Professional Documents
Culture Documents
Services Marketing v4
Services Marketing v4
Empowering Communities
Jan, By: Mohammed Al-Afrangi
Course Agenda
Introduction Training Methodology Evaluations & Exams Goals Outline
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Introduction
Introducing the Trainer Introducing the Trainees
Name Background experience & Education, Marketing? Title Organization Why this course Your Expectations of this module
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Training Methodology
PowerPoint Presentation / Curriculum Group work & discussions Case Studies & Challenges Home work / Research Topic presentation
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Goals
Gain Better Understanding of Services & Social Marketing Planning & Managing S&S Marketing Activities Introduce the tools of success needed to Market our services Provide useful & effective ways to promote the institution and its services Share Experiences & knowledge
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Course Outline
Quick lock at Marketing Services Marketing Services Marketing Mix Strategic Service Marketing planning Services Marketing Management Social Marketing Market Research
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MARKETING
Overcome Your Fears, Experience Success, and Achieve Your Goals!
Session Outline
What is Marketing? Role of Marketing Marketing Terms Selling Vs Marketing Marketing Mix [ Ps] Most Common Marketing Errors
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What is Marketing
What image comes to mind when you hear the word marketing?
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What is Marketing
Human activities directed at the
satisfaction of needs and wants through exchange processes Kotler Definition
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What is Marketing
It is the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals Management Definition
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What is Marketing
More than Advertisements and Sales !!
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Marketing Terms
Needs & Wants Target market Marketing plan Marketing strategies Public Relation Demand Value Positioning Brand Supply chain Satisfaction Segmentation Market research Competition Promotion
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Marketing Terms
More terms
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Selling Vs Marketing
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Promotion
Customer
Target Market
Place
Price
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Customer
Target Market
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Customer
Target Market
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Customer
Target Market
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Customer
Target Market
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SERVICES MARKETING
Empowering Communities
Session Outline
What is Services? Importance of Services Characteristics of a Service Service Providers Additional Ps of Service Marketing Issues related to the planning and marketing of services
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What is Services?
Things you cant touch - but you can see their effect intangible An action performed by one party for another
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Characteristics of services
Intangibility
Ownership !
Consumption
SERVICE
Storage
Heterogeneity
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Characteristics of services
Intangibility: Hard to explain and display Services if you cant see them Prices are difficult to set - depends on customers expectations
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Characteristics of services
Consumption: Production (performing the service) & Consumption (using the service) - happens at the same time Many people involved in delivering a service mass production of services is hard to do
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Characteristics of services
Heterogeneity: Services are not always delivered the same way, So It is . very difficult to standardize A Taxi driver cannot drive you to the office in exactly the
same time each day because the traffic patterns change
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Characteristics of services
Storage / expiration: cannot be put in inventory or stored for later use You cant buy haircuts Demand fluctuates and changes, sometimes depending on the season, or weather Taxi in the rain, vacation in summer
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Characteristics of services
Ownership: Lack of Ownership Service can be copied easily copyrights
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Service Providers
Training Insurance Telecommunication and Internet services Airlines, first class, economy class Banks and Financial service providers Public Services, Health Services, Educational Services, Community & Social Work, etc
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Service
Promotion Education
Customer
Target Market
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SOCIAL MARKETING
Socially Desirable Behaviors
Session Outline
What is Social Marketing? Local Examples you Remember Examples of Social Marketing Social Marketing Basics The Process of Social Marketing Evaluating Social Marketing Social Campaigns often fail because !!
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SOCIAL MARKETING
Socially Desirable Behaviors
Session Outline
What is Social Marketing? Local Examples you Remember Examples of Social Marketing Social Marketing Basics The Process of Social Marketing Evaluating Social Marketing Social Campaigns often fail because !!
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Quantitative
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What is Strategy?
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What is Strategy?
A Strategy is a long term plan of action designed to achieve a particular Goal, most often "winning".
A Greek word stratgos, which derives from two words: stratos (army) and ago (ancient Greek for leading). Stratgos referred to a 'military commander'
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Strategic Management
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Strategic Management
Three strategic questions: Where are we now? Where do we want to go? Business position Financial outcomes Strategic outcomes How we will get there?
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Strategic Management
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives.
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Strategic Management
Strategic Management achieves a firms success through integration
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Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Build product awareness among early adopters and dealers
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Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Build intensive distribution Build awareness and interest in the mass market
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Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits
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Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers
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Internal Analysis
organization analysis Goals Attainable at some specific future date through planned actions. E.g. 10% growth in revenue in the next two years. E.g. 5% cost reduction in the next five years. Focus On what does the organization focus E.g. High quality, low prices, one market
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Internal Analysis
Culture Innovation and risk taking Outcome orientation Team orientation Attention to detail Stability, conservativeness.
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Internal Analysis
Strengths Attributes of the organization that are helpful to achieving the objective These attributes does not exist in competing companies.
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Internal Analysis
Weaknesses Attributes of the organization that are harmful to achieving the objective These attributes does not exist in competing companies.
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Internal Analysis
Examples of S & W Resources: financial, intellectual, location Cost advantages from proprietary know-how and/or location Creativity (ability to develop new products) Valuable intangible assets: intellectual capital Competitive capabilities Effective recruitment of talented individuals
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External Analysis
Micro environment / Market analysis
Market share The proportion of the market that the company in able to capture Market share = company sales / total market sales Increasing market share can contribute to company growth, reputation, cost reduction Sometimes its better not to increase the market share (e.g. operating at full capacity, price wars, cost may increase if promotional expenditures increase).
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External Analysis
Customer analysis Number
External Analysis
Decision process Business (rational) Individual (more emotional) For expensive products the process is longer and more complicated Concentration of customer base for particular products In one geographical area or more Domestic and global markets
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External Analysis
After we finish the customer analysis stage we should start our marketing planning process
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Threats
S-T strategies
Use strengths to avoid threats
W-T strategies
Minimize weaknesses and avoid threats
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Social
Legal Economical Political Technological
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Globalization
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Marketing strategies
Marketing Strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
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Segmentation
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Segmentation
Segmentation is the process in
marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs.
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Segmentation
A market segment should be Measurable Accessible by communication and distribution channels Different in response to the marketing mix (to be discussed later) Durable (not changing too quickly) Substantial enough to be profitable
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Segmentation
Because each segment is fairly homogeneous in their needs and attitudes they are likely to respond similarly to a given market strategy
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Segmentation
Consumer market segmentation Segmentation can be done based on the following basis Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation
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Segmentation
Consumer decisions are affected by: Cultural factors (values, behaviors) Social factors (family, groups) Personal factors (age, occupation, lifestyle) Psychological factors (beliefs, attitudes)
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Segmentation
Business market segmentation Segmentation can be done based on the following basis Geographic segmentation Customer type Buyer behavior
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Segmentation
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Targeting
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Targeting
After segmenting the market, we target the segments that we think we can attain and serve. For each segment we choose the most appropriate marketing mix (product, price, place, and promotion)
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Targeting
Undifferentiated: target entire market with one particular product. Differentiated: target several segments with products and promotions aimed to each segment. Concentrated: Target one particular segment
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Targeting
Targeting errors trigger wrong results Wrong results trigger less or no sales Less or no sales trigger investment deterioration Investment loss (in this case) could have been avoided by correct targeting
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Positioning
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Positioning
Now we know our market Now we know its segments Now we know the targeted segment(s) Develop your position well to hit the target segment .. You cant miss. How do you want consumers to see your product.
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Positioning
Think .. What is the message about your product you want to convey to your target ? Answer: what the market wants to hear about your product !!!
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Positioning
How is your product is better and different than competing products ?
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Competitors Analysis
Market position Is he market leader, well spread, strong, reputed, well known. Strengths What are his main strengths (his competitive advantage) Weaknesses What are his main weaknesses (cost, distribution, product design) Market share Does he dominate a large market share or he serves only a small niche market.
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Competitiveness Improvement
Competitive Advantage
Anything that a firm does especially well compared to rival firms
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage)
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Competitiveness Improvement
Improving your competitive advantage is an on going process affected by all the internal and external factors that affect your business .. If you dont know and use them to your advantage, THEY will !
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Branding
Brand A name, symbol, term, sign or design, or a combination of these, intended to identify the goods and services of one producer from those of competitors
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Logos
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What is CRM ?
What is CRM ?
PEOPLE
CRM
PROCESSES TECHNOLOGY
An Enhancement of Marketing
4 Ps enhancement with 4 Cs
The 4 Ps
Product Price Place Promotion
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Strengthened by
The 4 Cs
Importance of CRM
Cost of acquiring customers
Generally costs 5X as much to attract new customers as it does to keep existing ones Reducing customer churn rate 5% can increase profits 25 - 95% Satisfied customers are great source of market capitalization / improved ROI Number 1 reason for customer defections is poor customer service.
RO I
Customer Satisfaction
Benefits of CRM
Increase profits through delivering better products and services at less costs Attain all the necessary information of any customer at the right time and place Less stress on employees Keep open communication channels that enhance market research Enhance organizational growth through retaining customers
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Customer Selection
Customer Targeting
Relationship Marketing
Privacy Issues
Metrics
A Framework of CRM
Customer Retention Programs
Loyalty Programs Customer Service CRM Satisfaction Reward Programs Event Marketing
Customization
Community Building
Tips
Clients should not all be treated in the same way, You should prioritize them according to
how profitable they are for you. The more you grow without the proper customer knowledge / management system, the more you dont know who your customers are, you dont know what their needs are, you are disconnected with them, and you are dissatisfying them.
Tips
Too many companies invest in CRM standards and even technology, while ignoring the staff readiness issues that can make or break a successful implementation. CRM is about many different phases of the overall institution lifecycle, client lifecycle, and the relationship lifecycle.
Tips
Another common mistake made by big and small firms is understanding the resistance to a new system, created by organizational habits. New systems fail often because of cultural barriers, not system problems. Buy for the future; invest in information accumulation for improvement.
MARKET RESEARCH
Information Rules
Session Outline
What is Market Research? Why Market Research? The Importance of Information When to Conduct a Market Research? Market Research Process
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Costs
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Secondary data as a starting point Secondary data has the advantages of low costs and availability Primary data is sought when secondary data do not exist, dated, incomplete, or unreliable.
Data that has been previously collected Data collected for the specific purpose at hand
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Title
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Focus-Group Research:
Six to ten people Objective, knowledgeable, and skilled moderator Discussing product, service, organization, etc Sample size is small
Survey Research:
Learning about peoples knowledge, beliefs, preferences, satisfaction, and so on Suitable for descriptive researches.
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Experimental Research:
Scientifically valid Purpose to catch cause-and effect relationships
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Questionnaire:
Consists of a set of questions asked to respondents. The most commonly used instruments due to its flexibility & relatively low cost Needs to be carefully developed, tested, and debugged before they are distributed Questions, questions form, wording, and sequence must be carefully chosen Open-ended Vs. Closed-ended questions
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MARKETING PLAN
Marketing Plan
Marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. It can cover one year (referred to as an annual marketing plan), or cover up to 5 years depending on product and company age
Marketing Plan
A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan
There is 3 types of Organizations: 1. The one that makes things happens 2. The one that watches things happening 3. The one that Surprises from things happened Thank you