• Relationship Marketing Defined• Benefits of Relations Marketing’s• Relationship Marketing and Transaction Marketing• Six Markets Model• Strategy in Relations Marketing Management• Retention Strategies• Recovery of Customers• Communication and Relationship Marketing
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
Berry and Parsuraman – Relationship marketing is attracting maintaining and in multiservice organizations – enhancing customer relationship.
Benefits of Relations Marketing’s
7.Benefits for the Firm8.Benefits to the Customers
Relationship Marketing and Transaction Marketing
12.The method of marketing in which a service organization or its employees communicate with the customer only when he approaches it for service called Transaction Marketing.13.When a service organization seeks to establish and maintain a long term relationship with its customers, it is known Relationship Marketing.
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
Adrian Payne (1991) from Cranfield University goes further. He identifies six markets which he claims are central to relationship marketing. They are: internal markets, supplier markets, recruitment markets, referral markets, influence markets, and customer markets.
Referral marketing is developing and implementing a marketing plan to stimulate referrals. Although it may take months before you see the effect of referral marketing, this is often the most effective part of an overall marketing plan and the best use of resources.
Marketing to suppliers is aimed at ensuring a long-term conflict-free relationship in which all parties understand each others' needs and exceed each others' expectations. Such a strategy can reduce costs and improve quality.
Influence markets involve a wide range of sub-markets including: government regulators, standards bodies, lobbyists, stockholders, bankers, venture capitalists, financial analysts, stockbrokers, consumer associations, environmental associations, and labor associations. These activities are typically carried out by the public relations department, but relationship marketers feel that marketing to all six markets is the responsibility of everyone in the organization. Each market may require its own explicit strategies and a separate marketing mixes for each.
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
B. Ch 20Developing & Managing the Customer Service Function
1. Customer Service Definition2. Improving Customer Service3. Technology to Improve Customer Service4. The Customer service Management Cycle5. Offering Supplementary Services in Addition to Core Services6. Enhancing Customer Services Through Improved Service Delivery Process7. Steps to Implement an Effective Customer Service Program
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
B. Ch 20Developing & Managing the Customer Service Function
Customer Service Definition
• Customer Service is the ability of an organization to constantly and consistently give the customer what they want and need.
• According to Turban et al. (2002), Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation.
• Lovelocks Definition – Task oriented activities, how they should be designed, performed and communicated.
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
B. Ch 20Developing & Managing the Customer Service Function
Improving Customer Service
Take the following steps
5. Divide the basic service into separate service activities6. Conduct periodic surveys7. Provide necessary infrastructure and advance technology8. Track changes in the external environment
Technology to Improve Customer Service
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
B. Ch 20Developing & Managing the Customer Service Function The Customer service Management Cycle
Stage I – Understand the Customers4. Selecting the target, defining the service and the users of the service5. Determining the service characteristics6. Developing customer profile7. Understanding customers perception of the service providerStage II – Set Customer Service Standards9. Standards in procedural dimensions of customer service10. Standards in Personal dimension of customer service11. Setting standards in stone• Ex 20.1 CS at Singapore Airlines, Fig 20.1 Writing Customer StandardsStage III – Encourage Team Work and Customer Orientation among Employees14. Identify and analyze all the jobs in the organization that deal with customer15. Recruit right candidates for the jobs16. Train and develop the job incumbents17. Provide teams with able leaders18. Cultivate the right organizational cultureStage IV – Establish Control systemsStage V – Prevent Problems rather than fix them
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
B. Ch 20Developing & Managing the Customer Service Function
Offering Supplementary Services in Addition to Core Services
Ex 20.2 Supplementary services offered by Jet Airways
Enhancing Customer Services through Improved Service Delivery Process
Factors that determine and influence the service delivery.
9. Who sells the service?10. Do service personnel need to interact with the customer often?11. Who hires the service?12. How long does the service delivery take?13. How flexible is the capacity?14. How flexible is the service?15. How frequently is the service purchased?16. How complex is the service?17. What is the extent of risk involved?
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
B. Ch 20Developing & Managing the Customer Service Function
Steps to Implement an Effective Customer Service Program
3. Place the right person in the right job.4. Administer training programs.5. Serve information needs of the customers.6. Resolve problems quickly and talk pleasantly.7. Standardize service delivery mechanism8. Fix reasonable princes9. Outsource some activities10. Attempt to prevent problems11. Evaluate employee performance
July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
1. The Growth in Global Service Markets2. Factors Influencing Globalization3. Overseas Market Entry Decisions4. Assessing Globalization5. Challenges in the Global Market6. Factors Influencing Success of a Global Service Firm7. Prospects for the Global Marketing of Services
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July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
• Globalization refers to the free movement of goods, services, people, capital and technology across various countries in the world.
• Trends and changes
Factors Influencing Globalization
8. Changes in Social Factors9. Changes in Technology10. Changes in political and legal conditions11. Competition in the market12. Competitive advantage
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July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
The choice depends on a variety of factors including the nature of the particular product or service and the political, social and competitive scenario in the target markets.
Parameters used to asses the level of globalization
5. Presence in strategic markets6. Location of value adding activities7. Achieving desirable balance between globalization and customization8. Consistency in Quality and Pricing of services9. Responding to changes in environment
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July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
Factors Influencing Success of a Global Service Firm
3. Select the right entry mode4. Select the right marketing research methods5. Customize the service offering6. Train the service personnel7. Select the right promotion strategy
Prospects for the Global Marketing of Services
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July 7, 2009 Copyright ICFAI Dubai 2009Pankaj Tripathi
D. Ch 24-Tourism & Travel Services Marketing-Tourism
1. Major characteristicsThe hotel industry is dependent on tourism and travel industries, and together they constitute the hospitality industry. The demand variation in the hotel industry depends on various factors like the economy, socio-political conditions, government regulations, business cycle, weather and seasonal changes, festivals etc. The hotel service is a perishable service with a fixed or limited supply. It is characterized by high investment and low variable costs. The market for the hotel industry can be geographically segmented as tourist spots and commercial centers. On the other hand, based on customers, the market can be segmented as premium segment, leisure segment and budget segment. The exposure of the Indian customer to international service standards has made him more discerning and demanding. Today’s customers expect more value added services from the service provider.
The bank is a financial institution which accepts deposits and lends that money to its customers. As banks deal with their customers’ finances, banking is a high-involvement service. Therefore banks need to win the trust of their customers. Based on the customer profiles, banks segment their market into retail banking, corporate banking, personal banking etc.
Depending on customer needs for finance, the market can also be segmented into trade finance, consumer finance, etc. For the banker to derive maximum returns and enhance his market position the marketing mix has to be effectively managed. The products offered by a bank may be in the core or augmented form. The core products offered by a bank include a savings bank account or a housing loan.
F. Ch 26-Communication & Info Services Marketing-Telecom
Telecom industry poses high entry and exit barriers. Telecom players need to invest heavily on equipment, cables and other assets and technology and they have to wait for years to obtain return on their investment. The market for telecom industry can be divided into individual, corporate, rural and urban segments.
On the basis of product offered, the market can be divided into fixed, mobile, internet and video telecom services.
Media services comprise of all those channels of communication, which help to transmit information from the source to the recipient. Media may be point-to-point media or mass media. While point-to-point media transmits information on a one-to-one basis, mass media transmits information from one source to a large audience. Media services are classified into broadcasting, entertainment and print media.
Broadcasting is the easiest and most inexpensive method of conveying a large amount of content to a large audience. Broadcasting media consists of the radio, television and the Internet. Broadcasting services have the power and the ability to influence the perception and behavior of people through the content of the programs they air
• Media Services and Broadcasting• Consumer Behavior in Response to Broadcasting Services• Market Segmentation in Broadcasting• Market strategy of Broadcasting Firms• Marketing mix for Broadcasting Services – Product, Price, Place, Promotion, People
Physical Evidence Process 8. Recent trends in Broadcasting
Growth of the Internet and Online Availability of Media Services Mergers and Consolidations Digitization of Content Expansion of Reach of Satellite Services
