Marketing Strategy and Planning The Value Proposition

By Dorothy Scott,2014-05-26 01:17
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Marketing Strategy and Planning The Value Proposition

    Marketing Strategy and Planning The Value


    Marketing Strategy and Planning

    The Value Proposition

    Review of Last Session/Housekeeping

    Questions from Last Session/Marketing Assets and Brands How does a brand add value?

    Why doesn’t a product do the same?

    What are the extra benefits that a brand gives that ads this extra

    value to the customer/company?


    Value Proposition Differentiating through People and Service

     New Developments

Service Characteristics and the 7 P’s




    *No opportunity to Evaluate

    *Need for Tangible Cues


    *Simulataneous Production and Consumption *Importance of Service Provider


    *Standardisation of Quality Difficult PERISHABILITY

    *Service Cannot be Stocked

    Supply and Demand Matching

    4 Ps PLUS 3 extra Ps


    Physical Evidence


    Spotting Gaps in Your Service Quality Word of Mouth

    Personal Needs

    Past Experience

    Expected Service

    Perceived Service

    Service Delivery (inc1>. pre and post contacts) Translation of perceptions into Quality specs. Management perceptions of Consumer expectations External Communication to Consumers



    GAP 1

    Source: Parasuraman, A, Zeithaml, V and Berry, L, (1985), “A

    Conceptual Model of Service Quality”, Journal of Marketing, Vol 49, pp


    GAP 2

    GAP 3

    GAP 4

    GAP 5

    Service Quality Gaps

    Service Differentiation



    Customer training





    Service Quality Exercise

    In small groups, identify the dimensions customers may use to evaluate

    the service quality of an organisation

    Compare your list with Zeithaml, Parasuraman and Berry’s listing Ten Major Propositions about Service 1. Remarkable Comebacks

    2. Attitude, Listening, Perception and Empathy

    3. Delight not Satisfaction 4. Managing Expectations

    5. It’s about People Stupid!!

    6. Self-Esteem v. Training 7. Constant Improvement

    8. Measurement

    9. Total Product Transformation 10. Guts, Self Belief and the Bold Guarantee.

    Tom Peters”Beyond Close to the Cutomer”.

    Personnel Differentiation








    Personnel Differentiation

    Consider how Allied Lyons seeks to differentiate it’s pubs by the people they employ

    Name other organisations that achieve Personnel Differentiation?

    We were told that we put on a show for our customers... So all the relevant terms apply. We don't wear ;uniforms,; we wear ;costumes.; When people can see you, you're ;onstage; and the non-visible areas are ;backstage.; The visitors to DL are ;guests,; not ;customers; - we should treat them like guests in our own home. If guests can see us, we need to act our part with the right body language: smile (and not just with your mouth), never cross your arms, never lean or sit, never point with less than two fingers, never act preoccupied, annoyed, or bored. We are paid to act happy, you see. ALL THE TIME.

    Quality Control and Disney*

    * Source:- .mouseplanet3>

     Present-day CM manuals - Artwork ? Disney

    Part of the SHOW is the correct appearance. To this end we each received a ;Disney Look; book, visually detailing guidelines on such things as earring size, fingernail length and colour, hair styles and length, tattoo's, jewellery allowable, length of skirts and pants, beards and moustaches, and so on. The rules are actually pretty specific.

    Another booklet. The ;Disney Way; booklet, provided a mixture of pixie-dust happiness and down-to-earth work expectations. Nowadays the

    booklets all have different names, as seen above. Someday I'll lay out these guidelines in more detail, but an example would be what is said about holidays: we get paid to work while others play (reading between the lines: don't ever expect to have a holiday off). Disneyland's busiest days are holidays, thus we should expect to work all of them.


    Consider the following:

    What activities (above and beyond internal marketing) are necessary to improve and sustain the quality and performance of service personnel?

    Is such an approach ethical?

    Is it appropriate to see people as part of service quality therefore?

    Some of the practices designed to produce consistent behaviour have been counter-productive (the “have a nice day” syndrome). “Emotional labour is a potential problem for service quality control, ie where behaviour is from but not of the person providing the service.

    Maintain and Improving Service Personnel Quality and Performance

    Selection and training.

    Internal marketing.

    Practices to obtain consistent behaviour.

    Consistent appearance.

    Reducing personal contact.

    Use of service personnel audits.

    Source: Cowell, D, 1991, The Marketing of Services, Butterworth Heinemann, pp 206-218.

    The Internal Marketing Concept

    The IM concept holds that the first group that you market to in any organisation (and particularly where service is important) is not the customer but the internal market in the shape of your own employees

    Nota Bene:

    Check out P.K.Ahmed & M.Rafiq for articles/texts in the IM area.

    Summary of the Internal Marketing Concept

    Overall Objective, I.M.

    To get a motivated and consumer-conscious personnel

    Strategic Level

    To create an internal environment which supports

    customer-consciousness and salesmindedness among personnel

    Tactical Level

    To sell services, supporting services (used as a means of competition), campaigns and single marketing efforts to the employees

    I.M. Tactics Contd.

    The personnel are the first market of the company.

    The employees must understand why they are expected to perform in a certain manner or in a certain situation actively support, for example, a given service or supporting service

    The employees must accept the services and other activities of the company in order to be expected to support them in their conduct with the customers

    A service must be fully developed and internally accepted before it is launched

    The internal information channels must work. Personal selling is needed internally too

    Gronroos, C., (1981), “Internal Marketing-An Integral Part of

    Marketing Theory”, in Marketing of Services, AMA

     Recent Additions to the IM Litany

    Organisational Design

    Multi-disciplinary Teams

    Staff Surveys

    Internal Customer Segmentation**

    Personal Development & Training

    Core Competencies


    Recognition & Rewards

Internal Communications

    Performance Measures

    Building Supportive Working Relationships

    Organisational Culture and Mission/Philosophy

    Clarke, M., (2000), Customer Service, People and Processes, Marketing

    Management: A Relationship Marketing Perspective, Cranfield School of

    Management, Macmillan.

    Segmenting based on I.M. needs

    The Different Roles Fulfilled by Employees May be Classified Thus:- Influencers




    Involved with Conventional Marketing Mix

    Not Directly Involved with Conventional Marketing Mix Frequent or Periodic Customer Contact

    Infrequent or No Customer Contact

    Judd, V.C., (1987), “Differentiate with the Fifth P:People”,

    Industrial Marketing Management, Vol. 16, pp. 241-247 Question: How may this effect Synergy within the Pathway??

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