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1
Succeeding in low-growth markets
Andrew Curry and J Walker Smith, The Futures Company Trends, Future Perspectives, February 2013
Four years on from the global financial crisis, economists are suggesting that rich economies may have to learn how to live in a world of low growth.
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Summary
Four years on from the global financial crisis, economists are suggesting that rich economies may have to learn how to live in a world of low growth. Themes, or headwinds, of low-growth societies include an ageing population, an unequal society, a larger service sector, a debt overhang and higher energy prices. However, there are growth opportunities to be found. These can be tapped using strategies that include: looking for markets where the headwinds are weaker, such as in Poland or Italy; following the money as demographics change (e.g. older consumers are wealthier and will be looking for "bridge jobs" that will ease them into retirement); reducing energy costs; rescaling innovation; and reducing costs by providing more personalised services.
2
Brand engagement: Sex up service brands
Rob Wilson, Admap, December 2011, pp. 42-43
Consumers feel less emotional toward functional or service brands, only tending to feel strongly or talk passionately about them when there is a negative or serious issue.
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Summary
Consumers feel less emotional toward functional or service brands, only tending to feel strongly or talk passionately about them when there is a negative or serious issue. So it is important for them to engage with their customers with a positive experience before problems occur. The opportunity for these traditionally low-engagement brands to make the most of live activation is often higher because they can behave completely differently to the competition within the category and really create stand-out. Through identifying emotional drivers around their brand or service offering, they can begin to shift consumer perception from being cold and rational to being open and engaged. Functional brands can be made more exciting if they follow five simple rules of engagement.
3
Service quality perceptions of solely loyal customers
Swetlana Bogomolova, International Journal of Market Research, Vol. 53, No. 6, 2011, pp. 793-810
Having more solely loyal customers (those who only use one supplier) is an aspiration for most service providers.
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Summary
Having more solely loyal customers (those who only use one supplier) is an aspiration for most service providers. Yet, it is unclear whether, or in what way, solely loyal customers differ from customers whose loyalty is divided between more than one service provider. One loyalty indicator is a consumer's evaluation of the quality of service they receive. Using seven sets of cross-sectional data, this research reveals that solely loyal customers give, on average, approximately 10% more positive service quality evaluations than customers of the same provider who also use other providers. The implication of this finding for market researchers and practitioners is that service quality scores could be moderated by the distribution of solely loyal and multiple-provider users in a given sample. Therefore, every service quality survey should measure how many providers a customer uses and control for the proportion of solely loyal customers when tracking change using cross-sectional samples.
4
Warc Briefing: Service Brands
Warc Exclusive, November 2010
This briefing offers an overview of the history, theories and key trends related to Service Brands. It outlines the development of specific approaches to marketing service brands and identifies the key future pressures on this discipline including the need for ongoing customer dialogue, the rise of globalisation and the call for greater corporate transparency.
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Summary
This briefing offers an overview of the history, theories and key trends related to Service Brands. It outlines the development of specific approaches to marketing service brands and identifies the key future pressures on this discipline including the need for ongoing customer dialogue, the rise of globalisation and the call for greater corporate transparency. Several case studies by UPS, Verizon and Xerox are recommended for further reading.
5
Collaboration: From adoption to adaption
Tracey Follows, Admap, May 2010, pp. 30-31
Service brands need to involve consumers in their development, using consumer participation to shape the fundamentals of what they offer, and constantly keep up with changing needs.
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Summary
Service brands need to involve consumers in their development, using consumer participation to shape the fundamentals of what they offer, and constantly keep up with changing needs. Rather than using 'early adopters' – consumers who are eager to take up new products and services – service brands need to engage with 'early adapters'. These are the people who are willing to use products and services (often in the beta stage) and feed back to help improve the way these products and services are delivered. Starbucks, Best Buy and AT&T are good examples.
6
Why the consumer should not be the king in India
Jitender Dabas, Market Leader, Issue 41, Summer 2008, pp. 31-34
The provision of goods and services in India has been transformed in the last ten years: where once it took weeks to get a phone installed, it is now a matter of hours; previously, brand choice was limited at best, but today consumers have manifold options.
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Summary
The provision of goods and services in India has been transformed in the last ten years: where once it took weeks to get a phone installed, it is now a matter of hours; previously, brand choice was limited at best, but today consumers have manifold options. Despite this, it seems that consumers - even among the typically polite and patient middle class - are increasingly negative towards brand owners and service providers. In fact, this is a consequence of the 'consumer is king' mentality adopted in the country - brands do need to provide good service, but must avoid being too eager to please, or else face being accorded no status or value by consumers. Instead, brands need to have a 'high power distance' from consumers, which will make them bigger and more desirable.
7
Creating value: service strategy from aristocrats to aviation
Laurie Young, Market Leader, Issue 39, Winter 2007, pp. 28-32
This article discusses the importance of customer service in developing a brand. There is a rich history of brands where service has been an integral part of their success, from Josiah Wedgewood in the 18th century to Richard Branson's Virgin Airlines.
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Summary
This article discusses the importance of customer service in developing a brand. There is a rich history of brands where service has been an integral part of their success, from Josiah Wedgewood in the 18th century to Richard Branson's Virgin Airlines. Yet many marketers fail to think through the role of service in their value proposition, and much nonsense is written about it. The reasons for this include: after care and maintenance are often undervalued; an uncritical commitment to 'giving the customer whatever he wants'; a lack of sound conceptual tools; and difficulty or realigning the company when a market matures. Some reliable techniques have been proposed, including the 'goods/services spectrum', in which service is packaged as an integral part of the product offer. Two levels of this are illustrated: warranty or support and service at the centre. As always, strong leadership is required.
8
Growing up digitally: change drivers in marketing
Julian Saunders, Market Leader, Issue 33, Summer 2006, pp. 31-39
After years of trend presentations about how companies must change, it appears that transformation has finally arrived.
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Summary
After years of trend presentations about how companies must change, it appears that transformation has finally arrived. The current generation is growing up in a digital world, and takes for granted the opportunities and options this provides. This article describes how business fundamentals, in the shape of the service economy, are driving change, and how technology is enabling this change to happen. It also outlines the significant barriers that still exist in the structures, skills, risks and measurement required to succeed in this new environment.
9
Pilgrim’s Progress? How the Consumer Makes Complex Decisions
Nick Watkins and Miriam Comber, Market Research Society, Annual Conference, 2006
Choosing the right mortgage can take months and that has implications for consumer research. This paper asks a series of questions such as does it matter if consumers are questioned at the beginning, middle or end of the decision process? It concludes that there is an underlying structure to the decision process based on how far the consumer is through the process and whether the consumer is a first time or repeat purchaser.
View Summary
Summary
Choosing the right mortgage can take months and that has implications for consumer research. This paper asks a series of questions such as does it matter if consumers are questioned at the beginning, middle or end of the decision process? It concludes that there is an underlying structure to the decision process based on how far the consumer is through the process and whether the consumer is a first time or repeat purchaser.
10
Technology services marketing gets its act together
Beverley Burgess, Market Leader, Issue 31, Winter 2005, pp. 24-28
Technology companies are now 'operating in one of the most fiercely competitive yet undifferentiated markets there has ever been'.
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Summary
Technology companies are now 'operating in one of the most fiercely competitive yet undifferentiated markets there has ever been'. Demand is growing fast, but since all companies focus on the same areas competition is intense. But marketing in these companies is poorly developed, with few CEOs having come up from the services side, and branding is an unfamiliar concept. Technology companies need to do much more to a) understand their customers and their needs, and keep an eye on competitors, b) develop branding to differentiate their services, c) generate targeted demand by innovative contact with potential customers. Marketing experience is not enough: the marketers must gain an understanding of the business. Performance measurement systems are also essential, using the language of the business. As the tech sector matures, marketers must acquire a more strategic focus. Ways in which some companies are now doing these things are discussed.
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