Stepping Stones To Service Marketing
Relationship is one such thing that is most valued in marketing. [/b]
The reputation that a business develops over years must be kept in mind hence the value of service and the follow up should be done in successful manner. Whereas in economics, service is said to be a non-material equivalent of a good, service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating a change in customers, a change in their physical possessions, or a change in their intangible assets. Let us have a look at the attributes that service carry,
Intangibility - They cannot be seen, handled, smelled, etc. There is no need for storage. Because they are difficult to conceptualize, services marketing require creative visualizations to effectively make the intangible more concrete.
Perish ability - Unsold service time is "lost", that is, it cannot be regained. It is a lost economic opportunity.
Lack of transportability - Services must be consumed at the point of "production".
Lack of standardization - Services is typically custom designed for each client or each new situation. Mass production of services is very difficult. This can be seen as a problem of inconsistent quality.
Labour intensity - Services usually involve considerable human activities. Human resource management is important.
Demand fluctuations - It is very difficult to estimate demand. Demand can vary by season, time of day, business cycle, etc.
Buyer involvement - Most service provision requires a high degree of interaction between client and service provider.
Another great and important aspect of services is regards the service delivery
Service Delivery[/b][/b]
The delivery of a service typically involves five factors:
The service providers (people)
Equipment used to provide the service
The physical facilities
The client
Other customers at the service delivery location
The service encounter is defined as all activities involved in the service delivery process. Some service managers use the term "moment of truth" to indicate that defining point in a specific service encounter where interactions are most intense.
Many business theorists view service provision as a performance. The location of the service delivery is referred to as the stage and the objects that facilitate the service process are called props. A script is a sequence of behaviors followed by all those involved, including the client. Some service dramas are tightly scripted, others are more ad lib. Role congruence occurs when each actor follows a script that harmonizes with the roles played by the other actors.
Service-Goods continuum[/b][/b]
The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point. Most products fall between these two extremes. For example, a restaurant provides a physical good and also provides a service.
The term quality refers to how good something or somebody is. In the case of a person this is considered in a particular context, such as worker, student, sportsperson, etc. The term is often used in opposition to quantity. In science, the work of Aristotle focused on measuring quality; whereas, the work of Galileo resulted in a shift towards the study of quantity.
SWOT Analysis for Wall Mart[/b][/b]
Strengths[/b]
Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.
Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).
The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.
A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.
Weaknesses[/b]
Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.
Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.
The company is global, but has has a presence in relatively few countries Worldwide.
Opportunities[/b]
To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.
The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.
New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.
Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.
Threats[/b]
Being number one means that you are the target of competition, locally and globally.
Being a global retailer means that you are exposed to political problems in the countries that you operate in.
The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.
Relationship is one such thing that is most valued in marketing. [/b]
The reputation that a business develops over years must be kept in mind hence the value of service and the follow up should be done in successful manner. Whereas in economics, service is said to be a non-material equivalent of a good, service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating a change in customers, a change in their physical possessions, or a change in their intangible assets. Let us have a look at the attributes that service carry,
Intangibility - They cannot be seen, handled, smelled, etc. There is no need for storage. Because they are difficult to conceptualize, services marketing require creative visualizations to effectively make the intangible more concrete.
Perish ability - Unsold service time is "lost", that is, it cannot be regained. It is a lost economic opportunity.
Lack of transportability - Services must be consumed at the point of "production".
Lack of standardization - Services is typically custom designed for each client or each new situation. Mass production of services is very difficult. This can be seen as a problem of inconsistent quality.
Labour intensity - Services usually involve considerable human activities. Human resource management is important.
Demand fluctuations - It is very difficult to estimate demand. Demand can vary by season, time of day, business cycle, etc.
Buyer involvement - Most service provision requires a high degree of interaction between client and service provider.
Another great and important aspect of services is regards the service delivery
Service Delivery[/b][/b]
The delivery of a service typically involves five factors:
The service providers (people)
Equipment used to provide the service
The physical facilities
The client
Other customers at the service delivery location
The service encounter is defined as all activities involved in the service delivery process. Some service managers use the term "moment of truth" to indicate that defining point in a specific service encounter where interactions are most intense.
Many business theorists view service provision as a performance. The location of the service delivery is referred to as the stage and the objects that facilitate the service process are called props. A script is a sequence of behaviors followed by all those involved, including the client. Some service dramas are tightly scripted, others are more ad lib. Role congruence occurs when each actor follows a script that harmonizes with the roles played by the other actors.
Service-Goods continuum[/b][/b]
The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point. Most products fall between these two extremes. For example, a restaurant provides a physical good and also provides a service.
The term quality refers to how good something or somebody is. In the case of a person this is considered in a particular context, such as worker, student, sportsperson, etc. The term is often used in opposition to quantity. In science, the work of Aristotle focused on measuring quality; whereas, the work of Galileo resulted in a shift towards the study of quantity.
SWOT Analysis for Wall Mart[/b][/b]
Strengths[/b]
Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.
Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).
The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.
A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.
Weaknesses[/b]
Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.
Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.
The company is global, but has has a presence in relatively few countries Worldwide.
Opportunities[/b]
To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.
The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.
New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.
Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.
Threats[/b]
Being number one means that you are the target of competition, locally and globally.
Being a global retailer means that you are exposed to political problems in the countries that you operate in.
The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.