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Myassignment will focus on 5 contents: i The marketing planning process, Monitory marketingplanning and services; ii Service market segmentation, Customer loyalty; iii Explain therole of
CONTENT I INTRODUCTION “A service is any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to a physical product Increasingly, manufacturers, distributors, and retailers are providing value-added services, or simply excellent customer service, to differentiate themselves Many pure service firms are now using the Internet to reach customers; some are purely online” (Kotler, Philip 14th Ed., p.355) In our lives, we use many services every day Services are present by many forms They almost respond people’s needs For examples, turning on a light, watching TV, talking on the telephone, catching a bus, seeing the doctor, posting a letter, getting a haircut, refueling a motor, surfing the internet are all of service consumption at the individual level However, the customers are not often happy with the quality and value of the services they receive People often complain about something such as late deliveries, rude or incompetent personnel, inconvenient service hours, poor performance, needlessly complicated procedures and a host of other problems They grumble the difficulty, disappointed, dissatisfy such as: finding sales assistants to help them in shops, express frustration about mistakes on their credit card bills or bank statements, shake their heads over the complexity of new self-service equipment, mutter about poor value and sigh as they are forced to wait for service or stand in queues almost everywhere they go In opposition, the suppliers of services often seem to have a very different set of concerns Many complain about how difficult it is to make a profit, how hard it is to find skilled and motivated employees, or how difficult to please customers have become Some firms seem to believe that the surest route to financial success lies in cutting costs and eliminating ‘unnecessary frills’ A few even give the impression that they could run a much more efficient operation if it were not for all the stupid customers who keep making unreasonable demands and messing things up! 1 After learning the marketing management and guiding of the instructor, I decide to search the topic “Services marketing – CRM” for understanding this subject clearer My assignment will focus on 5 contents: (i) The marketing planning process, Monitory marketing planning and services; (ii) Service market segmentation, Customer loyalty; (iii) Explain the role of marketing communication, Service promotion; (iv) Explain the role of intermediaries in planning and managing service delivery; and (v) Write a detailed note on CRM programmers This assignment includes three parts: introduction, body and conclusion Some examples will be shown to illustrate for the theories of marketing management II BODY 1 Answer the following: a The marketing planning process To set the stage for developing a marketing plan, we begin with a description of the traditional marketing planning process, the evolution of the marketing concept, and a few of the most recent shifts in marketing management philosophy First of all, you begin to clarify the purpose and focus on your plan; After that, you move on to analyzing the current situation and environment, identifying target customers: group or individual; similar place or income; What age; customer's purchase histories (kind of products, services.); How often; Trait of products or services, etc Then you must establish marketing objectives and goals, conducting research to deepen your understanding of your target customers, determining a desired positioning for the offer, and designing a strategic marketing mix The marketing mix is often referred to as the '4 Ps', i.e product, price, place and promotion To meet customers' needs a business must develop products to satisfy them, charge the right price, get the goods to the right place, and it must make the existence of the product known through promotion Products or services - Must meet customer requirements whatever these might be For example, an important aspect is function - products should do what they say they can do and what they are expected to do For example, Audi cars are popular because of their high performance 2 Appearance is also important This is why, for example, consumers are prepared to pay premium prices for some of Gillette's razors Place - Roughly one fifth of the cost of a product is spent getting it to consumers Of course, the actual figure varies widely from product to product but generally distribution is a very important element in the marketing mix Different organizations use different approaches to reaching their customers For example, McDonald's uses a franchising system enabling it to operate in a wide variety of geographical locations, and Amway distributes through Independent Business Owners worldwide Promotion - Is the process of communicating with customers For marketing purposes, communication of products and services contributes to the persuasion process to encourage consumers to avail themselves of whatever is on offer The key processes involved in promotion, include: Branding - creating a distinctive image and character to an organization/and or its products and services Advertising - to inform and persuade the public Packaging - presenting the product in a desirable and appropriate way Public relations activities and other forms of publicity Sponsorship Special promotions - e.g buy one get one free Price - Needs to be relevant to the product/service and the market For example, BIC the manufacturer of razors, pens and lighters seeks to provide the world's markets with products at affordable prices A firm's pricing decision is often aimed at attracting a particular market segment For example, if it wants to sell at the top end of the market it will charge a high price, at the bottom a low price, and so on And then you develop evaluation, budget, and implementation plans Some conceptualize the process more easily with these broader headings: Why are you doing this? Where are you today? Where do you want to go? How are you going to get there? How will you keep on track? How many percent of total revenue? We follow step by step above to have marketing strategy and budget (b) Monitory marketing planning and services 3 According to me, our marketing planning needs to focus: - Analysis clearly about company's resource - Current business method of company (Target Product and Service) - Research Customers and Consumers - Research Competitors - Analysis SWOT - Detail marketing planning - Marketing strategy implementation and step-by-step controlling to get our goals With the marketing planning, it must be a simple planning (keeping the target on right); it is put down in writing; it is direct and clear (for easy understanding); Finally, we must usually check and control it 2 Answer the following: (a) Service market segmentation An organization cannot satisfy the needs and wants of all consumers To do so may result in a massive drain in company resources Segmentation is simply the process of dividing a particular market into sections, which display similar characteristics or behavior There are a number of segmentation variables that allow an organization to divide their market into homogenous groups They are demographic, income, geographic and psychographics segmentation These variables will be discussed below Bases for Segmenting Consumer Markets (B2C): Dimensions used to divide consumer markets into segments include both objective and subjective dimensions, as noted below Demographic Segmentation 4 Demographic and socioeconomic descriptors—frequently used demographics include age, gender, marital status, household size and lifecycle stage, religion, race/ethnic group, and nationality; frequently used socioeconomic descriptors include income, occupation, education, social class, and asset ownership As people age their needs and wants change, some organizations develop specific products aimed at particular age groups for example, nappies for babies, toys for children, clothes for teenagers and so on Gender segmentation is commonly used within the cosmetics, clothing and magazine industry In the UK we have also seen the introduction of Maxim, (www.maxim-magazine.co.uk) a male lifestyle magazine covering male fashion, films, cars, sports and technology We have also seen the introduction of unisex cosmetic products like CK1 that works on the similarities between the two genders Products and services are also aimed at different lifecycle segments Holidays are developed for families, the 18-30's singles, and for those in their 50's Income Segmentation Income segmentation is another strategy used by many organizations Stores like Harrods; Harvey Nichols are predominantly aimed at the affluent market Daewoo aim their vehicles at price sensitive buyers who require a bundle of benefits for the price In today's globally competitive environment brands are specifically developed and positioned within particular income segments in order to maximize turnover Geographic Segmentation Geographic descriptors — ranging from location of small group of customers to the entire world, including country, region, state, county, metro area, zip code, neighborhood, etc Geographical segmentation divides markets into different geographical areas Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviors in that particular region, for example, in London UK certain parts of the West End of London are more affluent then the East End and you will find particular products sold in these regions based on their affluence An area can be divided by the town, the region or the country If you are an organization working on a global scale you may divide by global regions such as Europe, North America, South America, Asia and Africa Mc Donalds globally, sell burgers aimed at local markets; for example, burgers are made from lamb in India rather then beef because of religious issues In Mexico more chilli sauce is added and so on 5 Psychographics Segmentation Although demographic segmentation is useful, marketers can use alternative segmentation variables that aim to develop more accurate profiles of their target segments Psychographics segmentation can be broken down into lifestyle, social class, and personality characteristics Psychological and psychographic descriptors—difficult to measure, but useful for product positioning, promotional messages and media, distribution strategies, etc.; include consumer lifestyles as predictor of buyer behavior Behavioral and situational descriptors—based on ways that consumers buy and use goods and services, including consumers’ status as present, past, or future user (or nonuser) of product class, brand, or supplier Bases for Segmenting Business-to-Business Markets (B2B): Many general segmentation variables are used to segment both consumer and business markets However, the specific dimensions within each category are selected for their predictability and marketing applications for business customers Demographic descriptors — most widely used dimension is industry classification (NAICS code); others include the size (sales, number of employees or locations), age, etc of an organization, and how the product will be used by customers (OEM, resale, etc.) Geographic descriptors — many industries are concentrated in one or a few geographic locations; domestic and overseas markets can be segmented on the basis of geography, economic conditions, population size, etc Behavioral and situational descriptors — frequently used dimensions include technology (high-/low-tech, innovative/conservative, etc.), usage (heavy, medium, light, nonusers), organization-related variables (e.g., buying policies), and purchase situation (nature of purchase, degree of customization needed, readiness to buy, etc.) Psychological and psychographic descriptors — applies to the individual or group that makes the final buying decision (or may reflect the overall organizational culture); includes attitudes toward important factors, personal traits, etc Benefits sought — some benefits most frequently sought by organizations include value (low price/high quality), service, delivery based on economic motives and price sensitivity, and desire for convenience (logistics, service, etc.) (b) Customer loyalty The first step in managing a loyalty based business system is finding and acquiring the right customers 6 After acquisition of the desirable customers the next step is to build relationships and turn them into loyal customers who will generate a growing revenue stream for the company A loyal customer is a consistent source of revenue for the organization This loyalty has to be sustained by continuously providing superior quality and value 3 Answer the following: (a) Explain the role of marketing communication: Marketing communication includes 4 main promotions: Advertising, Sales Promotion, Personal Selling and Public Relations Efficiency of the promotions is depended on markets Advertising is one of the best promotions Advertising helps to send attracted information to potential customers Target of advertising attract attention and persuade the customer to believe the useful, attraction of the products It also helps to change or consolidate/reinforce customer’s behavior and believes about our products At the same time, the customers are urged to buy goods Sales promotion is in order to stimulate the market faster and stronger response to products and services of the company There are various promotional tools (samples, gifts) to achieve different goals depending on the promotional market, product and competitive conditions Promotion is an important part of the marketing mix for many marketers Promotion adds tangibility and helps the customer evaluate the service offer Personal selling is face-to-face communication of salesperson with potential clients It helps the salesperson to present, introduce and sell their products Selling personal makes client to pay attention to salesperson’s information Between sellers and buyers have a flexible interaction, adapting to the specific requirements of the customer and can lead to purchase behavior Advertising cannot do this The salesperson can persuade and resolve customer inquiries through personal selling In addition, it can establish and develop sales relationships However, the one has a bad image to the final consumer in practice This activity seems dishonest It uses a variety of techniques to push the customer Public relations as a tool increasingly considered important in marketing activities It is sometimes more stronger effect, higher efficiency and lower cost than advertising Public relation was made for many purposes, including enhancing the dissemination of corporation 7 reputation; creating a good image for proper business Also, it shows the interest of corporation to the development of the province (b) Service promotion Service promotion is to promote the service, seek chances to provide services This activity helps the business operations more efficient The forms of promotion services: Promotion; advertising; displaying, introducing service; participating in trades and services fairs, shows Promotion is to stimulate consumption, promote consumers to buy more and more services that are provided or distributed The principles of promotion are Honesty, openness and transparency; No discrimination; Supporting for Customer; Quality of service; do not abuse the trust; Healthy competition; No promotion of medicines Advertising is to introduce customers to the company’s activities of business and services Its products include visual information, actions, sounds, voices, words, symbols, colors, lights that containing advertising contents Advertising media is a tool that used to introduce products and services They include the public medias; news; publications; types of panels, signs, banners, posters, fixed objects, vehicles or other moving objects, etc Displaying, introducing the service are activities to promote the company's services and materials that used to introduce service to customers Their forms include: Opening showroom, service referrals; Displaying and introducing services at the malls services or funding in recreational activities, sports, culture and art; Organizing conferences and seminars have exhibited, service referrals; displaying and introducing services on the Internet, etc Trade fairs, services exhibition are promotion activities They are holding in a concentrated time at a certain location Companies display and introduce their services to aim promoting, seeking opportunities themselves for service contracts (Eg: Computer & IT Trade Shows 29 May – 01 June 2014 in Singapore, Motocycle Trade Expo 19-21 January 2014, etc) 4 Explain the role of intermediaries in planning and managing service delivery Sometimes when you buy a good or service, it passes straight from the producer to you But suppose every time you purchased something, you had to contact its maker? For some 8 products, such as a haircut, this is normal But what about the products you purchase at the grocery store? You couldn’t contact and buy directly from all the makers of those products Fortunately, companies partner with one another, alleviating this burden for you For example, instead of Unilever sells individual toothbrushes to consumers, it sells many of them to a store close to you, which then sells them to you Intermediaries, also known as distribution intermediaries, marketing intermediaries, or middlemen, are an extremely crucial element of a company's product distribution channel Without intermediaries, it would be close to impossible for the business to function at all This is because intermediaries are external groups, individuals, or businesses that make it possible for the company to deliver their products to the end user For example, merchants are intermediaries that buy and resell products Producer A Customer A Producer B Customer B Producer C Customer C Having 9 connectors Producer A Customer A Producer B Intermediaries Customer B Producer C Customer C Having 6 connectors The intermediaries reduce transactions in exchange of social Through distribution network that manufacturers can access to numerous customers everywhere Customers 9 contact only with a distributor that can buy a variety of products of different manufacturers In contrast, manufacturers contact only with a distributor that can sell more products to customers (Source: http://www.consumerpsychologist.com/intro_Distribution.html) There are four generally recognized broad groups of intermediaries: agents, wholesalers, distributors, and retailers Agents/Brokers Agents or brokers are individuals or companies that act as an extension of the manufacturing company Their main job is to represent the producer to the final user in selling a product Thus, while they do not own the product directly, they take possession of the product in the distribution process They make their profits through fees or commissions Wholesalers Unlike agents, wholesalers take title to the goods and services that they are intermediaries for They are independently owned, and they own the products that they sell Wholesalers do not work with small numbers of product: they buy in bulk, and store the products in their own warehouses and storage places until it is time to resell them Wholesalers rarely sell to the final user; rather, they sell the products to other intermediaries such as retailers, for a higher price than they paid Thus, they do not operate on a commission system, as agents do Distributors Distributors function similarly to wholesalers in that they take ownership of the product, store it, and sell it off at a profit to retailers or other intermediaries However, the key 10 difference is that distributors ally themselves to complementary products For example, distributors of Coca Cola will not distribute Pepsi products, and vice versa In this way, they can maintain a closer relationship with their suppliers than wholesalers do Retailers Retailers come in a variety of shapes and sizes: from the corner grocery store, to large chains like Coopmart and Big C Whatever their size, retailers purchase products from market intermediaries and sell them directly to the end user for a profit We can see intermediaries under 9 main roles, functions such as: availability, information, communication, negotiation, order, payment collection, financing, risk taking, title transfer - Availability: Primary role of middlemen is to transform the assortment of products made by producers in the assortments desired by consumers Producers make narrow assortments in large quantities, consumers want broad assortments in small quantities, discrepancy in quantity and assortment They match supply and demand (Eg: to get more convenience to buy the product; we can buy coke at the vending machines, convenience stores) - Information: researching market; collecting information to set up delivery strategy - Communication: promoting and advertising the products are sold; getting expansion information of products to attract potential customer - Negotiating: deliver tasks, benefits and responsibility Negotiating each other about the price, delivery conditions - Order: Approaching/connecting buyer, informing, selling Corporation must find and define buyers on different period of delivery channel They must notice about characteristic, price of products and delivery locations for customer Finally, they will get the customer’s order - Financing and payment collection: small manufacturers may have difficulty waiting for payment until goods are sold to the end-customer Wholesalers and retailers may negotiate lower prices from the manufacturer in return for quick payment Many of the cost savings associated with having an efficient system of intermediaries result from specialization 11 - Risk taking: they provide working capital by paying for goods before they are sold In the case of definitive purchase products with distributors, the commercial intermediary shared risk due to price fluctuations with manufacturers Therefore, manufacturers can quickly recover capital to reinvest in the next production cycle - Title transfer: many new small companies, un-famous brands through famous distribution channels (Coopmart, Big C, Metro Cash & Carry, etc) to be promoted and known Manufacturers specialize in what they do well, manufacturing products While others specialize in handling various phases of the distribution path Some specialize in retailing, usually selling a large assortment of goods in small quantities to a large number of end customers Wholesalers specialize in moving and goods from numerous manufacturers to a large number of retailers 5 Write a detailed note on CRM programmers Customer Relationship Management (CRM) is a business strategy for managing the best of customer relationship It helps reducing the cost and raising the profit through/by consolidating the satisfaction, support and loyalty of the customers CRM collects the information from all sources to build the full of information of a customer It serves for researching customer’s demands and habits It helps the relationship between the customer and provider better and more effective The providers can get goals easier With CRM, the customer’s information are updated and stored in database We can analysis, setup a list of potential customers or loyalty customers for suitable customer care strategies through a data finder In addition, corporation can solve relative problem rapidly and effectively 12 Customer Relationship Management (CRM) programmer is only an application of information technology of corporations It is applied for managing of customer relationship CRM programmer can help automation in corporation It can help corporation in managing chain of business activity Especially, It is very effective in customer management and purchasing chances With a CRM programmer, the corporation can establish a system of transaction rapidly; using this system for managing, operating marketing activity; purchasing, servicing and helping customer in business strategy CRM solution include 5 factors: - Internal Managing and operating - Sale Organizing and managing - Sales services - Managing of marketing activities - Reports and statistics All classes in company should use CRM from top manager to staff Their works on CRM include: Manager: Business statistics; Set up advertising strategies; Overviewing staff’s reports and tracking any staff’s process Administrator: Establishing database, set up CRM; Establishing system structure, set up system parameters; Establishing groups, users Staff: Importing information; Planning daily; Setting up and following sale chances; Mailing; Quoting; Ordering; Contracting The Functions of CRM programmer Transacting: CRM is operated as same as Outlook of Microsoft It permits us to transact email each other in CRM network Also, transacting email with outside network by POP3 accounts The CRM systems in Vietnam are responsible this function, such as VHT company, they provide the CRM solution that is integrated Brand Name & Email marketing Analyzing: CRM permits the company to build and analysis information for managing and inspecting its works For example, which customer is related its work; how long does it take? Which subject? Who is responsible? Many CRM solutions had available forms, schemes for business reports now 13 Planning: CRM helps to arrange working schedules for individual or group include daily, weekly, monthly schedule This function helps to manage individual working effectively With access rights, supervisor or leader can control staff’s productivity better; also they can adjust their management reasonable and timely Informing and managing: CRM permits us to inform and manage the customer relationship Thus, we can see the customer by their information CRM will help to find out the customers that often connected with our company; How many date with customer; who are the loyalty customer; and priority serving customer; etc Managing of contact: CRM permits us to manage and follow the phone calls in company It helps us to plan business phone calls and relative contents such as time of call, whom, duration, miss calls, etc This function is very effective with large amount of customers; or many staffs are divided the same responsibility Many customers complained that they had received many calls with the same information This makes aversion and unprofessional portrait for company in customer view CRM is the best solution to solve this problem effectively Saving and updating: CRM permits us to read and save any document From this, user can share each other sharing documents, reference documents Especially, when we are tripping for work, we still use the company’s sharing document store easily Also, we can send new documents into the store for coworker despite distance Thus, CRM helps quite to give up sending attaching documents by email formerly Supporting projects: CRM permits us to inform and manage necessary information about the projects that your company needs plan and organize With the main information, you can control list of member of project, such as: which company they belong; the process of project; time of appointment; time of contract, etc You can take apart the project and plan to do them Discussing: CRM makes an environment that everyone can exchange the information publicly by writing, replying and receiving information CRM can help online interchange in- group They can discuss, explain their ideas for any problem in despite of anywhere Managing contract: CRM permits us to manage list of contracts It can manage attach files of contract under PDF files 14 Administrating: CRM permits an administrator to establish role and position of salespersons, customer relationship staff The administrator can control and bring into play the role of the staff from that With differentiation of functions and high diversity of solutions, CRM helps the staffs to approach/reach system that suitable with their position This helps to avoid overlapping, irresponsibility, etc It makes convenient in management III CONCLUSION Service marketing is a relatively new phenomenon in the domain of marketing, having gained in importance as a discipline only towards the end of the 20th century It cannot absent in any business After analyzing the items and having referencing some example situations about services marketing, we understand clearly about services marketing and its importance Also, learning detail of CRM programmers are tools helping for everyone that makes marketing strategy efficiently Through this assignment, I can understand clearer this subject At the same time, I can apply it on my business REFERENCES - http://www.tapchicrm.com/index.php/tu-van-crm/tu-van-blog-huu-ich-suu-tam/147-toi- da-tung-nghi-crm-la-mot-phan-mem (Accessed 08 May 2014) - http://quantri.vn/dict/details/9590-vai-tro-cua-trung-gian-trong-kenh-phan-phoi (Accessed 08 May 2014) - https://www.boundless.com/marketing/marketing-channels/channel-intermediaries/ functions-of-intermediaries/ (Accessed 12 May 2014) - https://www.boundless.com/definition/intermediaries/ (Accessed 16 May 2014) - http://www.udel.edu/alex/chapt15.html (Accessed 16 May 2014) - http://www.consumerpsychologist.com/intro_Distribution.html (Accessed 17 May 2014) - http://www.saylor.org/site/wp-content/uploads/2013/02/BUS203-PoM-Ch8.pdf (Accessed 18 May 2014) 15