Professional Documents
Culture Documents
Definition
It is the process by which an organization sets goals and formulates strategic plan for achieving them.
Situation Review
Marketing Objective and strategies Estimate expected results Identify alternative mixes
Situation Review:
- Analyze the external and internal environment competition, social economic conditions, political legal factors. - Internal Env: strength and weakness of an org., fund position, labour mngt etc. - Marketing audit is a systematic process of reviewing and evaluating a companys operation. -
-Analysis of market conditions, org conditions, env conditions and competition. - carried out every year before the marketing plan is formulated.
- position and strategy of competitors, attractiveness of market, lifecycle stage of service needs to be considered.
Change in market share. Revenues, profit , ROI Effectiveness of advertisement. Number of customer complaints
Different techniques such as BCG matrix, Multiple Factor portfolio model, Life cycle analysis.
Distribution of services
Distribution strategies of services are different from those for packaged goods. Since services are produced and consumed at the same point and cannot be inventoried, there is no scope for any inventories. E.g.. ICICI prudential Life insurance - developed a multi channel distribution strategy. - bancassurance(offering banking and insurance products at one time) - direct marketing through individual agents, finance service consultants. - runs operations at 23 locations. - 43,000 advisors,12 bancassurance tie ups.
ICICI prudential has an innovative way to distribute its products to Mumbai customers. Around 2 lakh people employed in Mumbai get their lunch from dabbawallahs. Who have a wide distribution network. The company sends around 50,000 direct mailers to office goers by hanging a mailer to the handles of meal dabbas. The distribution is timed perfectly around the end of financial year when employees think of tax saving and planning to invest in financial services. Interested customers can fill up forms and mail it on a convenient time to interact with company agents.
Agents or brokers
Promotion of services
Introduction
Why promotion for services? Intangible characteristics Service providers often find it difficult to tangibilize their services in order to appeal to the target customers. Financial auditors, doctors, lawyers, tax consultants cannot advertise on an individual basis. They rely on word of mouth publicity, handouts, press releases etc.
(b) Advertising
Outdoor Billboards, posters Electronic displays Transit advertising Broadcast TV Radio Internet Cinema
Advertising types
Outdoor Adverting
ss Variability in services: Even if the service offering is the same, due to the attitudes, expertise and skills of the personnel involved, the actual delivery can differ. Companies can publish newsletters with customer comments circulate them among potential customers. Service customers design advertising campaigns that attach tangible clues to intangible services. Eg: Airline industry advertises its friendly and pleasant employees interacting with customers, the rewards it received for safe, punctual travel. This assures in terms of safety and customer service.
Companies adopt different sales promotion strategies to pull the customers to regularly use their services free coupons, cash discounts,warranties,contests etc. Eg: Andhra Bank promote their credit cards to potential customers by offering free user charges for the first yr of issue. Eg: Club Mahindra offers free holiday packages to potential customers - encourage them to buy club membership. Eg: HDFC offer free transfer of balance and low interest charges if customers transfer balance from other credit cards
Cntd..
Service delivery location a spacious, well-lit and well-ventilated cyber caf in a complex Vs a narrow one in a by-lane. Customer as a co producer selecting investment options, ordering menu in restaurants requires customer participation. service providers stress on the role of customers in their promotion campaigns. At Masala Art promoted by Taj hotels in Delhi chef cooks in front of the customer.
Element of the extended marketing mix of services marketing Outlines the procedures and methods to be followed to produce and deliver a service Explains a series of activities Sequence and roles are played by the Service provider Intermediaries Customer
TYPES OF PROCESS
LINE OR FLOW OPERATIONS
Arranged in a logical flow or assembly line Output of a particular stage becomes input for the next stage High coordination and speed of operation are necessary Inflexibility involved Can be adapted to specific needs Applicable to fast food restaurants
JOP SHOP PROCESS Activities and sequential arrangement based on the type of job at hand Flexible Eg: In a coffee shop, the same set-up can be used to serve Cappuccino, Caf Latte or an Espresso. Customization Demands more service personnel Eg: recruiting firms, management consultancies