The document provides information about managing service organizations and marketing in service organizations. It discusses important dates for exams and coursework. It also outlines lesson objectives which describe the importance of marketing to service organizations and discusses the 7Ps of service marketing. Finally, it discusses what marketing is, the importance of marketing within service organizations, positioning services in competitive markets, and the marketing mix for services.
The document provides information about managing service organizations and marketing in service organizations. It discusses important dates for exams and coursework. It also outlines lesson objectives which describe the importance of marketing to service organizations and discusses the 7Ps of service marketing. Finally, it discusses what marketing is, the importance of marketing within service organizations, positioning services in competitive markets, and the marketing mix for services.
The document provides information about managing service organizations and marketing in service organizations. It discusses important dates for exams and coursework. It also outlines lesson objectives which describe the importance of marketing to service organizations and discusses the 7Ps of service marketing. Finally, it discusses what marketing is, the importance of marketing within service organizations, positioning services in competitive markets, and the marketing mix for services.
The document provides information about managing service organizations and marketing in service organizations. It discusses important dates for exams and coursework. It also outlines lesson objectives which describe the importance of marketing to service organizations and discusses the 7Ps of service marketing. Finally, it discusses what marketing is, the importance of marketing within service organizations, positioning services in competitive markets, and the marketing mix for services.
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Managing Service Organizations
Marketing in Service Organizations MSO Due Dates
• Mid Semester Exam – November 15, 2021
• Coursework 1 - November 29, 2021 • Coursework 2 – December 13, 2021 Humans – Obsolete??? Lesson Objectives • Describe the importance of marketing to service organizations • Explain how to position services in competitive markets • Discuss the 7Ps of service marketing • Applying the 7Ps to various service organizations
4 Clever Marketing Ideas What is Marketing?
6 What is Marketing?
The management process responsible for
identifying, anticipating and satisfying customer requirements profitably, to meet organizational objectives.
7 What is Marketing?
‘Determining the needs and wants of target
markets & delivering the desired satisfactions more effectively & efficiently than competitors’ in a way that preserves or enhances the customers’ and the society’s well being’ - Kotler, 1991
8 What is Marketing? Marketing is
This means, giving customers what they
want by understanding their needs and then responding accordingly, in ways that will also benefit the organization. 9 Jamaican Juice Man Rhymes Marketing Management Functions • Role of a Marketing Department would include?????
11 Marketing Management Functions • Develop market strategies Create long term growth & plans
insights • Deliver & communicate value Utilize new market technology
12 Marketing and Service
The rapid growth in the 1960s and
1970s of large scale commercial service operations such as banking, insurance & retail as well as transport, accommodation & catering prompted the shift in marketing studies towards services. - Middleton, 2002 13 Marketing and Services • Name some companies that has good marketing strategies.........
• Name some companies with not
so good marketing strategies and what would you have done different....
14 Marketing & The Service Characteristics*
Given the characteristics
of services , marketing becomes very important for the service organization.
15 The Importance of Marketing within Service Organizations 1. To effectively manage/manipulate demand to remain competitive. – Boosting demand during slow periods – Generating extra demand to offset the high fixed costs of operation within service businesses
2. To influence customer expectations given the
intangible nature of services. – Create a distinct company image and brand identity
16 The Importance of Marketing within Service Organizations
– To provide wider choices to demanding consumers – To survive in competitive market conditions
17 Positioning Services in Competitive Markets*
Market Market Segmentation Segmentation
Branding Branding
18 Marketing
•Why do you think it is
especially important that the marketing and operations department functions be integrated for services?
19 Positioning
• What comes to mind when you see
or hear the word positioning
AS IT RELATES TO MARKETING!!!!
20 Positioning Purpose - Audi Positioning
22 Positioning
‘Positioning is not what you do to a product. Positioning
is what you do to the mind of the prospect.’
• Product must be identified as
being the best • Product must be meaningful to a set of customers • Product must stand out and be well remembered. 23 Positioning Brands
24 Branding Differentiation Strategies • How does a brand stand out/position themselves?
• Size • Packaging • Distribution • Gender/Age • Price • Country 26 27 Position • Name some products/companies you can identify with.........
28 Positioning Volvo “The safest car”
BMW “The ultimate driving machine”
Porsche The world’s best small sports car.” 29 Positioning Step 1. Identifying Possible Competitive Advantages
Step 2. Selecting the
Right Competitive Advantage
Step 3. Communicating and Delivering the Chosen Position
30 Market Segmentation Segmentation is the process of dividing potential markets or consumers into specific groups, in order to target these groups more accurately.
‘Market segmentation recognizes that people differ in their
tastes, needs, attitudes, lifestyles, family size and composition etc. It is a deliberate policy of maximizing market demand by directing marketing efforts at significant sub-groups of customers or consumers’ -Middleton, 2002 31 The Purpose of Market Segmentation • To understand the needs, desires, attitudes and behavior of customers
• To design and implement effective marketing
strategies
• To adequately stimulate customer purchasing
decisions
• To establish meaningful customer
relationships 32 Forms of Market Segmentation
33 Demographic Segmentation • Dividing the market into groups based on variables such as: – Age o Nationality o Education – Race/ Ethnicity o Income – Religion o Occupation – Gender
34 Psychographic Segmentation • Dividing the market into groups based on variables such as: – Personality – Lifestyle – Values
35 Behavioural Segmentation • Dividing the market based on patterns of behaviour such as: o How they respond to promotions/ price changes o Their buying patterns o The benefits sought from purchases o Usage rate of products/ services o Channels they use to communicate o How they make decisions to purchase
36 Effective Segmentation Criteria
37 Branding • A brand is any label that carries meaning and associations.
• An excellent brand will command the
customers loyalty & preferences.
• Some great examples include: Q-tips,
Cutex, Google 38 Marketing Mix • This is the combination of the basic decisions that marketing managers will have to make on a continuous basis in an effort to:
– Effectively manage the demands of customers
– Attract and retain customers – Establish a relationship with customers – Establish customer loyalty
39 The Traditional Marketing Mix
•The Traditional Marketing Mix
•The 4 Ps of Marketing
40 Criticisms of the 4Ps • Service managers asked where services were in the marketing mix,
• They identified services as a part of
the product.
• As services grew more important,
service marketers suggested adding three Ps to the original 4Ps. 41 The Extended Marketing Mix • Booms and Bitner in the 1980’s created three additional P’s that relate directly to service marketing:
– People – Process – Physical evidence – Packaging – Partnership
42 7P’s of Marketing The Extended Marketing Mix Adding 5 additional factors to the marketing mix, to make The 9 Ps of the Marketing Mix:
• Product • Price • Place • Promotion + • People • Process • Physical Evidence • Partnership • Packaging 45 Marketing • Overview of business • Price • Product • Promotion (advertising) • Placement • People • Physical environment • Process • Packaging 46 Marketing - Emotions
47 1. Product/Service • To entice, provide value and retain consumers by: – Offering a variety of products/services – Introducing new products/ services and making revisions – Designing the product/ service based on consumer wants/ needs/ benefits sought – Building product/service relationships – Creating loyal customers – Creating opportunities to cross sell other services/ products to existing customers 48 Variety of Products/ Services For Example: -Tour Operators, provide a range of products within their brochures.
-Large Hotels have a mix of packages for
conferences and events, holidays and other occasions, as well as short excursion packages.
49 Product/ Service Considerations Product Hotel Scheduled Airline Museum
Location, building Routes, frequency, Building size, design,
52 2. Price To place a value on the service (monetary value, actual price, or comparative value) to: • Influence customer demand for the service • Influence customer expectations about the service
53 Scaling Prices • Example:
-Massage services: Total body massage
vs. upper body massage -FedEx: Same day delivery, next day delivery etc.
54 Offering Competitive Prices Pricing must be competitive and must involve profit. The pricing strategy may consist of: – List price (original price)** – Discounts – Allowances (layaway) – Payment period (hire or purchase) – Credit terms
• Pricing may also vary according to; time of day,
• season of the year 55 Price Considerations Price Hotel Scheduled Airline Museum
First class fares
Business class Adult rates Normal / Rack rates fares Senior rates regular pricing, Corporate rates Tourist fares Children rates promotional Privileged user rates APEX/ bulk Group/ party rates Pricing Tour operator purchase fares Friends of the discount rate Standby museum rates Charter Consolidated fares (eg. cheap tickets.com)
56 3. Place • To influence the distribution of the service to ensure customers are able to easily access and use the service by: – Creating fixed locations where customers can buy the service – Bringing the service to the customer – Creating multiple channels for distributing the service (Internet, wholesalers and retailers)
57 Place Considerations • Name some of the places you would consider making your company available for customers to access....
58 Place Considerations Place Hotel Scheduled Airline Museum
Computerized Computerized Channels of reservation systems reservation Other museums distribution (CRS) systems (CRS) Internet (reservation Other hotels in group Internet Tourist information systems, third Internet City offices offices party retailers Travel agents Airport desks Hotel desks and websites) Tour Operators Travel agents Schools/ colleges Airlines Other airlines Free telephone lines 800 telephone lines
59 4. Promotion • Stimulating demand for the service by: – Increasing public awareness of the product/ service – Communicating the service and its benefits to the customers. – Informing customers of special offers
necessary because of the intangible nature of services.
• Tangible cues of service quality must be given. This is
reflective in the images and wording used 61 Building Relationships • Ongoing promotional activity is known as relationship marketing.
• Ongoing promotions to establish and
maintain customer relationships is important, because many services are dependent on repeat business.
62 5. People • All the participants who play a direct/ indirect role in the service encounter such as; – Restaurants service employees, managers – Bars and customers – Clubs • Example: The booking of an exclusive tour involves – Other extensive interaction with the: tourists – Tour operator – Travel agency – Destination – Airline residents – Accommodation providers
63 People • Promoting the success of service encounters by: – Creating employee satisfaction – Effectively managing and training employees – Monitoring attitudes and actions of the service employees – Enhancing the reputation of the brand – Designing the service process to minimize service errors and inconsistencies – Gain regular feedback from customers 64 Internal Marketing – Recognizing that the employees of the organization are important stakeholders to the successful operations
– Putting measures in place to promote the
happiness and motivation of service employees • Demonstrating concern for the welfare of employees • Providing adequate resources for employees • Providing employee benefits
• a good example would be the Virgin Group Limited
(owners Richard Branson & Nik Powell) & Google 65 6. Process • fulfill the needs and wants of the customers through: – Effectively designing the service process – Ensuring customers understand the service process – Customizing the service process where necessary to meet the needs of the customers
66 Quality Control in the Service Process
This is dealt with by:
– Measuring & tracking customer retention – Encouraging complaints – Training employees in service recovery
67 7. Physical Evidence • Physical evidence is related to the environment in which the service is delivered, and the tangibles that help to communicate and perform the service
• Services are intangible and are difficult to
evaluate, the physical evidence provides clues as to the service quality.
• Service Managers should be involved in the
design, planning and control of the physical evidence. 68 Physical Evidence • Physical evidence acts in place of the packaging used for physical goods, and communicates messages of the quality of service. – Ambience of a restaurant – Classical music played at a hotel – Landscaping at the hotel entrance
