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8/3/2019 Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing
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Harsh Arora 1
Strategic Issues in Service
MarketingDay 7 & 8
Session 11 to 14Sem. III (Service Marketing)
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Objective
Ex-Ante Evaluation of Marketing Mix
Harsh Arora 2
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Ex-Ante Evaluation
Gathering knowledge about;
(New) Market
Market segmentation
Services
Policies
Attributes of new services
Improving or changing existing services
In depth discussions with consumers
Pre testing new ads
Harsh Arora 3
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Ex-Ante Evaluation
Market
Public gathering that is held for buying and sellingmerchandize.
Marketing:The anticipation, management, and satisfaction ofdemand through the exchange process. This is the process ofrevenue generation through customer satisfaction.
Objective of marketing
Make and retain customer and maintain profitablerelationship
Harsh Arora 4
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Ultimate goal of the marketers
Customer loyalty
A deeply held commitment to re-buy or repatronize a preferred product or service in thefuture despite situational influences andmarketing efforts having the potential to
cause switching behavior. (Richard L. Oliver, 1997)
Harsh Arora 5
Ex-Ante Evaluation
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Current challenges in marketing
Customers are becoming more knowledgeableday by day.
Technology is improving at a very fast pace.
Competition has increased the choices to thecustomers.
Environment is a dynamic phenomenon.All are not same (heterogeneity)
Harsh Arora 6
Ex-Ante Evaluation
http://images.google.co.in/imgres?imgurl=http://bp0.blogger.com/_DwmmYh12sUo/R3b-afHLzLI/AAAAAAAAAHg/dYWwkIBBLEI/s320/man-carrying-dollar-sign.jpg&imgrefurl=http://cruzangels.blogspot.com/&h=320&w=228&sz=10&hl=en&start=9&um=1&usg=__yS_f8mk1XU51ykjXiaB617_vwAE=&tbnid=7Nwd7BOEe_CYRM:&tbnh=118&tbnw=84&prev=/images%3Fq%3Dimages%2Bof%2B%2Bpresent%2Beconomic%2Bman%26um%3D1%26hl%3Den8/3/2019 Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing
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However customers switch brands..
Thus, customers are divided into 4 groupsbased on their brand loyalty status
Hard core loyal
Split loyal
Shifting loyal
switchers
Harsh Arora 7
Ex-Ante Evaluation
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HOW TO MANAGE LOYALTY ????
In this scenario..
Harsh Arora 8
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Loyalty can be achieved if the customeris.
Satisfied
Therefore, Total Customer Satisfaction is
Perception expectation
But, it is said thatLink between customer satisfaction and
loyalty is not proportional
Harsh Arora 9
Ex-Ante Evaluation
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According to Kotler, It is no longerenough to satisfy customers. You mustdelight them
So, how will you, as a part to anorganization, delight customer and thusloyal ???
Harsh Arora 10
Ex-Ante Evaluation
http://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Den8/3/2019 Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing
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On an average 45 million customers visit its 29,000
restaurants in 121 countries (2003) People swarm because they do not solely love burgers
and want to buy it
Customers are not flocking to buy burgers, they flock to
buy a system
Harsh Arora 11
McDonalds system (QSCV)
http://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://epicurious.blogs.com/photos/uncategorized/2008/01/09/mcdonalds_double_cheeseburger.jpg&imgrefurl=http://epicurious.blogs.com/features__editor/restaurants/index.html&h=400&w=500&sz=24&hl=en&start=5&um=1&usg=__6NaLQbTJdEfjYhTYswV8KxuQqJ4=&tbnid=bRcqvd-nXC3FIM:&tbnh=104&tbnw=130&prev=/images%3Fq%3Dimages%2Bof%2B%2Bmc%2Bdonald%2Bburger%26um%3D1%26hl%3Den8/3/2019 Day 7&8 Session 11 to 14 Strategic Issues in Service Marketing
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Customers are value-maximizers
They form an expectation of value and acton it
If the offer lives up to the value
expectation affect both satisfaction andrepurchase probability
Harsh Arora 12
Ex-Ante Evaluation
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Therefore, the most important element fora business/marketer
VALUE
{Customer Perceived Value (CPV)}
total customer value total customer cost
Harsh Arora13
Ex-Ante Evaluation
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Harsh Arora14
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Ex-Ante Evaluation
What enables a producer to add ameaningful customer value to its product ?
The generic value chain model(Michael E. Porter, 1985-Competitive Advantage: Creating and
Sustaining Competitive Advantage)
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Ex-Ante Evaluation
Can we do the same currently
The total customer experience
How will you know this and imbibe this to
the product ???????
Harsh Arora 16
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Ex-Ante Evaluation
Analysis of consumer needs;
Consumers need in relation to
Customers acquisition/purchase experience
Use of the product/usage experience
Disposal of the product/replacement experience
Analysis
Empathic design Lead user analysis
Management of customer touch points
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Consumer need or customer need .
P & G used Mass Collaboration(Tapscott B. D. et.al.,2006)With this P&G gains access to expertise and creativity far beyond its own
domain, and it likely finds a solution more quickly and with a lowinvestment.
According to Tapscott et.al. Wikinomics represents the next historic step theare and science of mass collaboration where companies open up to the
world.
Harsh Arora 18
Ex-Ante Evaluation
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Ex-Ante Evaluation
Mass Collaboration
Harsh Arora 19
PROSUMERS
PARTNERS
SUPPLIERS
EMPLOYEES
MassCollaboration
CompanyConsideration
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Ex-Ante Evaluation
Results..
Identifying value drivers
From a customers perspective anything &everything can be important
Will adding more features to a product willimprove the customer experience ?
Harsh Arora 20
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Ex-Ante Evaluation
Identifying value drivers
Trade off analysis
Analysis which quantify the value created bydifferent combinations of price and product
positioning
Harsh Arora 21
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Harsh Arora 22
How to win Mens Heart
How to win Womens Heart
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Harsh Arora 23