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Consultancy Services Marketing

Prepared by :Abhishek SasanMunish Arora

Marketing of Consultancy Services Consultancy is an act of being a consultant who is a professional who provides

professional or expert advice in a particular area.

Consultancy services fall towards the extreme right in service continuum where the

intangible dominant is high.

Marketing of Consultancy services consist of following features:

1. Intangibility

2. It can’t be stored

3. Variation in standard delivery

4. Perception of performance standards

Significance for Marketing of Management Consultancy Services

Many management consultants seeks to emulate more established professionals.

Indian management consultant is dependent for a livelihood on fees.

Projects are the main source of income for individuals and firms doing

management consulting.

Capabilities of Management Consultancy

Market knowledge and capability

Consulting competencies

Consulting skills, behavior and ethics

Interpersonal and communication skills

Ability to work in a fast paced environment

Following questions must be asked by the management consultants themselves as follows:

Which clients really want from us?

What is the client’s satisfaction level we are creating?

What is our professionalism’s level?

How we do project ourselves to our clients?

What steps must we take to improve our quality of services

Evolution of a Marketing Strategy

Product planning—a. Consultancy specialization is a productb. Problem solving is another productc. Technique based productsd. Process-oriented approach is a product

Market segmentation

Positioning strategy for marketability

Organization of marketing function

Sales promotion and code of ethics

Criteria for choosing marketing methods

Define the long-term and short-term objectives

Determine strengths in terms of expertise

Conduct market research for segmenting the market.

Evolve a marketing plan and organize the marketing function.

Select sales promotional methods

Implementing the marketing plan.

Service Delivery Models

The Biggest Consulting Firms

• Accenture (IT, Operations, HRM)• Cap Gemini (IT, Operations)• CSC (IT, Operations)• IBM BCS (IT)• PWC (IT, Operations, HRM)• KPMG / Bearing Point (IT, Operations) • Deloitte (IT, Operations)• McKinsey & Co. (Strategy, Operations)• BAH (Strategy, Operations)• Mercer (Strategy, HRM)• Anderson (Operations)• A. T Kearney (Strategy, HRM)• Monitor (Strategy)• BCG (Strategy)• A.D. Little (Strategy)• Bain & Co. (Strategy)

Segmentation

• Industry– Telcos - Health– Digital Media - Manufacturing– Finance & Banking - FMCG& Retail– Utilities - Transportation

• Function– Strategy - HRM– Operations - IT (incl. e-business)

• Sector– Non-profit– Public– Private

/ Utilities

Technology Providers

Software Providers

Service providers

McKinsey

IBM

A.T. Kearney

Oliver Wyman

Deloitte

Accenture

PwCCSC

EDS

Scient

Sapient Diamond

Strategy Consultants

A Consulting Typology

Initial Contact Definition Proposal & Contract Data Collection

Data Analysis

Decision-making,PlanningIntervention

Disengaging

Review

The Consulting Life-cycle

Five basic principles of consulting

• Focus on the Relationship: Understanding the personality and expectations of client, client organization and all other stakeholders

• Clearly Defined Role: Defined roles and responsibilities for both clients, other stakeholders and consulting team

• Visualize Success: Helping the client see the end at the beginning

• You Advise, They Decide: Client is the best person to decide• Be Oriented Towards Results: Ensuring that the solution

addresses end user concerns, user training, implementation and maintenance constraints

Consulting skills and tools

• Consulting organizations that use holistic and structured tools rather than rely on simple process are more likely to provide clients with a rounded and appropriate review. The Business Improvement Review is one such tool. It is holistic in that it looks at all of the PRIMO-F factors:

• People• Resources• Ideas and Innovation• Marketing• Operations• Finance

POTENTIAL ENTRANTS

New single or small New single or small consultants consultants Low barriers of entry

BUYER’S POWER No switching costs No switching costsNew compensation New compensationsystems systemsMake consultants partly Make consultants partlybear the risk bear the risk

SUBSTITUTES IT-& Technology- IT-& Technology-companies companiesInhouse-Consultancies

SUPPLIER’S POWER Clients seek for Clients seek for integrated solutions integrated solutions

COMPETITIVE RIVALRY Increasing because of Increasing because ofeconomic situation, new economic situation, new competitors and competitors and continuous changes continuous changes

Porter’s 5 Forces in the Consulting Industry

7 principles for marketing consulting services:

1. Regard the clients’ needs and requirements as the focal point of allmarketing!2. Remember that every client is unique!3. Don’t misrepresent yourself!4. Don’t oversell!5. Refrain from denigrating other consultants!6. Never forget that you are marketing a professional service7. Aim at an equally high professional performance in marketing andin execution

The Services Marketing Triangle

Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“setting thepromise”

RELATION BUILDING

1.Regard the clients’ needs and requirements as the focal point of allmarketing!2. Remember that every client is unique!3. Don’t misrepresent yourself!4. Don’t oversell!5. Refrain from denigrating other consultants!6. Never forget that you are marketing a professional service7. Aim at an equally high professional performance in marketing andin execution

7 P’s

Traditional Marketing Mix

• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:

Product Price Place Promotion

Product

The price is highly dependent on the case-size. It is obvious that a small case involves fewer consultants and needs lesser time than a case for a global company undertaken in several countries during a longer space of time.

Nowadays exists also the opportunity that consultancies ‘take over’ clients businesses. Deutsche Bank for instant outsourced its data processing service centre in Heidelberg (Germany), which is now managed by CSC (Computer Science Corporation). Both, Deutsche Bank and CSC share a profit equally

Price

Tangibility Spectrum

TangibleDominant

IntangibleDominant

SaltSoft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

ManagementConsulting

Teaching

Fast-foodOutlets

Fast-foodOutlets

Expanded Marketing Mix for Services

PRODUCT PLACE PROMOTION PRICEPhysical goodfeatures

Channel type Promotionblend

Flexibility

Quality level Exposure Salespeople Price level

Accessories Intermediaries Advertising Terms

Packaging Outlet location Salespromotion

Differentiation

Warranties Transportation Publicity Allowances

Product lines Storage

Branding

PEOPLE PHYSICALEVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles

Expanded Marketing Mix for Services