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Trang 1 Bài tập chuyên đề: SERVICES MARKETING – CRM1- Explain the role and significance of services in the modern economy2- Write a detailed note on pricing strategies for services.3- An
Bài tập chuyên đề: SERVICES MARKETING – CRM 1- Explain the role and significance of services in the modern economy 2- Write a detailed note on pricing strategies for services 3- Answer the following: (a) Explain the role of marketing communication (b) Service promotion 4- Explain the role of intermediaries in planning and managing service delivery 5- Write a detailed note on CRM programmers I- INTRODUCTION In today's economy, growth of the service sector plays an important role to the growth of the entire economy, has the direct impact on sectors of production (agriculture, forestry, fisheries, and industry - construction) and increases value-added for these sectors In the future, the role of economic services will be enhanced due to the increase of the proportion of service sector in GDP Regional Development Services is the world trend Nowadays, most of the corporations are operating in a dynamic and aggressive market where there are always lots of challenges and opportunities One of the challenges is that businesses must face with competitive environment which is extremely intense and complex Marketing is the process of communicating the value of a product or service to customers, which every corporation has to focus on Marketing activity is one of the effective tools to help businesses maintain and gain long-term competitive advantage in the market as marketing helps businesses solve the relationship between businesses and other markets From a societal point of view, marketing is the link between a society's material requirements and its economic patterns of response Marketing satisfies these needs and wants through exchange processes and building long term relationships 1 While product and pricing strategies can only be created in the short -term advantage because other businesses could create a similar strategy to the compete, the effective strategies and distribution channels applying CRM program will create differences compared to the competitors in the market Therefore businesses which want to achieve success must be much focused on distribution channels and apply CRM program effectively After being studied management marketing with the above statements, I decide to choose Topic 1 : SERVICES MARKETING - CRM with the below questions and answers: II- BODY : 1- Explain the role and significance of services in the modern economy 1.1- Definition of service : Services are social work activities, creating commercial products that do not exist in physical form (intangible commodity), obtain exclusive ownership of the thing purchased in order to satisfy the timely demand for production and human’s life 1.2- Characteristics a- Stability Service skills do not lose after supplying For example, the singers’ voice does not lose after a successful show; doctors lose none of his technical ability after a successful surgery b- Intangibility Services are intangible and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, and tasted Service can not be measured by the normal method of measuring the volume, weight Patients may not know the results before medical examination, tourists do not know the impact of the services before they are offered and received A special form of existence of the increasingly popular services is information, particularly in the modern service sector such as consulting, legal, audiovisual services, telecommunications, computer the process of production and consumption associated with this service can not take place simultaneously On the contrary, in 2 other common services such as distribution, health care, transportation or travel requires direct contact between the service providers and consumers c- Inseparability Services are produced and consumed during the same period of time.Unlike most physical products; service products can’t be stored before consumption Services can not be separated from its source though existing material goods does not depend on the presence or absence of its origin d- Variability Quality of service usually fluctuates in a very wide range; depending on the circumstances which create services (such as suppliers, time and place of supply of service) e- Perishability Services can not be stored For example, we can not buy tickets of the football match to watch another match If the demand were stable and predictable, it wouldn’t be problem However, practical service needs are often unstable and fluctuating so the company providing these services can meet the obstacle problem on the issue of using human and technical infrastructure f- Large proportion of intellectual content in service sectors One does not need the input materials as tangible production lines or plants to produce services; the most important role in service activities is the human factor, represented by the intelligence and the use of specialized skills with the support of tools, equipment It does not depend on muscle strength or activity associated with the massive production lines For the traditional service sector such as distribution, transport and tourism, the importance of the material and technical base is also significant; however, the role of knowledge is still primarily and can not be missed g- Sensitivity of services to the rapidly change of technology: This is the most important feature of the service, reflected in the quality of services which is constantly professionalization; more importantly, the continuous emergence of new services Especially in the cell phone service , The first automatic analog cellular systems in the early 90s were transferred to the digital cellular 3 network-the second generation, now in the early years of the 21st, mobile broadband data becomes more widespread which can help to access internet very easily at anytime and anywhere The development of services in the economy, including: The infrastructure services ↓ The support services ↓ The entertainment service ↓ The time-saving service (Source :After Bruce R.Guile and James Brian Quinn,eds., Technology in service : Policies for Growth, Trade and Employment, Washington, D.C : National Academy Press, 1988 p.214.) Starting from the '70s until now, the World economy based on technology and intellectual.The goods are manufactured with low cost but high price including the cost for services and ideas Consumers purchase value of the goods which are the value-added and other (services and ideas) Therefore, service plays a very important 4 role and becomes increasingly dominant in modern economies because service meets the needs of customers immediately, production and consumption occur simultaneously, the socio-economic effect is higher, business environment becomes more dynamic Economic efficiency and social services which bring often much larger than ordinary goods, such as the typical invention, copyright, technical know-how, licenses, franchises Benefits of goods range of intellectual products that are extremely large, including educational services, often promote the development of the knowledge economy In early 21st century, services occupy a high proportion of in the economy: GDP of the U.S , Britain , Canada is nearly 80 % Many of other developed countries also follow the general trend development: services account for almost 80 % of GDP But in developing countries, this figure is usually significantly lower, averaging around 35-40 % of GDP In the process of economic development, the service sector expands rapidly and usually attracts large number of jobs (jobs) In the U.S., the proportion of labor and employment in the service sector in 1994 accounted for 75 % of all new jobs in America This figure in other developed countries such as the UK, France, Italy, Germany, Japan, and Canada was approximately equal compared with the U.S., especially in the field of sales (including wholesalers and retailers) On the world market, according to UNCTAD, trade service accounts for about one quarter of total current international trade value Growth of international trade service is usually very fast and has an average of 12-15 % / year Service developments contribute to gradually shift material production to other countries, especially the developing countries to take advantage of the cheap labor force Moreover, this trend is to reduce the environmental pollution caused by the production in his country, and move it to other countries It is the reason why developed countries have trade deficit in goods but trade surplus in services Ortherwise, the developing countries have trade surplus in goods and trade deficit in services 5 Overall, in the trend of current globalization, services play an increasingly significant role in the economy of developing countries, especially in new sectors such as telecommunications, electronics (careers with high technological requirements) The role of services in the developing countries remains low, but is rapidly increasing due to the general trend of the world economy 2- Write a detailed note on pricing strategies for services Developing and managing the approriate pricing strategy is an important condition to ensure that businesses can access markets and business operations with high efficiency But the price is affected by many factors The formation and movement of it are very complex The management of pricing strategies requires to be solved many synthesis and synchronization problems Price is one of four important feature of marketing mix Price plays a decisive role to help customers in choosing topurchase what kind of goods For the company, the price has a decisive competitive position in the market The estimate of the pricing of products is very significant To develop the new products, business must have appropriate pricing strategies to create value for products in the market To make use of pricing strategy for new products, enterprises can pursue the following basic objectives: -To survive (the price is higher than the cost) - To maximize immediate profits - To increase market share - For quick returns - To lead about the quality - The other goals: a business can use price to serve a number of more specific objectives Businesses can set low prices to prevent competition or equal prices compared with competitors in order to keep the market stable The price may be determined to show business’s reputation, to support dealers or to avoid government intervention Some pricing strategies are as follows: 2.1- Penetration Pricing: 6 Penetration pricing is a pricing strategy where the price of a product is initially set at a price lower than the eventual market price, to attract new customers Companies launch products at a price that only gives them a very small profit, because they want a big market share The lower cost will stimulate the growth of market share If you need to apply this strategy, there are some following conditions: - In the price sensitive market, low price will stimulate market growth - Decreasing costs due to improvement and experience - Due to low prices, enterprises can reduce real or potential competition because their competitors don’t find it attractive when the profits is low 2.2- Market-Skimming Pricing: In most skimming, goods are sold at higher prices so that fewer sales are needed to break even Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market This strategy is often used to target "early adopters" of a product or service This policy is particularly suitable for the new product because : - In the early stages of the life cycle of a product , the price is not the most important factor - Market will be assigned according to their income which it gains from higher prices - It may be a protective factor when determining the wrong price - Initial high price will limit demand in the original production of enterprises For example : When the company manufacturing supercars like Bugatti, Ferrari, Lamborghini sell new products, they are often at very high prices and limited quantities Though they sell a small amount of products, they can gain a lot of profit for each product In 2013 Ferrari sold 6,922 cars , less than 5.4 % compared with a year earlier , but sales rose 5 % to 2.3 billion euros , net profit reached 246 million euros ( increased 5.4 % ) (Sources : Bán ít xe hơn, Ferrari vẫn đạt lợi nhuận kỷ lục năm 2013 Available at : http://www.autodaily.vn) 2.3 strategy based on Product Life Cycle Pricing: 7 Every product life cycle also includes 4 stages Depending on each stage of the product cycle , the situation of the company , competitors , markets the company will apply the appropriate pricing strategies: - Introduction: This is the stage in which a new product is first made available in the market In the introduction stage, customers are few, competition is less, sales are low, risk is high and profits are low or nil - Growth: In this stage, products is widely recognized in the market and the company can significantly increase profits - Maturity Once the product is well established and consumers are satisfied, then the product is widely accepted and growth slows down Before long, however, a successful product in this phase will come under pressure from competitors The producer will have to start spending again in order to defend the product's market position or introduce extension strategies - Decline: This is the stage in which sales tend to decline and diminishing returns 2.4- Discount pricing strategy A cash discount is a deduction allowed by the seller of goods or by the provider of services in order to motivate the customer to pay within a specified time The cash discount is also known as an early payment discount For example: a common cash discount is 2/10, net 30 and it will appear on the sales invoice The invoice will be paid within 30 days However, the buyer can deduct 2% if the buyer pays the seller within 10 days of the invoice date The discount is quite common and it aims to improve the payment of customers and reduce bad debts Quantity discounts It is normal to offer quantity discounts to customers who purchase in large quantities This discount must be applied to all customers in order to encourage them to buy more thus the company can greatly reduce the cost and increase the overall profit Commercial discount An amount or rate by which the catalog, list, or retail price of an item is reduced when sold to a reseller.it is used to encourage resellers to fullfil their tasks 8 Seasonal discounts: they are appropriate to reward customers who purchase during off-peak times For example, the hotel near the sea discount the price of rooms in the winter 2.5 Discount actively Many circumstances can cause a company to consider about discounts to their products, although this could cause the price battle One reason is the excess capacity, companies need more customers but it can not be achieved by other means Another reason is that the competitors sell product with lower price; so, the Company has to reduce prices to compete with rivals Moreover, the company discount to sell all of its inventory Eg : In Some U.S industries- cars , electronics , appliances, cameras , watches and steel are losing market share to their competitors-Japan because Japanese products are of high quality and cheaper than American products in the west coast where competition with Japanese is strongest , General Motors has to discount its mini car IEU down to 10 % 3- Answer the following: (a) Explain the role of marketing communication (b) Service promotion Answer the following: (a) Explain the role of marketing communication 3.1- Definition of marketing communication Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brand they sell-Philip Kotker Through the message content, businesses inform customers about their presence, the products on the market, convince customers of the quality of products compared to competing products, and remind them of the product whenever they need Marketing communication is also known by the equivalent term as promotion (marketing promotion) which is one of four elements of the marketing mix 9 3.2- Role of marketing communication Marketing communication is an important element, effectively supporting for other marketing mix strategies The marketing strategies and tactics which are effective deloyed will help to reduce the communication activities However, there are very few services; especially in a competitive environment nowadays, can ignore the role of marketing communications Moreover, today's product life cycle is shorter and shorter, so the view "good wine needs no bush" is no longer pratical Through marketing communication strategies, business informs potential customers of the advantages, uses, values and benefits their products Therefore, marketing communication strategy will help businesses increase sales of existing products, create customers’ awareness and favorite for new products, and build up a good business for the company However, businesses need to incorporate communication strategies with other elements of the marketing mix to create a synergistic effect Communication also helps enterprises to promote the brand Especially in the sales of hazardous goods such as tobacco, alcohol, drugs the role of marketing communications is particularly important For example : Although wearing a helmet when riding a motorbike , or protecting the environment from pollution is essential for human life , the State must spend a lot of money on marketing communication programs to make people understand and implement voluntarily Process of marketing communication 10 To deliver marketing messages to the target market, enterprises must use a combination of different communication tools Therefore, marketing communications is one of marketing mix elements in order to impact on the target market Marketing communication strategy itself is a promotion mix which includes the following elements: a- Advertisement: is a paid form of non-personal presentation of ideas , goods and, services performed by the sponsors Advertising is done by the business / organization and they must pay the costs of advertising for implementing the various stages of the advertising process including consulting , designing , implementing advertising programs Businesses can advertise through media such as radio , television , press, outdoor advertising b- Public Relation: is the indirect communication activity of the enterprise in order to get public attention on business and its products Examples include newsletters, annual reports of companies, the finance activities, charities, lobbying c- Publicity: Is the communication activitY in order to increase the credibility, increase public sympathy for enterprises, and indirectly stimulate consumers’ demand for their products Enterprises don’t need to pay for the media such as advertising Propaganda can be regarded as a special form of public relations Examples include annual report sent to shareholders and government; newspaper article; programs on TV, Radio; seminars; lobbying d- Sale promotion: is a short -term method which is used to support advertising and sales as well as encourage and stimulate customers to buy products Moreover, it also stimulates consumption and other distribution channels in sales (known as “Trade promotion " ) Examples include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes e- Personal selling: is the process of direct contact between the potential customers and the salesperson to advise, recommend, convince them to choose and buy products Personal selling must follow a certain process It requires sellers to be creative, flexible to deal with numerous selling situations and many kinds of 11 customers Examples include Sales Conference, product sample, Trade fairs and exhibitions, Bonus programs, the title salesman … f- Direct marketing: is a form of communication using email, phone and tools for indirect contact to existing customers, potential customers in order to get their feedback Examples include Direct mail, Telemarketing, Buying and selling through TV, telephone, through blogs or websites g- Word of mouth: is a form of communication with loyal customer who may talk to other potential customers Word of mouth helps potential customers seek information via methods such as Chat room, blogs, and Social networking sites (face book, you tube ) (b) Service promotion In service sector, especially in high-contact services, customers directly participate in the production process, marketing communications strategies work in larger scope than the manufacturing sector The front-line staffs seem to be a very effective channel Location is also as an important communication channel They are called '' media production” That service is at any stage of its life cycle is also an important feature to consider In the first stage of the life cycle, the key objective is to increase customer awareness of the new service; so, advertising and public relations are the most important communication channel Stimulating consumption can be used to stimulate customer trial, and in some cases personal sales can expand market access During the growth of service sectors, the use of the media channels from the manufacturer is usually reduced because of the effective word -of-mouth messages from customers to other ones However, competitions also appear and become more and more fiercely; so to strengthen promotional activities along with stimulate consumption are very nessesary Finally, in the advertising recession, consumption stimulation must be reduced, even though it still works effectively Some typical channels of the media services business Due to the integral characteristics between the production and consumption of services, customers directly involve in the communication with the service provider 12 Through which, the service providers have the opportunity to communicate with customers If service provider can make use of these media channels, they can take advantage of this opportunity to advise, recommend, persuade customers to purchase their products and become loyal customers Thus, two typical channels of business communication services are the front-line staff and the physical environment of service providers a- The role of Front-line Staff The staffs at the frontline operators (Front-line Staff) in service business are considered semi-professional marketing staff Their activities play an important role in building the business’s images and creating customer goodwill They must have skills in introducing services to meet the needs of the customer when the customer is not satisfied with the current services, selling products; communicating with customers b-The role of business location Business location helps customers to seek information about its current services Therefore, this is an important communication channel for current customers and other potential ones Exterior and interior architecture at the business location also help to create good image of the company A post office, a bank branch or KFC which has clear and recognizable signs; beautiful, tidy andcomfortable interior will attracts more customers than ads on TV The business locations are also a convenient place to hang advertising signs of the businesses 4- Explain the role of intermediaries in planning and managing service delivery In the market economy today with the participation of many companies in the same business sector, it’s impossible for businesses to directly deliver (or hard to sell) their product or service to the end user; as a result, they must depend on “Marketing intermediaries “ Through intermediaries, goods and services are distributed to consumers effectively, which can help business achieve its target and meet customers’ needs These intermediaries have created distribution channels of the business, which is one of the 4 most important elements of the Marketing System - Mix 13 Distribution channel is a collection of individuals or business that involves in the process of creating and moving products or services from producers to consumers 4.1- The role of intermediaries: There are many reasons for using intermediaries The transfer also means that the suppler can not control over the product about how to sell or whom to sell to However, manufacturers can gain many advantages from intermediaries Intermediaries operate at much lower costs than manufacturers who try to manage the entire process Delivery time is also saved because of the expertise and experience of intermediaries The direct marketing may require more manufacturers to be intermediaries in order to sell complementary products of other manufacturers to achieve savings through mass distribution Even when producers are eligible to set up their own distribution channels, and are capable of achieving more profit by raising more capital investment for their core business, they still choose distributing products through intermediaries If an enterprise achieves the rate of return which is 20 % of the production , and can only achieve the rate of return of 10% from the distribution , they will not undertake to retail the products Due to interactions, specialization, experience and scale of operations, distribution intermediaries will help producers get much more benefit than they conduct all the transactions themselves The emergence of intermediaries reduces exchange transactions in our society According to the economic system, the fundamental role of intermediate is to help many different suppliers sell products that buyers want to buy Because producers often create a certain category of products in large quantities, but consumers usually desire only a certain number of products with abundant categories 4.2- Functions of distribution channels: Distribution channel is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer They fill the gap of time, space and ownership between consumers and products or services The members of the distribution channel perform some following major functions: 14 - Information : Collect necessary information to plan marketing stratergies and facilitate the exchange of products and services - Shareholders: Implement and disseminate persuasive information about products to Attract Customers - Exposure: seeking and communicating to prospective clients - Balance: Format demand and distribution of products to meet needs of the customer This includes activities such as manufacturing, loading, collection and packaging - Negotiation: Attempt to reach final agreement on price and other related conditions to implement the transfer of ownership or rights to use the product - Distribution: shipping and storing goods - Financing: Raise and allocate the capital needed to store, transport, sale and payment for the operating costs of the distribution channel - Risk taking: Accept the risks involved in the operation of distribution channels 5- Write a detailed note on CRM programmers CRM Programmers are comprehensive service management solution software and customer care The system has many advanced features to help enterprises manage millions of customers, sales opportunities, market campaigns, VIP card, bonus points, calendar, tasks of salesman, marketing with ease and accuracy Moreover, CRM programmers is the business strategy to improve profitability , revenue and customer satisfaction , it consists of software , services and new ways of doing business to increase profits , revenue , customers satisfaction to keep customers’ loyalty By helping businesses of different sizes to identify real customers, quickly obtain and maintain long-term relationships with them CRM programmers have the following main features : 5.1 customers’ contacts management: CRM programmers offer free database of millions of business contacts such as customer name , type of operation , phone number , email , fields , CRM programmers synchronize data from available business directories into potential opportunities of business easily 15 5.2 - list management of opportunities : Opportunities are the sale prospects or the business is still in the negotiation process Opportunity Module helps to get overview of monitoring , statistics , analysis , synthesis daily transactions off sales staff ,and decide which stage the chances are in , how much chance of success , how many opportunities lose, sales opportunities as well as the total number of product opportunities each month Thanks to that , the sales staff can closely manage each sales opportunity and identify effective ways to get customers’ attraction, managers can analyze and predict the business situation of enterprises in the next time to change and apply the appropriate business strategy to achieve the maximum profit 5.3 Product Management: Manage the entire product portfolio in the system: managing price, quantity and product details, date of the entry of goods, the name of manager, whether the goods are in stock or out of stock and monitor editing history of the products The program also manages all forms, product details, manuals, brochures, and documents related to this product In addition the system also allows us to note all the review of the product For example: If the product has wrong parameters or need to be modified to report back to the department manager , you choose tad Notes below the product to start the process 5.4 Contract Management: Contract in CRM Module allows users to closely manage each sales contract, statistics of how many sales opportunities have been done, the success rate of sales from prospective clients and the prospects of marketing campaigns, revenue from the contract Thereby manager can fully assess the performance of each employee 5.5 Operations Management a-Work schedule, List of business appointments The software arranges the appointments and reminds the staff, which helps users to manage and use the time effectively Work schedule system also helps users assess the progress of work In addition, this software helps to manage and control the time and the work situation during the day, week and month to know the completion of work of each staff b - Task Management 16 Classification of tasks according to criteria such as the assigned tasks , my tasks , other tasks will help employees manage their tasks and find out the method to work logistically and efficiently Moreover, staffs can get the assigned tasks through software without directly meeting with their superior c - Campaign management - Manage marketing campaigns of the company - Track campaign effectiveness based on customer data - Implement campaigns for mass mailing campaigns to customers 5.6 Promotions management - Manage the list of promotions , sales policies - Setting the promotion time according to period , kind of customer or type of product 5.7 - list management of membership card , VIP card , bonus points - Manage list of customer using the card - Manage a list of saving point of customers - Manage to rank card - Print directly on the card software 5.8 Management of requirements and feedback of the customer: This module helps managers and employees capture feedback and customer’s comments, Thereby, it will improve to timely response the customer’s needs 5.9- Email, SMS Marketing Sending bulk of SMS and Email marketing is an effective tool to support the marketing and sales campaign The software can send a message with similar content to mobile phones and email addresses of thousands of customers in the shortest time For example : On the new year , your company wants to send congratulation message on the new year to 1,000,000 customers Thanks to mass SMS sending tool , you only need to establish the list of these 1.000.000 customers, after that compose a sample message or click on a sample text , then proceed to send SMS In just a few minutes, your company is able to send text messages to the mobile phones of 1,000,000 customers with information that is personalized to each customer 5.10-Internal chatting 17 Thanks to the internal chatting, managers can inform the important notice by sending bulk messages to employees using CRM In addition, managing the entire chat history for each internal staff and saving the chatting content with each employee will become helpful in some bad situation 5.11- Statistics report The system can help you analyze customer by circumstance, type and region III CONCLUSION While answering 5 questions of topic 1, I realize that with high proportion in GDP, the service will play crucial role in national development because services have rapid growth, intelligence in services is high and can create greater value for products, and moreover, services attract a large number of employees and minimize environmental pollution In the 21st century, I believe that the country will be very focused on the development of services to improve the efficiency of economic development of the country For businesses, marketing is very important and should promote the strength and effectiveness through specific strategic marketing as the marketing mix, pricing strategies, marketing communications and especially business must build distribution channels and make use of CRM system effectively When businesses can build effective marketing strategies, their products will be known by many customers, so they will sell more products than their competitors and will dominate the market, enterprises will gain good profit However, to get an effective marketing strategy is not easy, which requires businesses to have good leadership, and good marketing team who is devoted to their work and their products and this is also the challenge for enterprises in the fierce competitive environment nowadays IV REFERENCES 1 Vai trò của dịch vụ trong nền kinh tế thế giới Available at : http://www.dankinhte.vn (Accessed 09 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