K 29 Bad 67051 Marketing Management Lecture 7 - PowerPoint PPT Presentation

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K 29 Bad 67051 Marketing Management Lecture 7

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Title: K 29 Bad 67051 Marketing Management Lecture 7


1
K 29 Bad 67051Marketing ManagementLecture 7
  • Services Marketing, Global Marketing, and Social
    and Ethical
  • Dimensions

2
Services Marketing
  • A MAJOR Factor
  • Huge part of the economy in dollars and in jobs
  • Over 1540 Billion and 33.5 million jobs!

3
Increase in Services Influenced by
  • Organizations focus on productivity and profits
  • Consumers poverty of time
  • Personal Shoppers
  • Take out food
  • House and lawn care

4
Affecting virtually all industries
  • Location--ATMs, branch outlets, branch
    warehouses, JIT delivery
  • Longer Business Hours
  • Better trained sales and service people
  • One-stop shopping

5
Affecting virtually all industries
  • Improved customer service systems (personal,
    phone, on-line)
  • More information available--before, during, and
    after the sale
  • ADDS VALUE beyond issues of price and product
    quality

6
Services vs. Goods
CHARACTERISTIC MIX IMPLICATION
Services cannot be seen, touched, tasted, felt,
etc. SO it is harder to communicate
service features and quality. Communications
must make these tangible by relating to familiar
situations also setting price can be hard.
Intangibility
7
Services vs. Goods
CHARACTERISTIC MIX IMPLICATION
Lack of standardization inconsistent delivery
and quality depending on the person
performing. Minimize by employee selection,
training, and service performance standards.
Variability
8
Services vs. Goods
CHARACTERISTIC MIX IMPLICATION
Simultaneous production and consumption
means consumers are a part of the service
process must manage the interaction for customer
satisfaction educate consumers about the service
process and their role in it.
Inseparability
9
Services vs. Goods
CHARACTERISTIC MIX IMPLICATION
Services cannot be inventoried, so it is hard to
balance capacity and demand cannot return
service for credit or exchange need to
manage demand in peak periods use capacity in
off-periods
Perishability
10
Levels of Service
  • Core/Primary Services
  • The major activity of a business (or nonprofit
    organization).
  • Investment Services provide the use of a
    brokerage account to buy and sell stocks

11
Levels of Service
  • Ancillary Services
  • Expected or optional supplements to the primary
    purchase.
  • Supermarket carryout
  • Convenient free parking

12
Levels of Service
  • Ancillary Services expected in B2B marketing
  • Prompt delivery
  • Favorable credit terms
  • Responsive (24x7?) customer service

13
Service as Value
  • Consumers Organizational Buyers want
  • Quality products
  • Right price
  • Qualified Sales/Service personnel
  • Maximum benefits
  • Minimum effort
  • They demand VALUE!

14
VALUE...
  • an intangible concept often defined in terms of
  • exceptional customer service
  • exceptional product quality
  • value-based prices

15
Competitive Positioning
  • Service Image is conveyed by the firms service
    products.
  • The dimensions used should be those valued by the
    customers.

16
Service Leadership or Follow the Leader?
  • Will you set the service standard or wait for
    competitors to set the standard and then follow
    their lead?
  • CompuServ vs. AOL

17
Benefits of Exceptional Customer Service
  • Exceptional Customer Service can Differentiate
    you from Competitors
  • Services attract keep customers
  • Services and recover lost sales
  • Service quality is related to customer
    satisfaction

18
Benefits of Exceptional Customer Service
  • Customer Service usually leads to a profitable
    ROI in the long term

19
How do Consumers Evaluate Services?
  • Search Properties
  • What consumers can judge prior to the purchase
  • Price, location, appearance of physical
    facilities, paperwork, interactions with the
    service providers staff

20
How do Consumers Evaluate Services?
  • Experience Properties
  • Attributes discernable only during or after the
    service experience
  • Physical comfort staff concern

21
How do Consumers Evaluate Services?
  • Credence Properties
  • Attributes inferred from a subjective evaluation
    of the entire process.

22
The Service Design Process
  • Customer Targets
  • What do they want?
  • Nature of the Service
  • Complex (medicine, investments) substantial
    support services and highly qualified customer
    contact people

23
The Service Design Process
  • Less Complex (automated service, e.g. ATMs)
    substantial up front design efforts.

24
The Service Design Process
  • Pricing?
  • Who is the target?
  • How much and how often do they buy?
  • What is the type of service?
  • Can a fee be justified?

25
The Service Design Process
  • Pricing--Costs
  • Wages
  • Physical facilities
  • Technology Equipment
  • Honoring warranties and guarantees

26
The Service Design Process
  • Degree of Complexity/Uncertainty
  • When complex, customers may need extensive sales
    assistance, demonstrations, service guarantees,
    after sale assistance, pre-purchase information

27
The Service Design Process
  • Marketers Resources
  • Smaller marketers may need to outsource some
    customer services to save costs (pros and cons to
    this).

28
The Service Design Process
  • Number of Services
  • Focus on services which make a difference in
    consumers purchase decisions
  • Remember, customers may be willing to pay some or
    all of the cost of desired services

29
The Service Design Process
  • Level of Service
  • Full service to self-serve?
  • What does your market/target customer call for?
  • What can you support?

30
Service Delivery
  • Top-management commitment
  • Treat EMPLOYEES as Internal Customers
  • View Service as a Performance
  • Ensure Service Recovery
  • When errors occur---fix em!

31
Successful Service Recovery
  • Know the costs of losing a customer
  • Listen to the customer--get them to talk
  • Anticipate potential failures
  • Act fast
  • Train employees
  • Empower the front line
  • Close the Loop--get back to the customer

32
Going Global?
33
Decision 1 Do We Get Involved?
  • ENCOURAGING FACTORS
  • Saturated domestic market
  • Domestic market regards products as obsolete
  • Domestic govt. or environment becomes anti-
  • business
  • Foreign market opportunities
  • Foreign production opportunities
  • Formation of economic communities

34
Decision 1 Do We Get Involved?
  • DISCOURAGING FACTORS
  • Tariffs
  • Import quotas
  • Restrictive controls
  • Political unrest
  • Inflation
  • Exchange rates

35
  • European Union countries-- Eliminated trade
    barriers, differing tax laws, conflicting product
    standards, and other restrictions

36
Which International Markets?
  • 1 Select targets, choose strategy estimate
    potential and ability to reach target

37
Which International Markets?
  • 2 Criteria to consider
  • Market size, growth
  • Competitive activity
  • Costs of entry
  • Stage of economic development
  • Degree of political stability
  • Compatibility of marketing systems
  • Political regulations
  • Cultural compatibility

38
Cultural Environment
Social Institutions Family Education Religion Pol
itical Medical Scientific Military Legal
Language,Gestures, Symbols
VALUES NORMS ROLES
39
Political Environment
  • Attitude of the government toward international
    trade
  • U.S. auto manufacturers cannot build plants in
    Japan

40
Political Environment
  • Pace of political change
  • PG's total ownership under Czechoslovakia's
    privatization program provided opening to Eastern
    Europe

41
Political Environment
  • Laws and policies
  • Venezuela requires 80 local for joint ventures
  • Dumping is often illegal
  • Degree of political stability
  • McDonald's and Citibank were dynamited in El
    Salvador

42
Level of Economic Development
  • Term Description Example
  • Undeveloped Low standard of living Sri Lanka
  • Country Agrarian based Nepal
  • Less-developed Small, low-technology Mexico
  • Country companies developing
  • Developing Country Resource specialization Israel
  • industry growth
  • middle class
  • export and import

43
Level of Economic Development
  • Term Description Example
  • Developed Advanced specialization U.S. Japan
  • Country full-scale marketing U.K.
  • extensive export/import

44
Decision 3 How much Commitment
Exporting Indirect Direct Joint Venturing
Licensing/Franchising Contractual
Agreements Joint Ownership Direct Investment
Commitment
45
Decision 4 How To Organize?
Export Department Direct Indirect Internatio
nal Department licensing or marketing
further organized geographically
Multinational Company avoids ethnocentrism
and near-sighted geographic boundaries
Involvement
46
Decision 5 How Much Change?
Globalization Strategy
Customization Strategy
Standardized marketing strategy Assumes
similarity of customer behavior around the world
Adapted marketing strategy A global corporate
strategy with tactical adjustments for local
conditions
47
Business Ethics Links
  • Browse to a links page
  • http//www.personal.kent.edu/lmarks/ethics/index.
    htm

48
Business Ethics What is it?
  • BUSINESS ETHICS ethics involves what is right
    and wrong in the workplace..and doing right.

49
Business Ethics Who needs it?
  • NO ONE, BECAUSE
  • 1. Its religion, not business.
  • 2. Our people ARE ethical.
  • 3. Its for philosophers.
  • 4. Its Obvious--Do Good
  • 5. Its preaching

50
NO ONE, BECAUSE
  • 6. Its just a recent fad.
  • 7. Ethics cant be managed.
  • 8. Its the same as social responsibility.
  • 9. If a firm is not in legal trouble, its
    ethical.
  • 10. Managing ethics has little practical
    relevance.

51
Well, maybe.
  • Nestles -- Infant formula
  • Beech-Nut -- watered apple juice
  • Manville -- asbestos employees
  • E.F. Hutton -- kiting scheme
  • Union Carbide -- Bhopal, India
  • Nike -- hiring practices
  • Enron Conflicts of Interest Financial
    misconduct and criminal action, e.g. Kenneth Lay

52
Well, maybe.
  • Martha Stewart insider trading
  • Harry Stonecipher Bounced from CEO position at
    Boeing Aircraft for romantic involvement with a
    company executive
  • Adelphia Chairman John Rigas and CFO Timothy
    Rigas guilty of conspiracy fraud for looting
    the company and lying about its finances

53
Benefits of Managing Ethics
  • 1. It improves society.
  • 2. It provides guidance in turbulent times.
  • 3. It cultivates teamwork productivity.
  • 4. It supports employee growth.
  • 5. It helps ensure decisions are legal.
  • 6. It helps avoid criminal acts of omission.
  • 7. It supports quality initiatives.

54
Benefits of Managing Ethics
  • 8. It promotes a strong public image.
  • 9. It provides diverse corporate enhancements.
  • 10. Its the right thing to do.

55
Guidelines for Managing Ethics
  • 1. Managing Ethics is a Process.
  • 2. The bottom line is getting preferred
    behaviors in the workplace.
  • 3. The best way to handle ethical dilemmas is to
    avoid them
  • Codes of Ethics and Codes of Conduct can help

56
Guidelines for Managing Ethics
  • 4. Make ethics decisions in groups.
  • 5. Integrate ethics management with other
    management practices.
  • 6. Use cross-functional teams to develop and
    implement the program.
  • 7. Help those who need it!
  • 8. Give it a try!

57
Organizing for Ethics
  • 1. The CEO MUST FULLY support the program
    (really).
  • 2. Create an ethics committee at the board
    level.
  • 3. Create an ethics management committee.
  • 4. Develop an ethics officer.
  • 5. Create an ombudsperson.
  • 6. Assign responsibility for the ethics
    management program.

58
IMPLEMENTATION
  • 1. Orient new employees to the ethics program.
  • 2. Review the program in management training.
  • 3. Involve staff in review of codes.
  • 4. Involve staff in review of ethics and
    personnel policies

59
IMPLEMENTATION
  • 5. Practice resolving real ethical dilemmas.
  • 6. Include ethical performance in performance
    appraisals.
  • 7. Leaders must behave ethically.
  • 8. Provide materials to all staff.
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