Upload
prasadkulkarnigit
View
26
Download
0
Embed Size (px)
DESCRIPTION
VTU services Marketing
Citation preview
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Services Marketing
Module 3Understand customer expectations through market
researchAccording to VTU syllabus,
Service Marketing, 12MBAMM 14.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
ObjectivesAfter studying this module you will be able to1. Know the reasons for GAP 12. Understand types of research.3. Learn relationship marketing concept and
strategies.4. Assess the retention strategies adopted by
service firms.5. Discuss market segmentation and targeting
in services.
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Common Research Objectives for ServicesTo identify dissatisfied customersTo discover customer requirements or expectationsTo monitor and track service performanceTo assess overall company performance compared to
competitionTo assess gaps between customer expectations and
perceptionsTo gauge effectiveness of changes in serviceTo appraise service performance of individuals and teams
for rewardsTo determine expectations for a new serviceTo monitor changing expectations in an industryTo forecast future expectations
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Criteria for An Effective Services Research Program
ResearchObjectives
Includes
Qualitativ
e
Research
IncludesQuantitative
Research IncludesPerceptions
and Expectations
of Customers
IncludesMeasures
ofLoyalty orBehavioralIntentions
Balances Cost
and Value of
InformationIncludesStatisticalValidity
When Necessary
Measures Priorities
or Importance
Occurswith
AppropriateFrequency
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Portfolio of Services Research
Customer Complaint Solicitation
“Relationship” Surveys
Post-Transaction Surveys
Customer Focus Groups
“Mystery Shopping” of Service Providers
Employee Surveys
Lost Customer Research
Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action
Obtain customer feedback while service experience is still fresh; act on feedback quickly if negative patterns develop
Use as input for quantitative surveys; provide a forum for customers to suggest service-improvement ideas
Assess company’s service performance compared to competitors; identify service-improvement priorities; track service improvement over time
Measure individual employee service behaviors for use in coaching, training, performance evaluation, recognition and rewards; identify systemic strengths and weaknesses in service
Measure internal service quality; identify employee-perceived obstacles to improve service; track employee morale and attitudes
Determine the reasons why customers defect
Research Objective Type of Research
Future Expectations ResearchTo forecast future expectations of customersTo develop and test new service ideas
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Stages in the Research Process
Stage 1 : Define ProblemStage 2 : Develop Measurement StrategyStage 3 : Implement Research ProgramStage 4 : Collect and Tabulate DataStage 5 : Interpret and Analyze FindingsStage 6 : Report Findings
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Service Quality Perceptions Relative to Zones of Tolerance by Dimensions
Retail Chain
9 8 7 6 5 4 3 2 1 0
Reliability Responsiveness Assurance Empathy Tangibles
OO OO
Zone of Tolerance S.Q. PerceptionO
O
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Service Quality Perceptions Relative to Zones of Tolerance by Dimensions
Computer Manufacturer
10
8
6
4
2
0
Reliability Responsiveness Assurance Empathy Tangibles
OO O OO
Zone of Tolerance S.Q. PerceptionO
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Importance/Performance MatrixHIGH
HIGHLOW
Performance
Impo
rtan
ce
Attributes to Improve Attributes to Maintain
HighLeverage
Attributes to De-emphasizeAttributes to Maintain
LowLeverage
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Relationship Marketing
is a philosophy of doing business that focuses on keeping and improving current customers
does not necessarily emphasize acquiring new customersis usually cheaper (for the firm)--to keep a current customer
costs less than to attract a new one goal = to build and maintain a base of committed customers
who are profitable for the organizationthus, the focus is on the attraction, retention, and
enhancement of customer relationships
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Lifetime Value of a Customer
AssumptionsIncome– Expected Customer Lifetime– Average Revenue (month/year)– Other Customers convinced via WOM– Employee Loyalty??
Expenses– Costs of Serving Customer Increase??
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
A Loyal Customer is One Who...Shows Behavioral Commitment
– buys from only one supplier, even though other options exist
– increasingly buys more and more from a particular supplier– provides constructive feedback/suggestions
Exhibits Psychological Commitment– wouldn’t consider terminating the relationship--
psychological commitment– has a positive attitude about the supplier– says good things about the supplier
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Benefits to the Organization of Customer Loyalty
loyal customers tend to spend more with the organization over time
on average costs of relationship maintenance are lower than new customer costs
employee retention is more likely with a stable customer base
lifetime value of a customer can be very high
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Benefits to the Customer
inherent benefits in getting good valueeconomic, social, and continuity benefits– contribution to sense of well-being and quality
of life and other psychological benefits– avoidance of change– simplified decision making – social support and friendships– special deals
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
“The Customer Isn’t Always Right”
Not all customers are good relationship customers:
– wrong segment– not profitable in the long term– difficult customers
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Strategies for Building Relationships
Foundations: – Excellent Quality/Value– Careful Segmentation
Bonding Strategies:– Financial Bonds– Social & Psychological Bonds– Structural Bonds– Customization Bonds
Relationship Strategies Wheel
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Getting
Satisfying
Retaining
Enhancing
Customer Goals of Relationship Marketing
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Underlying Logic of Customer Retention Benefits to the Organization
Customer Retention &Increased Profits
Employee Loyalty
QualityService
Customer Satisfaction
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
Steps in Market Segmentation and Targeting for Services
IdentifyBases forSegmentingthe Market
STEP 1:
DevelopProfiles ofResultingSegments
STEP 2: DevelopMeasuresof SegmentAttractive-ness
STEP 3: Select the
TargetSegments
STEP4:Ensure thatSegmentsAre Compatible
STEP 5:
MBA@GIT http://www.mba.git.edu.
© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].
ExcellentQuality
andValue
Levels of Retention Strategies
I. Financial Bonds
II. Social Bonds
IV. Structural
Bonds
III. CustomizationBonds
Volume and Frequency Rewards
Bundling and Cross Selling
Stable Pricing
Social Bonds Among Customers
Personal Relationships
Continuous Relationships
Customer Intimacy
Mass Customization
Anticipation/ Innovation
SharedProcesses and Equipment
Joint Investments
Integrated Information Systems