Transcript
Marketing in the New Economy: Beyond Product and Service.
Think of Customer Value
Asep Hermawan Trisakti University
Chapter Questions
Why is marketing important?What is the scope of marketing?What are some fundamental marketing concepts?How has marketing management changed?What are the tasks necessary for successful marketing management
What is Marketing ?Marketing is an organizational function
and a set of processes for creating, communicating, and delivering value
to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.
What is Marketing Management?Marketing management is the
art and science of choosing target markets
and getting, keeping, and growing customers through
creating, delivering, and communicatingsuperior customer value.
What is Marketed?
•Goods•Services•Events and experiences•Persons
• Places and properties
• Organizations• Information • Ideas
Key Customer Markets
•Consumer markets•Business markets•Global markets•Nonprofit/Government markets
Core Concepts of Marketing
Product or Offering brands Product or Offering brands
Value and Satisfaction Value and Satisfaction
Needs, Wants, and DemandsNeeds, Wants, and Demands
Exchange and Transactions Exchange and Transactions
Relationships and Networks Relationships and Networks
Target Markets & Segmentation Target Markets & Segmentation
Marketing Channels Marketing Channels
Supply Chain Supply Chain
Competition Competition
Marketing Environment , Marketing Planning Marketing Environment , Marketing Planning
The Four PsThe Four Ps
MarketingMixMix
Product
Price Promotion
Place
The Four CsThe Four Cs
CustomerSolution
CustomerCost
Communication
Conven-ience
Production ConceptProduct ConceptSelling ConceptMarketing ConceptHolistic Concept
Company Orientations
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality, performance,
or innovative features
Consumers will buy products only ifthe company aggressively
promotes/sells these products
Focuses on needs/ wants of target markets & delivering value
better than competitors
Company Orientations Towards the Marketplace
Holistic ConceptHolistic Concept Considering society welfare
Company Orientations Towards the Marketplace
Marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target
markets in ways that preserve and enhance the well-being of consumers and society as a
whole.
Customers
Front-line people
Middle Management
TopManagement
Traditional Organization Chart
Evolving Views of Marketing’s Role
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
Hum
an
resources
Finance
Customer-Oriented Organization Chart
Customers
Front-line people
Middle management
Topmanage-
ment
Customers Cus
tom
ers
Marketing Management Tasks
• Developing marketing strategies
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value• Communicating
value• Creating long-
term growth
Functions of CMOs
• Strengthening the brands• Measuring marketing effectiveness• Driving new product development
based on customer needs• Gathering meaningful customer
insights• Utilizing new marketing technology
New Consumer Capabilities
• A substantial increase in buying power• A greater variety of available goods and services• A great amount of information about practically
anything• Greater ease in interacting and placing and
receiving orders• An ability to compare notes on products and
services• An amplified voice to influence public opinion
Internal Marketing
Internal marketing is the task of hiring, training, and motivating able employees who want to
serve customers well.
Performance Marketing • Financial
Accountability• Social Responsibility
Marketing
• Social Initiatives• Corporate social
marketing• Cause marketing• Corporate
philanthropy• Corporate community
involvement• Socially responsible
business practices
Marketing Management Tasks
• Develop market strategies and plans• Capture marketing insights• Connect with customers• Build strong brands• Shape market offerings• Deliver value• Communicate value• Create long-term growth
Asep Hermawan Trisakti University
Services dominate modern economy
Perekonomian Modern didominasi oleh organisasi jasa.Dinegara-negara maju umumnya jasa mencapai lebih dari 70 persen perekonomian. Demikian juga dalam hal penyerapan tenaga kerja
JASA MENGALAMI TRANSFORMASI DARI KONSEP TRADISIONAL SUATU TRANSAKSI KE EXPERIENCE
Experience vs. Service
Providing intangible activities, memorable events, in a personal way.
In today's economy it’s important to provide people with services, or something memorable, to take away from their experience
Goods and Services are no longer enough.
Staging experiences is important to engage clients.
Making that direct connection with the customer is important.
Beyond products and services
Your company is your stage….
From Commodity to Experience
Cost of coffee bean when harvested= $0.50/lb
Value realized by Starbucks from selling a cup of coffee= $230/lbAn increase of value ?
productproduct
Experience Experience Service Service
commodity
The Moment of Truth
Creating Memorable Guest’s Experience will depend on How to Manage:
The Moment of Truth
Characteristics of Outstanding Service Organization
Four Characteristics of Outstanding Service Organization
Understanding the customer’s moment of truthA well-conceived strategy for service. It differentiate the company from competitors Customer-friendly systemCustomer-oriented front-line people
The Service Triangle
The serviceStrategy
The CUSTOMER
TheSYSTEM
ThePEOPLE
Source: Karl Albrecht & Ron zemke. Service America( Mc-graw-Hill,2002)
Moment of TruthMoment of Truth
Are episode in which the customer comes into contact with some aspect of your
organization and gets an impression of the quality of service
Each of us has a storehouse of moments of truth from our life experiences. We remember moments when it seemed that
people or systems or both went out of their way to be difficult of unhelpful. And we recall shining moments when we felt appreciated, cared for, care about and genuinely valued
When Moments of truths go Unmanaged, the quality of service regress to mediocrity
The Important of Corporate Culture
Corporate culture:
The pattern of shared values and beliefs that give the members of an organization meaning and provide them with rules for behavior in the organization …. Informally defined as the way we do things around here
Service Culture ……..“A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”
- Christian Grönroos (1990)
The Critical Importance of Service EmployeesThey are the service.
They are the organization in the customer’s eyes.
They are the brand.
They are marketers.
Their importance is evident in:– the services marketing mix (people)– the service-profit chain– the services triangle
The “Power of One”
Every encounter counts
Employees are the service
Every employee can make a difference
Through their actions, all employees shape the brand
The Services Marketing Triangle
Company(Management)
External Marketing“Making the promise”
Internal Marketing“Enabling the promise”
Interactive Marketing“Delivering the promise”
Source: Adapted from Bitner, 1995; Grönroos, 2000; Kotler and Keller, 2006.
ProvidersCustomers
Making Promises
Understanding customer needsManaging expectationsTraditional marketing communicationsSales and promotionAdvertisingInternet and web site communication
Keeping Promises
Service delivery– Reliability, responsiveness, empathy, assurance, tangibles,
recovery, flexibilityFace-to-face, telephone & online interactionsThe Customer ExperienceCustomer interactions with sub-contractors or
business partnersThe “moment of truth”
Enabling Promises
Hiring the right peopleTraining and developing people to deliver serviceEmployee empowermentSupport systems Appropriate technology and equipmentRewards and incentives
Human Resource Strategies for Delivering Service Quality through People
Think of Customer Value
Creating, Communicating and Delivering Superior Customer Value and Managing Customer Relationship in ways that benefit Organization and its Stakeholders
Value Hierarchy
Basic
Expected
Desire
Unanticipated
Customer
A Customer is the most importantVisitor on our premises.He is not dependent on us,We are dependent on him.He is not an interruption of our work,He is the purpose of it.He is not an outsider to our business,He is a part of it.We are not doing him a favor by serving him,He is doing us a favor by giving usAn opportunity to do so. - Mahatma Gandhi, the Greatest Servant to Humanity of the Century
A Customer is …
Anyone We need for our success and achievements
Service is .. To deliver the best possible value to meet customer’s needs and (whenever possible) exceed customer’s expectations as total experience with our products, processes, and people or .. Everything they need and expect from us
Service Quality(SQ) Center Indonesia, 2008.
What Business are you in?What is the core of your business?What do the customers expect from you?What Value do you offer?
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