m1 service constructs
Post on 29-May-2018
233 Views
Preview:
TRANSCRIPT
-
8/9/2019 M1 Service Constructs
1/26
-
8/9/2019 M1 Service Constructs
2/26
2
A New Services MarketingParadigm
The scale of changes - Emergence of the service economy
The information society
Introduction of new services
Proliferation of smart devices
Mass to one-to-one marketing tocustomer relationship
management to CMR
-
8/9/2019 M1 Service Constructs
3/26
3
Value mobility
Shifting competitive advantage
Rising transaction costs
Customer analytics
Rising tele-computing power Front - office reengineering
A New Services MarketingParadigm
the Unfolding Reality
-
8/9/2019 M1 Service Constructs
4/26
4
VVVaaarrriiiaaabbbllleeesss TTThhheee PPPaaasssttt EEEmmmeeerrrgggiiinnnggg FFFuuutttuuurrreee
ValueCreatingCompetencies
Stable, stayedwith the firm
Mobile, may shift tocompetitors
Brand A marketingResource
A Strategic Asset
Perspective Functional &Domestic
Holistic & Global
Database Segment Focus Individual CustomerFocus
Approach toMarketing
Mass marketing One to one marketing,CRM
Services Marketing Paradigm
-
8/9/2019 M1 Service Constructs
5/26
5
The Service RevolutionUnfolded
The death of distance Computerized kiosks dispensing
boarding passes
Vending machines selling books Kodak-branded kiosks with bright
colored touch screens
Parking tickets at Malls Interactive voice response units
-
8/9/2019 M1 Service Constructs
6/26
6
Interfaces as the next frontier ofCompetitive Advantage
People dominant, Machinedominant & Hybrids
Why Service matters? In the economic context labour
flows to those tasks that deliverthe highest economic returns onhuman talent
Companies differentiate theirofferings not by whatthey sellbut by how they sell it
The Labour scarcity paradoxThe 80/20 rule
-
8/9/2019 M1 Service Constructs
7/26
7
Interfaces as the next frontier ofCompetitive Advantage
The rise of the (new) machines Roomba, the robotic vacuum cleaner Sonys AIBO robotic dog Fidelity Investments: Back office : Front
office :: Factory : Sales Cost as a driving force
9.50 $ for a telephone enquiry 9.00 $ live by e-mail 5.00 $ on-line text chat 2.50 $ through e-mail and automated
assists 1.10 $ for IVR 0.50 $ website
0.25 $ automated e-mail response
-e d E x $ 15 0 m i ll io n u p g r a d e o f h a n d h e l d b a r ch a v e s 1 0 s e c o n d s o f f e a c h p i c k u p s a v i n g $
-
8/9/2019 M1 Service Constructs
8/26
The Era of TotalCommoditization
- -The 3 6 1 world of competitive dynamics Accelerating service life cycles . .E g world of fashion industry
Speciality to commodity slide
L Extent of Competition H
Pricedifferentiation
Product / Image differentiation
Gross Margin
H
L
LH
L
H
-
8/9/2019 M1 Service Constructs
9/26
9
Growth Drivers - Services
Increasing affluence Focus on leisure time
Increased %age of women in the
labour force Greater life expectancy
Greater complexity of products
and services
Increasing complexity of life
Changing social & cultural values
-
8/9/2019 M1 Service Constructs
10/26
-
8/9/2019 M1 Service Constructs
11/26
11
Kotler distinguishes fourcategories of offer made to
customers
A pure tangible good, such as
soap, toothpaste or salt. No
services accompany the product.
A tangible good with
accompanying services toenhance its appeal. e.g.
Computers
A major service with
-
8/9/2019 M1 Service Constructs
12/26
12
-The Service Product Continuum
Serviceswithenablers
Serviceswithproducts
Asset Rental Productswith valueaddingservices
Productswithsupportingservices
Movies /Music onDemand
Dominos AT&T Pizza Hut Videos andCDs
Kingfisher InvestmentBanking
Spice Jet CorporateBanking
Microsoft
-
8/9/2019 M1 Service Constructs
13/26
13
Characteristics of Services
-
8/9/2019 M1 Service Constructs
14/26
Tangibility Spectrum
TangibleDominant
IntangibleDominant
Salt
Soft Drinks
Detergents
Automobiles
Fast-foodOutlets
Fast-foodOutlets
AdvertisingAgencies
AirlinesInvestment
Management
Consulting
-
8/9/2019 M1 Service Constructs
15/26
Competing on the Intangibles
Core
Offering
Memory Intangible
Actions
Expectation
sDominos:deliveryservice
Fastdelivery
30-minutetime frame
Guaranteeof 30minutesToll free
call
Pizza Hut:pizzaproduct
delivery
Great taste greatlooking &tasting
pizza athomeproperly
boxed andhandled
Testimonials regardingtaste
Indigo: no-frills
transport
Fun andcheap trip
pay forextras
ticketpricing lowKingfisher Professional
transportation
full flight
servicelounges
Preflight
servicesetupHighquality
-
8/9/2019 M1 Service Constructs
16/26
Evolution of a Service Market
Stage 1:Invent Benefits Stage 2:Expand Value Stage 3:DifferentiateValue
Stage 4:Reinvent orDrift
Valueoffered
toMarketNiche
Shading in the novas shows the degree of commodityperception among customers
-
8/9/2019 M1 Service Constructs
17/26
Growth MapTypes of New Products / Services
Types of Markets
Types of Investments
Income
Reinvestment
-LowRisk
Capital
GrowthCapita
l
Venture
Capital
CoreOffering
MarketExtensions /Repositioning
New MarketingPrograms / MarketRestructuring
New MarketNiches / Channels /Buyers
New BroaderCategories /RedefinedBusinesses / New
Customer Types
Noncore BusinessDiversification
Line Extensions /Improvements /
Cost Reduction
New Platforms /New AncillaryServices /Strategic Partners
New-to-theCompanyServices /Acquisitions
New-to-the WorldServices
New Ventures
-
8/9/2019 M1 Service Constructs
18/26
18
The Nature of the Service Act
-
8/9/2019 M1 Service Constructs
19/26
19
The Nature of the Service Actxtent to Whicheople Areart of the Service
Experience
cilities and equipment are part of the ServiceExperience
H i g h L ow
L ow
H i g h
Retail Banking Department Store
College Education ( .)Airline Travel Econ
-4 Star Hotel
Good Restaurant
Haircut
Nursing Home Personal Tuition
Management Consulting
Telephone Banking Retail Banking
Dry Cleaning
Motel
Supermarket
Car Repair
Insurance
Postal Service
Electronic Banking Lawn Care
Fast Food
Movie Theater
Public Transit
Cable TV
Credit Card
: ( , . )Source LoveLock 1996 pg 38
-
8/9/2019 M1 Service Constructs
20/26
20
Concept of Tangibility
DDDeeegggrrreeeeeeooo
-
8/9/2019 M1 Service Constructs
21/26
21
Method of Service Delivery
NNNaaatttuuurrreeeooofffiiinnnttteeerrraaaccctttiiiooonnnbbbeeetttwwweeeeeennncccuuussstttooommmeeerrraaannndddSSSOOO
AAAvvvaaaiiilllaaabbbiiillliiitttyyyooofffSSSeeerrrvvviiiccceeeOOOuuutttllleeetttsss
Single Site Multiple Sites
Customer goes to SOTheatre Barber shop
Bus service Fast food
chain
SO comes to customer Lawn care Pest control
Mail delivery
Customer & SO interactat arms length
Credit card Telephonecompany
-
8/9/2019 M1 Service Constructs
22/26
22
Customization & Judgement inService Delivery
Extent to whichcustomer contactpersonnel exerciseJudgement
Extent to which servicecharacteristics are Customised
High Low
High Surgery
Legal ServicesPreventive Health
Program
Education
Low TelephoneService
Good Restaurant
PublicTransportation
Movie Theatre
-
8/9/2019 M1 Service Constructs
23/26
23
Demand & Supply Dynamics
Extent to whichsupply isconstrained
Extent of demand fluctuationsover time
Wide Narrow
Peak demand metwithout a majordelay
Electricity
HospitalMaternity Unit
Banking
Legal Services
Peak demand
regularly exceedscapacity
Passengertransportation
Hotels Same as
above but withinsufficientcapacity forbase level of
business
-
8/9/2019 M1 Service Constructs
24/26
24
Relationship with Customers
Nature ofServiceDelivery
Membershiprelationship
No formalrelationship
Continuous
Delivery ofService
Telephone
subscriptionCollege
enrollment
Radio station
Police protection
DiscreteTransactions
Pre-paid longdistance calls
Toll Highway
Car rentalsMail services
Marketing Intangible Products &
-
8/9/2019 M1 Service Constructs
25/26
25
Marketing Intangible Products &Product Intangibles Serducts &
Prodices
Intangibility of all products
Buying promises
Importance of impressions The ties that bind
Goods are produced, services are
performed Customers usually dont know
what they are getting until they
dont get it
-
8/9/2019 M1 Service Constructs
26/26
26
The Marketing Mix for Services
Product Price
Place Promotion
People
Process
Physical
Evidence
top related