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

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y (r

eten

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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