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
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
Spotting Gaps in Your Service Quality Word of Mouth
Service Delivery (inc1>. pre and post contacts) Translation of perceptions into Quality specs. Management perceptions of Consumer expectations External Communication to Consumers
Source: Parasuraman, A, Zeithaml, V and Berry, L, (1985), “A
Conceptual Model of Service Quality”, Journal of Marketing, Vol 49, pp
Service Quality Gaps
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
9. Total Product Transformation 10. Guts, Self Belief and the Bold Guarantee.
Tom Peters”Beyond Close to the Cutomer”.
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.
Practices to obtain consistent behaviour.
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
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
To create an internal environment which supports
customer-consciousness and salesmindedness among personnel
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
Internal Customer Segmentation**
Personal Development & Training
Recognition & Rewards
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
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??