Write detail note on price strategies for services: 3.. Write a detailed note on CRM programmers.CONTENT1/ Explain the role and importance of services in modern economy.In developed coun
Trang 1BÀI TẬP VỀ DỊCH VỤ MARKETING - MARKETING SERVICES - CRM
1 Explain the role and importance of services in modern economy
2 Write detail note on price strategies for services:
3 Answer the following issues:
(a) 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
CONTENT 1/ Explain the role and importance of services in modern economy.
In developed countries, service delivery and its definition have existed andbeen developed for a long time In developing countries like Vietnam, service hasjust been developed recently, although it has actually existed in very long time.Nowadays, GDP - Gross Domestic Product of a country as well as revenue of abusiness cannot be counted without the contribution of service delivery
Since late 90s, service sector has accounted for a high proportion of GDP ofdeveloped industrial countries Specifically, in 2000, the proportion (%) of services(GDP) of some countries are as follows:
of GDP With the strong development, services play an increasingly important role inthe economy of each country So what is service? There are many definitions of
Trang 2service "Service is the result of interactive activities between suppliers andcustomers as well as internal operations of suppliers to meet the needs ofconsumers."
Some other writers think: "service is the result of operations that cannot beperformed by physical products but by their usefulness and economic value such astrade, health, tourism, administration etc."
According to Professor Philip Kotler:
“A service is any 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.”
We can understand simply: "Service is a kind of social products in order to meet a vast array of needs in human life, it includes all of supports that customers expect to be consistent with price, prestige beside products or services "
Structure of service: 3 kinds:
- Business – Finance Service: Paid television services, Internet services,advertising services, insurance services, home sales services, post sales, online sales,banking services (ATM, Internet payment, consumerloans, financial counseling )
- Consumer Services: supply of electricity and water; entertainment, sports, food,clothing, fashion designers, hotels and tourism (including services of motels,restaurants, entertainment services, sightseeing), barber, salon, repair services ofappliances, house cleaning, child care,
- Public services: Health, health care, child care, education, libraries, museums,lighting
Operation of services plays an important role in the modern market economy:
1 Services enable enterprises to increase their sales and gain more profit
2 Service has a strong influence to the trade of goods in national areas as well asinternational areas How will international trade like trade of goods circulate if there
is no transportation service? The birth and development of transportation servicessuch as road, airway, seaway transport have contributed to overcoming geographicalobstacles, accelerate the circulation of goods, boosting trade demand, exchanging
Trang 3goods from countries to countries, from region to other geographical areas Paymentservices? Banking service allows payment process taking place an effective way tohelp both exports and imports gain purposes of trade relations Thetelecommunication, information services support the commercial activities instimulation, shorten the purchasing decision time of consumers Services such asagents, wholesale, retail play intermediary role between producers and consumers; atthe same time, they contribute to accelerating the consumption of goods, shorteningthe circulation of goods, helping manufacturers quickly recover investment capital toreproduce.
3 The growth of service is the driving force for economic development as well
as positive impact on the division of social labor The economy is growing soservices are diversified Currently, the development of services reflects the level ofeconomic development of each country It is believed that the higher the level ofeconomic development of a country is, the bigger the proportion of service sector ineconomic structure of that country is Development services will promote division ofsocial labor and specialization; enable other production sectors to develop (Indeveloped countries, services account for 50 - 60% of labor force, 70 - 80% ofnational income, spending on services accounts for 60 - 65% of personal income inthe developing countries)
4 The sale of goods and services created in the market (promotion, gifts,birthday celebration, member cards ) has enhanced the consumption and enjoyment
of individuals and enterprises, contributed to boosting production and marketexpansion
5 Service sets up barricades to block the entry of competitors Service alwaysshows the competition between enterprises through services created on the market fortrading goods and services Therefore, service requires enterprises to be dynamic,creative and artistic in order to constantly improve the competitiveness of goods andservices on the market This solid foundation will help enterprises survive anddevelop in the fierce competition today
In the trend of international integration, the role of services in developingcountries is low, but are increasing rapidly follow the general trend of the world
Trang 4economy The domestic market will be closely linked to foreign markets throughforeign trade; if services and trade grow strongly, abundantly, they certainly expandthe market to attract inputs and outputs of the market Because of this, the service -commerce will be the bridge to link the domestic market to foreign markets which isconsistent with the trend of integration and openness in our country today Service -commerce operations require business owners be dynamic, creative, artistic toconstantly improve the competitiveness of goods and services on the market,contribute to boosting production force fast; this solid foundation will helpenterprises survive and develop.
REFERENCES
http://voer.edu.vn/
http://timtailieu.vn
http://www.slideshare.net
2/ Write detail note on price strategies for services:
Price strategy refers to the methods which enterprises use for valuation ofproducts or services Most enterprises, whether big or small, valuate the prices ofproducts or services based on manufacture, labor and advertising costs, and then add
a certain percentage for them to make profits There are many different pricestrategies such as penetration price, skimming price, discount price, valuation based
on product life cycle and even valuation based on competitors
Price is the amount that sellers and buyers mutually agree to exchange goods andservices in normal trading conditions, or the price is the amount or products that weask to put out for getting something else (ownership, rights to use ) In cooperationand competition, producers, distributors and consumers actively agree to tradetogether on price and form market price Everyday in life, we often face the price:money for purchasing goods, renting, school fees, medical care, tickets, interest,salary and returns etc
How is price determined? Previously, the price is determined by both sellersand buyers through a bargain process Sellers often offer a higher price than the
Trang 5intended one and buyers usually bid a lower price through negotiations, they willcome to an acceptable price for both parties.
The determination of a price for all buyers is a relatively modern idea Thiscreates favorable condition for the management when the sellers have many differenttypes of goods and hire a lot of staffs
In business, price shows the competition of economic benefits and monopolyposition of power Thus, the roles of price are:
- Price has a particularly important role in the reproduction process because it is thelast stage and it shows the result of other stages
- Although on the world market in general, price competition transfers to qualitycompetition but in many places, at many times and in many fields, price competitionstill remains strictly
- Price research is one of marketing activities in order to carry out the purpose ofsales Price is the basic factor of marketing Price plays a decisive role in the choice
of purchasing this product or other products whenthere are similar products
- Price is a lever to operate consciously on the market (through the law of supply anddemand)
- Market impact reproduction process primarily through price
- Price is a basic factor, one of four important variables of Marketing mix to createincome for the company; and all other parts only bring investments and expenses, soprice is particularly important for the company
- The valuation should be inextricably linked to the choice of the other variables ofmarketing mix
- Price variable (price strategy) also causes immediate impacts more than othervariables of marketing mix Demand and people who change price or changes inproducts, advertisement etc
- Price displays the appropriate level of economic activities of the company withenvironmental requirements that help satisfy consumer needs and evaluate economiceffect of the company Price affects demand but it is not the only factor of marketingbecause there are other factors such as product, distribution, promotion also affectthe needs Price is only one of tools to influence demand and sales Any decision may
Trang 6also become invalid and be replaced if it no longer fit the situation of spending,reaction of competitors and changes in consumer habits.
The establishment of a proper price strategy will ensure profitable businessand dominate the market Different from valuation following cost, enterprises nowconsider market prices to valuate the products according to 5 ways following:
Price penetration valuation:
A small company which uses penetration price usually put a low price for its product
or service with hope of building market share, the ratio of company’s sales on themarket and total turnover
The main goal of penetration price is to attract customers with low prices and thenuse different marketing strategies to retain them For example, a small Internetsoftware distributor can set a low price for their products and then send emails withcomplementary software products offered each month to customers A smallcompany will work hard to serve customers to build brand loyalty among them.Enterprises typically deploy more diverse products than individual products Afterthat, they decide the price levels for the different products in the same line The pricelevels need to be accounted the differences in cost, customers’ evaluation fordifferent features and prices of competitors
Skimming Price (gain more profit in the begining):
A different kind of price strategy is surfing price/ skimming price in which acompany orders high price to quickly recover production costs and productadvertising The main objective of skimming strategy is to achieve a quick profit.Companies often use skimming price when they are lack of financial resources tomanufacture products in quantity, according to the article "Price Strategies" onNetMBA.com Instead, the company will use cash which they quickly earn to financethe manufacture of additional products and advertising
Valuation based on product life cycle:
All products have their lifespan which is called the life cycle of product A productgradually progresses through various stages in the cycle: introduction, growth,maturity/ stability and stage recession During the growth stage, when sales arebooming, a small company often keeps higher prices For example, if the company's
Trang 7products are unique or higher quality than competing products, customers may have
to pay higher prices A company which has products with high prices in the growthstage can also own a new technology with high demand
Valuation based on competitors: (Smaller companies cannot follow the prices of bigger companies)
Understanding costs and price of competitors is very important It is very useful toknow how the competitors will react upon the changes in price of your products Acustomer buying wooden furniture will consider the price of products and compare toprices and quality of the similar products of other enterprises When pricing itsproducts, an enterprise must always put itself in relation with competitors to adjustaccordingly (especially important competitors) Sometimes, a small company mayhave to reduce prices to meet the prices of competitors A price strategy followingcompetitors can be used when there is very little difference between products in thefield For example, when buying paper plates or paper cups for a picnic, they oftenpurchase with the lowest price when there is small difference Therefore, a smallpaper company may need to valuation their products lower or loose sales (Ex.: Applehas achieved fame in the world, so they can set the high price because of hightechnology, but other competitors have to set lower prices)
Temporary Discount Strategy: Discount according to season to solve
Small companies can also use temporary discounts to increase sales Temporarydiscount valuation strategy includes coupons, discount sales, seasonal discounts andeven when buying in bulk For example, a small clothing manufacturer can offerseasonal discounts after holiday to reduce inventories A discount according to thequantity may include a promotion such as buy two get one free
Most enterprises will adjust their basic price to reward some customers’ works such
as paying early, purchasing large quantities and buying out of season This priceadjustment is called the amount of discount or rebate
- Discount in cash: Discount in cash is discount for buyers who make earlypayment A typical example: If sellers note "2/10 net 30", they means the payment isextended within 30 days, but buyers can gain 2% profit of the price if they pay thereceipt within 10 days This discount is quite common; it serves the purpose of
Trang 8improving the payment of sellers and reducing the costs of debt as well as the amount
of bad debts
- Discount in quantity: is a discount for those who buy a lot This discount must
be applied to all customers in order to encourage them to buy more, so they aregreatly reduced costs and the company is increased overall profit
- Seasonal discount: is the discount for customers who purchase goods orservices in few-customer season For example, hotels near beaches discount rooms inwinter
- Additional discount: is another form of discount from retail prices.Particularly, discount in goods exchange is the discount for returning old items whenbuying new items This type is very popular in the automobile industry as well as insome other types of durable goods such as televisions, refrigerators, washingmachines etc Promotional allowance is the rebate for rewarding dealers participating
in promotion program
REFERENCES
http://smallbusiness.chron.com
3/ Answer the following issues:
a) Explain the role of marketing communication
b) Service promotion
All organizations - big and small, commerce, government, charity, education andother non-profit organisations – need to communicate with a range of stakeholders.This may be to get materials and services to undertake their business activities, or tocollaborate and coordinate with others to secure suitable distribution of their goodsand services In addition, there are consumers – you and me – people who are free tochoose among the hundreds and thousands of product offerings Marketingcommunication provides a core activity for all interested parties can understand theintentions of others and appreciate the value of goods and services provided
The marketing communication agencies are trying to adjust following the waythey can best serve the interests of their customers One of the results ofreorganization structure (mergers and takeovers) may lead to consolidation
Trang 9Customers themselves are fighting to generate superior value for their customers and
to find new ways of establishing competitive advantage Globalization anddevelopment of partnerships, alliances and networks are all testament to the marketchanges and expectation
Definited by Don Schultz and Heidi Schultz (1998) based on previous studiesand experiences from different organizations which have accepted the approachmethod IMC: "IMC is a strategic business process to be used to plan, develop,implement and evaluate coordination, measure and conduct brand communicationprograms which persuade consumers, customers, potential customers, target objects,and other outside and internal relevant objects through time” According to itscreator, it focuses more on the business process including all the concepts thet wehave mentioned so far as well as business process, evaluation and measurement a) Explain the role of marketing communication:
From the comments above, it is possible to deduce that marketingcommunications are about the promotion of both organization and its offerings.Marketing communications recognize the increasing role that the organisation plays
in the marketing process, and the impact that organizational factors can have on theminds of audiences As the structure, composition and sheer number of offerings insome markets proliferate, so differences between products diminish, to the extent that
it has become much more difficult to differentiate between products This results in adecrease in the number of available and viable positioning opportunities One way toresolve this problem is to use the parent organization as an umbrella, to providegreater support and leadership in the promotion of any offerings - hence the earlierreference to the emerging strength of corporate marketing
A view that is becoming increasingly popular is that corporate strategy should
be supported by the organization’s key stakeholders if the strategy is to be successful.Strategy must be communicated in such a way that the messages are consistentthrough time, and are targeted accurately at appropriate stakeholder audiences Eachorganization must constantly guard against the transmission of confusing messages,whether this be through the way in which the telephone is answered, the navigability
of a website, the impact of sales literature, or the way salespersons approach
Trang 10prospective clients Many organizations recognise the usefulness and importance ofgood public relations.This is because of the high credibility attached to the messagesreceived and the relatively low operational costs As a result, the use of corporateadvertising has grown.
Finally, marketing communications recognize the development of channels orcommercial marketing Many organizations have moved away from the traditionalcontrol of a brand manager to a system that focuses upon the needs of distributorsand intermediaries in the channel The organizations in channels work together tomeet their personal goals and their collectives The level of conflict and cooperation
in a network of channel depends on a number of factors, but some most importancesare formation and quality of communications between member organizations Thismeans marketing communications should meet the needs of specific contactinformation of the members of the distribution network and other stakeholders whoinfluence or affect the performance of network Indeed, marketing communicationsrealize the need of contributing to the communication in network channel to supportand maintain the websites of the relationships
For example, many organizations in the aviation have turned their attention to theneeds of tourist trade, customers and competitors For example, Vietnam Airlines,Singapore Airlines, American Airlines, British Airways and other airlines havechanged their approach, attitude and prior investment for partnership and channelcoalition are specially prioritized Currently, they are interested in working obviouslywith their partners and their competitors, and this requires agreement, cooperationand promotion activities for all participants to achieve their goals
Marketing communication includes 4 main tools of promotion: Advertising,Sales Promotion, Personal Selling, Public Relations Performance of promotion tools
is varied because of market
Advertising is one of the most important tools of promotion activities.
Advertising transfers convincing information to target customers of the company.Purpose of Advertising is to attract customers' attention, convince them of thebenefits, the attractiveness of the product changes or reinforce attitudes and belief ofconsumers about the company's products, increase desire for their shopping and