AboutLeo Lingham Expertise In Managing a business, I can cover all aspects of running
a business--business planning, business development, business auditing, business communication, operation management, human
resources management , training, etc.
Experience 18 years of working management experience covering such areas
as business planning, business development, strategic planning,
marketing, management services, personnel administration.
PLUS
24 years of management consulting which includes business planning, strategic planning, marketing, product management, training, business coaching etc.
Question define marketing.distinguish product marketing and services marketing with suitable examples
Answer SUDESH,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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DEFINITION OF MARKETING.
What is Marketing ?
It is a process by which
-one identifies the needs and wants of the people.
-one determines and creates a product/service to meet the needs
and wants. [PRODUCT]
-one determines a way of taking the product/service to the market
place. [PLACE]
-one determines the way of communicating the product to the
market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]
and then creating a transaction for exchanging the product for
a value.
and thus creating a satisfaction to the buyer's needs/wants.
TERMS to understand.
1.Product/Service means a product or service or idea to satisfy
the people's needs / wants.
2.Needs mean when a person feels deprived of something.
3.Wants mean when a person's need is formed / shaped
by personality, culture, and knowledge.
4.Value means the benefits that the customer gains from
owning and using the product and the cost of the product.
5.Satisfaction means the extent to which a product's
perceived performance matches a buyer's expectation.
6.Exchange means the act of obtaining a needed/ wanted
object by offering something in return.
7.Transactions mean a trade off between a buyer / a seller
that involves an exchange at agreed conditions.
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.
It encompasses
- market research,
-product planning / development ,
-product pricing,
-product marketing
-SALES
-promotion,
-distribution,
-customer care,
-BRANDING
-merchandising
-retailing
-website marketing
and much more.
FROM THE ABOVE, YOU WILL SEE ''SALES'' IS ONE OF THE ELEMENTS OF TOTAL MARKETING.
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A.PRODUCT MARKETING
Product marketing deals with the first of the "4P"'s of MARKETING , which are PRODUCT , PRICING , PLACE , and PROMOTIONS.Product marketing, deals with more outbound MARKETING tasks. For example, product management deals with the nuts and bolts of PRODUCT DEVELOPMENT within a firm, whereas product marketing deals with marketing the PRODUCT to PROSPECTS CUSTOMERS , and others.
EXAMPLE : LUX TOILET SOAP.
Role of product marketing
Product marketing in a business addresses five important strategic questions:
What products will be offered (i.e., the breadth and depth of the PRODUCT LINE ?
Who will be the target customers (i.e., the boundaries of the market segments to be served)?
How will the products reach those (i.e., the distribution channel)?
How much should the products be priced at?
How to introduce the products (i.e., the way to promote the products)?
THE MOST APPROPRIATE / SELECT A COMBINATION FOR YOUR SITUATION
SAY, LUX TOILET SOAP.
-your product has a '' unique advantage/benefits.
-your product offers the most competitive ''value for money''.
-your product is one of the affordable in the market for its range.
-your product positioning in the niche market.
-your product distribution is matchless in the market, available at arms length.
-your product merchandising is the most attractive at the retail level.
etc etc.
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SERVICE MARKETING
SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP
Services marketing is MARKETING based on relationship and value.
Marketing a service-base business is different from marketing a goods-base business.
There are several major differences, including:
The buyer purchases are intangible
The service may be based on the reputation of a single person
It's more difficult to compare the quality of similar services
The buyer cannot return the service
The major difference in the services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves.
EXAMPLE: EDUCATION
Service quality is not one-dimensional; it encompasses numerous factors that are important to customer satisfaction. Satisfaction basically is related to expectations and perceived delivery on these dimensions and as shown by the equation given below.
The quality of service delivery results in customer satisfaction & their retention as it reinforces the perception that the value of the service received is grater than the price paid for it.
Quality is defined as the ability of the service provider to satisfy customer needs. Customer perception , service quality & profitability are interdependent variable.
Even in the case of products, quality is difficult to define because it is highly dependent upon customer perception. The task is made more complicated in the case of service because of the intengible nature of service & the variation in services offered to different customers.
There are several reasons why customers must be given quality service. Most important of them are
1. Industry has become so competitive that customers now have variety of alternatives. If the customers are lost, it can be extremely difficult to win back the individual.
2. Most customers do not complain when they experience problems, these customers simply opt out & take their business elsewhere.
What is CUSTOMER Satisfaction?
CUSTOMER Satisfaction = function of {CUSTOMER -Expectation and Perceived delivery}
A person is said to be dissatisfied when the perceived delivery is lower than expectation; he/she is satisfied when they match; delighted when the delivery exceeds expectation and astonished when the delivery far exceeds expectation. The following equations explain these relationships.
Perceived Delivery < Expectation --> Dissatisfaction
Perceived Delivery = Expectation --> Satisfaction
Perceived Delivery > Expectation --> Delight
Perceived Delivery >> Expectation --> Astonishment
Dimensions of Service Quality:
There are various aspects that a customer expects from different services.
1. Reliability: This refers to the ability of the company to perform the promised service dependably and accurately. Reliability is probably the single most important dimension of quality. Customers expect that companies will do what they say and they will do when they say they will do it.
2. Tangibles: This refers to the appearance of the physical facilities, equipment, personnel, and communication materials. As services are intangible, the tangibles give an impression to the customers about the quality of service they can expect from a firm. A bank in a shabby building will make the customer wonder whether their money will be safe in such a bank.
3. Responsiveness: This refers to the willingness of the employees to help customers and provide prompt service. When you go to a bank the minimum that you expect is that the employees would attend to you rather than chit-chat amongst themselves.
4. Assurance: This factor is linked to several minor factors such as competence, courtesy, credibility and security. Competence depends on the service provider's possession of the required skills and knowledge to perform the service. The politeness, respect, consideration, and friendliness of the service providers can be bundled into the term courtesy. Credibility refers to the perceived trustworthiness, believability, and honesty of the service provider. Security refers to the fact that the service should be free from danger, risk, and doubt. In sum, the assurance factor refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence.
5. Empathy: Empathy refers to the caring, individualized attention the firm provides to its customers. It includes access, communication and understanding. Access refers to the approachability and ease with which the customer can contact the firm. Communication refers to keeping the customer informed in the language they can understand and listening to them. Understanding has to do with the efforts made by the service provider to know customers and their needs.
The Service Quality Gaps:
Gaps between perceived & expected levels of service quality delivery result in the failure of the service provider.
These are the 5 gaps.
-The First gap does not know what customers expect. rea
-The second gap is between what the customer expects and what the management understands as the customers' expectation from the company.
-The third gap is with reference to the management's understanding of the customer expectations and the service quality standards set by the management.
-The fourth gap is between the quality specifications and actual service delivery.
-The fifth gap is between what is communicated to customers and what is actually delivered.
It is possible to measure the gaps and take corrective actions to fill them to the extent possible. The most difficult gap to fill is the one between customer expectations and the perceived service delivery. The expectation of the customers keeps rising with every good experience. When a customer visits the service organization, he/she expects a better service than what was experienced in the last encounter.
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The service marketing challenges are
-to generate re-sales
-to create a waiting list
-to create a positive word of mouth advertising
as a lot of new business is generated from satisfied customers.
WHICH MEANS THAT THERE IS NO/LITTLE GAP BETWEEN
SERVICE EXPECTATIONS AND SERVICE DELIVERY.
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HOW DO YOU MATCH SERVICE EXPECTATION WITH DELIVERIES
IN PRODUCT MARKETING , WE RELY ON 4 P's
-product attributes/benefits
-pricing strategy
-place [ right / easy place to buy]
-promotions [ selected weighted mix]
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IN CASE OF THE SERVICE, THE PRODUCT IS
-intangible, the greater the intangibility the more complex
the promise.
-perishable /heterogeneous, the production and consumption are often simulaneous.
IN SERVICE MARKETING, WE RELY ON 7 P's
-product service [ features/benefits]
-place [ flexibility]
-price [ flexi]
-promotions [ selected weighted mix]
-people [ ability,competent, right attitude ]
-physical evidence
-process
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IN SERVICE BUSINESS,
-SERVICE MARKETING PROMOTES AND
SERVICE MANAGEMENT GENERATES RESULTS, through
*service delivery
*service quality
*customer satisfaction/ relation management
-service recovery
-service management audit.
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SERVICE MANAGEMENT PROVIDES SATISFACTORY SERVICE
-by designing the customer oriented business process
-cost effective service
-continuous improvements through research/development
-improving people's abilities/competences.
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SERVICE MARKETING MEETS SERVICE MANAGEMENT
-by managing customer behavior
-by conducting customer research
-by managing customer expectations
-by reverse-engineering the product/service portfolio.
-by determining what service the market needs/ we can offer.
-what do we need to do to fill the gap.
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THE INTEGRITY OF PRODUCT-SERVICE DELIVERY
when the service marketing is intergrated with service management
that is ,what you promise [either explicitly or implicitily] and
what you deliver
IN THIS CASE , ''INTEGRATED'' = ''INTEGRITY''
There is no gap
WHICH MEANS CUSTOMER SATISFACTION,
WHICH IT TURN MEANS = SUCCESSFUL SERVICE MARKETING.
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