantee. Payout can be minimized by:
Understanding customer needs beforeservice delivery
Limiting the payout only to key activities. Specifying amount involved before
service delivery
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DEFECTION MANAGEMENT A process which actively attempts to retain customers
before they defect.
Service Firms move towards zero defection unlikezero defects in manufacturing sector.
Zero defects means no defect Zero defection means no customer defects to
competitors.
Types of Defectors
Price Defectors
Product Defectors
Service Defectors
Technological Defectors
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CONCLUSION
Success of every business lies onbuilding profitable customerrelationship by providing them withthe best services possible.
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References: SERVICES MARKETING
By R. Srinivasan
SERVICES MARKETING
By Ajay Pandit
INTERNET
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