FMB B18 Services Marketing

Sessions 1 and 2 : 2.00pm to 4.30 pm on September 23, 2015

Session 1 and 2 were devoted to introducing trading 

Before you can understand what does a trader do, it is important to know that there is no generic description of a trader except that he is neither a manufacturer nor a end customer. A trader always operates within a context of what happens upstream - and what happens downstream - to him. Hence the importance of drawing a "ROUTE TO MARKET" diagram. Without this context you will not know what his role and job description.

Without this you will not understand why an Onida distributor gets 8% and the same for Videocon gets 12%. 

Then the class was divided into 4 groups of 6 each. 3 groups were asked to debate within themselves the following and the 4th group was asked to make class summaries. The 3 questions to the 3 groups called A, B and C were

1. As a trader, are you a buyer for your customers or a seller for your principals ?
2. How do you create value for your principals and for your customers ? What do you bring to the table for each one of them?
3. How should valuation be done for trading business
   ( if you want to buy or sell a business) 

The first group said it is not easy to answer because both is true. 

The second group showed a good progress.

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essions 3 and 4 : 4.00pm to 6.30 pm on September 24, 2015

The third group seemed to be aware of the principles and factors but could not create a way to arrive at how much to pay.

This took the discussion towards P/E ratio and then towards ROI

types of encounters and tools analysis

Types of encounters

Shostack describes three types of service encounters:
1.         The remote encounter – where customers interact with a service, or part of it, through the mail e.g. financial services, mail order.  The remote encounter may also occur via a machine, e.g. the ATM.  Leaflets, brochures and forms sent by mail need to be designed with the consumer in mind.  Machines need to function and be user friendly.  This type of encounter should be the easiest to control as it is based on some form of physical object, be it printed material or a computer terminal.  Quality should be assured as they can be tested, modified and made uniform.
2.         The indirect personal encounter – where customers interact with a service by telephone.  There is potentially more scope for variability entering the service delivery.  This can be avoided by requiring the employee to work to a script, but problems may still arise if the customer’s enquiry/complaint requires reference to other parts of the organisation only to find their support is not forthcoming.
3.         The direct personal encounter – where customers interact face-to-face with the service provider.  Customers now have the opportunity of visualising the providers of the service.  Judgements about service quality may be made from the appearance and demeanour of the service provider.  The increasing use of uniforms, now referred to as corporate clothing, and the development of interpersonal skills training are recognition of the impact direct personal encounters may have on customer satisfaction.
In addition to these three types of encounter, there is a host of other encounter points that may influence the customer’s view of the service.   For example:
The front entrance to an organisation
The car park
The organisation’s vehicles
The interior of a building – type of furnishings, plants (real or plastic)
Signs
Brochures/leaflets
The above list is simply illustrative but indicates that service organisations contain a wealth of encounter points (not only human).  It is at these points that impressions are formed which are subsequently converted into feelings, beliefs and perhaps lasting images.
In certain service situations (some observers may say the numbers are increasing) the customer has a choice between a personal and impersonal encounter.  Langeard et al sought to measure customers’ willingness to participate in the process of producing a service.  By developing scenarios for a range of services (bank, petrol station, hotel, airport, restaurant, outlet selling travellers cheques) respondents were asked to indicate which type of encounter they preferred.

The rules of the game

In service encounters people come together to obtain certain goals.  To achieve these goals and coordinate the behaviour of the participants, rules must be developed.  Rules specify the behaviour which is regarded as appropriate in a given situation.
Rules should be distinguished from norms and conventions.  Norms refer to modal behaviour, i.e. what most people do; sometimes most people break the rules.  Conventions refer to arbitrary customs, e.g. hats for nurses.  Conventions can vary without affecting performance or attainment of goals.
There is a great deal of scope for creating added value by investigating customer behaviour, their effect on the situation and how they should be handled.
There is a need to understand why customer experiences of service provision can range  from excellent to vows never to return’ .

The Critical Incident Technique

Organisations need to know what customers expect from the service experience.  In particular they need to study what goes on during the encounter with service personnel to see if it lives up to customers’ expectations.  A method particularly suited to achieving that objective is the critical incident technique which has been described as: a set of procedures for collecting direct observations of human behaviour in such a way as to facilitate their potential usefulness in solving problems and developing broad psychological principles.
By collecting statements from the participants in an encounter it seeks to determine incidents (behaviours, actions) that are especially helpful or inadequate.  It is particularly valuable for evaluating employee/customer interactions but can be equally revealing when applied within an organisation.  For example the following questions can reveal effective or ineffective behaviours of a supervisor.  Employees, and even management, could be asked to:
•           Think of a time when your supervisor did something that you felt should be encouraged as it seemed in your opinion an example of good supervison
•           Think of a time when the supervisor did something that you though-. was not up to par
What may be interesting is the degree of agreement/disagreement between management and employees as to what constitutes effective and ineffective behaviour by the supervisor.
Applications of the critical incident technique to the service encounter communication problems
Having a technically sound operational system is insufficient for delivering service quality and providing customer satisfaction.  Positive service encounters require effective oral communication skills on the part of the employees.  This is particularly so in the case of high contact service organisations like hotels, airlines, restaurants, colleges etc.
The aim must be to identify, with the aid of the critical incident technique, employee behaviours that are regarded as either effective or ineffective in exchanges with customers.  There is an endless amount and variety of customer behaviours that may prove difficult to manage.  For example:
*          Unreasonable demands
*          Demands against company policy   (Check your policy?
*          Unacceptable treatment of employees
*          Drunkenness
It may often be the case that customer expectations or demands exceed the organisation’s and its employees’ willingness and/or ability to meet them.  In knowing how to handle these demands employees should have a knowledge of customer expectations and how they are formed.
Organisations often equip their employees with scripts which specify a range of responses to be used in a given situation.  There are inherent dangers with this approach as the customer perceives the organisation to be impersonal and inflexible.  To overcome this, employees should be encouraged to expand their repertoire of possible responses.
Organisations need to train employees to be competent communicators.
There is a large body of research from which communication strategies can be developed.  However, there are a number of fundamental principles that every employee should adhere to when confronted with a difficult situation:
•           Remain calm – an irate customer can be equated to a pressure cooker so the lid needs to be taken off gently
•           Let the customer vent his/her anger – don’t interrupt, laugh etc
•           Listen with understanding – this diffuses anger and demonstrates concern.  Apologise to the customer for being inconvenienced and state that you are there to help.  It is vital to show a sincere interest and willingness to help.  The customer’s first impression of the employee is all important in gaining cooperation
•           Restate what the customer is saying, in summary form.  This tells the customer that you have listened and understood what has been said
•           Don’t blame others or make excuses.  Instead, take the responsibility and initiative to do whatever you can to solve the problem as quickly as possible, and
•           Find out what the customer wants.  If that cannot be met, state why  and propose your own solution.  The customer may also be asked what he or she would consider a fair alternative
•           Once a solution is agreed, act quickly.  If agreement cannot be reached, refer the customer to someone else able to resolve the problem.
In all the dealings with the customer it is important to be courteous and considerate and respect the feelings of the customer.

Satisfactory and unsatisfactory encounters

In addition to asking employees for examples of interactions with customers that were difficult and uncomfortable, the views of customers are invaluable for revealing the specific events and employee behaviours that make for a satisfactory or dissatisfactory encounter.  Critical incidents (events and behaviour) are uncovered by asking consumers the following:
*          Think of a time when, as a customer, you had a particularly satisfying (dissatisfying) interaction with an employee of (service specified)?
*          When did the incident happen?
*          What specific circumstances led up to this situation?
*          Exactly what did the employees say or do?
*          What resulted that made you feel the interaction was satisfying (dissatisfying)?
Responses to questions such as these can shed enormous light on the performance of the entire service delivery system.  It can reveal specific customer perceptions of how well (or badly) employees responded, failures in the service delivery system and customer needs and requests.  It can provide surprises, e.g. excellent service as a consequence of unexpected and unrequested employee behaviour.  In addition to individual expressions of satisfaction or dissatisfaction with a particular event or behaviour customers may intimate their overall feelings, for example:”
Everything went right – ‘a sincere and professional team effort. accommodating, polite but not pushy, warm atmosphere, courteous, efficient and professional, no waiting, best service ever received, everything was perfect’.
Everything went wrong – ‘inefficient, unprepared, slow, not accommodating nor attentive, no assistance, unprofessional, bad decor/atmosphere’.
Customer satisfaction or dissatisfaction will depend to a large extent on whether, and how, employees apply their ability, willingness and ingenuity.  Implicit in all of this is the recurring theme of how well prepared, motivated and rewarded the employees are.  Personality may explain acts of extreme helpfulness.  However, employee response must be planned on a much firmer footing.  The service organisation bears a heavy responsibility for ensuring that employees are well resourced to act in a positive manner.
Dr Brian Monger is Executive Director of MAANZ International and an internationally known consultant with over 45 years of experience assisting both large and small companies with their projects.  He is a specialist in negotiation and behaviour He is also a highly effective and experienced trainer and educator

sales enablement

Sales enablement

At many companies, we've seen Sales Enablement as part of this Sales Operations role. This is a mistake, as they require vastly different skills and capabilities. Sales Enablement is responsible for preparing the field to execute the strategy set by management. The primary focus of sales enablement is increasing the effectiveness of each encounter. Here is our more formal definition, broken into 5 Key Components:

1. Get the right sales content…
2. into the hands of the right sellers…
3. at the right time…
4. through the right channel…
5. to move a sales opportunity forward.

Get the Right Sales Content: There are three key components of sales content: Persona, Buying Stage, and Format.  Sales Enablement should ensure there is an ample amount of information on each type.  At late stage a customer needs ROI proforma.  A lead development rep needs an awareness seminar or webinar explaining a common problem. Sales enablement’s job is to ensure these materials are available, up-to-date, and relevant. But content is not just a  document.  It is also the conversation track used by sales to present a solution or problem.  Sales Enablement writes and trains on these as well.
Into the Hands of the Right Sellers: Different positions require different content.  For Sales Reps, this means presentations and talk tracks for group meetings.  Or Tablet Content for one-on-ones.  Inside Sales Reps want shareable content and live demos.  Lead Development Reps need nurture emails.  Content should be tailored for each position to maximize customer traction.
At the Right Time: Content should be at the fingertips of sales at all times.  This means being Social, Local, and Mobile.  If a sales rep needs a key document, they should know exactly where it is.   If your reps can't find it in 30 seconds, they'll stop looking.
Through the Right Channel: Content should be in the format that customers and prospects prefer.  This may mean employing (A) A Content App for Rep's Tablets (B) Email Templates in CRM (C) Printed Brochures for Prospects. Remember, the best channel is the one the customers are most likely to consume.
To Move an Opportunity Forward: The end game of sales enablement is increased productivity.  If your content doesn’t accelerate the sales cycle, or increase wins, it is worthless.  Make sure your content is designed to answer specific micro-questions along the buyer’s journey.  Inward-out content that only talks about your company will not produce a meaningful result.  Make the content about your customers.
Sales Enablement is more than just a “Content” job. It is the rising tide that lifts all boats. It tests reps to ensure messaging and skills are learned. It measures adoption of programs and platforms. Sales VPs who ignore this new approach suffer these symptoms:

• Efficiency projects that fail to achieve ROI Goals.
• Dependency on several “A” Players to Make the Number.
• Reps only selling products they are most comfortable with.
• Product launch failures.
• Static Revenue per Rep figures.

In order to do more with less sales managers need to know everything they possibly can about their sales teams and their customers. Who are the best sales reps? Why? What do they do that closes more deals? And who are your best customers? What do they spend the most money on? And what do they want from you that you aren't giving them? The more you know the more focused your actions can be.

Job Description of the Sales Enablement Director will work on 3 key dimensions:

1.                  Content and Knowledge Gap Identification: Identifies key gaps throughout all sales channels (field sales, inside sales, and lead generation team) in our messaging, content, and communication. Gap Identification should also address future initiatives such as:  New Product Launch, New Role/Staff knowledge requirements, Persona Messaging Development, Content Audit and Management to identify largest gaps.

2.                  Content and Knowledge Creation: Building the customer-facing content, talk tracks, courseware, and workbooks required to effectively communicate our value proposition. Content Creation also includes: Procurement and Management of Content Distribution Systems (Mobile Content Apps, Content Inventory within CRM), Content Production Rules and Guidelines (for customer facing documents), and Courseware Certification documentation.

3.                  Knowledge Adoption and Learning: Building the adoption and certification programs to ensure our sales team is capable of replicating the messaging and talk tracks during customer interactions. Adoption and Learning also includes: Systems to track Rep certification, Gamification Software, Incentives for Adoption and Learning, Content/System Use and Tracking, Testing Software for Certification.

While you may not be familiar with all of these technologies and standards, a solid background in many of these disciplines is required.  You will also need to understand business strategy, personas, and sales and marketing strengths and weaknesses.  You should be able take high level sales strategy and implement tactics to continually improve sales performance.
Responsibilities:

1.                  Set strategy and vision for Sales Enablement programs.

2.                  Enable our Field and Inside Sales teams to accelerate revenue growth from core offerings.

3.                  Develop and manage sales courseware, tools, systems, and roadmap

4.                  Assist on key new initiatives to ensure new project, new product, and new role success

5.                  Build a foundation for sales enablement and training – design playbooks and training courseware for onboarding and skill development

Skills and Experience:

1.                  5+ Years in Sales Training, Enablement, or Continuing Education Role with a Corporation or 10+ Years in Business Teaching / Learning Environment

2.                  Experience in designing Sales Enablement Programs and Platforms

3.                  Ability to take high level sales strategies and develop structured plans, actions, and metrics to measure during execution

4.                  Strong technological skills to manage disparate enablement systems (CRM, Gamification, Courseware, Testing, etc.)

5.                  Strong verbal, written, and presentation skills

6.                  Relevant industry experience preferred, but not required

Interview Question Guide

1.                  your sales background and experience?

2.                  how did you learn and adopt new sales initiatives?

3.                  most successful sales enablement project / programs you have implemented?

4.                  How Did You Measure their success?

5.                  What are the newest trends you are seeing in the sales enablement space? Which are the most promising?  Which don’t seem beneficial?

6.                  You have 2 months to train the sales team on a new product launch.  The product is a net-new offering and not similar to your other offerings.  Walk me through the departments you would speak with and the roadmap you would create to ensure rep knowledge prior to launch.

7.                  One of the key reasons many sales project fail is lack of adoption.  How do you ensure that reps and managers are using your material?

8.                  How have you managed content in the past for the sales force? What are the systems/tools you have used to ensure the team is using/viewing your content?

9.                  Tell me about a sales effectiveness project that has failed.  What went wrong?

10.              One of your “A” Players is refusing to participate in a new program to increase rep knowledge. How do you manage this situation and ensure she participates?

11.              How do you ensure reps are learning new material after an initial training session? What methods do you use to ensure they understand the new material?

12.              Tell me something I don’t know about Sales Enablement that could help my team succeed.

PGPM SERVICES MARKETING AUG/SEP 2015 SELF NOTES

Module 1 : Dushyant : August 14, 2015
If there is a severe financial problem first check if value (willingness to pay) is getting created among the right type of customer. In service business the value is embedded in the encounters. Hence the question is this case was whether the right kind of customers (prepared in the right way and having right expectations) are coming in front of the right kind of service providers (who are prepared for such customers) at the right location under the right servicescape ( interiors, equipment, process ). And classroom is not the only encounter ... outbound / inbound phone calls , business development calls and after training invoicing calls and regular CRM are all planned encounters. 

Module 2 : HUL and ICICI : 16/8/2015

Continued discussion from the last time about classification of services. 

You can classify based on WHO is being served and what is the CORE SERVICE. Example : School for blind, Pediatric hospital, Water Tanker

It can also be based on LOCATION : Example : Mobile Canteen, Beachtouch Disco

It can also indicate which part of the service scape is emphasized.

SPACE : Hotel with large rooms,  refrigerated warehouse, storage outside Octroi, air conditioned banquet room 

LAYOUT : U style sitting, Theater sitting, fast food, lounge, buffet style, fine dining

EQUIPMENT : Barbeque, Laperoscopic, distance learning, 3D cinema

PROVIDER : Low contact and High contact 

PGPM SERVICES COURSE AUG-SEP 2015 CLASS SUMMARIES

The text in red is for my own reference

Module 1 : Dushyant : August 14, 2015
If there is a severe financial problem first check if value (willingness to pay) is getting created among the right type of customer. In service business the value is embedded in the encounters. Hence the question is this case was whether the right kind of customers (prepared in the right way and having right expectations) are coming in front of the right kind of service providers (who are prepared for such customers) at the right location under the right servicescape ( interiors, equipment, process ). And classroom is not the only encounter ... outbound / inbound phone calls , business development calls and after training invoicing calls and regular CRM are all planned encounters. 

Academic Group 3:

Abhijit Pratap Singh

GautamRastogi

JomsonPerayil

Karan Singh

Veerabhathran A

Case Study: Dilemma at Dushyant Corporate Trainers (DCT)

Mistakes identified by the group 1 and 2:

Mistakes by Dinesh

·         The Internal demand is less than expected for Dushyant but the company is primarily formed to focus on the external business other than AVL’s.

·         The principals on which DCT is formed are not sound.

·         The DCT is not based on AVL’s core competencies

·         AVL formed the company too soon, they should had made a division first to enable slow or controlled rollout of business.

Mistakes by Dushyant

·         Contract based Business Development managers may not create effective demand

·         Temporary trainers may not provide effective offerings by company

·         Dushyant is good with operation but he may not be the same with management

·         DCT is looking more towards AVL for business for increasing their topline, they should rather focus on external business.

·         DCT is incurring high administrative costs.

A scenario mainly reflects the symptoms, to identify the main rootcause an analysis is required for value proposition in the business.

Question worth asking for:

1.    Value creation: is value being created or not?

2.    Value multiplication / Scaling up / correction: value is willingness to pay. Is there something offered by DCT what their customers are willing to pay for?

3.    The value offered by DCT is targeted to the right customer or not?

4.    Why board meetings are often high-jacked by financials?

Defining Value creation:

Product

            Product value may be inside the box or may not be

            Marketing mix comprises of Price/Product/ place / promotion- Specs, BOM, QA

Unit could be owned

Service

            Embedded in experience (i.e. people)

Marketing mix for service comprises of People / process / proof

Service is rented based on: Time& Space

Example of theatre: the seat is rented for a time to experience the service

Example of power-point and presentation: the power point is the product whereas the presentation is the service which we can’t productise

·         Product-isation of service – bundling services in different format (Audio Visual)

Consuming Service:

Architecture of an encounter

                                                Semis-cape (space, interior, equipment)

 

Provider (Employee)                                                Customer

                                                Location (co-creation)

Semis-cape –

Comfort equipment: A/C, hot water etc

Operation: computer, projector etc.

Service flower example: main flower, multiple flower, supporting services

Role of architecture of service creator is to bring customer in front of right provider!

Example:

Vehicle loan: interest rate is same not much customisation (majorly product)

-       If you can quickly scale up something: product

Tailored suit: highly customisation (Service)

-       If you can’t quickly scale up something: services

-       Services are difficult to replicate

-       Implies that the provider dependence is high

-       Person matter more than product – benefit is in the person (Brand disassociation)

Product: Quality: Inspect-able

Experience:Pay first thus more reliance on feedbacks and reviews (word of mouth)

Belief – Balaji temple

Why role of customer satisfaction:

1.    It’s a leading indicator of consumer repurchase intentions and loyalty

2.    It’s a point of differentiation

3.    It reduces customer churn

4.    It increases customer lifetime value

5.    It reduces negative word of mouth

6.    It’s cheaper to retain customers than acquire new ones

Right questions to ask:

As Dushyant: How service encounter is designed?

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Services Marketing

Class Notes for Module 1-Session 2

14/08/2015

Group-4

Compiled By: Academic Group #4

Abhishek Mehra (PGPM1114-006)

AmareeshKalra (PGPM1114-011)

Jasmeet Singh Suri (PGPM1114-043)

Nikunj Jain (PGPM1114-095)

Samita Seth (PGPM1114-111)

Key Discussions

In continuation from the previous session…

Value creating differs significantly between a product and a service as outlined in Table-I below:

Product	Services
The value of a product is embedded in the physical product	The value of a service is embedded in experience
The source of value of a product is generally in machine	The source of value for a service are the people
Products are made to stock	Services are ideally made to order
Pricing of a product is based on units	Services are sold in terms of time and space
Products can be owned	Services may either be leased or rented
Marketing Mix of a product includes the 4Ps-Product, Price, Place and Promotion	Marketing Mix of a service includes the 6Ps-People, Process, Proof, Price, Place and Promotion
May involve impulsive purchases	Services require time for delivery
In product marketing, customers may be given a delivery date estimate	Services are created after they are ordered and delivery times vary
Products often come in a box	Services cannot be boxed and are generally customized
Products can be easily scaled up	Services cannot be easily scaled up and are difficult to replicate

                                                           

Table-I

·         In practical situations, products and services are seldom sold in isolation- they are bundled together.

·         Manufacturing of services is based on the concept of ‘architecture of encounter’ as described in Figure-I.

   Such an encounter is termed as co-creation since the customer must be physically present for the encounter to take place.

·         The major responsibility of a service encounter designer is to ensure that the right customer presents in front of the correct service provider under the optimum service cape and the right location.

·         A filtration process at both ends of the encounter may often facilitate/ increase the probability ofmeeting the right customer and service provider.

·         The above figure highlights the critical role of the service provider in the encounter. Service businesses always have a face. Hence, when the face leaves the firm, the business of clients also often leaves with it.

·         Within the service cape, equipment may be of 2 types:

-Comfort: for the teaching business, this may include teaching lounges, air conditioners etc.

-Operating: Projectors, Laser pointers, mouse/keyboard, PC etc.

·         When a core business is surrounded by several supporting services, the arrangement is termed as a service flower. In certain business settings, there may be multiple service flowers. Eg: Within a hospital, there are numerous departments such as Radiology, Cardiology, Pathology etc. Each department functions as a standalone service flower.

·         Products comprise of three broad customer qualities:

-Inspectable: most qualities fall under this category. These qualities can be tested prior to purchasing. Eg: performance, durability etc.

-Experience: a customer must pay upfront in order to experience these qualities. Generally customers rely on word of mouth to gauge experience qualities. Eg: reputation of a physician

-Belief- include those qualities which customers trust such as brand name of the product.