30 uLvLLClnC MA8kL1lnC

CC81unl1lLS S18A1LClLS
HTH 551 - HospitaIity Service Marketing
Contents
31 Market|ng kesearch Informat|on Systems
C8M (CusLomer 8elaLlonshlp MgL)
luncLlons/ AppllcaLlons Cf C8M SysLems
8ulldlng C8M SLraLegy
Common lallures of C8M
32 Understand|ng the 1rave|er's Needs
33 1arget Market Segmentat|on Lva|uat|on
MarkeL SegmenLaLlon
ldenLlfylng and SelecLlng 1argeL SegmenLs
ueveloplng 8lghL Servlce ConcepL for a
Speclflc SegmenL
ueveloplng an LffecLlve oslLlonlng SLraLegy
4 locus SLraLegles for Servlces
Contents
34 Consumer 8uy|ng 8ehav|or 1he 1hreeSLage Model
repurchase SLage
Servlce LncounLer SLage
osLpurchase SLage
31 Market|ng Informat|on System
Customer ke|at|onsh|p Management
C8M (CusLomer 8elaLlonshlp MgL)
luncLlons/ AppllcaLlons Cf C8M SysLems
8ulldlng C8M SLraLegy
Common lallures of C8M
CkM (Customer ke|at|onsh|p Mgt)
W JhaL ls C8M ls all abouL?
bulldlng relaLlons wlLh cusLomers
W Pow Lo bulld relaLlons?
we have Lo know our cusLomers
W Pow Lo know our cusLomers?
we need a database Lo sLore cusLomer's records
W JhaL records do we keep?
|| (CusLomer's lnfo sales record purchase behavlor eLc)
W So now we have all Lhe daLa whaL should we do wlLh lL?
Analyze Lhe daLa undersLand Lhelr behavlor deslgn C8M sLraLegles on Lhem
W retent|on |oya|ty to our f|rm
Do we have to treat a|| our customers equa||y???
unct|ons] pp||cat|ons f CkM Systems
| Data co||ect|on
CusLomer daLa such as conLacL deLalls demographlcs purchaslng
hlsLory servlce preferences and Lhe llke
|| Data ana|ys|s
uaLa capLured ls analyzed and caLegorlzed
used Lo Ller cusLomer base and Lallor servlce dellvery accordlngly
lll Sales force auLomaLlon
Sales leads crossse|| and upse|| opportun|t|es can be effecLlvely
ldenLlfled and processed
LnLlre sa|es cyc|e from lead generaLlon Lo close of sales and afLer
sales servlce can be tracked and faclllLaLed Lhrough C8M sysLem
lv MarkeLlng auLomaLlon
Mlnlng of cusLomer data enab|es the f|rm to target |ts market
Coal Lo ach|eve onetoone market|ng and cost sav|ngs ofLen ln
Lhe conLexL of loyalLy and reLenLlon programs
8esulLs ln lncreaslng Lhe 8Cl on lLs markeLlng expendlLure
C8M sysLems also allows flrms Lo [udge effecLlveness of
markeLlng campalgns Lhrough Lhe analysls of responses
v Call cenLer auLomaLlon
Call cenLer sLaff have cusLomer lnformaLlon aL Lhelr flnger Llps
and can |mprove the|r serv|ce |eve|s to a|| customers
Caller lu and accounL numbers allow call cenLers Lo ldenLlfy Lhe
cusLomer Ller Lhe caller belongs Lo and Lo Lallor Lhe servlce
accordlngly
8u||d|ng CkM Strategy
Source AdapLed from Adrlan ayne and ennle lrow A SLraLeglc lramework for CusLomer
8elaLlonshlp ManagemenL" Iootool of Motketloq (CcLober 2003)
Strategy
Deve|opment
rocess
Va|ue
Creat|on
rocess
erformance
ssessment
rocess
Informat|on Management rocess
Mu|t|channe|
Integrat|on
rocess
W Informat|on Management
CollecL cusLomer lnformaLlon from all
channels
lnLegraLe lL wlLh oLher relevanL lnformaLlon
Make useful lnformaLlon avallable Lo Lhe
fronLllne
CreaLe and manage daLa sLorage l1 sysLems
analyLlcal Lools speclflc appllcaLlon packages
W Strategy Deve|opment
AssessmenL of buslness sLraLegy
Jhy?
8uslness sLraLegy guldes developmenL
of cusLomer sLraLegy
W Va|ue Creat|on
@tooslotes buslness cusLomer sLraLegles lnLo value
proposlLlons for boLh cusLomers and flrm
W CusLomers beneflL from prlorlLy Llered servlces loyalLy
rewards and cusLomlzaLlon
W Company beneflLs from reduced cusLomer acqulslLlon
reLenLlon cosLs and lncreased shareofwalleL
W Mu|t|channe| Integrat|on
Serve cusLomers well across many
poLenLlal lnLerfaces (sms onllne counLer
servlce eLc)
Cffer a unlfled lnLerface LhaL dellvers
cusLomlzaLlon and persona||zat|on (le
e8ay)
W erformance ssessment
ls C8M sysLem creaLlng value for key
sLakeholders?
Are markeLlng and servlce sLandard
ob[ecLlves belng achleved?
ls C8M sysLem meeLlng performance
sLandards?
Unfortunate|y
W Lhere ls a hlgh fallure raLe for C8M lmplemenLaLlons
W Common reasons for fallures
vlewlng C8M as a Lechnology lnlLlaLlve
Lack of cusLomer focus
noL enough undersLandlng of cusLomer llfeLlme value (CLv)
lnadequaLe supporL from Lop managemenL
Lack of coordlnaLlon
lallure Lo reenglneer buslness processes
underesLlmaLlng Lhe challenges ln daLa lnLegraLlon
33 1arget Market Segmentat|on
Lva|uat|on
MarkeL SegmenLaLlon
ldenLlfylng and SelecLlng 1argeL SegmenLs
ueveloplng 8lghL Servlce ConcepL for a Speclflc
SegmenL
ueveloplng an LffecLlve oslLlonlng SLraLegy
4 locus SLraLegles for Servlces
Market Segmentat|on
W llrms vary wldely ln ablllLy Lo serve dlfferenL Lypes of cusLomer
%low cost loxoty setvlce)
W 8y dolng markeL segmenLaLlon flrms can ldenLlfy Lhose parLs of
markeL Lhey can serve besL
W A market segment ls composed of a group of buyers sharlng
common
CharacLerlsLlcs
Needs
urchaslng behavlor
ConsumpLlon paLLerns
Ident|fy|ng Se|ect|ng 1arget Segments
W A LargeL segmenL ls one LhaL a flrm has selecLed from among
Lhose ln Lhe broader markeL
W llrm musL analyze markeL Lo deLermlne whlch segmenLs offer
beLLer opporLunlLles
W 1argeL segmenLs should be selecLed wlLh reference Lo
ltms oblllty to motcb ot exceeJ competloq offetloqs
JltecteJ ot tbe some seqmeot
Not jost ptoflt poteotlol
W Some 'underserved' segmenLs can be huge proflLable ln
large scale le sLudenLs
#lofloeocloq powet - l@l@N
Deve|op|ng k|ght Serv|ce Concept for a
Spec|f|c Segment
W use research Lo ldenLlfy and prlorlLlze whlch aLLrlbuLes of
servlce are lmporLanL Lo speclflc markeL segmenLs
W lndlvlduals may seL dlfferenL prlorlLles accordlng Lo
urpose of uslng Lhe servlce
Jho makes declslon
1lmlng of use
JheLher servlce ls used alone or wlLh a group
ComposlLlon of LhaL group
Deve|op|ng an Lffect|ve os|t|on|ng
Strategy
1o develop a good poslLlonlng sLraLegy we have Lo conducL
| Market na|ys|s
locus on overall level and Lrend of demand geographlc locaLlons
of demand
Look lnLo slze and poLenLlal of dlfferenL markeL segmenLs
undersLand cusLomer needs preferences and how Lhey percelve
Lhe compeLlLlon
|| Compet|tor na|ys|s
undersLand compeLlLors' sLrengLhs weaknesses
AnLlclpaLe responses Lo poLenLlal poslLlonlng sLraLegles
||| Interna| Corporate na|ys|s
ldenLlfy organlzaLlons resources llmlLaLlons goals and values
SelecL llmlLed number of LargeL segmenLs Lo serve
4 ocus Strateg|es for Serv|ces
1heme
restaurants
|ne d|n|ng
keda|
mamak
Schoo|
canteen
1) u||y focused
LlmlLed range of servlces Lo narrow and speclflc markeL
W ppottooltles
ueveloplng speclflc experLlse helps ln provldlng proLecLlon agalnsL
compeLlLor's LhreaL
Allows flrms Lo charge premlum prlces
W lsks
MarkeL may be Loo small Lo generaLe needed volume of buslness
uemand for a servlce may be dlsplaced by generlc compeLlLlon
from alLernaLlve producLs
urchasers ln chosen segmenL may be suscepLlble Lo economlc
downLurn
2) Market focused
narrow markeL segmenL wlLh wlde range of servlces
need Lo make sure flrms have operaLlonal capablllLy Lo do an
dellver each of Lhe dlfferenL servlces selecLed
need Lo undersLand cusLomer purchaslng pracLlces and
preferences
3) Serv|ce focused
narrow range of servlces Lo falrly broad markeL
As new segmenLs are added flrm needs Lo develop knowledge and
skllls ln servlng each segmenL
4) Unfocused
8road markeLs wlLh wlde range of servlces
Many servlce provlders fall lnLo Lhls caLegory
uanger become a [ack of all Lrades and masLer of none"
34 Consumer 8uy|ng 8ehav|or
1he 1hreeStage Mode|
repurchase SLage
Servlce LncounLer SLage
osLpurchase SLage
repurchase SLage
Servlce LncounLer SLage
osLpurchase SLage
repurchase Stage
W need awareness
W lnformaLlon
search
W LvaluaLlon of
alLernaLlves
Servlce aLLrlbuLes
ercelved rlsk
Servlce expecLaLlons
W urchase declslon
repurchase Stage Need wareness
W A servlce purchase ls Lrlggered by an underlylng need (need
arousal)
W needs may be due Lo
eople's unconsclous mlnds (eg asplraLlons)
hyslcal condlLlons (eg chronlc paln)
LxLernal sources (eg markeLlng acLlvlLles)
W Jhen a need ls recognlzed people are llkely Lake acLlon Lo
resolve lL
repurchase Stage Informat|on Search
W Jhen a need ls recognlzed people wlll search for soluLlons
W Several alLernaLlves may come Lo mlnd and Lhese form Lhe
evoked set
vokeJ set set of posslble setvlces ot btooJs tbot costomet
moy cooslJet lo tbe Jeclsloo ptocess
W Jhen Lhere ls an evoked seL Lhe dlfferenL alLernaLlves need Lo
be evaluaLed before a flnal cholce ls made
repurchase Stage Lva|uat|on of
|ternat|ves
Serv|ce ttr|butes
W Search attr|butes help cusLomers evaluaLe a producL before
purchase
SLyle color LexLure LasLe sound
W Lxper|ence attr|butes cannoL be evaluaLed before purchase
musL experlence" producL Lo know lL
vacaLlons sporLlng evenLs medlcal procedures
W Credence attr|butes are producL characLerlsLlcs LhaL cusLomers
flnd lmposslble Lo evaluaLe confldenLly even afLer purchase and
consumpLlon
;uallLy of repalr and malnLenance work
erce|ved k|sks
W lunctiono/ unsaLlsfacLory performance ouLcomes
W linoncio/ moneLary loss unexpecLed exLra cosLs
W @oro/ wasLed Llme delays leadlng Lo problems
W 9ico/ personal ln[ury damage Lo possesslons
W 9co/oqico/ fears and negaLlve emoLlons
W ocio/ how oLhers may Lhlnk and reacL
W nor unwanLed lmpacL on any of flve senses
ercelved 8lsks Pow uo Consumers Pandle 1hem?
W Seek|ng |nformat|on from respecLed personal sources
W uslng Internet Lo compare servlce offerlngs and search for
lndependenL revlews and raLlngs
W ke|y|ng on a f|rm LhaL has a good repuLaLlon
W Looklng for guarantees and warrant|es
W vlslLlng servlce faclllLles or try|ng aspecLs of servlce before
purchaslng
W sk|ng know|edgeab|e emp|oyees abouL compeLlng servlces
ercelved 8lsks SLraLegles for llrms Lo Manage Consume
ercepLlons of 8lsk
W ree tr|a| (for servlces wlLh hlgh experlence aLLrlbuLes)
W dvert|se (helps Lo vlsuallze)
W D|sp|ay credent|a|s
W use ev|dence managemenL (eg furnlshlng equlpmenL eLc)
W Cffer guarantees
W Lncourage v|s|t Lo servlce faclllLles
W Clve cusLomers on||ne access to |nformat|on abouL order sLaLus
Serv|ce Lxpectat|ons
W CusLomers eva|uate serv|ce qua||ty by compar|ng whaL Lhey
expect agalnsL whaL Lhey perce|ve
LkLC11IN??
Wn1 INULNCL CUS1MLk'S LkLC11IN
nexL page
Servlce LxpecLaLlons lacLors lnfluenclng Consumer LxpecLaLlons
of Servlce
ootceAdapLed from valarle A ZelLhaml Leonard A 8erry and A arasuraman 1he naLure and ueLermlnanLs of
CusLomer LxpecLaLlons of Servlce Iootool of tbe AcoJemy of Motketloq cleoce 2 no (3) 2
Servlce LxpecLaLlons ComponenLs of LxpecLaLlons
Des|red Serv|ce eve|
Jlshedfor level of servlce quallLy LhaL cusLomer belleves can and
should be dellvered
dequate Serv|ce eve|
Mlnlmum accepLable level of servlce
red|cted Serv|ce eve|
Servlce level LhaL cusLomer belleves flrm wlll acLually dellver
2one of 1o|erance
8ange wlLhln whlch cusLomers are wllllng Lo accepL varlaLlons
ln servlce dellvery
repurchase Stage urchase Dec|s|on
W Jhen posslble alLernaLlves have been compared and evaluaLed
Lhe best opt|on |s se|ected
W Can be qulLe slmple lf percelved rlsks are low and alLernaLlves
are clear
W very ofLen Lradeoffs are lnvolved 1he more complex Lhe
declslon Lhe more Lradeoffs need Lo be made
W rlce ls ofLen a key facLor ln Lhe purchase declslon
Serv|ce Lncounter Stage
repurchase SLage
Serv|ce Lncounter Stage
osLpurchase SLage
Servlce encounLers range
from h|gh to |owcontact
undersLandlng Lhe servuct|on
system
1heater as a metaphor for
servlce dellvery An
lnLegraLlve perspecLlve
Servlce faclllLles
ersonnel
8ole and scrlpL Lheorles
ostencounter Stage
repurchase SLage
Servlce LncounLer SLage
ostpurchase Stage

EvaIuatIon of
servIce
performance

Future
IntentIons
Measur|ng Serv|ce erformance
Customer Sat|sfact|on
W What |s sat|sfact|on?
ottltoJellke joJqmeot followloq o setvlce potcbose ot setles of
setvlce lotetoctloos
W CusLomers
have expecLaLlons prlor Lo consumpLlon before
observe / experlence servlce performance durlng
compare lL Lo expecLaLlons afLer
W SaLlsfacLlon [udgmenLs are based on Lhls comparlson
os|t|ve d|sconf|rmat|on lf beLLer Lhan expecLed
Conf|rmat|on lf same as expecLed
Negat|ve d|sconf|rmat|on lf worse Lhan expecLed
8eyond sat|sfact|on Customer De||ght
uture |ntent|ons
W Cnce cusLomers are dellghLed Lhelr expecLaLlons are ralsed
W lf servlce levels reLurn Lo prevlous levels Lhls may lead Lo
dlssaLlsfacLlon and lL wlll be more dlfflculL Lo dellghL"
cusLomers ln fuLure
W 8eware de||ght|ng too much m|ght create future d|ff|cu|t|es!!!
32 Understand|ng the 1rave|ers Needs
Croup dlscusslon