Services marketing – crm

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Services marketing – crm

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Trang 1 Services Marketing – CRMCONTENT 1/ Explain the role and significance of services in the modem economyWhat is the Service?. For examples , sending mail, shopping,watching TV, cal

Services Marketing – CRM CONTENT 1/ Explain the role and significance of services in the modem economy What is the Service? Accordind to Philip Kotler “A service is any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to a physical product Increasingly, manufacturers, distributors, and retailers are providing value-added services, or simply excellent customer service, to differentiate themselves Many pure service firms are now using the Internet to reach customers; some are purely online” (Kotler, Philip 14th ed, p.355) In today world, service is introduced by many forms They almost respond people’s demanded For examples , sending mail, shopping,watching TV, calling by the telephone, flighting by plane, catching a bus, seeing the dentists, doctors, posting a letter, cutting a haircut, refueling a motor, surfing the internet , consulting, lawyering, and etc are all of service consumption at the individual level.The service also included forms such as electric and water supplying, hotels, restaurants, entertainments… The world economy is increasingly characterized as a service economy This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries In fact, the growth of the service sector has long been considered as an indicator of a country's economic progress Economic history tells us that all developing nations have invariably experienced a shift from agriculture to industry and then to the service sector as the mainstay of the economy This shift has also brought about a change in the definition of goods and services themselves Service organizations vary widely in size At one end of the scale are huge international corporations operating in such industries as airlines, banking, insurance, telecommunications, and hotels At the other end of the scale are a vast array of locally owned and operated small businesses, such as restaurants, laundries, optometrists, beauty parlors, and numerous business-to-business services The service sector is going through revolutionary change, which dramatically affects the way in which we live and work New services are continually being launched to satisfy our existing needs and to meet needs that we did not even know we had Nearly fifty years ago, when the first electronic file sharing system was created, few people likely anticipated the future demand for online banking, website hosting, or email providers Today, many of us feel we can't live without them Similar transformations are occurring in business-to-business markets The Role Of the Service Economy In Development Accordind to report of People’s Committee Can tho City as of 2013, services constituted over 52,47% of GDP in low income Can Tho City Vietnam As their economies continue to develop, the importance of the service sector continues to grow For instance, services accounted for 47% of economic growth in over the period 2000–2005, while industry only contributed 38,92% and agriculture only 8,6% in that same period This means that recent economic growth in Can Tho City Vietnam relied as much on services as on natural resources or textiles, despite many of those City benefiting from trade preferences in primary and secondary goods As a result of these changes, people are leaving the agricultural sector to find work in the service economy This job creation is particularly useful as often it provides employment for unskilled workers in the tourism and retail sectors, which benefits the poor and represents an overall net increase in employment The service economy in developing countries is most often made up of the following industries: financial services, tourism, distribution, health, and education Summary, in the today world, knowledge economic is essential It is so much important that we can’t live without them 2/ Answer the following: a) The marketing planning process Macdonald (1995) suggests that several stages have to be completed in order to arrive at a strategic marketing plan These are summarised in the diagram below: The extent to which each part of the above process needs to be carried out depends on the size and complexity of the business In a small or undiversified business, where senior management have a strong knowledge and detailed understanding of the overall business, it may not be necessary to formalise the marketing planning process By contrast, in a highly diversified business, top level management will not have knowledge and expertise that matches subordinate management In this situation, it makes sense to put formal marketing planning procedures in place throughout the organisation From the diagram, the main components of a marketing plan can be summarized as: Component of the plan Description Mission statement A meaningful statement of the purpose and direction of the Corporate objectives business Marketing audit The overall business objectives that shape the marketing plan The way the information for marketing planning is Market analysis organised Assesses the situation of marketing in the business – the products, resources, distribution methods, market shares, competitors etc The markets the business is in (and targeting) – size , structure, growth etc SWOT analysis An assessment of the firm’s current position, showing the strengths & weaknesses (internal factors) and opportunities and threats (external factors) Marketing objectives What the marketing function wants to achieve (consistent and strategies with corporate objectives) and how it intends to do it (e.g Ansoff, Porter) Marketing budget Usually a detailed budget for the next year and an outline budget for the next 2-3 years Action plan The detailed implementation plan b) Monitory marketing planning and services Implementing and Monitoring Marketing Plans:The overall strategic marketing plan serves as the basis for a series of operating plans necessary to move the organization toward accomplishment of its objectives At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations 4/ Answer the following: a) Planning and branding service produccts A product defines a consistent “bundle of output” and also the ability to differentiate one bundle of output from another (The statement, developed for tangible products, is applicable for services) Product lines and brands Mostly, companies operate several lines, changing the list given the changes in market environment (Marriott Corporation initially had: full-service business and resort hotels, family and fast-food restaurant chains, contract food services (including both institutional catering and in-flight kitchens and airlines), theme parks, and cruise ships Later, it sold most of the latter, expanding the first group British Airways had 8 brands under operation: Concorde, First Class, Club World (business class), World Traveller (economy class); Club Europe and Euro-Traveler (European business and economy); SuperShuttle brand (guaranteed economy seat at high-frequency service); 6 commuter airlines (partnerships with BA), operating British b) New service development New service development concerns all the activities involved in realizing new service opportunities, including product or service design, business model design, and marketing When splitting service development into two parts, we have "service" and "development " The first things that come into mind when looking at service are: economics, finance, managerial activities, competition, prices, and marketing All of these keywords are related to risk and entrepreneurship and clearly indicate the primary scope of the term "service development " Development is very abstract and can be linked with some of the following keywords: technological improvement, cost reduction, general welfare, improved relations, and movement in a positive direction Service development is mostly seen as growing an enterprise through a number of techniques The mentioned techniques differ, but in fact all of them are about traditional marketing The two main questions necessary to this approach are: How do we find, reach, and approach customers? How do we keep these customers satisfied with new possible services? When supplying a solution, it is important to focus on the total offering you give instead of only focusing on the product or service An offering is a package consisting of different proportions of a physical product, service, advice, delivery, and the costs Drawing on contingency theory, an idea central to new service development is that different service, market, and technology combinations can require different marketing strategies and business models to make them a success To chart the factors that are involved and create synergy between them, new service development draws heavily upon the fields of technology and business networks The new service development process involves recognizing chances and opportunities in a fast changing technological environment For example, car manufacturers should recognize that rising gas prices are an opportunity to create fuel efficient cars Innovative technology provides important opportunities for new service development For a company to stay competitive, it is important to keep services and processes up to date Continuous investment in innovation for both services and processes makes it more difficult for others to gain a large technological functionality advantage Technological development can occur through making decisions about acquiring, exploiting, and managing technologies These decisions should be made by involving the research and development staff, purchasing staff, and marketers 5/ Write a detailed note on pricing strategies for services: Pricing is one of the classic “4 Ps” of marketing (product, price, place, promotion) It’s one of the key elements of every B2C strategy Yet for many B2B marketers, the pricing strategy in their marketing plan is challenging to write; many aren’t even involved in creating their pricing strategy There are many factors to consider when developing your pricing strategy, both short- and long-term For example, your pricing needs to:  Reflect the value you provide versus your competitors  Match what the market will truly pay for your offering  Support your brand  Enable you to reach your revenue and market share goals  Maximize your profits When you offer a truly unique product or service with little direct competition, it can be challenging to establish your price Define a strong strategy and competitive analysis so you can view:  What your prospects might pay for other solutions to their problems  Where your price should fall in relation to theirs When your price, value proposition and positioning are aligned, you’re in the best situation to maximize revenue and profits 6/ Answer the following: a) Explain the role of marketing communication Marketing communications is how you get your messages out to your stakeholders; this includes all internal and external audiences The foundation of marketing communications is built on an understanding of what your different stakeholders want to know; for example you might communicate the benefits of a product to your customers and the sales figures to your shareholders Understanding your stakeholder’s needs and therefore the key messages comes from your marketing communications plan (marcomm); but how are you going to reach them? The best chance of successfully getting your audience to take the desired action e.g getting the customer to make a purchase, is to consider the DRIP analogy DRIP stands for differentiate, remind, inform and persuade and should be a blend of messages delivered through a number of channels, over a period of time; this helps keep the key messages memorable There are three communication strategies which are fully explained in the 3 P’s of marketing communication, they are; Push, Pull and Profile Within the Push and Pull strategies you have above the line (ATL), below the line (BTL) and through the line (TTL) communication channels; ATL & BTL are a way of categorising the communication channels and are fully covered in our ATL & BTL article Here are some examples of communication channels: - Personal selling - Branding - Sales promotions - Public relations (PR) - Merchandising - Direct marketing - Exhibitions - Word of mouth - Internal marketing - Corporate image - Packaging - Sponsorship - Advertising Within each of these channels there are sub channels or tools, for example advertising can consist of TV, Radio, Internet, Magazines, Cinema etc Without marketing communications your marketing plan and therefore business will fail As previously mentioned, it’s your marketing communications plan which maps out the who, what, when, why and how b) Service promotion Respondents were asked how they promote their services The main strategies for service promotion included participation in relevant networks, flyers, information stalls, and websites Media releases, advertisements in local print media, and newsletters were less common Further strategies included word of mouth and promotion through other services, magazines, emails, the headspace initiative, community education and health promotion, and education of generalist services (see Table below) Well-promoted services are likely to receive referrals from a range of other organisations Surveyed services reported receiving referrals from different sources (see Table below) Seven services selected all referral sources listed in the table below There were no differences in the number of referral sources in regard to service size and type One respondent noted that 'primary 'clients' are rural [regional] mental health and drug and alcohol agencies and clinicians I do provide primary and secondary consultations around clients with complex co-occurring disorders but, when this occurs, a secondary agenda is always to build the capacity of the referring clinicians or agency to provide integrated treatment of co-occurring disorders' Another respondent stated that the majority of referrals are self-referrals The 17 services reported a wide range of different practices in regard to referral processes and protocols, ranging from no protocols/processes other than the requirement to be in a certain age range (youth service) to larger services with different protocols/processes depending on the type of client or the referral source Four services reported minimal requirements for referral Another four stated that they have MOUs with some service providers Several services reported using referral forms (although these were not always used, and one service reported that this depends on the clinician), and referrals via telephone, fax, and/or email One service noted that referrals sometimes are made through accompanying clients to appointments with other services Internal referrals occur via the electronic file management system, intake meetings, and 'various teams' One respondent suggested that 'eventually, there will be large scale uptake of referrals through 'Connecting Care', an e-referral system to health and community services in Victoria This respondent also noted that regional services are in the process of developing a 'NO Wrong Door multi agency mental health and AOD protocol' The most commonly nominated referral sources were self-referral (n=14) and the criminal justice system (n=11) Child care and financial counselling organisations were not nominated as one of the three most common referral sources See Table below for more detail Table 01 : Service promotion Type of service promotion Response frequency Participation in relevant networks 15 Flyer(s) 14 Website 14 Information stalls at forums, 14 conferences etc Media releases 7 Advertisements in local print media 6 Newsletters 4 Table 02: Client recruitment Client recruitment from Response frequency Referral from AOD services 17 Referral from MH services 16 Referral from criminal justice system 16 Self-referral 15 Referral from family/friends/carers 15 Referral from primary health services (e.g GP, 15 community health service) Referral from welfare services 15 Referral from housing services 13 Referral from hospital 12 Referral from Centrelink 11 Table 03: The three most common referral sources Referral source Response frequency AOD Response frequency service combined service 1 Hospital 0 3 1 GP 1 2 Community health service 2 Housing/supported 1 accommodation Employment 1 1 Centrelink 1 1 Child care 0 0 Financial counselling 0 0 AOD treatment service 2 3 MH service 0 5 Indigenous health service 1 1 Criminal justice system 9 2 Welfare 4 2 Self-referral 10 4 Family/ friends 0 1 Schools 1 1

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