Marketing
What can be Outsourced
Manufacturing◦Apple, Nike
Advertising◦HUL, P&G
Marketing◦Film producers
IT Infrastructure◦Cloud based services
What cannot be outsourced?
Aspirations ◦Successful Businesses are aspirations realized
Ideas ◦Successful Businesses are about
implementation of innovative ideas. Relationships
◦Relationships creates trust, commitment, positive energy
◦Provide information, investments, reputation
Marketing is Customer Value
Customer Value can be Tangible and Intangible◦Tangible benefits can be imitated by competition◦Tangible benefits and resultant advantages are
difficult to maintain◦Customer Satisfaction of tangibles is a moving
target. Customers expect more when they get more. ◦Expensive to create and maintain .
Consumer Intangibles ◦Symbolic Consumption (Imagery, aspirations)◦Hedonic Consumption (A superior Experience)◦Value we can capture can be more than the cost of
creating itBrand Premium
Where do we want to compete?
On tangibles?◦Certainly yes◦Lower the cost of production, sourcing,
operations, have the least operating margins◦Provide the convenience , assortment, quality
assurance , longer working hours, quick billing◦Have Economies of Scale, have large scale
Be Big
Where do we want to compete?
On Intangibles?◦Certainly yes
Build a Brand ◦Create aspiration in consumers to associate : What I
get is more than the price product will fetch in the market.
◦Create symbolic ValueProvide a unique consumption experience
difficult to duplicate◦Create hedonic value◦Personal relations, warmth, recognition, emotional
bond◦Service differentiation and Customer Experience
Management Customization
Strategic Marketing
What is the unique value you want to provide the consumer?◦Functional /Utilitarian (Tangibles)◦Symbolic Aspirational brand(Intangible)◦Hedonic Experience (Intangible)
A Marketing strategy involves your choice of ◦What type of consumers to serve?◦What value to provide?◦Communicating and Influencing the consumer
Influencing Consumers
Types of mental responses◦Affect : Feel
A state of Mind Feeling responses
◦Cognition : Thought Mental process Thinking responses
◦Behavior : Act Overt or Covert
ABC Model of Influence
Affect
Emotion to Mood◦Joy, Love, Fear, Guilt, Anger, Warmth, Disgust,
Sadness, Calm, Blue, Boredom, Dislike, Melancholy
◦Positive and negative◦Strong or Weak◦Innate or learned
Mental Biases
Cognition
Thought◦Information processing
Thoughts about◦Benefits◦Comparisons◦Advantages◦Apply previous learning
Behaviour
Consumption behavior◦Purchase◦Selection ◦Choice of a store◦Join a scheme◦Recommendation and referral◦Repeat Purchase
ABC
Love Marriages
Cognition > Affect > Behaviour
Cognition > Behaviour > Affect
Affect > Behaviour > Cognition
Affect > Cognition > Behaviour
Behaviour > Affect > Cognition
Customer Service
Please recall the experience as a customer you were most dissatisfied? ◦Please Describe on a sheet
Customer Experience Management
Service Quality◦How do customers perceive and evaluate service
quality?◦What are managers’ perceptions about service
quality?◦Do discrepancies exist between the perceptions of
customers and those of managers?◦How can Retailers improve customer service and
achieve excellence?
Service Quality and Satisfaction
A Customers can be Satisfied and Dissatisfied at the same time◦Different factors cause satisfaction and
dissatisfaction◦Identify factors (hygiene factors) that cause
dissatisfaction and remove them◦Identify factors (Satisfiers) that cause
Satisfaction and Implement.
Determinants of Perceived Service Quality
ExpectedService
PerceivedService
ServiceQuality
GapPerceived
ServiceQuality
Word ofMouth
PersonalNeeds
PastExperience
External Communication
to Customers
A “GAPS” MODEL OF SERVICE QUALITY
Customers’ Service
Expectations
CUSTOMER RETAILER
Service Quality
Gap
Customers’ Service
Perceptions
GAP 5
Organization’s Understanding of Expectations
Organization’s Service
Standards
Organization’s Service
Performance
Organization’s Communications
to Customers
Market Information
Gap
Service Performance
Gap
Internal Communicatio
n Gap
Service Standards
Gap
GAP 1 GAP
2
GAP 3GAP
4
The Five Dimensions of Service Quality
Ability to perform the promised service dependably and accurately.
Knowledge and courtesy of employees and their ability to convey trust and confidence.Physical facilities, equipment, and appearance of personnel.
Caring, individualized attention the firm provides its customers.
Willingness to help customers and provide prompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy
Five Expectation Categories
Reliability - deliver what is promised
Responsiveness - do it promptly
Assurance - know how to do it
Empathy - do it with respect and understanding
Tangibles - ensure that buildings, surroundings, and materials are attractive
Service Quality
Providing service as promised Dependability in handling customers’
service problems Performing services right the first time Providing services at the promised time Maintaining error-free records
Keeping customers informed as to when services will be performed
Prompt service to customers Willingness to help customers Readiness to respond to customers’
requests
RELIABILITY
RESPONSIVENESS
Employees who instill confidence in customers
Making customers feel safe in their transactions
Employees who are consistently courteous Employees who have the knowledge to
answer customer questions
ASSURANCE
Giving customers individual attention Employees who deal with customers in a
caring fashion Having the customer’s best interest at heart Employees who understand the needs of
their customers Convenient business hours
EMPATHY
Modern equipment Visually appealing facilities Employees who have a
neat, professional appearance
Visually appealing materials associated with the service
TANGIBLES
Relative Importance of Service Dimensions When Respondents Allocate 100 Points
TANGIBLES 11%
EMPATHY 16%
RELIABILITY 32%
ASSURANCE 19%
RESPONSIVENESS
22%
Assessing Service Characteristics
Reliability: accuracy of billing, meeting promised delivery dates
Assurance (trust): guarantees and warranties, return policies, Faith
Tangibility: appearance of store and salespeople
Empathy: personalized service,, recognition by name, understanding the requirements
Responsiveness: returning calls and emails, giving prompt service
Top Related