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Meaning of Services :-

A service is a non-material equivalent of goods . A service provision


is an economic activity that does not result in ownership and this is
what differentiates it from providing physical goods. It is claimed to
be a process that creates benefits by facilitating either a change in
customers, a change in their physical possessions, or a change in
their intangible assets.

Philip Kotler : “ A service is an act of performance that one party


can offer to another that is essentially intangible and does not
result in the ownership of anything. Its production may or may not
be tied to a physical product.”

Characteristics :

1. Intangibility

2. Inseperatability

3. Variability

4. Perish ability

5. Ownership

6. Service in Performance

7. Simultaneously

8. Quality measurement

9. Nature of Demand

10. Consumer, a part of production process

Types of Services :

1. Periodical transaction volume : The volume of a transaction in


a given time period stands as a major consideration in service
industry. The hyper-market has very different operation
challenges from the local grocery store, not least in simply
managing the flow of hundreds of customers in store.

2. Mode of service Delivery : The retail sector provides a good


example of this diversity, with face-to-face service in
traditional store, remote service through mail order and
telephone shopping and the lost latest internet based service.

Classification of Services :-

1) By market segmentation

2) By degree of Tangibility

3) By skills of the service provider

4) By goals of the provider

5) By degree of regulation

6) By degree of labor Intensiveness

Service Marketing :-

Service marketing is a marketing based on relationship and


value. It may be used to market a service or a product. Marketing
a service-based business is different from marketing a goods-
base business. We term marketing as a function by which a
marketer deliver , promotes and plans goods and services to
customer and clients.

Nature of Service Marketing :

1. Intangibility

2. Low price festivity

3. No inventory

4. Value creation process

5. Providing tangibility for the intangibility

Difference between service and goods :


Basis Service Goods
Intangible Fully intangible may Fully tangible
be physical evidence
Inseperatability of Both must be Remote transaction
buyer and provider present easy
Ease of inventory Cannot store or Easily inventoried
ware house the
service
Difficulty in Measure and control Measure and control
Measuring and people processes product quality only.
controlling quality instead of product
Sensitivity to time Needed on demand Can usually wait to
or sale is lost receive the product
High degree of risk Cost of failure very Product can be
high replaced
Consumption of the Customization likely Customization
offering to enhance increases cost, but
customer perception likely to enhance
of perceived quality perceived product
quality
Personalization of Relationship can be Product is the focus
buyer relationship as important as of the transaction
service

Factors affecting development of service marketing :

I. Organization size structure

II. Regulatory bodies

III.Growth in service industry

IV. Characteristics of services

V. Customer/Employee interaction

VI. Service quality

VII. Specific service sector

Significance :
i) Creation and expansion of job opportunities

ii) An optimal utilization of resources

iii)Paving avenues for the formation of capital

iv)Increasing the standard of living

v) Environment-friendly technology

Paradigm in Service Marketing :-

Progress in any scientific field requires a paradigm, which is


conceived as a fundamental set of assumptions that is shared by
members of particular scientific community. Although paradigm
can facilitate researchers and generate axioms that are useful for
both teaching and practice, they are not absolute and the validity
of the underlying assumptions may be open to challenges.

. Service as a process : This means that unlike manufacturing


differentiation between operations and marketing is blurred in
the service industry. Internal customer focus is important than
external customer orientation. Further customer are often
involved in the production of service.

. Doing right the first time

. Speedy response

. Keeping customer perspective

Customer Relationship Management :-

CRM is a strategy adopted by business firms in recent years and


includes the formulation of methodologies and tools that help
business manage customer relationship in an organize manner.
CRM processes are extremely helpful in indentifying and
targeting the best customer of the business firm and generating
quality sales leads, as well as in the planning and implementation
of marketing campaign and definite goals and objective.

According to Gartner “ CRM is a business design to optimize


profitability, revenue and customer satisfaction.”

CRM in service industry :-

CRM was initially in the industrial context, the service industry is


also focused on maintaining and enhancing customer
relationship. Services are produced and delivered by the same
institutions. The success of the service provider depends upon
the long term customer relationship that develop between the
customer and the service provider.

Characteristics of CRM :

1. Share of customer

2. Lifetime value of the customer

3. Customer equity

4. Greater focus on high value customers

Need of CRM :

i) Provide updated information

ii) Customized strategies

iii)Anticipates problem

iv)Prompt follow ups

v) Problem resolving mechanism

vi)Assesses customer interest

vii) Integrating functional system

Types of CRM :-

1) Proactive Vs Reactive CRM

In this type of categorization, the practice of a company to


anticipate and respond to the customer need with suitable
offerings is contrasted with the practice of simply responding
to the customer stimulus that comes in through suggestions
and complaints.

2) Operational, Collaborative and Analytical CRM

Building CRM :

i. Enquiry

ii. Interaction

iii.Exchange

iv. Co-ordination

v. Adoption

Importance of CRM :

1. Increased sales revenue

2. Increases win rates

3. Increase margins

4. Involve customer satisfaction

5. Decreases general sales

6. Lower cost of recruitment customers

Barriers of CRM :

1. Company ownership is based on Capitalist system

2. Require top-management support

3. Confusion in attributes

4. Problem in implementation

5. Building relationship

6. Customer dissatisfaction
7. Incapability

Service Marketing System :-

Many elements contribute to the customer’s overall view of the


service organization. These includes the communication efforts of
the advertising and sales department, telephone calls, letters
from service personnel, billing from the accounting department
and random exposure to service personnel and facilities, new
stories and editorial in the mass media word of mouth comments
from current or former customers and even participation in
market research studies collectively these components plus those
in the service delivery system and up to what is termed as
service marketing system.

Service Quality :-

Company personnel need a common understanding in order to be


able to address such issues at the measurement of service
quality, the identification of causes of service quality shortfalls
and design and implementation of corrective action.

Perspective :

1) Transcendent approach

2) Product-based approach

3) User-based approach

4) Manufacturing based-approach

5) Value Based-approach

Dimensions of Quality :

a. Performance
b. Features

c. Reliability

d. Conformance

e. Durability

f. Serviceability

g. Aesthetics

Gap Model of Service Quality Delivery :-

Customer Customer Expected Service


Gap

Perceived Service

Company
Service Delivery External communication
Gap 4 to customers
Gap 3

Gap 1
Customer-driven Service
designs and standards

Gap 2

Company perception of
consumer expectation
Gap 1. Not knowing what customer expect

This is basically of ‘Customer Service’ and ‘Company Perception’ as


expected service is the highest level of desired service existing in
the mind of customer. Company perception of consumer expectation
are nothing but the company’s understanding of what the consumer
want.

Gap 2. Inability to set the right type of Standards

The customer may have service standard expectations that may be


either higher or lower than the standards set by you.
Gap 3. Not delivering the service standards

i. Lack of right type of employees


ii. Lack of empowerment
iii. Lack of training
iv. Failure to predict
v. Insufficient customer education

Gap 4. Mismatch between promises and performance

This is physically impossible or financially unviable to provide all


that was promised. This is usually result in customer
disappointment.

1. Unrealistic communication to customers

2. Over promising through advertising

3. Lack of internal communication

Putting it all together : Closing the gap

Measurement to Service Quality :

1. Tangibles dimensions

2. Reliability Dimensions

3. Responsiveness Dimension

4. Assurance Dimension

5. Empathy Dimension

Understanding customer expectation :-


Customer expectation and belief about service delivery that
functions as standard of references points against which
performance is judged. Because customers compare their
perceptions of performance with these references points when
evaluating service quality, thorough knowledge about customer
expectation is critical to service marketers.

Measurement of Customer Expectation :-

1. Assurance

2. Empathy

3. Reliability

4. Responsiveness

5. Tangible

Consumer expectation model :-

1. Ideal service level

2. Desired service level

3. Adequate service level

4. Predicted service level

5. Zone of tolerance

Zone of Tolerance :-
As we discussed earlier, service are heterogeneous in that
performance may vary across providers, across employees from the
same provider, and even with the same service employee. The
extent to which customer recognize and are willing to accept the
variation is called the zone of tolerance and is shown in figure aside.

Managing Consumer Expectation :-


Managing consumer expectations is a critical component in the
marketing plan of a service business. Consumer expectation must
be managed during the pre purchase phase, the service encounter
and the post- purchase phase. Customer expectations can be
managed during each phase of the purchase process.

1) During the pre purchase phase


2) During the service encounter
3) During the post purchase phase

Service Market Segmentation :-


Meaning and definition of Market Segmentation : Market
segmentation is a process of dividing the total market for goods
and services into several smaller groups, such that member of
each group are similar with respect to the factors that influence
demand. Market segment as an element of marketing strategy,
recognizes the wisdom of specializing to suit the needs of a
segment of market rather than trying to do “all things to all
people”. The purpose of market segmentation is trying to identify
specific user group and then pursue with the tailored product or
services supported by appropriate marketing mix strategies.

Requirement for Effective Segmentation :-


1. Distinctiveness
2. Measurable segment
3. Substantial size of the segment
4. Accessibility
5. Actionable

Advantage :
i) Customized service
ii) Multiple choices
iii)Best distribution Channel
iv)Cost effective

Bases of Segmentation :-
Before giving some brief explanations about these bases, it is
vital to understand that, in themselves they are not segments.
The following brief review to two ‘predetermined’ approaches
frequently used in market segmentation, products and services
and channels helps illustrate this point.
Segmentation
Approaches

Customer Customer
Characteristics Responses

Demographi Psychograph Geographic Benefits Usage Loyalty


c ic
Major Approaches to Service Market Segmentation

Based on Customer Characteristics :-

Demographic and socio-economic segment : It is based on wide range of factors


including age, sex, family size, income, education and social class and ethics origin.
So it is helpful in indicating the profile of a people who buy a company’s product or
services.

Some of the demographic variables used are :

1. Age and life cycle scale

2. Gender and sexual orientation

3. Marital status

4. Income

5. Social class

6. Family Size

7. Occupation

8. Educational Level

9. Religion

Psychographic Segmentation : Psychographic is a technique that classifies life styles


by investigating how people live, what interest them and what they like. It is also
called life style analysis or AIO because it relies on number of statement about a
person’s activities, interest and opinions.

1. Life Style
2. Personality

3. Attitude

4. Belief

5. Values

Geographical Segmentation : In geographical segmentation, the marketers divide


the market according to geographic units. They can divide the consumer on the basis
of countries, region, stages, cities and town. A firm may decide to market different
product or services in certain areas and not in other.

Based on consumer responses :

1. Benefit Segmentation : Benefit segmentation groups


customers together on the basis of the benefits they are seeking from
a product.

2. Usage : Marketers make an attempt to segment final


consumer and organizational consumer based on usage rate, usage
expenses and brand loyalty. Amongst the uses they distinguish
segment based on volume.

3. Loyalty Segmentation : Loyalty segmentation involves


identifying customers’ loyalty to a brand or product customer tend to
be very loyal or disloyal. These groups are then examined to try and
identify any common characteristics so that the product can be
targeted at prospectively loyal customers.

Segmentation and Zone of Tolerance :-

The zone of tolerance differs across customers groups and products. It


is, therefore, necessary to segment the market, much the same way
as it is in consumer product marketing. One useful way of something
the marketer is establishing the zone of tolerance across different
customer decision criteria like price, performance and service quality.

Process of Market Segmentation :

1. Identify bases of segmenting the market

2. Develop profile of resulting segment


3. Develop measure of segment attractiveness

4. Select the target segment

5. Ensure that the target segment are compatible

Market Targeting in service :-

Targeting follows market segmentation as a natural step and is


defined as the process of estimation and comparison of the previously
identified segments for selecting one or more segment that fetch the
best result for the business. The chosen segment should be the most
profitable for the company and should also helps in delivering
superior value to the chosen customer base.

Bases :

i) Segment size and growth potential

ii) Structural attractiveness

iii) Company objective and resources

Positioning of Service :-

Positioning means projecting the product or services in such a way


that consumer perceives it value distinctively from that of
competitiveness offers. In other words, positioning intends to
influence the perceptual process of consumers against a product or a
service. The studies on a consumer behavior provide that consumer
do perceive against the marketing stimulation. Since marketing
stimulation are many, a consumer may not respond selectively
through a perpetual process.

Objective of Positioning :

i. To create a distinctive place

ii. To provide a completive edge to the product or service.

iii. To place an intangible service to the more tangible frame of


reference.
iv. To help both service development and the redesign of the existing
service.

v. To follow consideration of competitor’s possible moves.

vi. To give the target market the reason of buying your service and
then design the whole

strategy.

Steps in developing positioning strategy :

1. Steps in developing positioning strategy

2. Identification if Attributes

3. Location of Attributes on positioning map

4. Evaluating positioning Option

SERVICE MARKETING MIX

UNIT – II

Definition of Marketing Mix :-

Marketing mix means to collect and mix the resources of marketing in


the manner that object of the enterprises may be achieved an
maximum satisfaction may be provided to the consumer.

According to Borden “ The marketing mix refers to the appointment of


efforts, the combination the designing and integration of the element
of marketing into a program me or mix which is on the basis of an
appraisal of the market forces with best achieve an enterprise at a
given time.”

Marketing mix elements :

1. Product

2. Price

3. Promotion

4. place

Augmented / Extended marketing mix :-

In case of services how ever, there are alternatives approaches


suggested by various authors. They have suggested the need of
services has led to the extension of the mix to serve seven P’s. The
additional three P’s listed below are known as the extended service
mix.

1. People

2. Physical evidence

3. Process

The process of augmented product mix is developed by Booms and


Bitner. It was conducted that whist the four elements of the
marketing mix provided a useful structure for marketing
implementation, there is a need to strengthen the approach through
the inclusion of three other elements. Physical evidence and process.

Service Marketing Mix :-


The 7 P’s of service marketing mix are :

1) Service product

2) Service pricing

3) Service promotion

4) Service distribution

5) People

6) Process of operation

7) Physical Evidence

Service Product :-

Developing the service product :

Physical goods and services can be looked at in terms of benefits


offered, as well as features and specific attributes associated with
those benefits. The notion of service concept is based in the idea that
actual service offerings can be broken down into a number of levels
relating to customer need satisfaction, benefits and features.

1. Statement of Objective

2. Marketing and operating assets statement

3. Developing service marketing

Levels of Service Product :-

1. Core benefit service – Specifically to satisfies the needs.

2. Expected service – The customer might expect the


service they required.

3. Augmented Service – Some extra benefit added with the


product.

4. Potential Service – Attracting the new customers.

Service Product Mix :


Service product mix consists of all the different product lines a
company offers –

1. Width of the service product mix

2. Depth of service product mix

3. Consistency in service product mix

Service Pricing Strategy :-

The price is the kept element of marketing mix; it must be acceptable


to target customers and it must reflects the other components of the
mix accurately. The price of the service is the value attached to it by
the service provider and it must correspond with the customer’s
perception of value.

Characteristics of Service Pricing :

i) Negotiation

ii) Discounts

iii) Quality

Cost associated with service :

I. Monetary Costs

II. Non-Monetary Cost

a. Time cost

b. Search Cost

c. Convenience Cost

d. Psychological Cost

Pricing Objective :-

1. Profit Maximization

2. To increase sales volume

3. Status-quo oriented objectives

4. Society oriented objective


5. Survival

6. Maximize market share

7. Service Quality leadership

8. Operation-oriented objective

9. Patronage-oriented objective

Pricing Methods :-

1. Cost-based pricing

2. Competition based pricing

3. Demand oriented Pricing

4. Value based pricing

Factors affecting pricing policy :

I. Cost of production

II. Competitor pricing

III. Demand level and elasticity

IV. Regulatory factors

V. Marketing mix

VI. Positioning

Service Promotion :-

Service marketers have used the marketing tool to great advantage in


using their service, adding tangibility and value to their offer.
Promotion is used only as a temporary tool and is communication
oriented. In field of service promotion marketing mix plays an
important role.

Promotion is a descriptive term for the mix of communication


activities which serve organization carry out in order to influence
those publics on whom their service depends.
According to Philip Kotler “ Promotion compasses all the tools in the
marketing mix whose major role is persuasive communication.”

Characteristics :

i. Customers are informed about the product or service of the


company.

ii. Customers are reminded of the product or service of the company.

iii. Customers are requested and persuaded to purchase the product


and service of the company.

iv. Promotions includes advertising, personal selling and other sales


promotion techniques.

v. Promotion activities are performed by the manufacturer are the


important source to attract with packaging and important promotional
tool.

Need of Promotion :

Promotion is the tool in marketing mix serves to inform, persuade and


remind people about and organization’s individual goods, service,
image, ideas, community, involvement and impact of the society.

Role of Communication in Service Marketing :-

Marketing communication is essential process to a company’s


success. Without effective communication, prospects may never learn
of a service firm’s existence. What it has to offer them, or how to use
its products to best advantage. Customers might be more easily lured
away by competitors and competitive offerings, and there would be no
proactive management and control of the firm’s identity.

Types of Communication :
I. Internal Communicating – The communication which is
carried into the organization between their employees from top level to
the service level are comes under that category. This communication is
basically the best way of interaction regarding company’s overall
objective.

II. People/ External Communication : The external


communication include the communication between the suppliers,
shareholders, business man, foreign clients, government and various
boards depending on the nature of service business.

Communication issues of Service Marketers :-

1. Technology

2. Budgetary Constraints

3. Content

4. Delivery

Promotion Mix :

Promotion mix refers to the combination of various promotional


elements as . advertising, personal selling, sales promotion and
sponsorship techniques used by a business firm to create, maintain
and increase demand of the service product. It involves an integration
of all the above elements of promotion. Usually a firm chooses more
than one type of promotional tool and the manager of the firm is to
decide how he is going to choose the communication media and blend
them into an effective promotion.

According to Philip Kotler “A company’s total marketing


communication mix also called its promotion mix consists of special
blend of advertisement, personal selling, sales promotion, publicity
and the direct marketing tool that the company uses to pursue its
advertising and marketing goals.”

Elements :

1. Advertising

2. Sales promotion

3. Public relations
4. Direct Marketing

5. Adventure marketing

6. Personal Selling

7. Corporate identity

8. Cause-related Marketing

Service Distribution :-

Delivery of service differs significantly from that of the manufacturing


goods. The production of goods is followed by distribution whereas
services usually cannot be separated from the service provider.

Distribution Place :

1. Location

2. Accessibility and Availability

3. Channel of Distribution

4. Service Inventory

5. Managing Channels

People :-

The service is predominantly people-based. The personnel of the


marketing department as well as others are very much instrumental in
performing the marketing functions. This makes it essential that one
should clearly understand the common purpose and spirit of the task to
be performed and its backward and forward linkage with the other
task.

Nature of service delivery :

1. Inseperatability of production and consumption

2. Difficulty in balancing the demand and supply


3. Lack of standardization in service

4. Recovery services

Role of the Employee in Service Marketing :-

The role of the employee in services marketing varies according to


situation and the level of interaction. Frequently this depends on the
degree of tangibility of a service. The level of contact can be
determined by classifying the service according to whether it is labor-
intensive service or an equipment based service, as follows :

i) People Based service

ii) Equipment based service

I. Selection and Recruitment

II. Training and Development

III. Empowerment

Process of Operations :-

The service process is a element of segmented marketing mix and vital


point of the value chain. This has received less attention though it is an
important part of marketing task. The adoption of the processes, which
add value to the service offering without incurring major cost
disadvantage, are beneficial to the customers and the organization.

Characteristics of Service process :-

1. Customer participation process

2. Location of service delivery

3. Service itself

4. High-contact
5. Degree of standardization

6. Complexity of the service

Delivery of Service :-

Blueprinting is a graphical approach proposed by “shostack” designed


to overcome problems that occur where a new service is launched
without adequate identification of the necessary support functions. A
customer blueprint has three basic functions :

i) All the principal function required to make and


distribute a service are identified, along with the responsible company
unit.

ii) Timing and sequencing relationship among the


functions are depicted graphically.

iii) For each functions, acceptable tolerance are identified.

Role of Technology in Service Marketing :-

Technology is dramatically changing the nature of service, resulting in


tremendous potential for new services offerings not imaginable even a
decade ago. Technology id profoundly changing how services are
delivered enabling both customers and employee to get and provide
better, more efficient, customized.

Some of reason why information technology not having the desired


impact on service :

1. Wasteful and insufficient use of IT

2. Legged Effect

3. Outdated method of productivity Measurement

4. Impact of other problems

5. Level of Aggregation

UNIT – III
Marketing of Financial Service :-

The financial service industry in india has experienced massive


changes since the early 1990s. Prior to this time, banks served
different customer needs, often catering to different sets of customers.
Regulatory frameworks and traditional business practices meant that
there was virtually no competition between types of institution.
Building societies offered savings and mortgages while banks provided
current accounts, loans and business finance. Insurance and
investment were largely dealt with by specialist brokers.

Characteristics :

1. Intangibility

2. Inseperatibility

3. Variability

4. Perish ability

5. High involvement purchases

6. High level of brand liability

Deciding the service quality of Financial service :

Quality of service is very important for customer satisfaction. A high


level of external customer satisfaction largely depends upon the level
of internal customer satisfaction and corresponding nature of service
quality delivered by internal customer to the external customer in
financial service industry. Customer satisfaction for financial service is
also depends upon the relationship of the customer with the employee
of the organization.

Perspective of financial service quality :

Perspective I :

I. Functional Quality

II. Technical Quality

Perspective II :

I. Reliability
II. Assurance

III. Tangible

IV. Empathy

V. Responsiveness

Improving Financial service :

1. Assessing product and customer attributes

2. Striving the quality mission

3. Continuous quality improvement

4. Encouraging employee initiatives

5. Collecting and analyzing information

6. Training and development program me

7. Rewarding quality adherence

Understanding Customer Expectation :-

Customer expectation understanding is must for every organization.


Because customer dissatisfaction or even worse situation will create a
hurdle in organization growth. So proactively conducting customer
survey about their satisfaction is must for every financial organization.

Tips for Understanding Customer :

i) Interview customer to design a questionnaire.

ii) Typical topic covered in customer satisfaction.

a. Overall satisfaction

b. Performance of front line staff


iii) Design a feedback form and ask customer to rate
service quality

iv) Use a consultant to design and if necessary conduct a


survey.

Segmenting financial service :-

1. Demographic

2. Psychographic

3. Behavioral segmenting

Targeting of Financial Services :-

1. Prime Customers

2. Highly Valued Customers

3. Prosperous but Mobile – This group is generally aware


of its prospects is not loyal and will frequently shop around for the best
deal and will move readily to take advantage of the best offer.

4. Prime Prospects

5. Middle Majority

6. Price Shoppers

7. Tomorrow’s Valued Customers

8. No Frills
9. Social Responsibilities

Positioning of Financial Services :-

Positioning presents particular challenges to the financial service


industry, owing to the intangibility of its products, the absence of
patent protection and the ease with which products and services can
be copied to competitors. Arguably, positioning is still in its infancy in
many areas of financial services around the world.

Devising Financial Services :-

Banking Marketing :

Bank marketing is the aggregate of functions, directed at providing


services to satisfy customer’s financial needs and wants, more
effectively and efficiently than the competitors keeping in the view the
organizational objectives of the bank.

Marketing Mix : ( 7 P’s )

i) Product

ii) Price

iii) Promotion

iv) Place

v) People

vi) Process

vii) Physical Evidence

Insurance Marketing

Telecom Services

Home Loan

Credit Cards

UNIT – IV

Services In Global Perspective


Services in Global Perspective :-

As a service economy continuous to grow both in size and importance,


the scale of service marketing internationally can be seen to be
increasing dramatically. This increase in inevitable, if service
organization are to grow and survive in today’s global marketplace,
they have to develop their international operations. Obviously, trends
in international trade will affect all service to lesser and greater
degree.

Factors influencing globalization :

i) Changes in Social factor

ii) Changes in technology

iii) Changes in political condition

iv) Competition in the market

v) Competitive advantage

vi) Regulations in home country

vii) Lack of demand in home country

International Marketing of Services :-

Service firms are increasingly investing overseas on their own account,


as they seek to serve new clients and exploit their own unique
competitive advantage. Such advantage take several forms :

1. Producer Service

2. Consumer Service

3. Stock broking, Foreign Exchange or securities dealing

4. Outward Expansion

Market environment for services :

i) Protectionism

ii) Trans-border Data flow

iii) Competition
iv) Protection of Intellectual Property

v) Cultural barriers

Recent Trends :-

Off-shoring Service - As off-shoring creates a better advantage


because workers are available at lower cost.

Information technology Enabling service

Principal Driving Force in Global Marketing of Services :-

Several factor driven and influence the globalization of manufacturing


firms :

Types of globalization drivers :

1. Market drivers

2. Competition Drivers

3. Technology Drivers

4. Cost Drivers

5. Government Drivers

Key Decision in Global Marketing :-

1. Parameters

2. Decision-making for global marketing

3. Specific consideration for international services

Service Strategy :-

Service firms to a large extent have done their strategic decision in an


ad hoc manner based on emerging tendencies and spontaneous
opportunities. They often neglect their strategic thinking. Questions as
which competitive domain the firm was operating, which client they
served and did not serve, which core service they offered and did not
offer and how the firm could expect.

Elements of Global service strategy :

1. Defining global vs Multi local strategies

a. Global market participation

b. Delivering global products

c. Global location

d. Global marketing

e. Global competitive moves

Foreign Market entry Decision : One of the most crucial steps a firm or
organization ever takes is the decision to introduce a product a service
to a foreign market. Having made the decision to venture into world
market, the next crucial step is determining the foreign market entry
strategy.

Market entry method level of Co-operation :

a. Wholly owned strategy

b. Exporting

c. Trading company

d. Piggy-back

e. Agent

f. Distributor

g. Licensing

h. Industrial Co-operation

i. Joint venture

Organizing for Global Services Marketing :-


Organizing for global marketing is to find a structure that enables the
company to respond to relevant market environment differences while
ensuring the diffusion of corporate knowledge and experience from
national markets throughout the entire corporate system. The pull
between the value of centralized knowledge and coordination and the
need for individualized response to the local situation creates constant
tension in the global marketing organization.