MARKETING

IMPLEMENTATION IN
SERVICES COMPANIES
Chapter 2
HOW ARE GOODS COMPANIES
DIFFERENT FORM SERVICES COMPANIES
 Standardization
 Costs & prices
 Productivity
 Balance between supply and demand
 Economies of scale
 The experience curve
 The launching of new products 
 Market entry barriers
HOW ARE GOODS COMPANIES
DIFFERENT FORM SERVICES COMPANIES
 Difficulty to maintain competitive advantages and market structures
 Execution of changes 
 Greater involvement of clients and products
 Difficulty on quality management
 The importance of the time factor
MARKETING OF GOODS AND
SERVICES
 Marketing function:

 Market forces
 Marketing activities

 Adjustment process

The costumer-focused Company principle must be developed.

MARKETING MIX COMMON
BETWEEN GOODS AND SERVICES
 Product Decisions
 Design of  functional attributes and benefits
 Design of products modifications and products elimination

 Price Decisions
 Prices policies & strategies
 Payment terms

 Distribution (Place) Decisions

 Channel selection
 Location of points of sale

 Communication (Promotion) Decisions

 Publicity
 Sales promotion
SERVICES MARKETING MIX
People

Processes

Consumer
service
SOME SITUATIONS IN
SERVICES MARKETING
 Services sectors have assumed

marketing principles recently

 Low appreciation of marketing

knowledge

 Inadequacy of organizational structures

SOME SITUATIONS IN
SERVICES MARKETING
 Impact on legislation and regulation of activities

 Lack of reference points for comparison

 There is opossition to the marketing activities

in some sectors

 There are small services companies

SOME SITUATIONS IN
SERVICES MARKETING
 There are companies with excess of demand

 Some services companies have enjoyed monopoly situations

 Services companies have not researched the market

SOME SITUATIONS IN
SERVICES MARKETING
 There are deficiencies of communication and relationships in the services companies

 There are services companies without customer orientation

SOME SITUATIONS IN
SERVICES MARKETING
 Some services companies have followed  inefficient human resources policies

 Some companies have been focused in the price a lot

MARKETING IMPLEMENTATION
IN SERVICES COMPANIES
1. TREE BASIC PRINCIPLES TO UNDERSTAND THE CONSUMER
 CUSTOMER ORIENTATION
Product orientation
Dominant characteristics:
• Very specialized
• Very centralized decisions
• Relationships and formalized communication
• Concerned about technology
Secondary characteristics:
• Detailed description of the activities
• Many levels in the organizational chart
• Specialized departments by functions
• Efficiency is highly appreciated
Dominant values:
Efficiency, Obedience, Loyalty, Monetary
motivation.
Customer orientation
Dominant characteristics:
• Little specialized
• Very decentralized decisions
• Relationships and little formalized
communication
• Concerned about consumers
Secondary characteristics:
• No detailed description of the activities
• Few levels in the organizational chart
• Departments thought on product/client
• Effectiveness is appreciated
Dominant values:
Effectiveness, Flexibility, Creativity, dynamism,
team spirit, innovation capacity, personal
motivation.
MARKETING IMPLEMENTATION IN
SERVICES COMPANIES
1. TREE BASIC PRINCIPLES TO UNDERSTAND THE CONSUMER
 CUSTOMER ORIENTATION

 CONSISTENCY
 Standardized as possible (the process)
 The best quality
 Perceived everywhere equally
 IDENTITY
 Own image transmited to the market
 When it comes to goods, companies lied on their products, when it comes to services it is more
complicated.
RELATIONSHIP MARKETING
Set of strategies and actions aimed to maintain and improve clients relationships.
It should evolve from Transactions Marketing to Relationships Marketing.
RELATIONSHIP MARKETING
The implementation of Relationship Marketing is a
consequence of the adoption of the Consumer-Oriented
Marketing principle, however to implement it there should
be three conditions:
 Consumers should wish a recurrent service
 Consumers should be able to control the selection of
suppliers of the service
 There should exist alternatives to choose
STRATEGIES TO IMPLEMENT RELATIONSHIP
MARKETING
 To design a basic service
 To standarize the relationship
 Enhance the service
 To fix a Price of the relationship
 To show that the Company knows how to value its clients (BD)

 To apply the Internal Marketing Principles

 INTERNAL MARKETING
Set of strategies and actions aimed to employ and maintain the best persons in the
organization, to do their jobs in the best way, applying marketing principles and
concepts to sell the Company and their activities to the employees.
This way people who are in contact with the public will be conscious of the importance
of their mission and motivated to do a much better job with the best quality, an employee
should be treated as a client and his/her job as a product.
INTERNAL MARKETING
PRINCIPLES
 Employees are the first market to attend
 Employees have to comprehend that they should act as indicated and sometimes they should
 provide additional services
 Employees should accept that training services and other activities are aimed to support them
in their contact with their clients
 Each employee training is aimed for them to understand what they do, why they do it and to
accept his/her function into the organization
 Every worker should have a very clear vission on how the relationships that the Company
wants to have with their custumers are and the involvement of each person in the company
INTERNAL MARKETING
PRINCIPLES
 Communication skills of people who is in contact with clients should be improved
 Integral information should function on communication channels. Internal e interactive
Information flows should be created between managers and workers. This informative
environment should be opened.
 Internal massive communication should be facilitated. Managers should inform about the
Company strategies and obtained results. For this, they can use videos, printed material, as
leaflets, memorandums, magazines, etc.
 Companies should provide tools to support the employees who are in contact with the
customers.
CHANGES IN CORPORATE
CULTURE
 To apply Realtionship Marketing and Internal Marketing there should be a propitious
corporate culture.
 Corporate culture: Set of basic beliefs, taking decisions forms, procedures and acting rules,
forms of understanding the environment and the reality of the Company which are considered
correct for their management.
 Some of its elements are:
 Ability of people to face new situations
 How goals are fixed
 The motivation system
 The values and…
 Teamwork
CHANGES IN CORPORATE
CULTURE
 If there is no a propitious corporate culture, it should be changed, some forces to achieve it
are:
 Technological/competitive changes
 To incorporate persons with new ideas and managment styles
 Participation
 Creation of organizational transitional structures
ESSENTIAL VALUES IN
SERVICES COMPANIES
The key values of a services Company have two important characteristics, the way in which this
is offer or the service delivery and its final result and its nature of routine o non-routine
The desirable values (culture) of a services company are:
 Consumer Orientation
 Flexibility
 Creativity
GOOD COMPANIES CAN NOT BE ORGANIZED
IN THE SAME WAY AS SERVICES COMPANIES
Companies should change their organizational charts:
There are two models:
 Hierarchical Model

 Organical Model
HIERARCHICAL MODEL
ORGANICAL MODEL
FUNCTIONAL ORGANIZATION CHART
SUGGESTED FOR A SERVICES COMPANY
ORGANIZATIONAL PRINCIPLES
FOR THE SERVICES COMPANIES
 DESCENTRALIZED HIERARCHICAL STRUCTURE
 AS MORE QUALIFED, LESS CENTRALIZATION
 COMMUNICATION SENSE
 AS MORE DYNAMIC AND COMPLEX THE COMPANY ENVIRONMENT, MORE
INFORMATION IS DERIVED FROM IT
 WHEN THE CONTACT WITH THE CLIENT IS REDUCED, THE PRODUCTION OF THE
SERVICE CAN BE A ROUTINE
 AS MORE CONTACT WITH THE CLIENT, MORE AUTONOMOUS THE PEOPLE IN
THE COMPANY
4 MODELS OF ORGANIZATION FOR A
SERVICES COMPANY
 Intangible products with high degree
of contact with clients

 Intangible products with low contact

with clients

 A bit intangible products but with

high contact with clients

 A bit intangible products with low

contact with clients