Rule 1

Revisit the Essence of Marketing

Marketing has a process i.e. the various activities which are performed during the process of marketing.

Marketing has a concept i.e. philosophy of doing business, social exchange process involving willing consumers and procedures.

The marketing- an orientation, a state of mind combining the above to process and concepts possible.

Marketing is the marketing-culture in the organization

THE MOST IMPORTANT ISSUE IN MARKETING IS TO ESTABLISH, STRENGTHEN & DEVELOP CUSTOMER RELATIONS, WHERE THEY CAN BE COMMERCIALIZED AT A PROFIT & WHERE INDIVIDUAL & ORGANIZATIONAL OBJECTIVES ARE MET

Rule 2

Internal Marketing Programme are

prerequisite for success

If the part-time marketers fail, the

marketing process fails…….

The Services Marketing Triangle

Internal Marketing

Interactive Marketing

External Marketing

Company (Management)

Customers Employees

“Enabling the Promise”

“Delivering the Promise”

“Setting the Promise”

Rule 3

Interdependency with other

Management Functions

Interdependence of

Marketing, Operations & Human Resources

Customers

Operations Management

Marketing Management

Human Resources

management

Defining 3 Functional Imperatives

Marketing imperative

• Target “right” customers and build relationships

• Offer solutions that meet their needs

• Define quality package with competitive advantage

Defining 3 Functional Imperatives

Operations imperative

• Create, deliver specified service to target customers

• Adhere to consistent quality standards

• Achieve high productivity to ensure acceptable costs

Defining 3 Functional Imperatives

Human resource imperative

• Recruit and retain the best employees for each job

• Train, motivate them to work well together

• Achieve both productivity and customer satisfaction

Rule 4

Empower People

Cycle of Failure High

customer turnover

Failure to develop customer loyalty

No continuity in relationship for

customer

Customer dissatisfaction

Employees can’t respond to customer

problems

Employees become bored

Employee dissatisfaction; poor service attitude

Repeat emphasis on attracting new customers

Low profit margins Narrow design of

jobs to accommodate low skill level

Use of technology

to control quality

High employee turnover; poor service quality

Payment of low wages

Minimization of selection effort

Minimization of training

Emphasis on rules rather than service

Source: Schlesinger and Heskett

Cycle of Success Low

customer turnover

Customer loyalty

Continuity in relationship with

customer

High customer satisfaction

Extensive training

Employee satisfaction, positive service attitude

Repeat emphasis on customer loyalty and

retention

Higher profit

margins Broadened job designs Lowered turnover,

high service quality

Above average wages

Intensified selection effort

Train, empower frontline

personnel to control quality

Source: Schlesinger and Heskett

Rule 5

Integrate Technology

COMPANY

CUSTOMER

EMPLOYEES

TECHN

OLOGY

Pyramid Model (eg: Indmark trade mark Group)

Source : A.Parsuraman, Augmented Marketing, Business

Today, Jan 7-21, 1997

Rule 6

Create Working Environment

Framework for Understanding Environment-user Relationships

Source: Adapted from Mary Jo Bitner, “Servicescapes.”

PHYSICAL

ENVIRONMENTAL

DIMENSIONS

HOLISTIC

ENVIRONMENT

INTERNAL

RESPONSES

BEHAVIOR

Ambient Conditions

Space/Function

Signs, Symbols,

and Artifacts

Perceived Servicescape

Cognitive

Emotional

Physiological

Cognitive

Emotional

Physiological

Employee Responses

Customer Responses

Individual Behaviors

Social Interactions between and

among customer and

employees

Individual Behaviors

Rule 7

Organizational support and Top

Management Commitment

Leadership for Change Management

Create sense of urgency to develop impetus for change

Put together strong team to direct process

Create appropriate vision of where organization must go

Communicate new vision broadly

Empower employees to act on vision

Produce sufficient short term results to create credibility

Build momentum to tackle tougher problems

Anchor new behaviors in the organizational culture

Source: John Kotter

Leadership Qualities

Vision, charisma, persistence, high expectations, expertise, empathy, persuasiveness, integrity

Ability to visualize quality of service as foundation for competing

Believe in people who work for the firm, make good communications a priority

Possess a natural enthusiasm for the business, teach it to others, pass on nuances, secrets, crafts of operating

Cultivate leadership qualities of others in organization

Use values to navigate firms through difficult times

Rule 8

Innovate

Strategies of Market Leadership Welcomgroup

80’s- 3 properties

2010- Over 100 Properties at 80 Destinations

in 4 categories

Vision 2015: 140-150 properties

Strategies of Market Leadership Lessons from Fed-Ex

1970- Overnight mail service provider

1980- Commodity package transportation

2000- Integrated Package Logistics

services partner

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