International Marketing & Services Marketing - III: July 7, 2009

International Marketing
& Services Marketing - III
Ch 17 Relationship Marketing Pg 241-260 19

Ch 20 Developing and Managing the Customer Service Function Pg 287-302 15
Ch 23 Globalization of Services Pg 331-348 17
Ch 24 Tourism & Travel Services Marketing-Tourism Pg 352-358 6
Ch 25 Marketing of Financial Services-Banking Pg 370-375 5
Ch 26 Communication & Info Services Marketing-Telecom Pg 391-398 7
Ch 27 Media Services Marketing-Broadcasting Pg 409-413 4
July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Pankaj Tripathi www.integrysme.com/ICFAI
A . Ch 17 Relationship Marketing
• Relationship Marketing Defined

• Benefits of Relations Marketing’s
• Relationship Marketing and Transaction Marketing
• Six Markets Model
• Strategy in Relations Marketing Management
• Retention Strategies
• Recovery of Customers
• Communication and Relationship Marketing

Relationship Marketing Defined
Berry and Parsuraman – Relationship marketing is attracting maintaining and in

multiservice organizations – enhancing customer relationship.
Benefits of Relations Marketing’s
7.Benefits for the Firm

8.Benefits to the Customers
Relationship Marketing and Transaction Marketing
12.The method of marketing in which a service organization or its employees

communicate with the customer only when he approaches it for service called
Transaction Marketing.
13.When a service organization seeks to establish and maintain a long term relationship
with its customers, it is known Relationship Marketing.

Six Markets Model
A Service Organization needs to maintain good relations with 6 Constituencies:
• Customer Markets
• Internal Markets
• Supplier Markets
• Referral Markets
• Recruitment Markets
• Influence Markets
Adrian Payne (1991) from Cranfield University goes further. He identifies six markets which he claims are central to relationship
marketing. They are: internal markets, supplier markets, recruitment markets, referral markets, influence markets, and customer
markets.
Referral marketing is developing and implementing a marketing plan to stimulate referrals. Although it may take months before you see
the effect of referral marketing, this is often the most effective part of an overall marketing plan and the best use of resources.
Marketing to suppliers is aimed at ensuring a long-term conflict-free relationship in which all parties understand each others' needs and
exceed each others' expectations. Such a strategy can reduce costs and improve quality.
Influence markets involve a wide range of sub-markets including: government regulators, standards bodies, lobbyists, stockholders,
bankers, venture capitalists, financial analysts, stockbrokers, consumer associations, environmental associations, and labor associations.
These activities are typically carried out by the public relations department, but relationship marketers feel that marketing to all six
markets is the responsibility of everyone in the organization. Each market may require its own explicit strategies and a separate
marketing mixes for each.

Strategy in Relations Marketing Management
Sequence in which organizations formulate their strategy is:
5. Mission and Vision

6. SWOT Analysis
7. Strategy Formulation
8. Strategy Formulation
Quality and Relationship Marketing

Retention Strategies
3. Four Level Retention Strategies – Financial Bonds, Social Bonds, Customization

Bonds, Structural Binds
4. Monitor Relationships
5. Value Addition to the Service
6. Increased Customer Contact
7. Enhanced Customer Service
Recovery of Customers
Guidelines to be followed by the management while developing a service recovery system:
13. Track and Anticipate Recovery opportunities

14. Solve the problem quickly
15. Train and empower frontline employees

Communication and Relationship Marketing
The 4 R’s of Rewarding relationships
5. Relationship
6. Realization
7. Response
8. Relevance and Respect

B. Ch 20
Developing & Managing the Customer Service Function
1. Customer Service Definition

2. Improving Customer Service
3. Technology to Improve Customer Service
4. The Customer service Management Cycle
5. Offering Supplementary Services in Addition to Core Services
6. Enhancing Customer Services Through Improved Service Delivery Process
7. Steps to Implement an Effective Customer Service Program

B. Ch 20
Customer Service Definition
• Customer Service is the ability of an organization to constantly and consistently give

the customer what they want and need.
• According to Turban et al. (2002), Customer service is a series of activities

designed to enhance the level of customer satisfaction – that is, the feeling that a
product or service has met the customer expectation.
• Lovelocks Definition – Task oriented activities, how they should be designed,

performed and communicated.

B. Ch 20
Improving Customer Service
Take the following steps
5. Divide the basic service into separate service activities

6. Conduct periodic surveys
7. Provide necessary infrastructure and advance technology
8. Track changes in the external environment
Technology to Improve Customer Service

B. Ch 20
The Customer service Management Cycle
Stage I – Understand the Customers

4. Selecting the target, defining the service and the users of the service
5. Determining the service characteristics
6. Developing customer profile
7. Understanding customers perception of the service provider
Stage II – Set Customer Service Standards
9. Standards in procedural dimensions of customer service
10. Standards in Personal dimension of customer service
11. Setting standards in stone
• Ex 20.1 CS at Singapore Airlines, Fig 20.1 Writing Customer Standards
Stage III – Encourage Team Work and Customer Orientation among Employees
14. Identify and analyze all the jobs in the organization that deal with customer
15. Recruit right candidates for the jobs
16. Train and develop the job incumbents
17. Provide teams with able leaders
18. Cultivate the right organizational culture
Stage IV – Establish Control systems
Stage V – Prevent Problems rather than fix them
B. Ch 20
Offering Supplementary Services in Addition to Core Services
Ex 20.2 Supplementary services offered by Jet Airways
Enhancing Customer Services through Improved Service Delivery Process
Factors that determine and influence the service delivery.
9. Who sells the service?

10. Do service personnel need to interact with the customer often?
11. Who hires the service?
12. How long does the service delivery take?
13. How flexible is the capacity?
14. How flexible is the service?
15. How frequently is the service purchased?
16. How complex is the service?
17. What is the extent of risk involved?

B. Ch 20
Steps to Implement an Effective Customer Service Program
3. Place the right person in the right job.

4. Administer training programs.
5. Serve information needs of the customers.
6. Resolve problems quickly and talk pleasantly.
7. Standardize service delivery mechanism
8. Fix reasonable princes
9. Outsource some activities
10. Attempt to prevent problems
11. Evaluate employee performance

C. Ch 23 Globalization of Services
Pg 331-348 17
1. The Growth in Global Service Markets

2. Factors Influencing Globalization
3. Overseas Market Entry Decisions
4. Assessing Globalization
5. Challenges in the Global Market
6. Factors Influencing Success of a Global Service Firm
7. Prospects for the Global Marketing of Services

Pg 331-348 17
The Growth in Global Service Markets
• Globalization refers to the free movement of goods, services, people, capital and
technology across various countries in the world.
• Trends and changes
Factors Influencing Globalization
8. Changes in Social Factors

9. Changes in Technology
10. Changes in political and legal conditions
11. Competition in the market
12. Competitive advantage

Pg 331-348 17
Overseas Market Entry Decisions
The choice depends on a variety of factors including the nature of the particular product or
service and the political, social and competitive scenario in the target markets.
Various methods are:
7. Exporting
8. Turnkey Projects
9. Licensing
10. Franchising
11. JV
12. Strategic Alliance
13. Wholly Owned Subsidiary
14. M&A
15. Piggy Back
Ex 23.1 Merger of Citicorp and Travelers Group

Pg 331-348 17
Assessing Globalization
Parameters used to asses the level of globalization
5. Presence in strategic markets

6. Location of value adding activities
7. Achieving desirable balance between globalization and customization
8. Consistency in Quality and Pricing of services
9. Responding to changes in environment

Pg 331-348 17
Challenges in the Global Market
3. Legal Barriers – Discriminating Laws, Subsidies, Restriction on Foreign companies

entry, Infringement of copyrights and trademarks
5. Cultural Barriers – Language, Customs, Values and attitudes, Lifestyle
7. Financial Barriers – Changes in currency exchange rates, Problems with logistics

Pg 331-348 17
Factors Influencing Success of a Global Service Firm
3. Select the right entry mode

4. Select the right marketing research methods
5. Customize the service offering
6. Train the service personnel
7. Select the right promotion strategy
Prospects for the Global Marketing of Services

D. Ch 24-Tourism & Travel Services Marketing-Tourism
Pg 352-358 6
1. Major characteristics
The hotel industry is dependent on tourism and travel industries, and together they
constitute the hospitality industry. The demand variation in the hotel industry
depends on various factors like the economy, socio-political conditions, government
regulations, business cycle, weather and seasonal changes, festivals etc. The hotel
service is a perishable service with a fixed or limited supply. It is characterized by
high investment and low variable costs.
The market for the hotel industry can be geographically segmented as tourist spots
and commercial centers. On the other hand, based on customers, the market can be
segmented as premium segment, leisure segment and budget segment. The
exposure of the Indian customer to international service standards has made him
more discerning and demanding. Today’s customers expect more value added
services from the service provider.
3. Market Segmentation – Geographic & Demographic

4. Marketing Strategy
5. Marketing Mix – Product, Pricing, Place, Promotion, People, Physical Evidence,
Process
6. Recent Trends in the Hotel Industry
E. Ch 25-Marketing of Financial Services-Banking
Pg 370-375 5
1. Definition
The bank is a financial institution which accepts deposits and lends that money to its
customers. As banks deal with their customers’ finances, banking is a high-
involvement service. Therefore banks need to win the trust of their customers.
Based on the customer profiles, banks segment their market into retail banking,
corporate banking, personal banking etc.
Depending on customer needs for finance, the market can also be segmented into
trade finance, consumer finance, etc. For the banker to derive maximum returns and
enhance his market position the marketing mix has to be effectively managed. The
products offered by a bank may be in the core or augmented form. The core
products offered by a bank include a savings bank account or a housing loan.
4. Marketing Segmentation in Banking Industry

5. Marketing Mix - Product Pricing, Place, Price, Promotion, People, Process, Physical
Evidence
6. Recent Trends in Banking

F. Ch 26-Communication & Info Services Marketing-Telecom
Pg 391-398 7
Telecom industry poses high entry and exit barriers. Telecom players need to invest
heavily on equipment, cables and other assets and technology and they have to wait
for years to obtain return on their investment. The market for telecom industry can
be divided into individual, corporate, rural and urban segments.
On the basis of product offered, the market can be divided into fixed, mobile,
internet and video telecom services.
• Characteristics of Telecom Industry

• Market Segmentation
• Marketing Strategy
• Marketing Mix - Product/Service, Price, Place, Promotion, People, Physical Evidence
Process
• Recent Trends in Telecom Industry
Technology
Globalization
Future of Telecom Industry in India

G. Ch 27-Media Services Marketing-Broadcasting
Pg 409-413 4
Media services comprise of all those channels of communication, which help to transmit
information from the source to the recipient. Media may be point-to-point media or mass
media. While point-to-point media transmits information on a one-to-one basis, mass
media transmits information from one source to a large audience. Media services are
classified into broadcasting, entertainment and print media.
Broadcasting is the easiest and most inexpensive method of conveying a large amount of
content to a large audience. Broadcasting media consists of the radio, television and the
Internet. Broadcasting services have the power and the ability to influence the perception
and behavior of people through the content of the programs they air
• Media Services and Broadcasting

• Consumer Behavior in Response to Broadcasting Services
• Market Segmentation in Broadcasting
• Market strategy of Broadcasting Firms
• Marketing mix for Broadcasting Services – Product, Price, Place, Promotion, People
Physical Evidence Process
8. Recent trends in Broadcasting
Growth of the Internet and Online Availability of Media Services Mergers and
Consolidations Digitization of Content Expansion of Reach of Satellite Services

International Marketing & Services Marketing - III: July 7, 2009

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International Marketing

& Services Marketing - III

Ch 17 Relationship Marketing Pg 241-260 19

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

• Relationship Marketing Defined

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Relationship Marketing Defined

Berry and Parsuraman – Relationship marketing is attracting maintaining and in

Benefits of Relations Marketing’s

7.Benefits for the Firm

Relationship Marketing and Transaction Marketing

12.The method of marketing in which a service organization or its employees

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

A Service Organization needs to maintain good relations with 6 Constituencies:

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Strategy in Relations Marketing Management

Sequence in which organizations formulate their strategy is:

5. Mission and Vision

Quality and Relationship Marketing

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

3. Four Level Retention Strategies – Financial Bonds, Social Bonds, Customization

Guidelines to be followed by the management while developing a service recovery system:

13. Track and Anticipate Recovery opportunities

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Communication and Relationship Marketing

The 4 R’s of Rewarding relationships

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

1. Customer Service Definition

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Customer Service Definition

• Customer Service is the ability of an organization to constantly and consistently give

• According to Turban et al. (2002), Customer service is a series of activities

• Lovelocks Definition – Task oriented activities, how they should be designed,

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Improving Customer Service

Take the following steps

5. Divide the basic service into separate service activities

Technology to Improve Customer Service

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Stage I – Understand the Customers

Offering Supplementary Services in Addition to Core Services

Ex 20.2 Supplementary services offered by Jet Airways

Enhancing Customer Services through Improved Service Delivery Process

Factors that determine and influence the service delivery.

9. Who sells the service?

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Steps to Implement an Effective Customer Service Program

3. Place the right person in the right job.

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

1. The Growth in Global Service Markets

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

The Growth in Global Service Markets

Factors Influencing Globalization

8. Changes in Social Factors

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Overseas Market Entry Decisions

Various methods are:

Ex 23.1 Merger of Citicorp and Travelers Group

Parameters used to asses the level of globalization

5. Presence in strategic markets

July 7, 2009 Copyright ICFAI Dubai 2009 Download Presentation From

Challenges in the Global Market