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Ghulam Mustafa Qazi, FCMAVice President ICMA Pakistan
Managing Partner, TQMC, Financial and Management Consultants
Emerging Trends in Business Development of Professional Services
Today’s Business Scenario
* World has turned into Global Village
* Technology has changed everything
* Traditional methods of doing business have changed
* Communication is fast
* Internet has become a need of everyone
Target Markets have shifted
• Only 20 years ago, a business owner used to promote his/ her products in his/ her city or country.
• Touching global market was difficult• But now he/ she can approach customers across
the globe while sitting in office anywhere… Customer is one click away
Services Defined
*Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation.
*Sometimes services are difficult to identify because they are closely associated with a good; such as the combination of a diagnosis with the administration of a medicine.
Business Services
*Business service is a general term that describes work that supports a business but does not produce a tangible commodity.
* Examples include information technology, insurance, accounting and consulting.
Core Marketing Concepts
Branding
Services Brands
Use of Smart Phones
*53% of Americans are now owning smartphones
*The amount of time people spend on a mobile device is growing at 14 times the rate of desktop usage.
*Mobile is becoming a more prominent channel for commercial transactions
TangibleDominant
IntangibleDominant
SaltSoft Drinks
DetergentsAutomobiles
Cosmetics
AdvertisingAgencies
AirlinesInvestment
ManagementConsulting
Teaching
Fast-foodOutlets
Fast-foodOutlets
Tangibility Spectrum
Some Characteristics of Services
*No transfer of possession or ownership takes place when services are sold
*Intangible -Cannot be stored or transported
*Heterogeneous – Cannot be replicated
*Are instantly perishable
*Come into existence at the time they are bought and consumed.
*Pricing of Services is a difficult subject
*Quality is subjective and their perception varies by recipient
*Service delivery is different from products delivery
*Mass production of services is difficult
*Unlike products, services cannot be returned or resold
Challenges for Services Business
• Defining and improving QUALITY• Communicating and testing new services• Communicating and maintaining a
consistent image• Motivating and sustaining employee
commitment• Coordinating marketing, operations and
human resource efforts• Setting prices• Standardization versus personalization
Services- Key Challenges
*Service Management: Delivering the expectations
*Difficulty in relating services to financial benefits
*Customer Satisfaction
*Quality: Maintenance, proving quality
*Customer retention
*Investment in research
Key Challenges
*SME Sector generally does not understand the significance of service need
*Large enterprises prefer international/ large service providers
*Marketing is difficult
Key Challenges
*Keeping up with new technologies
*Retaining key human capital when required
*Availability of human capital
*Pricing
*Gaps in assessment of deliverables
Managing Challenges
*Understand the expectations/ deliverables
*Discuss before you proceed
*Get the deliverables and needs signed by client (Terms of reference, Requirement Specifications, Contract)
*Assess the skills available
*Carefully select Project Team
*Commit only what you can deliver
Factors Influencing Customer Satisfaction
• Relationship with Client• Quality of Service• Achievement of Client’s objectives• Price-Value perception
Achieve Customer Satisfaction
*Discuss and explain what has been delivered
*Explain the associated benefits- long-term as well as short-term
*Associate the financial benefits (cost saving, client retention etc.)
*Respond to questions
*Follow-up
*Send relevant information (newsletter)
Innovation
*“fresh thinking that creates value” Richard Lyons
*“new products, business processes and organic changes that create wealth or social welfare”.. OECD
*change that creates a new dimension of performance.. Peter Drucker
*Innovation is converting ideas to numbers
Why Innovation?
*To look different/ better
*To serve customers’ needs more efficiently
*To be market leader
Be Innovative
*Keep up with latest development/ research
*Offer something different from your competitors
*Present innovatively
Marketing & Promotion
Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
“enabling thepromise”
“delivering the promise”
“setting thepromise”
Services Marketing Triangle
Company
CustomersProviders
Technology
The Services Triangle and Technology
Expanded Marketing Mix of Services- The 7
Ps
• Product• Price• Place• Promotion• People• Process• Physical Evidence
PRODUCT PLACE PROMOTION PRICE
Physical good features
Channel type Promotion blend Flexibility
Quality level Exposure Salespeople Price level
Accessories Intermediaries Advertising Terms
Packaging Outlet location Sales promotion Differentiation
Warranties Transportation Publicity Allowances
Product lines Storage
Branding
Expanded Marketing Mix for Services
PEOPLE PHYSICAL EVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicating culture and values
Signage Level of customer involvement
Employee research Employee dress
Other tangibles
Expanded Marketing Mix for Services
Gaps in Service Quality
PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
GAP 1
GAP 2
GAP 3
External Communications
to CustomersGAP 4Service Delivery
Customer-Driven Service Designs and Standards
Company Perceptions of Consumer Expectations
* Customer Gap:*difference between expectations and perceptions
* Provider Gap 1:*not knowing what customers expect
* Provider Gap 2:*not having the right service designs and standards
* Provider Gap 3:*not delivering to service standards
* Provider Gap 4:*not matching performance to promises
Gaps in Service Quality
Customer’s Zone of Tolerance
Adequate Service
Desired Service
Zone ofTolerance
Varies from Customer to Customer and Type of Service
Factors Influencing Customer Satisfaction
• Relationship with Client• Quality of Service• Achievement of Client’s objectives• Price-Value perception
Outcomes of Client Satisfaction
• Retention of client• Positive word-of-mouth communications and
Referrals• Increased revenues
0%
20%
40%
60%
80%
100%
Verydissatisfied
Dissatisfied Neithersatisfied nordissatisfied
Satisfied Verysatisfied
Satisfaction measure
Lo
yalt
y (r
eten
tio
n)
Presence on Web
* Having a dynamic website
* Online Selling
* SEO
* Emails
* Blogging
* Forums
* Etc..
Some New Ways to Marketing
Social Media Marketing* Linkedin .. Company page, ads
* facebook, ..Pages, Groups, Ads
* Youtube… Product/ Services videos
* Skype .. Online calling, meetings
* ebay .. Online selling
* Twitter.. Promotions
* OLX
* Regularly Update …
Marketing Online
* Register on Business Directories
* Search Engine Registration
* List Your Products with Shopping Comparison Bots and Auction Sites
* Online paid marketing
* Pay per click
* Google Ad words etc.
Email Marketing
* Quick contact
* Professional Design
* Effective Message
* Email signatures
* E-marketing outsourcing
* Avoid Spamming
* Newsletters
* Blogs and Articles
Visiting Cards
* Visiting Cards
*Traditional cards
*Mention your website, email, facebook, linked, skype links
* eVisitng Cards--- Your introduction*Profile
*Products and services
*Contact details
Online Selling
* Web portal
* Selling Globally
* Online payments
* Home Delivery
Other Strategies
* Events, contests
* Referral Schemes
* Online meetings and Video Conferencing
* Offer something free
Online Consulting/ Outsourcing
Write Online
* Blogging
* Articles Writing
* Online response to queries
International Affiliations always Pays
Take Care of Your Team
* Employees are your Assets
* Motivate them
* Reward them
* Teach Them
Other Tips
* Develop personal relationship with clients… make client your FRIEND
* Discuss about business and related issues he is facing
* Visit them frequently… have a cup of tea or coffee with him
* Invite clients to your office
* Know and share new developments and resulting requirements of clients
Be Sincere
Always be sincere to yourself and your clients. Give them best advice
And FINALLY
* Reward yourself
* Focus on Your Family
* Avoid Tensions
* Be HAPPY
BECAUSE
YOU are the Most Important Person
Thank You