Understanding Services Marketing and CRM

1. UNIT I UNDERSTANDING SERVICES MARKETING AND CRM

2. What is a service? Definition: Services are separately identifiable activities that satisfy customer needs or wants through essentially intangible benefits, either in their own right or as a significant element of a tangible product. “Services are activities, benefits or satisfaction which are offered for sale or provided in connection with sale of goods”. - The American Marketing Association “Services are those separately identifiable essentially intangible activities, which provide want satisfaction when marketed to consumers and/or industrial uses and which are not necessarily tied to the sale of a product or another service”. - Stanton SERVICES MARKETING Definition: Activity or benefit 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 Examples: Defense, Postal, Education, health, Religious Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment, etc The American Marketing Association defines services as - “Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods.”

7. Some of the most important components of the service system are as follows: 1. The Service Operations System 2. The Service Delivery System 3. The Service Marketing System.

8. CUSTOMER RELATIONSHIP MARKETING(CRM) Customer relationship marketing (CRM) is a business process in which client relationships, customer loyalty and brand value are built through marketing strategies and activities. CRM allows businesses to develop long-term relationships with established and new customers while helping streamline corporate performance. CRM incorporates commercial and client-specific strategies via employee training, marketing planning, relationship building and advertising. CRM also: Provides a way to directly evaluate customer value. For example, a business that is genuinely interested in its customers is rewarded with customer and brand loyalty. Because CRM is mutually advantageous, market share viability advances at a sound pace. Provides cross-selling opportunities, where, based on customer approval, a business may pitch proven marketing or brand strategies to more than one client. Customer relationship marketing should not be confused with "customer relationship management," a related, but unique concept that shares the acronym of CRM.

9. CUSTOMER RELATIONSHIP MANAGEMENT(CRM) • Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. CRM systems are designed to compile information on customers across different channels -- or points of contact between the customer and the company -- which could include the company's website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns. • PROPERTIES OF RELATIONSHIP MANAGEMENT • Collaboration • Commitment, Dependency • Trust, risk and uncertainty • Power • Longevity • Frequency, regularity and intensity • Closeness and remoteness

11. SERVICE CONSUMPTION THREE STAGE MODELS OF SERVICE CONSUMPTION

12. CONSUMER DECISION MAKING PROCESS

13. UNDERSTANDING CUSTOMER NEEDS AND EXPECTATIONS TWO LEVELS OF CUSTOMER EXPECTATIONS

14. IMPACT OF COMPETION ON CUSTOMER EXPECTATIONS

15. STRATEGIC RESPONSES TO THE INTANGIBILITY OF SERVE PERFORMANCE • VISUALISATION • ASSOCIATION • PHYSIACAL REPRESENTATION • DOCUMENTATION • SELLING SERVICES • TANGIBILISING SERVICES THROUGH BENEFITS • TANGIBILISING THROUGH POSITIONING