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94 Cards in this Set
- Front
- Back
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Development factors of services |
Economic, demographic, social, technical, legal |
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Economic factors include |
wealth, consumer demand, well-being, globalization, externalization, differentiation, diversification through services |
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demographic factors include |
longer life expectancy |
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social factors include |
leisure culture, urbanization, female workforce, smaller houses, new values |
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technical factors include |
increasing complexity, development of products which require learning process, technology development |
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legal factors include |
liberalization, public sector privatization |
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Services classification |
by nature (health, financial, professional, arts, education) by sector (distribution, production, social, personal) by consumer behaviour (convenience, purchase, specialty, compulsory) |
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Goods |
objects, gadgets or things |
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Service |
act or performance |
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Differences between goods and services |
standardization, prices, productivity, stocks, economies of scale, learning curve, new products, differentiation, competitive advantages, flexibility, suppliers and clients implication, quality measure, human factor |
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Molecular model |
every product has tangible and intangible elements management tool BASIC SERVICE (minimum) ADVANCED SERVICE (complementary) |
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customer-driven model |
market --> customer needs --> marketing --> customer satisfaction SERVICES TRIANGLE customer (middle), strategy (up) people (right) systems (left) |
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Interaction and experience triangle |
results, contact, impact with customer in the middle |
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Intangibility |
difficult differentiation: no storable B/D, no patent, difficult pricing, difficult communication strategies: tangible evidence, strong corporate image, reinforce staff proffesionalism, cross sale |
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inseparability |
production - customer participation and interaction, service delivery, uniformity - Difficult differentiation:customer involvement in production, other clients interaction, difficult massive production, difficult delivery - Strategies: personnel selection and training, customer management, increase personnel, technology for mass production, many locations |
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heterogeneity |
- Difficult quality standards: customers involvement in production, random factors have effects on quality, real service differs from planning service, higher risk on consumer perception - Strategies: customization, standardization, technology |
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perishability |
supply/demand balance: no storage, no inventory, difficult quality control, difficult to synchronize, D>S=dissatisfied customers, S>D=excess of resources - Strategies of demand: creative prices, booking services, additional services, demand development Strategies of supply: part time employees, capacity share, prepare for long term growth, increase distribution through agreements, increase customer participation |
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Servuction |
the systematic and coherent organization ofall the physical and human elements on the interface client/enterprise necessaryto the realization of a provision of services whose commercial characteristicsand the levels of quality were given |
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Servuction elements |
customer, servicescape, contact personnel/service providers, the service, other customers, invisible organization and systems |
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Customer involvement of servuction |
low, medium, high |
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Relationships of servuction |
primary, internal, noncomitant |
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Main conclusions of servuction |
1. global thinking 2. goal: customer satisfaction 3. accurate and strictly bases - (a) define the service and its features (b) main elements (target, personnel, skills, physical support) 4. relationships among elements 5. system capability |
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marketing mix |
price, product, place, promotion, physical evidence, people, process |
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marketing process functions |
research, plan, organize, execute, review |
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main changes to financial marketing: |
distribution: value added branches, no bureaucratic work, new channels, segment oriented Products: investment and retirement funds, name, brand, packaging Price: financial margins drop, increase in funds and insurance fees, bank service fees Communication: selective, service quality, brand |
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LOOK AT SPECIAL FEATURES OF FINANCIAL INSTITUTIONS CHART |
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LOOK AT COMMERCIAL STRATEGY CHART AND SLIDES |
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relationship marketing |
form of marketing developed from direct responsemarketing campaigns which emphasizes customer retention and satisfaction,rather than a dominant focus on sales transactions |
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Relationship marketing scope |
quality + customer service + marketing = relationship marketing |
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Transaction marketing vs. relationship marketing |
Transaction: focus on isolated sales, oriented to product features, short term vision, low service customer attention, low customer compromise, limited customer contact Relationship: focus on customer retention, oriented to product benefits, long-term vision, high service customer attention, high customer compromise, frequent customer contact, quality focused |
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1-to-1 marketing steps |
IDENTIFY, DIFFERENTIATE, INTERACT, CUSTOMIZE 1) analyze your customer and define segments 2) design specific products for one or more segments 3) design specific marketing strategy for each segment 4) adapt your marketing to each customer 5) products will need to be flexible 6) sales employees should also be specialized |
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Traditional marketing vs. markting 1-to-1 |
tradtional: market share, product differentiation, product management, customers as rivals, find customers for products marketing 1-to-1: customer share, customer differentiation, customer management, customer as colleagues, find products for customers |
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elements of a marketing plan |
- executive summary - SWOT analysis - identification of the target - analyzing your positioning in relation to your competition and establishing brand strategy - establish marketing objectives - determine schedules, budgets, HHRR, responsibilities - setting implementation tactics - identifying metrics to track and measure success |
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Servqual dimensions |
- Tangibles (physical facilties, equipment) - Reliability (personnel, communcation materials) - Responsiveness (willingness to help) - Assurance (knowledge, courtesy, trust) - Empathy (individualized attention) |
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LOOK AT CONCEPTUAL MODEL OF SERVICE QUALITY |
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CUSTOMER SATISFACTION 4 BASIC FACTORS |
PRODUCT, SALES, CUSTOMER CARE, CORPORATE CULTURE |
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quality goals and organization view |
1) satisfy customer needs 2) business benefits 3) meet our professional goals quality benefits: loyal customers, recurring business, lower churn rate |
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LOOK AT CUSTOMER FRANCHISE MANAGEMENT AND GLOBAL ASSETS APPROACH |
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Data mining |
potential churn, complaints, financial behaviour, upgrades |
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Special features of financial services |
fiduciary responsibility and two way information flows |
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Needs and motives (bank) |
cash accessibility, asset security, money transfer, different payments, financial advice |
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Maslow's Hierarchy of Needs |
physiological: financial services are only instrumental to satisfaction - safety and security: insurance, cardholder protection plans, mortgages, physical safety of cash - social belongingness: club membership events for cardholders, personal services can be appealing for social contact - ego,esteem: gold card, american express - self-actualization: mastering the principles and practicalities of investment schemes or stock exchange |
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Influences and Orientations of consumer behaviour |
Primary: generic product Selective: specific brand |
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Multidimensional Model of Motivation |
- emotional vs. cognitive - preservation vs. growth - internal vs. external - active vs. passive - motive bundling - polarity for motive and the fear appeal |
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Goal conflicts |
approach-approach conflict avoidance avoidance conflict approach avoidance conflict |
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Segmentation single variables |
sex, social class, income |
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Segmentation hybrids |
family life-cycle geodemographics |
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Financial services segmentation |
- objecive methods (demographic, geographic, life-cycle, product) - psychographic clusters (benefits based or lifestyle segmentation) LOOK AT SLIDES - customer value segmentation |
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Cognitive map |
- behavioural conditioning - memory - perception - interpretation - perceived risk |
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perception includes: |
- selective perception (selective attention and exposure, perceptual defense - selection distortion and blocking, selective retention) - interpretation - perceptual organization |
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Image and Positioning constructs |
attribute, component, dimensions |
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Attitudes |
- objects (abstract or material) - express how an individual feels (direction, degree, intensity) - structure core/peripheral - consumer confidence |
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Models of buyer behaviour |
- response hierarchy model - AISA for complex financial products - comprehensive model - alternative model |
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Principles of segmentation |
- relationship marketing: retain and grow existing customers - Identify and select target segments based on user characteristics, behaviours and usage behaviours - selecting customer portfolio |
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5 types of jaycustomers |
- the thief - the rulebreaker - the belligerent - the vandal - the deadbeat |
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Pull profit potential of a customer |
- profit derived from increased purchases - profit from reduced operating costs - profit from referrals to other customers - profit from price premium |
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RELATIONSHIP MANAGEMENT MODEL - LOOK AT FIGURE |
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Customer pyramid |
rest of the world --> probable customers --> potential customers --> inactive customers --> active customers |
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Business intelligence cycle |
analysis --> define actions --> measure actions --> analyze actions |
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Results due to business intelligence |
- clear business strategy - clear customer needs - data base processes and input data defined - customer information IT applications - IT and data alignment - Measure results |
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Product definition |
anything that can be offered tosatisfy a need or want. Offering and solution are synonyms to the product inmarketing context |
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Product elements |
basic, expected, improved, potential |
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Product classifications |
- tangible - intangible, - consume (immediately, durable, convenience/opportunity, specialized, not requested) - industrial (integrated, partially integrated, not integrated) |
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Product life cycle key factors |
- regulation - interest rate changes and forecast - new competitors - disintermediation - securatization - new technologies - changes in consumer behaviour |
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new banking services |
- crucial innovation: technology and investment - new service line: new product only for my bank - new service in alive line: house-saving account - service modification |
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consumer's profit equals... |
company's value (price) |
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Price objectives |
- cost recover and added value for shareholders - sales volume or penetration rate in the market - prevent competition - product placement/reinforce corporate image in terms of price - cooperation with other companies/sponsorship |
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Price definition |
- by cost - by prices market structure - by value for customer (exclusivity) - by long term relationship (cross-sales) |
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Price strategies |
- cost based prices: internal perspective (cost recovery, equity remuneration) - competition based prices: differentiation (leader in prices, price follower, price neutrality) - demand based prices: value for customer (higher prices, more purchase frequency, product complexity, low changes' costs) |
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product launch includes |
market penetration and skimming |
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decisive factors of price: |
profitability, liquidity, risk, profitability... |
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Marketing mix distribution |
shared channels, at home, own branch, external access |
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Paretho-law |
- 80% income --> 20% customers - experience effect (knowledge curve) - corporate image - stakeholders - promotions - others: client, product, geographical, timing |
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Basic characteristics of Spanish distribtuion channel |
dense, entry barrier, expensive |
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Distribution strategies |
environment profitability market segments products and services competitors strategic model |
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Distribution strategies - mixed system |
- in store: customer knowledge, proximity, relationship, financial advice and value creation - online: cheaper, variable costs, products specifically designed for segments |
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change factors in financial distribution |
older, less time, more financial knowledge, reduced margins, new technologies |
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Branch characteristics and core role |
- proximity is #1 factor of branch election 1) start relationship with customer 2) resolve customer issues 3) sell key products 4) provide value added services 5) main contact between company and customer |
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Changes in branches' traditional role |
passive --> active unique channel --> mix traditional products --> large stocks universal --> segments |
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Branch distribution lines |
POS or sales force |
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Types of branches |
customer, product, mixed |
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Branch specialization |
corporate banking, universal banking, SME branches, retail banking |
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POS (3 points) |
NFC, contactless, mobile |
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Remote distribution channels |
telephone banking, internet banking, mobile banking |
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Indirect distribution channels |
financial agents, insurance distribution, in-store/large commercial surfaces distribution |
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Marketing communication definition |
means by which firms attempt to inform,persuade, and remind consumers, directly or indirectly, about the products andbrands they sell |
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Communication mix |
advertising sales promotion public relations personal selling direct marketing sponsorship |
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Structure of service production |
1. Interactive part: customers interact with personnel, systems, physical component 2. Support: management support, support functions, technological/knowledge support |
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Blueprinting services |
- the process: sequential flow of the service in both visible and support systems, deliver consistent quality - the means: resources used to accomplish each of the tasks in the process, physical assets per people - the evidence:set of clues customers use to assess quality of a firm i.e. appearance, professionalism, |
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Developing a Blueprint |
1. group 3-5 participants 2. specific instance of a service 3. select beginning point 4. departments and persons involved 5. map the steps in sequence |
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Using Blueprint for service improvement |
- eliminate steps to improve response time - giving frontline employees more leeway - identify unnecessary loops, bottlenecks - potentially problematic customer/server interaction |
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Designing the processL quality function deployment |
1. technical design elements of a service 2. customer impression of the service |
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Internal marketing |
- training - continuous interaction with management - internal mass communication - marketing research - other HR activities |
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Physical evidence |
- bankbooks - plastic cards - wallets - managing the physical evidence: servicescape |
