Understanding the Micro-Environment – II

Understanding the Micro-Environment – II

hello there welcome to the session on services
marketing a practical approach my name is Dr Biplab Datta and here are my contact details
so once you go through this video if you have some feedbacks please write in to my e-mail
and i will definitely answer you as much as possible . in the last class we saw understanding
the micro environment part-I in this lesson number 8.we are trying to understand the other
parts of micro environment namely understanding our customers
understanding our competitors and understanding our collaborators so understanding our customers
while understanding our customers we have to understand customer needs so what functional
needs does the service fulfil . what jobs does it do to make consumers life easier or
better what meaning does the service bring to the consumer lives what meaning does the
service bring to the service play an important role in what
rituals or traditions does the service play an important role how does it help build the
identities of consumers how does the service connect consumers to others in the social
world how does it help consumers fulfil their important social roles how does the service
make consumer feel what emotions are associated with the purchase and consumption of the services
these are some of the questions whose answers would let us know the needs
of the customers now types of services provided to satisfy fundamental human being . so we
have talked about fundamental human needs in an earlier lesson now we will see the different
types of services that can satisfy fundamental human needs so first need is subsistence and
the types of services are food services and drinking places retail services marketing
services like advertising trade shows public relations etc and employment
services so these are some of the services which can satisfy the need for subsistence
when we need for protection so warehousing and storage services finance accounting tax
preparation book keeping payroll and insurance investigation and security services repair
and maintenance services personal care and personal services including death care services
real estate and accommodation services rental and leasing services parking lots and garage services
services to buildings and dwellings including waste management and remediation services
health care including dental and support services social and domestic assistance dry-cleaning
and laundry services pet care and veterinary services management of companies and enterprises
administrative business and facilities support services and civil services so all the services
provide some kind of production and helps satisfied these fundamental needs of
human being . next is the need of affection so the services like photographic and photo-finishing
services dating marriage and gifting services these satisfy the peoples need for affection
management environmental scientific and technical consulting services translational and interpretation
services and education services these helping understanding the need for human beings to
understand services and the fundamental need for participation
so passenger and goods transportation by various modes including scenic and sightseeing transportation
and support activities like travel arrangement and reservation etc and telecommunication
services this help human beings in their need for participation then the need for leisure
so motion pictures and video exhibitions record production and distribution museums historical
sites amusement parks and arcades and performing arts spectator sports
gambling and other recreation facilities this will satisfy the peoples fundamental need
for leisure then publishing in print and electronic mediums including broadcasting services architecture
engineering interior design landscape design surveying building inspection drafting and
associated services and scientific research and development services are some of the services
which can help to satisfy the human need for creation the religious services and association
services satisfy the human need for identity legal services and grant making services and
help the human need for freedom . now we type analyse customer’s decision making process
while purchasing a services so first decision making process is problem recognition followed
by information search evaluation of alternatives purchase decision and post purchase evaluation
so now we look at detail about these five steps in customer’s
decision making process so problem recognition when where and how consumer’s needs arise
that is the situational social and marketing stimulus that makes a consumer realise that
he or she has a problem or need that has to be fulfilled for example a person feels warm
in his home and then he decides to purchase ceiling fan or an air-cooler or air-condition
so he recognises a problem and he goes for buying a product similarly he might recognise the problem
with his health and he like and he would like to go and he visit a doctor for getting health
services then comes the information search so understanding the sources of information
that consumers use to find the alternatives to fulfil their consumer needs these sources
include media like television news paper billboards celebrities sales person friends internet
family retailers and opinion leaders which social groups are the references for a consumer for
a particular purchase so let us see that the information the consumer having understood
his problem like give the example human being might feel that he is not healthy and something
wrong with his health then he would search out the hospitals or health centres or doctors
nearby and he would visit one of the doctors and receive medical attention so he searches
for information and that is one point where marketers can provide information or details
of information to customers so that they can access their particular service and get the
benefit of that then evaluation of alternatives understanding the rational and irrational
attributes and their respective importance that consumers use to evaluate alternative
options to satisfy their need while some consumers may give more importance to service quality
others may give more importance to price so customers would like to evaluate the alternatives
which arouse out of the information search and while doing that evaluation of alternatives
they would have several they might use some juristic rule of thumb to visit to buy a particular
service or not buy a particular service Then comes to purchase decision so understanding
where does consumer go to make the purchase what situations inside or outside the servicescape
long queues no seating can encourage or dissuade the customer to make the purchase
elsewhere so when a customer goes to a post office and finds that there is no air-conditioning
in the post office he would like to instruct get the service from the courier company which
has a air-conditioned office so he would like to his purchase decision is influenced by
whether there is a good environment in the shameless proof for restaurant people would
like to visit and pay more for a restaurant service which is in a very wonderful environment with air-conditioning
and with light music then to such restaurant where these are absent so that is how the
customers makes the purchase decisions post purchase evaluation understanding how the
customer assesses the service of the consuming it how satisfied or dissatisfied are they
after consuming this service what regrets or doubts does the consumer have regarding
the consumption experience and outcome does the consumer use the service or wish to transfer
it in another person’s favour so after purchase the consumer would have post purchase dissonance
he would start filling that his not made as a smart purchase and he would like to compare
similar purchase by other people and accordingly he would conclude a decision whether he has
done the right thing the particular service or whether he would purchase this service
from somewhere else or someone else . then we come to the issue of
understanding our competitors now while we try to understand our complete Michael porter
role about the 5 forces which affect the company these 5 forces are inter-farm rivalry now
firstly there is a companies say a company called Nirulas which is used to provide fast
four in Delhi now this Nirulas was the premium service provider in the fast food business
but then McDonald’s entered and McDonald purchase or bought shops exactly
very close to the Nirulas and the people from Nirulas then move to McDonalds and the Nirulas
had to be ultimately shutdown so this is the inter-farm rivalry within the industry and
service providing company has to deal with this inter-farm rivals in the industry then
there are threat of new entrants threat of substitute services bargaining power of suppliers
firstly bargaining power of buyers they would bargain from the company that they want the production
services at a cheaper price they would say that search services are available elsewhere
cheaper and therefore this company should provide them the services at a lower price
then there is the bargaining power of suppliers now suppliers supply the raw materials to
the service part and they would tell this service part that since they are the premium
suppliers to the part they would like to have more additional prices for the services and they would pressurise
the firm like that then there is a threat of new entrants and the threat of substitute
services so if the entry barriers are low then the new entrants in the business would
quickly setup shop and would make the incomer service provider uncomfortable with low sales
then there is the threat of substitute services for example if postal service in the country
is the company we focus on then we see that it has threat from substitute services like e-mail
So e-mail is a substitute to the postal services of a post office or a courier company so these
are the five different threats that a company finds from five different types of competitors
. the five forces that shape competition again we see some more examples so we may think
that our company will have direct competition that we have to adjust to for instance if
our company is in fast food business we may think that our competitors
are McDonald’s or pizza hut or KFC however Michael Porter wrote in 2008 that any company
faces five competitive forces as illustrated in the previous slide direct competition comes
from established rivals customers can be a source of competitive force as they search
and shop for the best deals available and drive down forces drive down prices we cannot
provide services without the raw materials provided by our suppliers might wield enough power to
raise the prices of equipment and materials our labour force the supplier of manual labour
which is very important in a service industry may be unionised and negotiate for higher
wages from time to time it might be easy to start a new business in the fast-food industry
so we can receive competition from new entrants easily lastly we get competition from substitute
services for instance a formidable competition to a fast-food business is home food itself . so
this is the perception map that shows the positioning of airline services in the world
now here what is happening is that we statistically draw a perceptual map from the attributes
of a particular airline services and we find here that there are four important coordinates
that is on-time arrivals in-flight service price and cities connected here indigo is
famous for on-time arrivals jet airways is somewhere hired in in-flight service Air India is low
price carrier or high price carrier or high price carrier in some sectors and our airlines
could be very much place on cities connected so that our airlines instead of following
a hub and spoke model can follow a destination to destination kind of service so this is
the way the airlines can be positioned on perceptual map . then we come to understanding
our collaborators so our business collaborators include our suppliers franchises
distributors promoters advertisers key influencers media financial partners and others who complement
our business if we provide training services affirm providing placement services can be
our complementer both the firms learn from each other in order to develop participants
for placements in companies that need their skill sets we must understand how each collaborator
benefits from the relationship that they have with us and what we can expect from
them in return . so here are the references for the previous 2 lessons you can read them
and you can also follow them in the internet thank you watching this video have a good

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