Kripa Kalro - Ssm - Chp 6-9
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CHAPTER 6: CONSUMER, ORGANIZATIONAL BEHAVIOR AND EXPECTATIONS
UNDERSTANDING CONSUMER NEEDS
Self Actualization Needs Esteem Needs Social Affiliation Security and Safety Basic Physiological needs
UNDERSTANDING CONSUMER EXPECTATIONS Explicit & Implicit Service Promises
Personal Needs
Word-of-Mouth Desired Service Beliefs about What Is Possible
Past Experience
ZONE OF TOLERANCE
Perceived Service Alterations Adequate Service Situational Factors
Predicted Service
HOW CUSTOMERS EVALUATE SERVICE PERFORMANCE
High in search attributes
High in experience attributes
Complex surgery
Legal services
Education
Computer repair
Entertainment
Most Services
Haircut
Lawn fertilizer
Restaurant meals
Foods
Motor vehicle
Chair
Easy to evaluate
Clothing
Most Goods
Difficult to evaluate
High in credence attributes
CONTINUUM OF PRODUCT ATTRIBUTES
FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS SERVICES SOCIAL FACTORS
CULTURAL FACTORS
Family influence
Culture
Reference group influence
Subculture
Roles and status
Social class CONSUMER AS DECISION MAKER
Beliefs and attitudes Learning
Age & family life cycle Economic circumstances Occupation Personality & self concept Psychographics
PSYCHOLOGICAL FACTORS
PERSONAL FACTORS
COSUMER PURCHASE PROCESS 1. 2. 3. 4. 5. 6.
Awareness/ Need Perception Search and Comprehension Attitude Development Evaluation of Alternatives Purchase and Consumption Adoption and Post Purchase Behavior
CHAPTER 7: SEGMENTATION, TARGETING & POSITIONING IN SERVICES
BASIS FOR SEGMENTATION 1) Geographic 3) • • • • •
Demographic Age Sex Size and structure of family Income Educational level
1) Psychographic • Lifestyle • Personality • • • • • • •
Behavioristic Benefit Purchase occasion User status Usage rate Loyalty Buyer readiness and marketing factors
TARGETING STRATEGIES 1. Undifferentiated Marketing (Mass Marketing) 3. Differentiated Marketing (Multiple Segmentation) 5. Concentrated Marketing (Single segment)
POSITIONING OF SERVICES- IMAGE • Image : picture of organization as perceived by the target group • Current image: way it is actually seen • Mirror image: way it thinks it is seen • Wish image: way it would like to be seen THE IDEAL SITUATION Wish= Current If no then various positioning strategies are used
POSITIONING APPROACHES 1. 2. 3. 4. 5. 6. 7. 8. 9.
Attributes/features/customer benefits Price/value Use or application Users or classes of users Product class Against competition Endorsement Quality dimensions: RATER Service Evidence People Physical Evidence Process
POSITIONING MAP ATTRIBUTE 1 SERVICE E
SERVICE A
SERVICE B
ATTRIBUTE 2
SERVICE C SERVICE D
CHAPTER 8: MANAGING DEMAND AND SUPPLY OF SERVICES
DEMAND PATTERNS • • • • • • •
Stable, Constant Increasing: Accelerating Decreasing: Decelerating Stable, Cyclical Increasing: Saturating Decreasing: Vanishing Life Cycle
STRATEGIES FOR MANAGING CAPACITY TO MATCH DEMAND DEMAND HIGHER THAN CAPACITY • Stretching time, labour, facilities, Equipments • Cross train • Overtime • Rent or share facilities • Part time employees • Subcontract or Outsource
DEMAND LOWER THAN CAPACITY • Performance maintenance/ renovations • Schedule vacations • Employee training • Lay-off employees
STRATEGIES FOR MANAGING DEMAND TO MATCH CAPACITY • • • • • • • •
Partitioning demand Vary service offering Complementary services Promoting off- peak demand Pricing incentives Communicate with customers Modify timing and location of service Advertising and sales promotion
STRATEGIES WHEN DEMAND AND CAPACITY CANNOT BE MATCHED • • • •
Reservations and appointments Waiting lines Triage- Sorting Delaying Service Delivery
CHAPTER 9: MARKETING STRATEGIES FOR SERVICES
SCA: SUSTAINABLE COMPETITIVE ADVANTAGE Features of SCA • • • •
Customer must value the concept Non substitutable Firm must have the capabilities Sustainable
SOURCES OF COMPETITIVE ADVANTAGE FOR FIRMS • • • • • • • •
Operational position Scale effect Cost and demand synergy Brand/ firm equity Customer relationships Spatial preemption Service package Information technology
PROACTIVE SERVICE MODEL
MARKET PLANNING PROCESS 1. Analysis of marketing opportunities 2. Marketing research and selection of target markets 3. Designing marketing strategies 4. Designing and implementing detailed marketing plan 5. Effective monitoring and control
TYPES OF MARKETING/ SERVICE MARKETING TRIANGLE
UNDERSTANDING CONSUMER NEEDS
Self Actualization Needs Esteem Needs Social Affiliation Security and Safety Basic Physiological needs
UNDERSTANDING CONSUMER EXPECTATIONS Explicit & Implicit Service Promises
Personal Needs
Word-of-Mouth Desired Service Beliefs about What Is Possible
Past Experience
ZONE OF TOLERANCE
Perceived Service Alterations Adequate Service Situational Factors
Predicted Service
HOW CUSTOMERS EVALUATE SERVICE PERFORMANCE
High in search attributes
High in experience attributes
Complex surgery
Legal services
Education
Computer repair
Entertainment
Most Services
Haircut
Lawn fertilizer
Restaurant meals
Foods
Motor vehicle
Chair
Easy to evaluate
Clothing
Most Goods
Difficult to evaluate
High in credence attributes
CONTINUUM OF PRODUCT ATTRIBUTES
FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS SERVICES SOCIAL FACTORS
CULTURAL FACTORS
Family influence
Culture
Reference group influence
Subculture
Roles and status
Social class CONSUMER AS DECISION MAKER
Beliefs and attitudes Learning
Age & family life cycle Economic circumstances Occupation Personality & self concept Psychographics
PSYCHOLOGICAL FACTORS
PERSONAL FACTORS
COSUMER PURCHASE PROCESS 1. 2. 3. 4. 5. 6.
Awareness/ Need Perception Search and Comprehension Attitude Development Evaluation of Alternatives Purchase and Consumption Adoption and Post Purchase Behavior
CHAPTER 7: SEGMENTATION, TARGETING & POSITIONING IN SERVICES
BASIS FOR SEGMENTATION 1) Geographic 3) • • • • •
Demographic Age Sex Size and structure of family Income Educational level
1) Psychographic • Lifestyle • Personality • • • • • • •
Behavioristic Benefit Purchase occasion User status Usage rate Loyalty Buyer readiness and marketing factors
TARGETING STRATEGIES 1. Undifferentiated Marketing (Mass Marketing) 3. Differentiated Marketing (Multiple Segmentation) 5. Concentrated Marketing (Single segment)
POSITIONING OF SERVICES- IMAGE • Image : picture of organization as perceived by the target group • Current image: way it is actually seen • Mirror image: way it thinks it is seen • Wish image: way it would like to be seen THE IDEAL SITUATION Wish= Current If no then various positioning strategies are used
POSITIONING APPROACHES 1. 2. 3. 4. 5. 6. 7. 8. 9.
Attributes/features/customer benefits Price/value Use or application Users or classes of users Product class Against competition Endorsement Quality dimensions: RATER Service Evidence People Physical Evidence Process
POSITIONING MAP ATTRIBUTE 1 SERVICE E
SERVICE A
SERVICE B
ATTRIBUTE 2
SERVICE C SERVICE D
CHAPTER 8: MANAGING DEMAND AND SUPPLY OF SERVICES
DEMAND PATTERNS • • • • • • •
Stable, Constant Increasing: Accelerating Decreasing: Decelerating Stable, Cyclical Increasing: Saturating Decreasing: Vanishing Life Cycle
STRATEGIES FOR MANAGING CAPACITY TO MATCH DEMAND DEMAND HIGHER THAN CAPACITY • Stretching time, labour, facilities, Equipments • Cross train • Overtime • Rent or share facilities • Part time employees • Subcontract or Outsource
DEMAND LOWER THAN CAPACITY • Performance maintenance/ renovations • Schedule vacations • Employee training • Lay-off employees
STRATEGIES FOR MANAGING DEMAND TO MATCH CAPACITY • • • • • • • •
Partitioning demand Vary service offering Complementary services Promoting off- peak demand Pricing incentives Communicate with customers Modify timing and location of service Advertising and sales promotion
STRATEGIES WHEN DEMAND AND CAPACITY CANNOT BE MATCHED • • • •
Reservations and appointments Waiting lines Triage- Sorting Delaying Service Delivery
CHAPTER 9: MARKETING STRATEGIES FOR SERVICES
SCA: SUSTAINABLE COMPETITIVE ADVANTAGE Features of SCA • • • •
Customer must value the concept Non substitutable Firm must have the capabilities Sustainable
SOURCES OF COMPETITIVE ADVANTAGE FOR FIRMS • • • • • • • •
Operational position Scale effect Cost and demand synergy Brand/ firm equity Customer relationships Spatial preemption Service package Information technology
PROACTIVE SERVICE MODEL
MARKET PLANNING PROCESS 1. Analysis of marketing opportunities 2. Marketing research and selection of target markets 3. Designing marketing strategies 4. Designing and implementing detailed marketing plan 5. Effective monitoring and control
TYPES OF MARKETING/ SERVICE MARKETING TRIANGLE
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