Bài tập chuyên đề services marketing – crm

Trang 1 Bài tập chuyên đề: SERVICES MARKETING – CRM1- Explain the role and significance of services in the modern economy2- Write a detailed note on pricing strategies for services.3- An

Bài tập chuyên đề: SERVICES MARKETING – CRM

1- Explain the role and significance of services in the modern economy 2- Write a detailed note on pricing strategies for services.

3- Answer the following:

(a) Explain the role of marketing communication

(b) Service promotion

4- Explain the role of intermediaries in planning and managing service delivery

5- Write a detailed note on CRM programmers

I- INTRODUCTION

In today's economy, growth of the service sector plays an important role to the growth of the entire economy, has the direct impact on sectors of production (agriculture, forestry, fisheries, and industry - construction) and increases value-added for these sectors In the future, the role of economic services will be enhanced due to the increase of the proportion of service sector in GDP Regional Development Services is the world trend

Nowadays, most of the corporations are operating in a dynamic and aggressive market where there are always lots of challenges and opportunities One of the challenges is that businesses must face with competitive environment which is extremely intense and complex.Marketing is the process of communicating the value

of a product or service to customers, which every corporation has to focus on Marketing activity is one of the effective tools to help businesses maintain and gain long-term competitive advantage in the market as marketing helps businesses solve the relationship between businesses and other markets From a societal point of view, marketing is the link between a society's material requirements and its economic patterns of response Marketing satisfies these needs and wants through exchange processes and building long term relationships

While product and pricing strategies can only be created in the short -term advantage because other businesses could create a similar strategy to the compete, the effective strategies and distribution channels applying CRM program will create differences compared to the competitors in the market Therefore businesses which want to achieve success must be much focused on distribution channels and apply CRM program effectively

After being studied management marketing with the above statements, I decide

to choose Topic 1 : SERVICES MARKETING - CRM with the below questions and answers:

II- BODY :

1- Explain the role and significance of services in the modern economy

1.1- Definition of service :

Services are social work activities, creating commercial products that do not exist in physical form (intangible commodity), obtain exclusive ownership of the thing purchased in order to satisfy the timely demand for production and human’s life

1.2- Characteristics

a- Stability

Service skills do not lose after supplying For example, the singers’ voice does not lose after a successful show; doctors lose none of his technical ability after a successful surgery

b- Intangibility

Services are intangible and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, and tasted Service can not be measured by the normal method of measuring the volume, weight Patients may not know the results before medical examination, tourists do not know the impact of the services before they are offered and received

A special form of existence of the increasingly popular services is information, particularly in the modern service sector such as consulting, legal, audiovisual services, telecommunications, computer the process of production and consumption associated with this service can not take place simultaneously On the contrary, in

other common services such as distribution, health care, transportation or travel requires direct contact between the service providers and consumers

c- Inseparability

Services are produced and consumed during the same period of time.Unlike most physical products; service products can’t be stored before consumption Services can not be separated from its source though existing material goods does not depend

on the presence or absence of its origin

d- Variability

Quality of service usually fluctuates in a very wide range; depending on the circumstances which create services (such as suppliers, time and place of supply of service)

e- Perishability

Services can not be stored For example, we can not buy tickets of the football match to watch another match If the demand were stable and predictable, it wouldn’t

be problem However, practical service needs are often unstable and fluctuating so the company providing these services can meet the obstacle problem on the issue of using human and technical infrastructure

f- Large proportion of intellectual content in service sectors

One does not need the input materials as tangible production lines or plants to produce services; the most important role in service activities is the human factor, represented by the intelligence and the use of specialized skills with the support of tools, equipment It does not depend on muscle strength or activity associated with the massive production lines For the traditional service sector such as distribution, transport and tourism, the importance of the material and technical base is also significant; however, the role of knowledge is still primarily and can not be missed

g- Sensitivity of services to the rapidly change of technology:

This is the most important feature of the service, reflected in the quality of services which is constantly professionalization; more importantly, the continuous emergence of new services Especially in the cell phone service , The first automatic analog cellular systems in the early 90s were transferred to the digital cellular

network-the second generation, now in the early years of the 21st, mobile broadband data becomes more widespread which can help to access internet very easily at anytime and anywhere

The development of services in the economy, including:

The infrastructure services

↓ The support services

↓ The entertainment service

↓ The time-saving service

(Source :After Bruce R.Guile and James Brian Quinn,eds., Technology in service : Policies for Growth, Trade and Employment, Washington, D.C :

National Academy Press, 1988 p.214.)

Starting from the '70s until now, the World economy based on technology and intellectual.The goods are manufactured with low cost but high price including the cost for services and ideas Consumers purchase value of the goods which are the value-added and other (services and ideas) Therefore, service plays a very important

role and becomes increasingly dominant in modern economies because service meets the needs of customers immediately, production and consumption occur simultaneously, the socio-economic effect is higher, business environment becomes more dynamic

Economic efficiency and social services which bring often much larger than ordinary goods, such as the typical invention, copyright, technical know-how, licenses, franchises Benefits of goods range of intellectual products that are extremely large, including educational services, often promote the development of the knowledge economy

In early 21st century, services occupy a high proportion of in the economy: GDP

of the U.S , Britain , Canada is nearly 80 % Many of other developed countries also follow the general trend development: services account for almost 80 % of GDP But

in developing countries, this figure is usually significantly lower, averaging around 35-40 % of GDP

In the process of economic development, the service sector expands rapidly and usually attracts large number of jobs (jobs) In the U.S., the proportion of labor and employment in the service sector in 1994 accounted for 75 % of all new jobs in America This figure in other developed countries such as the UK, France, Italy, Germany, Japan, and Canada was approximately equal compared with the U.S., especially in the field of sales (including wholesalers and retailers) On the world market, according to UNCTAD, trade service accounts for about one quarter of total current international trade value Growth of international trade service is usually very fast and has an average of 12-15 % / year

Service developments contribute to gradually shift material production to other countries, especially the developing countries to take advantage of the cheap labor force Moreover, this trend is to reduce the environmental pollution caused by the production in his country, and move it to other countries It is the reason why developed countries have trade deficit in goods but trade surplus in services Ortherwise, the developing countries have trade surplus in goods and trade deficit in services

Overall, in the trend of current globalization, services play an increasingly significant role in the economy of developing countries, especially in new sectors such

as telecommunications, electronics (careers with high technological requirements) The role of services in the developing countries remains low, but is rapidly increasing due to the general trend of the world economy

2- Write a detailed note on pricing strategies for services.

Developing and managing the approriate pricing strategy is an important condition to ensure that businesses can access markets and business operations with high efficiency But the price is affected by many factors The formation and movement of it are very complex The management of pricing strategies requires to be solved many synthesis and synchronization problems

Price is one of four important feature of marketing mix Price plays a decisive role to help customers in choosing topurchase what kind of goods For the company, the price has a decisive competitive position in the market The estimate of the pricing

of products is very significant

To develop the new products, business must have appropriate pricing strategies

to create value for products in the market To make use of pricing strategy for new products, enterprises can pursue the following basic objectives:

-To survive (the price is higher than the cost)

- To maximize immediate profits

- To increase market share

- For quick returns

- To lead about the quality

- The other goals: a business can use price to serve a number of more specific objectives Businesses can set low prices to prevent competition or equal prices compared with competitors in order to keep the market stable The price may be determined to show business’s reputation, to support dealers or to avoid government intervention

Some pricing strategies are as follows:

2.1- Penetration Pricing:

Penetration pricing is a pricing strategy where the price of a product is initially set at a price lower than the eventual market price, to attract new customers Companies launch products at a price that only gives them a very small profit, because they want a big market share The lower cost will stimulate the growth of market share If you need to apply this strategy, there are some following conditions:

- In the price sensitive market, low price will stimulate market growth

- Decreasing costs due to improvement and experience

- Due to low prices, enterprises can reduce real or potential competition because their competitors don’t find it attractive when the profits is low

2.2- Market-Skimming Pricing:

In most skimming, goods are sold at higher prices so that fewer sales are needed

to break even Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market This strategy is often used to target "early adopters" of a product or service This policy is particularly suitable for the new product because :

- In the early stages of the life cycle of a product , the price is not the most important factor

- Market will be assigned according to their income which it gains from higher prices

- It may be a protective factor when determining the wrong price

- Initial high price will limit demand in the original production of enterprises For example : When the company manufacturing supercars like Bugatti, Ferrari, Lamborghini sell new products, they are often at very high prices and limited quantities Though they sell a small amount of products, they can gain a lot of profit for each product In 2013 Ferrari sold 6,922 cars , less than 5.4 % compared with a year earlier , but sales rose 5 % to 2.3 billion euros , net profit reached 246 million euros ( increased 5.4 % ) (Sources : Bán ít xe hơn, Ferrari vẫn đạt lợi nhuận kỷ lục năm 2013 Available at : http://www.autodaily.vn)

2.3 strategy based on Product Life Cycle Pricing:

Every product life cycle also includes 4 stages Depending on each stage of the product cycle , the situation of the company , competitors , markets the company will apply the appropriate pricing strategies:

- Introduction: This is the stage in which a new product is first made available in the market In the introduction stage, customers are few, competition is less, sales are low, risk is high and profits are low or nil

- Growth: In this stage, products is widely recognized in the market and the company can significantly increase profits

- Maturity Once the product is well established and consumers are satisfied, then the product is widely accepted and growth slows down Before long, however, a successful product in this phase will come under pressure from competitors The producer will have to start spending again in order to defend the product's market position or introduce extension strategies

- Decline: This is the stage in which sales tend to decline and diminishing returns

2.4- Discount pricing strategy

A cash discount is a deduction allowed by the seller of goods or by the provider

of services in order to motivate the customer to pay within a specified time The cash discount is also known as an early payment discount For example: a common cash discount is 2/10, net 30 and it will appear on the sales invoice The invoice will be paid within 30 days However, the buyer can deduct 2% if the buyer pays the seller within 10 days of the invoice date The discount is quite common and it aims to improve the payment of customers and reduce bad debts

Quantity discounts It is normal to offer quantity discounts to customers who

purchase in large quantities This discount must be applied to all customers in order to encourage them to buy more thus the company can greatly reduce the cost and increase the overall profit

Commercial discount An amount or rate by which the catalog, list, or retail price of an item is reduced when sold to a reseller.it is used to encourage resellers to fullfil their tasks

Seasonal discounts: they are appropriate to reward customers who purchase during off-peak times For example, the hotel near the sea discount the price of rooms

in the winter

2.5 Discount actively

Many circumstances can cause a company to consider about discounts to their products, although this could cause the price battle One reason is the excess capacity, companies need more customers but it can not be achieved by other means Another reason is that the competitors sell product with lower price; so, the Company has to reduce prices to compete with rivals Moreover, the company discount to sell all of its inventory

Eg : In Some U.S industries- cars , electronics , appliances, cameras , watches and steel are losing market share to their competitors-Japan because Japanese products are of high quality and cheaper than American products in the west coast where competition with Japanese is strongest , General Motors has to discount its mini car IEU down to 10 %

3- Answer the following:

(a) Explain the role of marketing communication

(b) Service promotion

Answer the following:

(a) Explain the role of marketing communication

3.1- Definition of marketing communication

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brand they sell-Philip Kotker Through the message content, businesses inform customers about their presence, the products on the market, convince customers of the quality of products compared to competing products, and remind them of the product whenever they need

Marketing communication is also known by the equivalent term as promotion (marketing promotion) which is one of four elements of the marketing mix

3.2- Role of marketing communication

Marketing communication is an important element, effectively supporting for other marketing mix strategies The marketing strategies and tactics which are effective deloyed will help to reduce the communication activities However, there are very few services; especially in a competitive environment nowadays, can ignore the role of marketing communications Moreover, today's product life cycle is shorter and shorter, so the view "good wine needs no bush" is no longer pratical

Through marketing communication strategies, business informs potential customers of the advantages, uses, values and benefits their products Therefore, marketing communication strategy will help businesses increase sales of existing products, create customers’ awareness and favorite for new products, and build up a good business for the company However, businesses need to incorporate communication strategies with other elements of the marketing mix to create a synergistic effect Communication also helps enterprises to promote the brand Especially in the sales of hazardous goods such as tobacco, alcohol, drugs the role

of marketing communications is particularly important

For example : Although wearing a helmet when riding a motorbike , or protecting the environment from pollution is essential for human life , the State must spend a lot of money on marketing communication programs to make people understand and implement voluntarily

Process of marketing communication