MGT-519 STRATEGIC MARKETING

AAMER SIDDIQI

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LECTURE 27

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RECAP• PR tools• Key steps in implementing PR• Advertising• Why advertise• Rules of advertising• Effective advertising• Commonly used media• Effectiveness of media• Trade fairs and exhibitions

SERVICE MARKETING MIXEXTENDED MARKETING MIX (7Ps)

•A service is not tangible the marketing mix for a service has three additional elements: 1.Physical Evidence2.People 3.Process •By adding these three aspects to the marketing mix, you get what is known as the “7 P’s of Marketing.”

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PHYSICAL EVIDENCE• The environment in which the service is delivered and where

the firm and customer interact, and any tangible components that facilitate performance or communication of the service’.

• E.g. Retail premises, bank branches, restaurants, or hotel premises would be good examples

• Physical environment has to be consistent with the other aspects of the marketing mix.

• E.g it’s difficult to justify a high quality restaurant status that has excellent food

• A strong positive brand image and a price to match if the premises themselves are of poor quality.

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MATERIAL PART OF SERVICE• Physical evidence is the material part of a service. • Strictly speaking there are no physical attributes to a service,

so a consumer tends to rely on material cues. There are many examples of physical evidence,– Packaging.– Internet/web pages.– Paperwork (such as invoices, tickets and despatch notes).– Brochures.– Furnishings.– Signage (such as those on aircraft and vehicles).– Uniforms.– Business cards.– The building itself (prestigious/scenic headquarters).– Mailboxes and many others . . . . . .

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EXAMPLES OF PHYSICAL EVIDENCE• A sporting event is packed full of physical evidence. • Your tickets team's logos printed on them • Players are wearing branded kits. • The stadium itself could be impressive and have an

electrifying atmosphere. • Some organisations depend heavily upon physical evidence as

a means of marketing communications, for example tourism attractions and resorts (e.g. Disney World), parcel and mail services (e.g. UPS trucks),

• and large banks and insurance companies (e.g. Bank Alfalah).

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PHYSICAL EVIDENCE• To the customer or potential customer, the physical

environment has to feel right and be in line with their expectations.

• There was a time when all bank branch staff were hidden away behind glass screens, dealing with customers through a small opening. This was inconsistent with the open and approachable stance that the banks were trying to develop. So slowly the banks started to move some staff outside into the public area so they could better interact with customers.

• The physical environment then became consistent with other elements of the marketing mix.

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PHYSICAL EVIDENCE• We all have expectations of an airline when we book a ticket based

on our exposure to other aspects of the marketing mix e.g. price, promotional activities and the route and timings being offered.

• Our expectations of what we should experience, in terms of the physical environment, may well differ depending upon which airline we booked with. We may put up with an aircraft that is perhaps in need of some internal refurbishment if we have booked with a budget airline. But we perhaps wouldn’t be so accommodating if we had paid a higher price. This is another example of where the physical environment is inconsistent with other aspects of the marketing mix, leading to customer dissatisfaction.

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PHYSICAL CLUES

• Do the staff that we come into contact with look smart and tidy? Are they dressed in the way that we expect? The use of uniforms or a clearly defined dress code can deal with this issue.

• In the digital world, It would be inconsistent to experience a slow and unresponsive website for a company who are promoting a fast and efficient response to customer enquiries.

COMMON ISSUES

• Poor use of language in digital communications from an educational institution could also be classed as inconsistent physical evidence.

• Inadequate packaging of a product from what we perceive to be a high quality online retailer might also be seen as an inconsistency in the physical evidence

PEOPLE

• People are the most important element of any service or experience.

• Services tend to be produced and consumed at the same moment, and

• Aspects of the customer experience are altered to meet the 'individual needs' of the person consuming it.

• Most of us can think of a situation where the personal service offered by individuals has made or tainted a tour, vacation or restaurant meal.

BUYING PREFERANCES

• Remember, people buy from people that they like, so the attitude, skills and appearance of all staff need to be first class.

• Some ways in which people add value to an experience, as part of the marketing mix – – training, – personal selling and – customer service

• Training• All customer facing personnel need to be trained and

developed to maintain a high quality of personal service.

TRAINING• Training should begin as soon as the individual starts working

for an organization • During Induction it exposes the new employee to the

organisation's culture for the first time, • Briefing them on day-to-day policies and procedures. • In practice most training is either 'on-the-job' or 'offthe- job.‘• On-the-job training involves training whilst the job is being

performed e.g. training of administrative staff. • Off-the-job training sees learning taking place at a college,

training centre or conference facility.

PERSONAL SELLING• There are different kinds of salesperson. • There is the product delivery salesperson, e.g. fast food, or

mail.• There is the order taker, and these may be either 'internal' or

'external'. • The internal sales person would take an order by telephone,

e-mail or over a counter. • The external sales person would be working in the field. • In both cases little selling is done. • The missionary promotes faith, building goodwill with

customers with the longer-term aim of generating orders.

• The fourth type is the technical salesperson, e.g. a technical sales engineer.

• Their in-depth knowledge supports them as they advise customers on the best purchase for their needs.

• Finally, there are creative sellers. • Creative sellers work to persuade buyers to give them an order. • This is tough selling, and tends to offer the biggest incentives• The skill is identifying the needs of a customer and persuading

them that they need to satisfy their previously unidentified need by giving an order.

PERSONAL SELLING

CUSTOMER SERVICES

• Customer services provide expertise – e.g. on the selection of financial services, technical support – e.g. offering advice on IT and software and co-ordinate the customer

interface – e.g. controlling service engineers, or communicating with a salesman

• The disposition and attitude of such people is vitally important to a company

• The processes they use and their training are paramount

PROCESSProcess is an element of service that sees the customer experiencing

an organisation's offering•This element of the marketing mix looks at the systems used to deliver the service. •Imagine you walk into Burger King and order a Whopper Meal and you get it delivered within 2 minutes. •What was the process that allowed you to obtain an efficient service delivery? •Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal.

PROCESS

– An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company

• All services need to be underpinned by clearly defined and efficient processes.

• This will avoid confusion and promote a consistent service. • In other words processes mean that

everybody knows what to do and how to do it.

THREE VIEWS ON PROCESS• All views are understandable, but not particularly customer

focused.• Three main views in the discussion of process within marketing;

1. Processes is seen as a means to achieve an outcome, – for example - to achieve a 30% market share a company implements a

marketing planning process.

2. Marketing has a number of processes that integrate together to create an overall marketing process

– for example - telemarketing and Internet marketing can be integrated.

3. A further view is that marketing processes are used to control the marketing mix i.e. processes that measure the achievement marketing objectives

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• It's best viewed as something that your customer participates in at different points in time

• At each stage of the process, markets:• Deliver value through all elements of the marketing mix.

– Process, physical evidence and people enhance services.

• Feedback can be taken and the mix can be altered.• Customers are retained, and other services or products are

extended and marketed to them• The process itself can be tailored to the needs of different

individuals, experiencing a similar service at the same time.• Processes essentially have inputs and outputs. Marketing

adds value to each of the stages

THANKYOU

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