service marketing environment and other factors affecting marketing environment

SERVICE MARKETING ENVIRONMENT AND OTHER FACTORS FACTORS AFFECTING MARKETING ENVIRONMENT

CHAPTER-1 INTRODUCTION 1.1 INTRODUCTION TO SERVICE MARKETING ENVIRONMENT The world economy nowadays is increasinly charac!eri"ed as a ser#ice economy$ This is %rimarily d&e !o !he increasin im%or!ance and share o' !he ser#ice sec!or in !he economies o' mos! de#elo%ed and de#elo%in co&n!ries$ In 'ac!( !he row!h o' !he ser#ice sec!or has lon )een considered as indica!i#e o' a co&n!ry*s economic %roress$ Economic his!ory !ells &s !ha! all de#elo%in na!ions ha#e in#aria)ly e+%erienced a shi'! 'rom aric&l!&re !o ind&s!ry and !hen !o !he ser#ice sec!or as !he main s!ay o' !he economy$ This shi'! has also )ro&h! a)o&! a chane in !he de'ini!ion o' oods and ser#ices !hemsel#es$ No loner are oods considered se%ara!e 'rom ser#ices$ Ra!her( ser#ices now increasinly re%resen! an in!eral %ar! o' !he %rod&c! and !his in!erconnec!edness o' oods and ser#ices is re%resen!ed on a oods,ser#ices con!in&&m$ The The Ameri American can MarMar-e!i e!in n Associ ssocia!i a!ion on de'in de'ines es ser#i ser#ices ces as , .Ac! .Ac!i# i#i! i!ies ies(( )ene )ene'i! 'i!ss and and sa!is'ac!ions which are o''ered 'or sale or are %ro#ided in connec!ion wi!h !he sale o' oods$/ Services Ser vices marketi! is a s&) 'ield o' mar-e!in( which can )e s%li! in!o !he !wo main areas o' oods

mar-e!in 0which incl&des !he mar-e!in o' 'as! mo#in cons&mer oods 0FMCG1 and d&ra)les1 and ser#ices mar-e!in$ Ser#ices mar-e!in !y%ically re'ers !o )o!h )&siness !o cons&mer 023C1 and )&siness !o )&siness 02321 ser#ices( and incl&des mar-e!in o' ser#ices li-e !elecomm&nica!ions ser#ices( 'inancial ser#ic ser#ices( es( all !y%es !y%es o' hos%i! hos%i!ali ali!y !y ser#ic ser#ices( es( car ren!a ren!all ser#ic ser#ices( es( air !ra#el !ra#el(( heal!h heal!h care care ser#ic ser#ices es and %ro'essional ser#ices$ The rane o' a%%roaches and e+%ressions o' a mar-e!in idea de#elo%ed wi!h !he ho%e !ha! i! )e e''ec!i#e in con#eyin !he ideas !o !he di#erse %o%&la!ion o' %eo%le who recei#e i!$ recei#e i!$

Ser#ices Mar-e!in re'ers !o !he mar-e!in o' ser#ices as aains! !ani)le %rod&c!s$ As already disc&ssed( ser#ices are inheren!ly in!ani)le( are cons&med sim&l!aneo&sly a! !he !ime o' !heir %rod&c!ion( canno! )e s!ored( sa#ed or resold once !hey ha#e )een &sed and ser#ice ser#ice o''er o''erin inss are &ni4&e &ni4&e and canno! canno! )e e+ac!ly e+ac!ly re%ea!ed re%ea!ed e#en e#en )y !he same same ser#ice ser#ice %ro#ider$

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Mar-e!in o' ser#ices is a rela!i#ely new %henomenon in !he domain o' mar-e!in( ha#in ained in im%or!ance as a disci%line only !owards !he end o' !he 35!h cen!&ry$ Ser#ices mar-e!in 'irs! came !o !he 'ore in !he 6785*s when !he de)a!e s!ar!ed on whe!her mar-e!in o' ser#ices was sini'ican!ly di''eren! 'rom !ha! o' %rod&c!s so as !o )e classi'ied as a se%ara!e disci%line$ 9rior !o !his( ser#ices were considered :&s! an aid !o !he %rod&c!ion and mar-e!in o' oods and hence were no! deemed as ha#in se%ara!e rele#ance o' !heir own$ The 6785*s howe#er saw a shi'! in !his !hin-in$ As !he ser#ice sec!or s!ar!ed !o row in im%or!ance and emered as a sini'ican! em%loyer and con!ri)&!or !o !he GD9( academics and mar-e!in %rac!i!ioners )ean !o loo- a! !he mar-e!in o' ser#ices in a new lih!$ Em%irical research was cond&c!ed cond&c!ed which )ro&h! )ro&h! !o lih! !he s%eci'ic dis!in&ishin dis!in&ishin  charac!eris!ics charac!eris!ics o' ser#ices$ 2y !he mid 6775*s( Ser#ices Mar-e!in was 'irmly en!renched as a sini'ican! s&) disci%line o' mar-e!in wi!h i!s own em%irical research and da!a and rowin sini'icance in !he increasinly ser#ice sec!or domina!ed economies o' !he new millenni&m$ New areas o' s!&dy o%ened &% in !he 'ield and were !he s&):ec! o' e+!ensi#e em%irical research i#in rise !o conce%! conce%!ss s&ch s&ch as , !he %rod&c %rod&c!,se !,ser#ic r#icee s%ec!r& s%ec!r&m( m( rela!io rela!ionsh nshi% i% mar-e!i mar-e!in( n( 'ranch 'ranchisi isin n o' ser#ices( c&s!omer re!en!ion e!c$

MEANING O" SERVICE A service is !he ac!ion o' doin some!hin 'or someone or some!hin$ I! is larely in!ani)le 0i$e$ no! ma!erial1$ ;o& canno! !o&ch i!$ ;o& canno! see i!$ ;o& canno! !as!e i!$ ;o& canno! hear i!$ ;o& canno! 'eel i!$ So a ser#ice con!e+! crea!es i!s own series o' challenes 'or !he mar-e!in manaer since he or she m&s! comm&nica!e !he )ene'i!s o' a ser#ice )y drawin %arallels wi!h imaery and ideas !ha! are more !ani)le$ Search 4&ali!y is !he %erce%!ion in !he mind o' !he cons&mer o' !he 4&ali!y o' !he %rod&c! %rior !o %&rchase !hro&h ma-in a series o' searches$ So !his is sim%le in rela!ion !o a !ani)le %rod&c! )eca&se yo& mih! loo- a! si"e or colo&r 'or e+am%le$ There'ore search 4&ali!y rela!es more more !o %rod&c!s %rod&c!s and ser#ices$ ser#ices$

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Mar-e!in o' ser#ices is a rela!i#ely new %henomenon in !he domain o' mar-e!in( ha#in ained in im%or!ance as a disci%line only !owards !he end o' !he 35!h cen!&ry$ Ser#ices mar-e!in 'irs! came !o !he 'ore in !he 6785*s when !he de)a!e s!ar!ed on whe!her mar-e!in o' ser#ices was sini'ican!ly di''eren! 'rom !ha! o' %rod&c!s so as !o )e classi'ied as a se%ara!e disci%line$ 9rior !o !his( ser#ices were considered :&s! an aid !o !he %rod&c!ion and mar-e!in o' oods and hence were no! deemed as ha#in se%ara!e rele#ance o' !heir own$ The 6785*s howe#er saw a shi'! in !his !hin-in$ As !he ser#ice sec!or s!ar!ed !o row in im%or!ance and emered as a sini'ican! em%loyer and con!ri)&!or !o !he GD9( academics and mar-e!in %rac!i!ioners )ean !o loo- a! !he mar-e!in o' ser#ices in a new lih!$ Em%irical research was cond&c!ed cond&c!ed which )ro&h! )ro&h! !o lih! !he s%eci'ic dis!in&ishin dis!in&ishin  charac!eris!ics charac!eris!ics o' ser#ices$ 2y !he mid 6775*s( Ser#ices Mar-e!in was 'irmly en!renched as a sini'ican! s&) disci%line o' mar-e!in wi!h i!s own em%irical research and da!a and rowin sini'icance in !he increasinly ser#ice sec!or domina!ed economies o' !he new millenni&m$ New areas o' s!&dy o%ened &% in !he 'ield and were !he s&):ec! o' e+!ensi#e em%irical research i#in rise !o conce%! conce%!ss s&ch s&ch as , !he %rod&c %rod&c!,se !,ser#ic r#icee s%ec!r& s%ec!r&m( m( rela!io rela!ionsh nshi% i% mar-e!i mar-e!in( n( 'ranch 'ranchisi isin n o' ser#ices( c&s!omer re!en!ion e!c$

MEANING O" SERVICE A service is !he ac!ion o' doin some!hin 'or someone or some!hin$ I! is larely in!ani)le 0i$e$ no! ma!erial1$ ;o& canno! !o&ch i!$ ;o& canno! see i!$ ;o& canno! !as!e i!$ ;o& canno! hear i!$ ;o& canno! 'eel i!$ So a ser#ice con!e+! crea!es i!s own series o' challenes 'or !he mar-e!in manaer since he or she m&s! comm&nica!e !he )ene'i!s o' a ser#ice )y drawin %arallels wi!h imaery and ideas !ha! are more !ani)le$ Search 4&ali!y is !he %erce%!ion in !he mind o' !he cons&mer o' !he 4&ali!y o' !he %rod&c! %rior !o %&rchase !hro&h ma-in a series o' searches$ So !his is sim%le in rela!ion !o a !ani)le %rod&c! )eca&se yo& mih! loo- a! si"e or colo&r 'or e+am%le$ There'ore search 4&ali!y rela!es more more !o %rod&c!s %rod&c!s and ser#ices$ ser#ices$

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1.# 1.# DE"I DE"INI NITI TION ON AND CHAR CHARAC ACTE TERI RIST STIC ICS S O$ SE SERV RVIC ICE E MARKETING The The Ameri American can MarMar-e!i e!in n Associ ssocia!i a!ion on de'in de'ines es ser#i ser#ices ces as , .Ac! .Ac!i# i#i! i!ies ies(( )ene )ene'i! 'i!ss and and sa!is'ac!ions which are o''ered 'or sale or are %ro#ided in connec!ion wi!h !he sale o' oods$/ The de'inin charac!eris!ics o' a ser#ice are< Ita!i%i&it'( Ser#ices are in!ani)le and do no! ha#e a %hysical e+is!ence$ Hence ser#ices

canno! )e !o&ched( held( !as!ed or smel!$ This is mos! de'inin 'ea!&re o' a ser#ice and !ha! which %rimarily di''eren!ia!es i! 'rom a %rod&c!$ Also( i! %oses a &ni4&e challene !o !hose enaed in mar-e!in a ser#ice as !hey need !o a!!ach !ani)le a!!ri)&!es !o an o!herwise in!ani)le o''erin$ 6$ Heter)!eeit'*Varia%i&it'( Gi#en !he #ery na!&re o' ser#ices( each ser#ice o''erin is &ni4&e and canno! )e e+ac!ly re%ea!ed e#en )y !he same ser#ice %ro#ider$ =hile %rod&c!s can )e mass %rod&ced and )e homoeno&s !he same is no! !r&e o' ser#ices$ e< All )&rers o' a %ar!ic&lar 'la#or ' la#or a! McDonalds are almos! iden!ical$ Howe#er( !he same is no! !r&e o' !he ser#ice rendered )y !he same co&n!er s!a'' consec&!i#ely !o !wo c&s!omers$ 3$ Peris+a%i&it'( Ser#ices Ser#ices canno! )e s!ored( s!ored( sa#ed( re!&rned or resold once !hey ha#e )een &sed$ Once rendered !o a c&s!omer !he ser#ice is com%le!ely cons&med and canno! )e deli#ered !o ano!her c&s!omer$ e< A c&s!omer dissa!is'ied wi!h !he ser#ices o' a )ar)er canno! re!&rn !he ser#ice o' !he hairc&! hairc&! !ha! was rendered !o him$ A! !he mos! he may decide no! !o #isi! !ha! %ar!ic&lar )ar)er in !he '&!&re Ise,ara%i&it'*Sim&taeit' )$ ,r)cti) ,r)cti) a c)sm,ti)( >$ Ise,ara%i&it'*Sim&taeit'

This re'ers !o !he 'ac! !ha! ser#ices are enera!ed and cons&med wi!hin !he same !ime 'rame$ E< a hairc&! is deli#ered !o and cons&med )y a c&s!omer sim&l!aneo&sly &nli-e( say( a !a-eaway )&rer which !he c&s!omer may cons&me e#en a'!er a 'ew ho&rs o' %&rchase$ Moreo#er( i! is #ery di''ic&l! !o se%ara!e a ser#ice 'rom !he ser#ice 3

SERVICE MARKETING ENVIRONMENT AND OTHER FACTORS AFFECTING MARKETING ENVIRONMENT

%ro#ider$ E< !he )ar)er is necessarily a %ar! o' !he ser#ice o' a hairc&! !ha! he is deli#erin !o his c&s!omer$ ?$ C&s!omers do no! o)!ain ownershi% o' ser#ices @$ Ser#ice %rod&c!s are e%hemeral and canno! )e in#en!oried $ In!ani)le elemen!s domina!e #al&e crea!ion B$ Grea!er in#ol#emen! o' c&s!omers in %rod&c!ion %rocess 8$ O!her %eo%le may 'orm %ar! o' %rod&c! e+%erience 7$ Grea!er #aria)ili!y in o%era!ional in%&!s and o&!%&!s 65$ Many ser#ices are di''ic&l! 'or c&s!omers !o e#al&a!e 66$ Time 'ac!or is more im%or!an!,,s%eed may )e -ey 63$ Deli#ery sys!ems incl&de elec!ronic and %hysical channels

1./ MEANING O" SERVICE MARKETING 0 SERVICE MARKETING ENVIRONMENT SERVICE MARKETING The %romo!ion o' economic ac!i#i!ies o''ered )y a )&siness !o i!s clien!s$ Ser#ice mar-e!in mih! incl&de !he %rocess o' sellin !elecomm&nica!ions( heal!h !rea!men!( 'inancial( hos%i!ali!y( car ren!al( air !ra#el( and %ro'essional ser#ices

SERVICE MARKETING ENVIRONMENT The en#ironmen! in which !he ser#ices is deli#ered and where !he 'irm and c&s!omer in!erac!

CASSI"ICATION O" SERVICE MARKETING 61 2y Mar-e! Semen!a!ion 31 2y Deree O' Tani)ili!y 4


>1 2y S-ills O' The Ser#ice 9ro#ider ?1 2y Goals O' The 9ro#ider @1 2y Deree O' Re&la!ion 1 2y Deree O' a)o&r In!ensi#eness

1.2 SIGNI"ICANCE O" SERVICE MARKETING ENVIRONMENT 9ro%er mar-e!in o' ser#ices con!ri)&!es s&)s!an!ially !o !he %rocess o' de#elo%men!$ I' inno#a!i#e mar-e!in %rinci%les are 'ollowed in ser#ices mar-e!in( !he socio,economic !rans'orma!ion will !a-e %lace a! a m&ch 'as!er ra!e$ In '&!&re( !he ser#ice sec!or wo&ld o%era!e in a cond&ci#e en#ironmen! o''erin rea! %o!en!ial$ I' !he o%%or!&ni!ies are %ro%erly &!ilised )y !he ser#ice sec!or( i! will lead !o an all ro&nd de#elo%men! o' !he economy$ The sini'icance o' !he ser#ice economy may )e disc&ssed &nder !he 'ollowin headins< 6$ Genera!ion o' em%loymen! o%%or!&ni!ies 3$ O%!im&m &!ilisa!ion o' reso&rces >$ Ca%i!al 'orma!ion ?$ Increased s!andard o' li#in @$ se o' en#ironmen!,'riendly !echnoloy$ Gi#en !he in!ani)ili!y o' ser#ices( mar-e!in !hem )ecomes a %ar!ic&larly challenin and ye! e+!remely im%or!an! !as-$

A ke' i$$eretiat)r( D&e !o !he increasin homoenei!y in %rod&c! o''erins( !he a!!endan! ser#ices %ro#ided are emerin as a -ey di''eren!ia!or in !he mind o' !he cons&mers$ E< In case o' !wo 'as! 'ood chains ser#in a similar %rod&c! 09i""a H&! and Domino*s1( more !han !he %rod&c! i! is !he ser#ice 4&ali!y !ha! dis!in&ishes !he !wo )rands 'rom each o!her$ Hence( mar-e!ers can le#erae on !he ser#ice o''erin !o di''eren!ia!e !hemsel#es 'rom !he com%e!i!ion and a!!rac! cons&mers$ 5


Im,)rtace )$ re&ati)s+i,s( Rela!ionshi%s are a -ey 'ac!or when i! comes !o !he mar-e!in o' ser#ices$ Since !he %rod&c! is in!ani)le( a lare %ar! o' !he c&s!omers* )&yin decision will de%end on !he deree !o which he !r&s!s !he seller$ Hence( !he need !o lis!en !o !he needs o' !he c&s!omer and '&l'ill !hem !hro&h !he a%%ro%ria!e ser#ice o''erin and )&ild a lon las!in rela!ionshi% which wo&ld lead !o re%ea! sales and %osi!i#e word o' mo&!h$

Cst)mer Reteti)( Gi#en !oday*s hihly com%e!i!i#e scenario where m&l!i%le %ro#iders are #yin 'or a limi!ed %ool o' c&s!omers( re!ainin c&s!omers is e#en more im%or!an! !han a!!rac!in new ones$ Since ser#ices are &s&ally enera!ed and cons&med a! !he same !ime( !hey ac!&ally in#ol#e !he c&s!omer in ser#ice deli#ery %rocess )y !a-in in!o considera!ion his re4&iremen!s and 'eed)ac-$ Th&s !hey o''er rea!er sco%e 'or c&s!omi"a!ion accordin !o c&s!omer re4&iremen!s !h&s o''erin increased sa!is'ac!ion leadin !o hiher c&s!omer re!en!ion $Geerati) )$ em,&)'met O,,)rtities The com%onen!s o' !he ser#ice sec!or are wide and #aried$ For e+am%le( !he ser#ice sec!or incl&des %ersonal care ser#ices( ed&ca!ion ser#ices( medicare ser#ices( comm&nica!ion ser#ices( !o&rism ser#ices( hos%i!ali!y ser#ices( )an-in ser#ices( ins&rance ser#ices( !rans%or!a!ion ser#ices( cons&l!ancy ser#ices( e!c The oranised and sys!ema!ic de#elo%men! o' !he ser#ice sec!or wo&ld crea!e enormo&s em%loymen! o%%or!&ni!ies$ A%%lica!ion o' mar-e!in %rinci%les in !he I ser#ice sec!or is ins!r&men!al !o !he de#elo%men! o' !he economy$ Howe#er( i! is a%%ro%ria!e !o men!ion !ha! India has no! )een s&ccess'&l in &!ilisin !he %o!en!ial o' !he ser#ice sec!or$ As seen in Ta)le 6$6( in SA a)o&! 85 %er cen! o' :o) o%%or!&ni!ies are o''ered )y !he ser#ice sec!or com%ared !o Indias 5$ So( !he sini'icance o' !he ser#ice sec!or lies in i!s ca%aci!y !o crea!e :o) o%%or!&ni!ies$ I' !he ser#ice sec!or is %ro%erly de#elo%ed( i! will sol#e !he %ro)lem o' &nem%loymen! in India !o a rea! e+!en!$ A'!er li)eralisa!ion %olicy( !he ser#ice sec!or in India has )een emerin as a dominan! com%onen! in !he economy$ $

O,timm Uti&isati) )$ Res)rces

6


India is )es!owed wi!h rich reso&rces$ 9ar!ic&larly( !he h&man reso&rces a#aila)le in India 'a#o&r !he row!h o' !he ser#ice sec!or$ =hile !he la)o&r con!en! in mos! man&'ac!&rin ac!i#i!ies is dro%%in s!eadily wi!h &se o' !echnoloy( !he la)o&r con!en! in !he ser#ice sec!or is com%ari!i#ely hih$ As India is rich in h&man reso&rces( ser#ice sec!or can row s!eadily$ Moreo#er( ser#ice sec!or o''ers e+cellen! e+%or! o%%or!&ni!ies !oo$ In 'ac!( !he im%or!an! aenda o' !he =orld Trade Oranisa!ion 0=TO1 is o%enin &% o' mar-e! 'or ser#ices$ So( )y e+%loi!in !hese 'ac!ors( India can ma+imise i!s ser#ices e+%or!$ Tho&h i!s %er'ormance in !he e+%or! o' com%&!er so'!ware is 4&i!e commenda)le already( i! sho&ld concen!ra!e on o!her areas as well$ Ser#ice 'irms s&ch as %ersonal care ser#ices( !he en!er!ainmen! ser#ices( !o&rism ser#ices( ho!el ser#ice con!ri)&!e !o !he row!h o' !he economy wi!ho&! cons&min any na!&ral reso&rces$ In a sense( !he row!h o' ser#ice 'irms o' !his -ind conser#e na!&ral reso&rces$ Th&s( ser#ices mar-e!in hel% conser#e !he #al&a)le reso&rces 'or '&!&re enera!ions$

Ca,ita& ")rmati) There are indica!ions !ha! Ser#ices will row more ra%idly in !he near '&!&re$ Economic( social and %oli!ical 'ac!ors sinal an e+%ansion o' !he ser#ice sec!or$ In#es!men!s and :o) enera!ions are 'ar rea!er in !he ser#ice sec!or com%ared !o man&'ac!&rin$ I! is es!ima!ed !ha! !elecom alone will acco&n! 'or an in#es!men! o' Rs$ 6@5(555 crores in !he comin years$ In#es!men! enco&raes ca%i!al 'orma!ion$ For !he de#elo%men! o' a , 3 , na!ion( !he 'low o' ca%i!al sho&ld )e direc!ed !owards !he mos! %rod&c!i#e &ses$ I' in#es!men!s are made in !he ser#ice sec!or( i! will con!ri)&!e !o !he na!ion,)&ildin %rocess$ =i!h increased de#elo%men!al ac!i#i!ies( !he %er ca%i!a income increases which( in !&rn( 'acili!a!es ca%i!al 'orma!ion$ 9er'ormance o' %ro'i!a)le ser#ices can a)sor) hiher in#es!men!s( !here)y accelera!in !he ra!e o' ca%i!al 'orma!ion

Icreasi! t+e Staar )$ ivi! The s!andard o' li#in o' !he %eo%le in any co&n!ry wo&ld )e decided on !he )asis o' 4&ali!y and s!andard o' %rod&c!s cons&med or ser#ices a#ailed in !he day,!o,day li#in$ Any de#elo%men! is !rans%aren! only when !he li#in condi!ions o' !he masses im%ro#e$ =hen com%ared wi!h de#elo%ed co&n!ries( !he s!andard o' li#in in India is 'ar 'rom sa!is'ac!ory$ S!andard o' li#in canno! )e im%ro#ed )y o''erin more o%%or!&ni!ies 'or earnins$ On !he

7


o!her hand( !he s!andard o' li#in is de!ermined )y !he a#aila)ili!y o' oods and ser#ices 'or ci!i"ens and a wise s%endin on !hem$ The de#elo%men! o' ser#ices ind&s!ry is s&re !o %romo!e !he s!andard o' li#in o' !he %eo%le$

Use )$ Evir)met-$rie&' Tec+)&)!'( Now,a,days( almos! all ser#ices are 'o&nd !echnoloy,dri#en$ De#elo%ed co&n!ries are ma-in '&ll &se o' la!es! !echnoloy while renderin ser#ices$ Technoloies &sed )y ser#ice enera!in oranisa!ions s&ch )an-s( ins&rance com%anies( !o&rism( ho!el ser#ices( ( mm&nica!i=6 ser#ices$ and$ ed&ca!ion ser#ices are no! de!rimen!al in any way !o !he en#ironmen!$ On !he con!rary( !echnoloies &sed in man&'ac!&rin oranisa!ions may ha#e harm'&l e''ec!s on !he en#ironmen!$ So( ser#ices ind&s!ry do no! %oll&!e !he en#ironmen! which is indeed la&da)le$

8


CHAPTER -# SERVICE MARKETING ENVIRONMENT #.1 SERVICE MARKETING ENVIRONMENT Al lorani"a!ions

o%era!e wi!hin !he mar-e!in en#ironmen!$ The mar-e!in en#ironmen! is

made &% o' !wo %ar!s 

Micr) evir)met Macr) evir)met

9


Micr) Evir)met The micro en#ironmen! is !he in!ernal en#ironmen! o' !he orani"a!ion $The 'ac!ors !o )e analy"ed in !he in!ernal en#ironmen! will incl&de !he 'ollowin

1C)m,a' maa!emet strctre #Cst)mers / S,,&iers 2 C+ae& mem%ers 3 C)m,etit)rs 4 Ot+er ,%&ics 5+ic+ ma' ic&e 6 G)vermet a ,)&itica& %)ies 7 Pressre !r),s 8 "iacia& istitti)s 19 S+are+)&ers In e''ec! any %erson or orani"a!ion which can in'l&ence !he com%any*s mar-e!in ac!i#i!ies and mar-e!in s&ccess in way sho&ld )e incl&ded here$ The lis! is no! a)sol&!ely com%rehensi#e as indi#id&al orani"a!ions may need !o consider s%ecial in'l&ences$ $ The %oli!ical leal ( economic ( social and !echnoloical 'orces e+er! !he same !y%e o' ser#ices as !hey do on %rod&c!s  howe#er cer!ain en#ironmen! 'ea!&res ha#e a rea!er im%ac! on ser#ice

Macr) Evir)met The macro en#ironmen! re%resen!s all !he o&!side in'l&ences which ha#e im%ac! on an orani"a!ion*s mar-e!in or )&siness ac!i#i!y$ I! incl&des economic and %oli!ical 'ac!ors and socio,c&l!&ral !rends( 'or e+am%le !he e+!ernal en#ironmen! in'l&ences will e''ec! all orani"a!ions wi!hin a sec!or !o a rea!er or lesser deree$ The in!ernal en#ironmen! rela!es !o a %ar!ic&lar orani"a!ion and i!s %&)lics$

10


T+e evir)meta& $act)rs are ( 1. P)&itica& :&e!a& evir)met #.Ec))mic evir)met /.S)ci)-c&tra& evir)met 2.Tec+)&)!ica& evir)met

1. P)&itica& :e!a& Evir)met There is considera)le in'l&ence o' !he %oli!ical  leal en#ironmen! on ser#ice mar-e!in $ Ser#ice ind&s!ries are o'!en more closely re&la!ed !han mos! o!her 'orms o' %ri#a!e en!er%rise$ Many ser#ice 'irms are )ein s&):ec! !o o#ernmen! re&la!ions in addi!ion !o !he &s&al !a+es and leisla!ion$ Ser#ice %ro#iders m&s! &nders!and and reconi"e !he im%ac! o' s&ch re&la!ion on !heir com%e!i!i#e s!ra!eies$ Re&la!ion enerally in'l&ences ser#ice )&siness in 'o&r ways$ Re&la!ion enerally in'l&ences !he rane and !y%e o' com%e!i!ion$ Re&la!ion red&ces !he mar-e!er*s array o' o%!ions and in!rod&ces cer!ain riidi!ies in!o !he mar-e!in %rocess$ Decision o' !he re&la!ory aencies )ein !he )indin %ar! o' !he mar-e!in decision  ma-in %rocess m&s! )e 'oc&sed a! &nders!andin and %redic!in !hose aencies ac!ion 9ress&re ro&%s may )e es!a)lished !o lo))y and e''ec! chane or modi'y ( !he direc!ions )ein !a-en )y !he re&la!ory )odies$

#. Ec))mic Evir)met In economic en#ironmen! chanin li'e s!yle ( chanin world (chanin economies and chanin !echnoloical ad#ances and chanin cons&mer needs ha#e con!ri)&!ed !o increase s%endin on cons&mer ser#ices$ Technoloical inno#a!ions ha#e also hel%ed !o crea! e a hiher s!andard o' li#in 'or a common man( who %resen!ly s%ends a larer %or!ion o' his or her increased dis%osa)le income o' ser#ices$2&! !he$ role o' !echnoloy has also aided in circ&m#en!in )arriers !o !rade ( es%ecially in i!s role in desinin and deli#erin ser#ices$ The &r)ani"a!ion has widened !he demand 'or %ersonal and %&)lic ser#ices $ The 11


demora%hic shi'! !owards an older %o%&la!ion in some co&n!ries has res&l!ed in new ser#ice demands s&ch as )e!!er heal!hcare ( con#enience %rod&c!s e!c$ In !he lo)al en#ironmen! ( d&e !o cross co&n!ry c&l!&ral iss&es ( !rade )arrier 0 )o!h !ari'' and non,!ari''1 !end !o )ecome more res!ric!i#e in mar-e!in o' ser#ices$

/. S)ci)-C&tra& Evir)met Socio, c&l!&ral 'orces are se! 'ac!ors incl&din li'e s!yle ( social #al&es and )elie's !ha! a''ec! !he mar-e!in ac!i#i!ies o' an orani"a!ion$ These 'ac!ors ha#e sini'ican! im%ac! on !he mar-e!in o' ser#ices $ The mar-e!ers ha#e 'o&nd !he in!ensi#e &se o' cons&l!an!s and co&nselors in !heir %ersonal 'amily and wor-in li#es$ Heal!h( 2ea&!y( !ra#el( c&l!&re( and hiher ed&ca!ion ha#e %ar!ly re%laced d&ra)le oods as s!a!&s $ sym)ols in !he mind o' many cons&mers $ There had )een an increasin !rend in !he ser#ices li-e sec&ri!y ( ins&rance( leal( medical and in#es!men!$ Glo)ally ( !he c&l!&ral dimensions a''ec! ser#ices in a more %rono&nced manner !han do oods$ D&e !o inse%ara)ili!y charac!eris!ic o' ser#ices !he 'irms may need !o ada%! !heir o''erins !o s&i! local !as!e and %re'erences $ KFC and Mc*Donald*s had !o ada%! i!s %rod&c!s in India !o s&i! local %ola!es$ 2&siness neo!ia!ions are #ery m&ch s&):ec! !o local norms and local sys!ems$ an&ae is a ma:or c&l!&ral in'l&ence

2.Tec+)&)!ica& Evir)met Technoloy has in'l&enced o&r li'e s!yles( cons&m%!ion %a!!ern and o&r economic well )ein !remendo&sly$ &s! !hin- o' in!erne! ( worldwide we) 0www1 ( E,commerce ( #ideo con'erencin$ =orld has )ecome !oo small and )o&ndary less$ The ser#ice economies will )e !echnoloically dri#en soon$ Ins!ead o' e+%ec!in ser#ice %ro#iders !o im%ro#e res&l!s  manaemen! m&s! see wha! -ind o' orani"a!ional s!r&c!&re ( incen!i#es ( !echnoloy and s-ills can im%ro#e o#erall %rod&c!i#i!y

12


ENVIRONMENT "OR SERVICE MARKETING ENVIRONMENT "OR SERVICE MARKETING INTERNA MARKETING ENVIRONMENT In!ernal mar-e!in descri)es !he %rorammes !ha! ins!il and main!ain a s!ron ser#ice men!ali!y in !he mindse! o' em%loyees$ Mos! o' !he em%loyees in an oranisa!ion ser#e !he e+!ernal c&s!omer$ The e''or!s o' all o' !hem sho&ld )e coordina!ed !o ser#e !he c&s!omers well$ C&s!omer,ser#ice hea#ily de%ends &%on !he ser#ice em%loyees$ In!ernal mar-e!in addresses !hose em%loyees who ac! as an in!ernal mar-e! wi!hin an oranisa!ion$ Em%loyees are i#en !he s!a!&s o' c&s!omers wi!h !he same le#el o' im%or!ance a!!ached !o !he e+!ernal c&s!omers$ So( c&s!omer sa!is'ac!ion can )e &aran!eed only )y sa!is'yin !he em%loyees 0in!ernal c&s!omers1$ In addi!ion !o !heir e+!ernal mar-e!in %lans and s!ra!eies( ser#ice oranisa!ions %ay a lo! o' a!!en!ion !o !heir in!ernal mar-e!in %rorammes$ The im%or!ance o' in!ernal mar-e!in is e#iden! 'rom !he s!a!emen! o' an CarJ"on$ I' yo& don! ser#e c&s!omers yo& )e!!er ser#e some)ody else in !he oranisa!ion

DE"INITION O" INTERNA MARKETING The 'ollowin are some im%or!an! de'ini!ions o''ered 'or !h e !erm in!ernal mar-e!in$ I$ The means o' a%%lyin !he %hiloso%hy and mar-e!in !o %eo%le who ser#e !he e+!ernal c&s!omers so !ha! 0a1 !he )es! %ossi)le %eo%le can )e em%loyed and re!ained and 0)1 !hey do !he )es! %ossi)le wor-$ , 2erry 3$ The !erm in!ernal mar-e!in has )een coined !o charac!erise !he se! o' ac!i#i!ies a 'irm m&s! &nder!a-e !o woo and win o#er !he hear!s and minds o' i!s em%loyees !o achie#e ser#ice e+cellence$

13


O%;ectives O$ Itera& Marketi!

Accordin !o Gronroos( !here are !hree o):ec!i#es o' in!ernal mar-e!in$ 0Fi&re 63$61

O%;ectives )$ itera& marketi!

Overa&& )%;ectives

Tactica& &eve& )%;ectives

Strate!ic &eve& )%;ectiv es

The o#erall o):ec!i#es o' in!ernal mar-e!in is !o crea!e c&s!omer conscio&s and care, orien!ed %ersonnel$ In!ernal mar-e!in has s!ra!eic o):ec!i#es !o crea!e an in!ernal en#ironmen! !ha! s&%%or!s !he c&s!omer conscio&s %ersonnel$ In!ernal mar-e!in wor-s !hro&h s&%%or!i#e manaemen! me!hods( %ersonnel %olicy in!ernal !radin %olicy and %lannin and con!rol %roced&res$ The !ac!ical le#el o):ec!i#es rela!ed !o sale o' ser#ices( s&%%or!in ser#ices( cam%ains and sinle mar-e!in e''or!s !o !he em%loyees are )ased on !he 'ollowin %rinci%les< 0i1 0ii1

The %ersonnel in a ser#ice oranisa!ion cons!i!&!e i!s %rimary mar-e! The em%loyees are e+%ec!ed !o &nders!and !heir role in crea!in c&s!omer sa!is'ac!ion

0iii1

and ac!i#ely s&%%or!in a i#en ser#ice$ The em%loyees sho&ld 'ollow !he %olicies and %roced&res laid down )y !he com%any

0i#1

in order !o s&%%or! !he ser#ices needed 'or c&s!om con!ac!$ The ser#ice oranisa!ion sho&ld la&nch all ser#ice schemes only a'!( e!!in !he '&ll

0#1

acce%!ance o' c&s!omers$ In!ernal mar-e!in calls 'or an in!ernal in'orma!ion channel i$ e$( %ersonal sellin is re4&ired in!ernally$

14


E
DI""ERENCE

=ET>EEN

INTERNA AND

E
MARKETING ENVIRONMENT E?tera& marketi!

Itera& marketi!

Evir)met

Evir)met

There is in!erac!ion )e!ween !he oranisa!ion There is in!erac!ion )e!ween !he oranisa!ion and c&s!omers$ and i!s em%loyees C&s!omers in'l&ence !he o%era!ions o' !he Manaemen! %lays a cr&cial role in 'inalisin orani"a!ion !as-s and direc!in em%loyees Oranisa!ion ma-es %romises !o i!s c&s!omers In!ernal mar-e!in ena)les !he em%loyees !o '&l'ill !he %romises made d&rin e+!ernal mar-e!in C&s!omers deri#e )ene'i!s 'rom !he ser#ice Em%loyees o''erin E+!ernal

mar-e!in

aims

a!

deri#e

're4&en!

chanes

in

!he

'rom

com%ensa!ion %lan ado%!ed )y !he com%any$ achie#in In!ernal mar-e!in increases :o) sa!is'ac!ion

c&s!omer sa!is'ac!ion amon em%loyees$ Demand 'rom c&s!omers 'l&c!&a!es as !here Feed)ac- is o)!ained are

)ene'i!s

needs

'rom

em%loyees$

o' Trainin and a%%raisal o' em%loyees are

c&s!omers$ s&i!a)ly ado%!ed$ Mar-e! research is cond&c!ed on c&s!omer Needs o' em%loyees are no! a! al6 'l&c!&a!in$ !rends( com%e!i!ors s!ra!ey e!c$( in !he The en&ine re4&iremen!s o' !he em%loyees

15


mar-e!$ In e+!ernal mar-e!in( %romo!ion mi+ consis!s 9romo!ional o' ad#er!isin( sales %romo!ion( %&)lici!y( e!c

as%ec!s

consis!

o'

salary

increases( awards( reconi!ion i#en !o !he em%loyees

E+!ernal

mar-e!in

'oc&ses

on

4&ali!y( In!ernal mar-e!in %ays a!!en!ion !o #al&es(

c&l!&ral and social 'ac!ors( s!andards o' li#in a!!i!&des( )elie's and %ersonali!ies o' ser#ice and !he needs and wan!s o' em%loyees$ c&s!omers I! re4&ires 'eed)ac- and con!rol$ I! re4&ires #ision and %lannin$ E+!ernal mar-e!in %ays a!!en!ion !o ood Co&nsellin is i#en !o em%loyees !o !one &% %&)lic rela!ions$ Rela!ionshi% is !he 'ocal %oin! O%era!ions in e+!ernal mar-e!s

HR s-ills 9ar!nershi% is !he 'ocal %oin!$ are Rela!ionshi% wi!h em%loyees is cons!rained

cons!rained )y !rends( 'ashions and money )y a#aila)le reso&rces and o!her ins!i!&!ional %ower$ 'ac!ors$ @ E+!ernal mar-e!in 'oc&ses on o%era!ional S!ra!eic and !ac!ical le#els are in 'oc&s$ le#els$ Re!en!ion o' c&s!omers is cri!ical Re!en!ion o' em%loyees is cri!ical$ Tare! ro&%s are indi#id&al and Ins!i!&!ional Tare! ro&%s are em%loyees$ c&s!omers$ C&s!omers are o''ered incen!i#es in !he 'orm Incen!i#es may )e 'inancial and non'inancial o' disco&n!s( %remi&ms( i'!s and con!es!s( e!c )on&s( commission( 'ree ho&sin 'acili!ies( 'ree medical 'acili!ies( e!c

#.#SERVICE MARKETING TRIANGE Ser#ices mar-e!in is a)o&! %romises$ 9romises are made and %romises are -e%! !o c&s!omers$ Ser#ice !rianle is !he s!ra!eic 'ramewor- which rein'orces !he im%or!ance o' %eo%le in !he a)ili!y o' 'irms !o -ee% !heir %romises and s&cceed in )&ildin c&s!omer rela!ionshi%s , 0M$

16


2i!ner1 A ser#ices !rianle is made &% o' !hree !y%es o' mar-e!in( namely I$ E+!ernal mar-e!in 3$ In!erac!i#e mar-e!in and >$ In!ernal mar-e!in$

Fi&re 63$3 , Ser#ices Trianle The !rianle shows !hree in!erlin-ed ro&%s !ha! wor- !oe!her !o de#elo%( %romo!e and deli#er ser#ices$ The -ey %layers are com%any( c&s!omers and !he %ro#iders$ 9ro#iders can )e em%loyees o' !he 'irm( s&)con!rac!ors or o&!so&rced en!i!ies who ac!&ally deli#er !he com%anys ser#ices$ E+!ernal mar-e!in se!s &% c&s!omers e+%ec!a!ions and ma-es %romises !o c&s!omers$ In in!erac!i#e mar-e!in or real,!ime mar-e!in( %romises are -e%! )y !he 'irms em%loyees( s&)con!rac!ors or aen!s 0ser#ice %ro#iders1$ I' %romises are no! -e%!( c&s!omers )ecome dissa!is'ied and may swi!ch 'irms$ In!ernal mar-e!in consis!s o' !he ac!i#i!ies !ha! manaemen! enaes i!sel' in order !o aid !he %ro#iders !o deli#er on !he ser#ice %romise , recr&i!in( !rainin mo!i#a!in and rewardin$ All !he !hree sides o' !he !rianle sho&ld )e %ro%erly alined$ They wor- !oe!her !o ens&re wha! is %romised !hro&h !he e+!ernal mar-e!in is deli#ered$ To achie#e !his( !he ena)lin ac!i#i!ies sho&ld )e alined wi!h !he role o' ser#ice %ro#iders$

#./SERVICE MARKETING MI<

17


The 7 P’s of Services Marketing The 'irs! 'o&r elemen!s in !he ser#ices mar-e!in mi+ are !he same as !hose in !he !radi!ional mar-e!in mi+$ Howe#er( i#en !he &ni4&e na!&re o' ser#ices( !he im%lica!ions o' !hese are slih!ly di''eren! in case o' ser#ices$ 6$ Pr)ct( In case o' ser#ices( !he L%rod&c!* is in!ani)le( he!eroeneo&s and %erisha)le$ Moreo#er( i!s %rod&c!ion and cons&m%!ion are inse%ara)le$ Hence( !here is sco%e 'or c&s!omi"in !he o''erin as %er c&s!omer re4&iremen!s and !he ac!&al c&s!omer enco&n!er !here'ore ass&mes %ar!ic&lar sini'icance$ Howe#er( !oo m&ch c&s!omi"a!ion wo&ld com%romise !he s!andard deli#ery o' !he ser#ice and ad#ersely a''ec! i!s 4&ali!y$ Hence %ar!ic&lar care has !o )e !a-en in desinin !he ser#ice o''erin$ 3$ Prici!( 9ricin o' ser#ices is !o&her !han %ricin o' oods$ =hile !he la!!er can )e %riced easily )y !a-in in!o acco&n! !he raw ma!erial cos!s( in case o' ser#ices a!!endan! cos!s , s&ch as la)or and o#erhead cos!s , also need !o )e 'ac!ored in$ Th&s a res!a&ran! no! only has !o chare 'or !he cos! o' !he 'ood ser#ed )&! also has !o calc&la!e a %rice 'or !he am)ience %ro#ided$ The 'inal %rice 'or !he ser#ice is !hen arri#ed a! )y incl&din a mar- &% 'or an ade4&a!e %ro'i! marin$ >$ P&ace( Since ser#ice deli#ery is conc&rren! wi!h i!s %rod&c!ion and canno! )e s !ored or !rans%or!ed( !he loca!ion o' !he ser#ice %rod&c! ass&mes im%or!ance$ Ser#ice %ro#iders ha#e !o i#e s%ecial !ho&h! !o where !he ser#ice wo&ld )e %ro#ided$ Th&s( a 'ine dine res!a&ran! is )e!!er loca!ed in a )&sy( &%scale mar-e! as aains! on !he o&!s-ir!s o' a ci!y$ Similarly( a holiday resor! is )e!!er si!&a!ed in !he co&n!ryside away 'rom !he r&sh and noise o' a ci!y$ ?$ Pr)m)ti)( Since a ser#ice o''erin can )e easily re%lica!ed %romo!ion )ecomes cr&cial in di''eren!ia!in a ser#ice o''erin in !he mind o' !he cons&mer$ Th&s( ser#ice %ro#iders o''erin iden!ical ser#ices s&ch as airlines or )an-s and ins&rance com%anies in#es! hea#ily in ad#er!isin !heir ser#ices$ This is cr&cial in a!!rac!in c&s!omers in a semen! where !he ser#ices %ro#iders ha#e nearly iden!ical o''erins$

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=e now loo- a! !he > new elemen!s o' !he ser#ices mar-e!in mi+ , %eo%le( %rocess and %hysical e#idence , which are &ni4&e !o !he mar-e!in o' ser#ices$ @$ Pe),&e( 9eo%le are a de'inin 'ac!or in a ser#ice deli#ery %rocess( since a ser#ice is inse%ara)le 'rom !he %erson %ro#idin i!$ Th&s( a res!a&ran! is -nown as m&ch 'or i!s 'ood as 'or !he ser#ice %ro#ided )y i!s s!a''$ The same is !r&e o' )an-s and de%ar!men! s!ores$ Conse4&en!ly( c&s!omer ser#ice !rainin 'or s!a'' has )ecome a !o% %riori!y 'or many orani"a!ions !oday$ $ Pr)cess( The %rocess o' ser#ice deli#ery is cr&cial since i! ens&res !ha! !he same s!andard o' ser#ice is re%ea!edly deli#ered !o !he c&s!omers$ There'ore( mos! com%anies ha#e a ser#ice )l&e %rin! which %ro#ides !he de!ails o' !he ser#ice deli#ery %rocess( o'!en oin down !o e#en de'inin !he ser#ice scri%! and !he ree!in %hrases !o )e &sed )y !he ser#ice s!a''$ B$ P+'sica& Eviece( Since ser#ices are in!ani)le in na!&re mos! ser#ice %ro#iders s!ri#e !o incor%ora!e cer!ain !ani)le elemen!s in!o !heir o''erin !o enhance c&s!omer e+%erience$ Th&s( !here are hair salons !ha! ha#e well desined wai!in areas o'!en wi!h maa"ines and %l&sh so'as 'or %a!rons !o read and rela+ while !hey awai! !heir !&rn$ Similarly( res!a&ran!s in#es! hea#ily in !heir in!erior desin and decora!ions !o o''er a !ani)le and &ni4&e e+%erience !o !heir &es!s

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CHAPTER-/ "ACTORS A""ECTING MARKETING ENVIRONMENT Itr)cti)( A #arie!y o' en#ironmen!al 'orces in'l&ence a com%any*s mar-e!in sys!em$ Some o' !hem are con!rolla)le while some o!hers are &ncon!rolla)le$ I! is !he res%onsi)ili!y o' !he mar-e!in manaer !o chane !he com%any*s %olicies alon wi!h !he chanin en#ironmen!$ Accordin !o P+i&i, K)t&er( .A com%any*s mar-e!in en#ironmen! consis!s o' !he in!ernal 'ac!ors  'orces( which a''ec! !he com%any*s a)ili!y !o de#elo%  main!ain s&ccess'&l !ransac!ions  rela!ionshi%s wi!h !he com%any*s !are! c&s!omers/$

T+e Evir)meta& "act)rs ma' %e c&assi$ie as( 6$ In!ernal Fac!or

3$ E+!ernal Fac!or

E?tera& "act)rs ma' %e $rt+er c&assi$ie it)( E+!ernal Micro Fac!ors  E+!ernal Macro Fac!ors

C)m,a'@s Itera& Evir)meta& "act)rs ( A Com%any*s mar-e!in sys!em is in'l&enced )y i!s ca%a)ili!ies reardin %rod&c!ion( 'inancial  o!her 'ac!ors$ Hence( !he mar-e!in manaemen!Jmanaer m&s! !a-e in!o considera!ion !hese de%ar!men!s )e'ore 'inali"in mar-e!in decisions$ The Research  De#elo%men! De%ar!men!( !he 9ersonnel De%ar!men!( !he Acco&n!in De%ar!men! also ha#e an im%ac! on !he Mar-e!in De%ar!men!$ I! is !he res%onsi)ili!y o' a manaer !o com%any, ordina!e all de%ar!men! )y se!!in &% &ni'ied o):ec!i#es$

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E?tera& Micr) "act)rs( 6$ S,,&iers( They are !he %eo%le who %ro#ide necessary reso&rces needed !o %rod&ce oods  ser#ices$ 9olicies o' !he s&%%liers ha#e a sini'ican! in'l&ence o#er !he mar-e!in manaer*s decisions )eca&se( i! is la)orers( e!c$ A com%any m&s! )&ild cordial  lon, !erm rela!ionshi% wi!h s&%%liers$

3$ Marketi! Itermeiaries( They are !he %eo%le who assis! !he 'low o' %rod&c!s 'rom !he %rod&cers !o !he cons&mers !hey incl&de wholesalers( re!ailers( aen!s( e!c$ These %eo%le crea!e %lace  !ime &!ili!y$ A com%any m&s! selec! an e''ec!i#e chain o' middlemen( so as !o ma-e !he oods reach !he mar-e! in !ime$ The middlemen i#e necessary in'orma!ion !o !he man&'ac!&rers a)o&! !he mar-e!$ I' a com%any does no! sa!is'y !he middlemen( !hey nelec! i!s %rod&c!s  may %&sh !he com%e!i!or*s %rod&c!$

>$ C)smers( The main aim o' %rod&c!ion is !o mee! !he demands o' !he cons&mers$ Hence( !he cons&mers are !he cen!er %oin! o' all mar-e!in ac!i#i!ies$ I' !hey are no! !a-en in!o considera!ion( )e'ore !a-in !he decisions( !he com%any is )o&nd !o 'ail in achie#in i!s o):ec!i#es$ A com%any*s mar-e!in s!ra!ey is in'l&enced )y i!s !are! cons&mer$ E< I' a man&'ac!&rer wan!s !o sell !o !he wholesaler( he may direc!ly sell !o !hem( i' he wan!s !o sell !o ano!her man&'ac!&rer( he may sell !hro&h his aen! or i' he wan!s !o sell !o &l!ima!e cons&mer he may sell !hro&h wholesalers or re!ailers$ Hence each !y%e o' cons&mer has a &ni4&e 'ea!&re( which in'l&ences a com%any*s mar-e!in decision$

?$ C)m,etit)rs( A %r&den! mar-e!in manaer has !o )e in cons!an! !o&ch reardin !he in'orma!ion rela!in !o !he com%e!i!or*s s!ra!eies$ He has !o iden!i'y his com%e!i!or*s s!ra!eies( )&ild his %lans !o o#er!a-e !hem in !he mar-e! !o a!!rac! com%e!i!or*s cons&mers !owards his %rod&c!s$

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A' c)m,a' $aces t+ree t',es )$ c)m,etiti)( a1 =ra C)m,etiti)( I! is a com%e!i!ion )e!ween #ario&s com%anies %rod&cin similar %rod&c!s$ E< The com%e!i!ion )e!ween 29  Videcon com%anies$

)1 T+e Pr)ct ")rm C)m,etiti)( I! is a com%e!i!ion )e!ween com%anies man&'ac!&rin %rod&c!s( which are s&)s!i!&!es !o each o!her E< Com%e!i!ion )e!ween co''ee  Tea$

c1 T+e Desire C)m,etiti)( I! is !he com%e!i!ion wi!h all o!her com%anies !o a!!rac! cons&mers !owards !he com%any$ E< The com%e!i!ion )e!ween !he man&'ac!&rers o' TV se!s  all o!her com%anies man&'ac!&rin #ario&s %rod&c!s li-e a&!omo)iles( washin machines( e!c$ Hence( !o &nders!and !he com%e!i!i#e si!&a!ion( a com%any m&s! &nders!and !he na!&re o' mar-e!  !he na!&re o' c&s!omers$ Na!&re o' !he mar-e! may )e as 'ollows< I$ 9er'ec! Mar-e! II$ Olio%oly III$ Mono%oly IV$ Mono%olis!ic Mar-e! V$ D&o%oly

@$ P%&ic( A Com%any*s o)lia!ion is no! only !o mee! !he re4&iremen!s o' i!s c&s!omers( )&! also !o sa!is'y !he #ario&s ro&%s$ A %&)lic is de'ined as .any ro&% !ha! has an ac!&al or %o!en!ial a)ili!y !o achie#e i!s o):ec!i#es/$ The sini'icance o' !he in'l&ence o' !he %&)lic on !he com%any can )e &nders!ood )y !he 'ac! !ha! almos! all com%anies main!ain a %&)lic rela!ion de%ar!men!$ A %osi!i#e in!erac!ion wi!h !he %&)lic increase i!s oodwill irres%ec!i#e o' !he na!&re o' !he %&)lic$ A com%any has !o main!ain cordial rela!ion wi!h all ro&%s( %&)lic may or may no! )e in!eres!ed in !he com%any( )&! !he com%any m&s! )e in!eres!ed in !he #iews o' !he %&)lic$ 22


P%&ic ma' %e vari)s t',es. T+e' are( a$ Press( This is one o' !he mos! im%or!an! ro&%( which may ma-e or )rea- a com%any$ I! incl&des :o&rnalis!s( radio( !ele#ision( e!c$ 9ress %eo%le are o'!en re'erred !o as &nwelcome %&)lic$ A mar-e!in manaer m&s! always s!ri#e !o e! a %osi!i#e co#erae 'rom !he %ress %eo%le$

)$ "iacia& P%&ic( These are !he ins!i!&!ions( which s&%%ly money !o !he com%any$ E< 2an-s( ins&rance com%anies( s!oc- e+chane( e!c$ A com%any canno! wor- wi!ho&! !he assis!ance o' !hese ins!i!&!ions$ I! has !o i#e necessary in'orma!ion !o !hese %&)lic whene#er demanded !o ens&re !ha! !imely 'inance is s&%%lied$

c$ G)vermet( 9oli!icians o'!en in!er'ere in !he )&siness 'or !he wel'are o' !he socie!y  'or o!her reasons$ A %r&den! manaer has !o main!ain ood rela!ion wi!h all %oli!icians irres%ec!i#e o' !heir %ar!y a''ilia!ions$ I' any law is !o )e %assed( which is aains! !he in!eres! o' !he com%any( he may e! !heir s&%%or! !o s!o% !ha! law 'rom )ein %assed in !he %arliamen! or leisla!&re$

d$ Geera& P%&ic( This incl&des oranisa!ions s&ch as cons&mer co&ncils( en#ironmen!alis!s( e!c$ as !he %resen! day conce%! o' mar-e!in deals wi!h social wel'are( a com%any m&s! sa!is'y !hese ro&%s !o )e s&ccess'&l$

E?tera& Macr) Evir)met(

These are !he 'ac!orsJ'orces on which !he com%any has no con!rol$ Hence( i! has !o 'rame i!s %olicies wi!hin !he limi!s se! )y !hese 'orces<

6$ Dem)!ra,+' "act)r( I! is de'ined as !he s!a!is!ical s!&dy o' !he h&man %o%&la!ion  i!s dis!ri)&!ion$ This is one o' !he mos! in'l&encin 'ac!ors )eca&se i! deals wi!h !he %eo%le who 'orm !he mar-e!$ A 23


com%any sho&ld s!&dy !he %o%&la!ion( i!s dis!ri)&!ion( ae com%osi!ion( e!c )e'ore decidin !he mar-e!in s!ra!eies$ Each ro&% o' %o%&la!ion )eha#es di''eren!ly de%endin &%on #ario&s 'ac!ors s&ch as ae( s!a!&s( e!c$ i' !hese 'ac!ors are considered( a com%any can %rod&ce only !hose %rod&c!s which s&i!s !he re4&iremen! o' !he cons&mers$ In !his reard( i! is said !ha! .!o &nders!and !he mar-e! yo& m&s! &nders!and i!s demora%hy/$

3$ Ec))mic "act)rs ( A com%any can s&ccess'&lly sell i!s %rod&c!s only when %eo%le ha#e eno&h money !o s%end$ The economic en#ironmen! a''ec!s a cons&mer*s %&rchasin )eha#ior ei!her )y increasin his dis%osa)le income or )y red&cin i!$ E< D&rin !he !ime o' in'la!ion( !he #al&e o' money comes down$ Hence( i! is di''ic&l! 'or !hem !o %&rchase more %rod&c!s$ Income o' !he cons&mer m&s! also )e !a-en in!o acco&n!$ E< In a mar-e! where )o!h h&s)and  wi'e wor-( !heir %&rchasin %ower will )e more$ Hence( com%anies may sell !heir %rod&c!s 4&i!e easily$

>$ P+'sica& Evir)met )r Natra& ")rces ( A com%any has !o ado%! i!s %olicies wi!hin !he limi!s se! )y na!&re$ A man can im%ro#e !he na!&re )&! canno! 'ind an al!erna!i#e 'or i!$ Na!&re o''ers reso&rces( )&! in a limi!ed manner$ A %rod&c! manaer &!ili"es i! e''icien!ly$ Com%anies m&s! 'ind !he )es! com)ina!ion o' %rod&c!ion 'or !he sa-e o' e''icien! &!ili"a!ion o' !he a#aila)le reso&rces$ O!herwise( !hey may 'ace ac&!e shor!ae o' reso&rces$ E< 9e!role&m %rod&c!s( %ower( wa!er( e!c$

?$ Tec+)&)!ica& "act)rs( From c&s!omer*s %oin! o' #iew( im%ro#emen! in !echnoloy means im%ro#emen! in !he s!andard o' li#in$ In !his reard( i! is said !ha! .Technoloies sha%e a 9erson*s i'e/$ E#ery new in#en!ion )&ilds a new mar-e!  a new ro&% o' c&s!omers$ A new !echnoloy im%ro#es o&r li'es!yle  a! !he same !ime crea!es many %ro)lems$ E< In#en!ion o' #ario&s cons&mer com'or!s li-e washin machines( mi+ers( e!c ha#e res&l!ed in im%ro#in o&r li'es!yle )&! i! has crea!ed se#ere %ro)lems li-e %ower shor!ae$

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E< In!rod&c!ion !o a&!omo)iles has im%ro#ed !rans%or!a!ion )&! i! has res&l!ed in !he %ro)lems li-e air  noise %oll&!ion( increased acciden!s( e!c$ In sim%le words( 'ollowin are !he im%ac!s o' !echnoloical 'ac!ors on !he mar-e!< a1 They crea!e new wan!s )1 They crea!e new ind&s!ries c1 They may des!roy old ind&s!ries d1 They may increase !he cos! o' Research  De#elo%men!$

@$ S)cia& 0 C&tra& "act)rs ( Mos! o' &s %&rchase )eca&se o' !he in'l&ence o' social  c&l!&ral 'ac!ors$ The li'es!yle( #al&es( )elie#es( e!c are de!ermined amon o!her !hins )y !he socie!y in which we li#e$ Each socie!y has i!s own c&l!&re$ C&l!&re is a com)ina!ion o' #ario&s 'ac!ors which are !rans'erred 'rom older enera!ions  which are ac4&ired$ O&r )eha#io&r is &ided )y o&r c&l!&re( 'amily( ed&ca!ional ins!i!&!ions( lan&aes( e!c$ The socie!y is a com)ina!ion o' #ario&s ro&%s wi!h di''eren! c&l!&res  s&)c&l!&res$ Each socie!y has i!s own )eha#ior$ A mar-e!in manaer m&s! s!&dy !he socie!y in which he o%era!es$ Cons&mer*s a!!i!&de is also a''ec!ed )y !heir socie!y wi!hin a socie!y( !here will )e #ario&s small ro&%s( each ha#in i!s own c&l!&re$ E< In India( we ha#e di''eren! c&l!&ral ro&%s s&ch as Assamese( 9&n:a)is( Kashmiris( e!c$ The mar-e!in manaer sho&ld !a-e no!e o' !hese di''erences )e'ore 'inali"in !he mar-e!in s!ra!eies$ C&l!&re chanes o#er a %eriod o' !ime$ He m&s! !ry !o an!ici%a!e !he chanes new mar-e!in o%%or!&ni!ies

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SOME OTHER "ACTORS A""ECTING MARKET ENVIRONMENT Customers As all )&sinesses need c&s!omers( !hey sho&ld )e Cen!red 0Orien!a!ed1 aro&nd c&s!omers$ The 'irms mar-e!in %lan sho&ld aim !o a!!rac! and re!ain c&s!omers !hro&h %rod&c!s !ha! mee!s !heir wan!s and needs and e+cellen! c&s!omer ser#ice$

Employees Em%loyin s!a'' wi!h rele#an! s-ills and e+%erience is essen!ial$ This %rocess )eins a! recr&i!men! s!ae and con!in&es !hro&ho&! an em%loyees em%loymen! #ia onoin !rainin and %romo!ion o%%or!&ni!ies$ Trainin and de#elo%men! %lay a cri!ical role in achie#in a com%e!i!i#e ede es%ecially in Ser#ice Sec!or Mar-e!in$ I' a )&siness em%loys s!a'' wi!ho&! mo!i#a!ion( s-ills or e+%erience i! will a''ec! c&s!omer ser#ice and &l!ima!ely sales$

Suppliers S&%%liers %ro#ide )&sinesses wi!h !he ma!erials !hey need !o carry o&! !heir )&siness ac!i#i!ies$ A s&%%liers )eha#io&r will direc!ly im%ac! !he )&siness i! s&%%lies$ For e+am%le i' a s&%%lier %ro#ides a %oor ser#ice !his co&ld increase !imescales or %rod&c! 4&ali!y$ An increase in raw ma!erial %rices will a''ec! an oranisa!ionsMar-e!in Mi+ s!ra!ey and may e#en 'orce %rice increases$ Close s&%%lier rela!ionshi%s are an e''ec!i#e way !o remain com%e!i!i#e and sec&re 4&ali!y %rod&c!s$

S+are+)&ers As oranisa!ions re4&ire in#es!men! !o row( !hey may decide !o raise money )y 'loa!in on !he s!oc- mar-e! i$e$ mo#e 'rom %ri#a!e !o %&)lic ownershi%$ The in!rod&c!ion o' %&)lic shareholders )rins new %ress&res as %&)lic shareholders wan! a re!&rn 'rom !he money !hey ha#e in#es!ed in !he com%any$ Shareholder %ress&re !o increase %ro'i!s will a''ec! oranisa!ional s!ra!ey$ Rela!ionshi%s wi!h shareholders need !o )e manaed care'&lly as ra%id shor! !erm increases in %ro'i! co&ld de!rimen!ally a''ec! !he lon !erm s&ccess o' !he )&siness$

26


Meia 9osi!i#e media a!!en!ion can .ma-e/ an oranisa!ion 0or i!s %rod&c!s1 and nea!i#e media a!!en!ion can .)rea-/ an oranisa!ion$ Oranisa!ions need !o mane !he media so !ha! !he media hel% %romo!e !he %osi!i#e !hins a)o&! !he oranisa!ion and red&ce !he im%ac! o' a nea!i#e e#en! on !heir re%&!a!ion$ Some oranisa!ions will e#en em%loy %&)lic rela!ions 09R1 cons&l!an!s !o hel% !hem manae a %ar!ic&lar e#en! or inciden!$ Cons&mer !ele#ision %rorammes wi!h a wide and more direc! a&dience can also ha#e a #ery %ower'&l im%ac! on !he s&ccess o' an oranisa!ion$ Some )&sinesses reconise !his and will chane !heir reac!ion when cons&mers men!ion !ha! !hey are oin !o con!ac! a cons&mer !ele#ision %roramme or !he news%a%ers a)o&! !he )&siness$

C)m,etit)rs The name o' !he ame in mar-e!in is di''eren!ia!ion$ Can !he oranisa!ion o''er )ene'i!s !ha! are )e!!er !han !hose o''ered )y com%e!i!ors Does !he )&siness ha#e a &ni4&e sellin %oin! 0S91 Com%e!i!or analysis and moni!orin is cr&cial i' an oranisa!ion is !o main!ain or im%ro#e i!s %osi!ion wi!hin !he mar-e!$ I' a )&siness is &naware o' i!s com%e!i!ors ac!i#i!ies !hey will 'ind i! #ery di''ic&l! !o .)ea!/ !heir com%e!i!ors$ The mar-e! can mo#e #ery 4&ic-ly 'or e+am%le !hro&h a chane in !radin condi!ions( cons&mer )eha#io&r or !echnoloical de#elo%men!s$ As a )&siness i! is im%or!an! !o e+amine com%e!i!ors res%onses !o !hese chanes so !ha! yo& can ma+imise !he im%ac! o' yo&r res%onse$

27


CHAPTER-2 SUGGESTIONS 0RECOMMENDATIONS ser#ices mar-e!in researchers will need !o 'oc&s on c&s!omers needs( a!!i!&des$ #al&es and )eha#io&rs$ C&s!omer research will hel% in &nders!andin and an!ici%a!in c&s!omer needs !ha! can )e me! !hro&h %rod&c! de#elo%men! or !hro&h di''eren!ia!ion$ There is !remendo&s sco%e 'or '&r!her research anlon )an- c&s!omers and s!a'' in Kerala( !he s!a!e wi!h hihes! li!eracyacy and )an-in ha)i!s$ I! will ena)le moni!orin o' c&s!omer sa!is'ac!ion wi!h %ersonal ser#ice and wi!h a&!oma!ed ser#ice,deli#ery me!hods in order !o %in%oin! areas where ser#ice 4&ali!y can )e enhanced$ In!ernal mar-e!in will also )e challened !o &se !echnoloy !o more %recisely iden!i'y and semen! mar-e!s and %ros%ec!s !ha! can )e !are!ed wi!h a s%ecial o''er .

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CHAPTER-3 CONCUSION The analysis a)o#e hihlih!s !he im%or!ance o' &nders!andin #ario&s en#ironmen!al 'ac!ors$ I! is clear !ha! macro and micro en#ironmen!al 'ac!ors ha#e a direc! im%ac! on how an oranisa!ion cond&c!s )&siness$ From a recommenda!ions %oin! o' #iew i! is im%or!an! !o hihlih! !ha! 'irms m&s! &nders!and !he macro en#ironmen!al 'ac!ors s&ch as %oli!ics( social )eha#io&r( leal re4&iremen!s and !he economic s!a!e o' a co&n!ry as !hese are direc!ly lin-ed !o a )&siness*s %er'ormance$ F&r!hermore oranisa!ions need !o &nders!and !he im%or!ance o' micro en#ironmen!al 'ac!ors which de!ermine !he com%e!i!ion le#el in !he ind&s!ry( !he 'irm*s a)ili!y !o o%era!e in !he mar-e! and !he cons&mer %erce%!ion o' !he oranisa!ion in 4&es!ion$ 2y de#elo%in a mar-e!in s!ra!ey !ha! -ee%s in con!e+! all o' !he en#ironmen!al 'ac!ors an oranisa!ion can enhance in %osi!ion in !he mar-e! and hence de#elo% %rod&c!s mos! s&i!ed 'or i!s core a&dience$ This ena)les !he 'irm !o no! only s!ren!hen i!s %osi!ion in !he mar-e! )&!

also

enhances

i!s

lon

!erm

s&s!aina)ili!y

in

!he

ind&s!ry

One 'ac!or can )e %ar! o' a 'irms micro en#ironmen! and macro en#ironmen!$ The media can )e &sed !o ill&s!ra!e !his< , A one o'' media s!ory a)o&! !he 'irm may a''ec! daily o%era!ions and will !here'ore )e %ar! o' !he 'irms micro en#ironmen! , =hils! a eneral desire !o a#oid a nea!i#e media s!ory may in'l&ence a 'irms lon !erm )&siness o%era!ions and !here'ore ma-e &% !he 'irms macro en#ironmen!$ Firms sho&ld no! concern !hemsel#es !oo m&ch a)o&! which o' !he !hree ca!eories a 'ac!or 'i!s in!o$ Ins!ead 'irms sho&ld ens&re !ha! !hey ha#e correc!ly iden!i'ied all o' !he 'ac!ors which ma-e &% !heir mar-e!in en#ironmen! and %lan how !o manae !hem 'or !he 'irms )ene'i!

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CHAPTER-4 =I=IOGRAPH >E=SITES 555.ivest),eia.c)m 555.ec))mictimes.c)m 555.!))!&e.c)m ARTICES 0BOURNAS e#i!!( T$( 067861( .Mar-e!in In!ani)le 9rod&c!s and 9rod&c! In!ani)les/ ( Har#ard 2&siness Re#iew( May&ne( %%$ 7?,653$  o#eloc-( C$H$( 0678>1( .Classi'yin Ser#ices !o Gain S!ra!eic Mar-e!in Insih!s/( o&rnal o' Mar-e!in( Vol$ ?B( S&mmer( %%$ 7,35$  Shos!ac-( $G$( 067BB1( .2rea-in Free 'rom 9rod&c! Mar-e!in/ ( o&rnal o' Mar-e!in( Vol$ ?6( A%ril( %%$ B>, 85$  Pei!haml( V$A$( 9aras&raman( A$ and 2erry( $( 0678@1( .9ro)lems and S!ra!eies in Ser#ices Mar-e!in/( o&rnal o' Mar-e!in( Vol$ ?7( S%rin( %%$ >>,?$ Ko!ler( Arms!ron( 9hili%( Gary$ 9rinci%les o' Mar-e!in$ %earson ed&ca!ion$ Bm, ,  Ko!ler( 9hilli% and Gary Arms!ron03551( 9rinci%les o' Mar-e!in

0Version 63JE1$ 9earson Ed&ca!ion Inc$ New ersey

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service marketing environment and other factors affecting marketing environment

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