UNIT 4
Marketing of services
Global marketing strategy incorporates all the countries of the world and accordingly coordinates their marketing efforts. Global marketing is essential for modern business.
Definition
Global marketing can be defined as “marketing on a worldwide scale, in different countries, reconciling or taking commercial advantage of global operational differences, similarities, and opportunities in order to meet global objectives”.
Global marketing is is more that selling services globally. It is the process of planning, creating, positioning, and promoting your services in a global market. Big businesses have offices in abroad. But now small business can participate in the process of global marketing through social media platforms, websites, and other online tools. When a firm sell the same product and services in the global market is known as global marketing.
International marketing
According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."
Strategies
Establish a popular and well-recognized brand and image -
When a business is successful and popular in their native country, foreigner’s curiosity arises in other countries willing to try out their products and services. Thus the business should focus on establishing the image by delivering the best service.
Use a unified approach to marketing across borders
Business should plan a marketing strategy that is utilized from country to country. The marketing strategy has no global boundaries to better analyze engagement with content from country to country.
Make a marketing plan
Business before entering the global market should know the needs/wants of the region within the global market. Based on the research collected, the business then creates the marketing plan.
Adjust your approach
The marketing strategy used in the native country was a success in a business’ does not mean that it will translate well in another country with different values, culture, and language. Thus marketing strategy should be adjusted as per the other country values, culture and language
Personalize promotions
When advertising a product or service to a foreign audience, the promotion should be done keeping in mind the language differences, cultural practices, and observances
Observe and know where your target audience comes from
The business should create better marketing strategies that reach their target audiences. Google analytics and shopify tools are used to pinpoint consumers by specific their location which help the business to reach their target audience.
Tailor your products based on where they are sold
The products or services sold in other countries are tailored based on the culture, government rules and regulations. The service business brand or trademark should be unique to the country in which it is provided. For ex, MacDonald based on the location provides cultural food staples.
Keeping branding in mind
The business must ensure that anything from the company name to the logo that they use is not similar to other business in the other country.
Specify your message based on location
People living in different countries have different wants/needs. A business must make sure that their promotions should speak to their customers, whether native or foreign. The message should relate to the customer in different countries.
Bring an in-country marketer on your team
When tailoring your marketing strategy to foreign countries, hiring someone from those countries ensures better communication that translates to the people what the business is trying to reach. This will help the business to satisfy the foreign customers.
Utilize the correct technology and software
The business should use those popular platforms which are used in foreign country to reach its desired audiences. The use of correct technology and software will help to reach target audience and understand their need to provide full satisfaction.
Services in the Global Economy- Moving from Domestic to Transnational Marketing
This section outlines the differences between domestic, export, international, multinational, global, and transnational marketing.
Domestic marketing – domestic market is also known as internal marketing or domestic trading. The domestic market is where goods and services are sold and bought within a single country or the borders of the country. It is much smaller market than external, foreign, global and international market. The number of customers who buy product and services offered by companies within their own country is known as domestic marketing. The companies focus on domestic market in order to avoid challenges of market outside the country.
2. Export marketing – export marketing focuses on selling company products or services to a foreign country. This is the first stage of addressing market opportunities outside the home country. The products are produced in the company’s home country to supply the buyers in the international market. The export marketer will study the needs of target market in each country and adapt the products to meet the specific needs.
3. International marketing - international marketing involves trading of goods and services among different countries. It involves the application of marketing principles in more than one nation. The international marketer goes beyond the external marketer. They can be exporter or importer who may not have any investment in any other country apart from their home country. All business headquarters and function remain in the country of origin. They do not have branches in any other nation.
4. Multinational marketing – multinational marketing is the process advertising and selling products or services to customers around the world. The company chooses its nation to operate, not just sales but also production and marketing of the goods and services. Multinational business has facilities in multiple countries.
5. Transnational marketing – transnational companies involves those companies with heavy operations in multiple nations. Businesses are becoming increasingly global. To make their presence globally, they have their local branches all over the world. Each local branch has its own decision making power, its own product section, its own market. This offers flexibility and versatility. A well-known example of a transnational company is Nestle.
Cultural factors
- Language- when doing global marketing, language needs to be paid very close attention. There is some situation which did not sell the services of the company due to mistake in advertising. For ex, the car named nova of general motors’ means it won't go in South Africa. Thus the language should be translated as per the country's language
2. Taste- companies may find difficultly in entering the foreign market due to eating habits. McDonald changed their menu as per the taste of the country. For ex, in India they vegetarian and regional choices in their menu. Also McDonald introduced rice dishes to enter into Asian market.
3. Regional values - many times a country have extreme regional differences that have to be taken into account to sell the services.
4. Consumer habits - In every particular region of the world culture and personality combine to shape consumer behavior. When marketing a service to a foreign country, consumer habits need to be considered whether it is an individualistic society (free thinking culture) or collective society (the peer group has influence in the buying behavior). Societal and psychological factors are considered when marketing services to the country.
5. Demographics - demographics play a key role in global marketing. Companies have to pay close attention to it. Understanding the age and demographic help the company to sell the goods or services to the consumer accordingly.
Economic factors
- Per capita income - when determining the potential target market of the countries, countries wealth is an important factor that needs to be considered. It helps how to market the service to that country. For ex, a country per capita income is less than $700 per year, it is not a good market to sell $1000 services.
2. Relevant class structure- When marketing the services globally, class structure needs to be considered because it varies widely from country to country. Most countries have upper, middle and lower class, but number of people in each class is different from country to country.
3. Supply and demand - to market your services globally, supply and demand plays a major role. A deeper understanding of potential market helps to market the services in the right path.
4. Financial transactions and banking - when selling the services globally, how you will get paid for the services needs to be considered. In a prosperous country services are sold and payment is done through credit card debit card net banking, online payment cash transfer. But this is not the case everywhere in the world. These types of financial impact the marketing strategy.
Political and legal factors –
- Laws - there are laws in some country that affect the business. Before marketing the products and services, you must be aware of the laws.
2. Licensing and permits - business can produce and sell the product and services after receiving permits and license from the government. Governments do these things so that larger percentage of income from sales stays in home country only.
3. Taxes - government levied tax on foreign business operating and selling the products and services in their country, so that customer spending does not allow much money to go out of the country. Taxes can impact the ability of earning profit by selling the goods and services. Global marketing strategy is based on tax levied.
4. Fees - when the product or services are sold in the foreign market then they are subject to pay fees. That can be one time or recurring. For luxury items the trees are quite high.
5. Currency risk - when marketing the goods and services to foreign country, there is always a risk in doing business in the currency of a foreign country. Fall in the currency will affect the business to lose millions.
High global integration
Transnational companies have a centralized head office that coordinates all of its international operations. Regional division of all transnational companies is dependent on the central global office. Some transnational business operation gives autonomy to local division than others. The transnational marketing strategy involves integration of all the company's operations worldwide.
Most of the company strategies are standardized across all regions to maintain efficiency and lower cost. For most part, the companies will follow the marketing strategies within the parameters set by the head office management team.
High local responsiveness
Transnational companies strive for global integration and efficiency, they also observe local market in which they operate and respond accordingly.
Company may have one global products and services offering but also have few additional products and services for local market that are unique. If the product and services do not have any demand in local market then they are not sold in that region. Transnational business strategies have global branding and marketing strategy but depending on the region the campaign, messaging, promotion are changed. It understands the importance of local language, culture, lifestyle, etc. It makes sure that the campaign aligns with local language and culture of that region.
Transnational companies allow local branches to translate the company global message into local language keeping in mind cultural norms and consumer preferences.
Transnational business balances the global efficiency and standardization with the ability to tailor the marketing of products and services to local markets. It involves think globally and act locally.
In Tourism
The experience economy are rising over the last few decades, tourism industry have become largest industries in the world. The global travel sector accounts to 10.3 percent of global GDP, according to world tourism and travel council. With the rapid growth the tourism industry look for new and innovative ways to promote and attract new visitors. The recent tourism trends are as follows
- Virtual tours - people believe more in virtual tours because they get a glimpse of destination and hotels that gives more realistic impression than simply looking at photos. This increase trust of customers so thus the chance of booking is high. The virtual reality provides the customers with wonderful chance to experience destinations without leaving their homes. Virtual reality is very important for the tourism industry.
2. Context aware marketing – it’s very important to make sure that the marketing content are relevant. The ads shared to customers provide information about what you are doing to keep your guests safe. To promote sales, the prices are lowered without acknowledging health concerns lead to negative impression to the visitors. Valuable and relevant offer encourages customers to use your service
3. Invest in mobile – now a days, people are more comfortable using smart phones for researching, booking, and planning their entire trip on a mobile device. The company must ensure that the users must be able to perform the same tasks on mobile devices as they do on the website. If the mobile experience is slow than the user have a negative view, so the company should test the mobile app and make necessary changes when required.
4. Video marketing is going live – video marketing is growing as consumer seek videos of destinations they’re considering to travel. Live videos are more economical. It has been observed live videos are growing popularity as consumers are more interested in watching it. This is a great way to engage the audience.
5. Social media as customer service - more and more customers are turning to social media as a customer service channel, over the last few years. Thus many companies have created social media customer care team. This is beneficial to both customers and the company. It has been noticed, 67% consumer use social media to reach out to brands to resolve their issues.
Hospitality industry
- Catering to millennial - millennial are those age between 18 to 34. According to sources, millennial represents 50%of all travelers. Companies should create marketing strategies based on the demographic group’s personality traits and habits. Hotel will please them with easy check in and experiences at reasonable prices. A satisfied millennial will promote their business on social media
2. Tech explosion – the majority of guest are tech savy travelers who are comfortable using apps or mobile website. Hotels need to make sure that the offerings are up-to-date and user-friendly. In a business meetings or conference, travelers expect hotels to have high quality tech equipment and a knowledgeable support staff.
3. Influx of international visitors – international travel is on rise. Hotels must provide services in different languages and tailored experiences properly suited to the culture and unique needs of their international visitors.
4. Increased emphasis on health and well being – hotels are now a day’s providing with well-equipped fitness centers, pools and spas. Travelers are expecting new innovation wellness option as guest are focusing more on health.
5. Sustainability rules - Eco-friendly practices are becoming the norms. Thus hotels are installing solar panels and updating the system so that when customer leaves the room, the air conditioners and lights automatically switch off.
Health care
The healthcare sectors are evolving and the marketers need to analyze the trend and prepare for the future have a best chance to set the companies for success. The marketing trends are as follows
- Improvement and investment in patient portals – patient portal have been there for many years. The health care organization focus on improving the portal to be more sophisticated and user-friendly. The organization wants to make the patient happy by providing patient-centered approach to improve features, usability, and design.
2. Voice driven SEO – currently, voice search continues to rise. Medical marketers adapt their SEO strategies with consideration of the following
- Focus on user language – when marketers planning for voice search strategy, they forget that people search differently. Thus the marketers should focus their content on generalized topics rather than specific keywords.
- Focus on local information – people search hospital information online based on their local area. Thus to increase the chances for showing up, the marketers need to update on Google Business listing and Bing Places.
- Content – content marketing is growing as many people are seeking expert healthcare information. Thus the marketer should focus on providing relevant and unique content. The content developed should address the patient question is the key point in writing valuable content.
4. Social engagement - social media has significantly changed for medical world. Patient seeks information via social media to make decision on the best practice and doctors to seek care.
5. Optimize user experience – the marketers should have attentive approach to user experience that leads to strong relationship between healthcare providers and their audiences. Design in healthcare is about creating a better user experience for patients. The website aims to satisfy user experience first which result in customer satisfaction and inspiring loyalty.
Banking
- Personalized and data driven marketing – personalized and data driven marketing is becoming industry favourite. Due to stiff competition in the industry, the service provider has to focus on enhancing and expanding their relationship with existing customers. Improving personalization has become important strategy for the banks.
2. Open banking – open banking has allowed banks to share customer data with authorized third party. This allows the bank to partner with companies like insurance sector to enjoy innovative financial services that are customized to their financial habits and savings. This helps to improve customer experience and their position
3. Mobile banking – convenience and accessibility is everything, for the modern banking customers. With the rise in mobile app services, customers not only enjoy banking but also the service provider gets the opportunity to increase their marketing efforts.
4. Chatbots – chatbots have become one of the biggest marketing trends for banks. Chatrbots help the service provider to automate customer interaction. Provider customers with information instantly when they need. Chatbots improve customer satisfaction and experience.
Insurance
- New models, personalized products – customers prefer personalized insurance instead of one size fit all product. The service provider should have deep understanding of consumer behavior which will lead to accurate risk assessment. For better customer experience and brand loyalty personalized premium and value should be on a sustainable basis.
2. Automation for faster claims – robotic automation process occupies center stage in insurance. It is driven by new data channels, better data processing capabilities. This eliminates paper work and minimize fraud, leading to reduce time, effort and cost. It also accurately determines the risk and achieve higher profitability. Automation will improve business in customer experience, cost optimization, operational efficiencies, market competitiveness and newer business models.
3. Advanced analytics and proactiveness – advanced analytics will enable to extract real-time and accurate data on the loss exposure of individual consumers. This will help them proactively respond with timely and highly personalized interventions.
4. Insurtech partnership – insurtech partnership are growing significantly in the areas of auto, home ownership and cyber insurance. The collaboration with insurtech firm will be a win win situation as acquiring technology will benefit traditional insurer with faster results and InsurTech companies will get access to larger customer bases, funding and domain expertise. Customers will experience value added offerings.
Education
- Live video – presently, video content continues to grow. Incorporating video into marketing strategy is very crucial. Its not about offering any type of video- it’s about tapping into live video content. Incorporating live video is a great experience to start.
2. Memorable experience - sharing real experiences is what larger audience wants. People want experiences which make them feel something, that will result to make a purchase, invest in, or strive to have that experience as well.
3. Personalized content – effective personalization means providing relvant content to a specific member that meets their needs. Personalization offers the most relevant content for their desired education path and interests.
4. Influencer marketing – influencer marketing is a form of word of mouth marketing. This is so effective that a positive word of mouth, the prospects can relate and trust upon. Here the prospects feel the information is valuable and not biased.
IT industry
- Mobilization – mobilization of content is rapidly growing. Clients can share and consume content through any mobile device. Marketing through mobile is an important marketing strategy. Smartphone and tablets are preferred devices , the marketing strategy should efficiently target the audience through mobilization
2. Ultra personalization – the customization and personalization to the individual client will significantly impact the service provider ability to connect and retain the target audiences. Personalization experience add value to the client relationship. This result in providing service on one to one basis which leads to highly satisfied customers.
3. Empowered technology – the latest innovation in marketing technology such as multiple devices, desktop, smartphone, and tablets, empowers the marketing team o execute and monitor their own client relationship marketing activities. This result in more energy focused on strategy and less time spent on execution.
4. Artificial intelligence – artificial intelligence analyse consumer behavior and use data from social media platforms and blog posts to help businesses understand how customers find their products and services. Business adopt artificial intelligence to get edge over their competitors.
Entertainment industry
- New ways of distribution – the rise in social media, internet access, smartphones have changed the demand and expectation of media consumers. Subscription based video on demand like netfix, amazon prime are growing rapidly and becoming consumer favourite. Also live streaming is done to reach out their target audience. Brands routinely go live to promote their products, interact with viewers and answer their question. This is an effective way to build a strong community around the brand.
2. Intelligent media – intelligent media refers to contextual media and video intelligence. In contextual media, advertisements are selected and served b y automated system based on the context of what a user is looking at. Video intelligence technology provides the creators the ability to index and organize their video catalog intuitively.
3. Advertising – Advertisements effectively reach your audience and increase the consumers of your content. Advertisement promotes new content, series, or offers and connects with new audience members. Ads in Facebook, Instagram, YouTube, Twitter or LinkedIn catches consumer interest and likes.
4. Video marketing – marketers who use video see revenue growth faster than business that don’t use. Video on social media are used to keep your audience interested.
5. Consumer engagement via new medium – the media companies need to get creative to engage with their user base. The ad must be presented in creative format to engage the consumer with an ad. Virtual reality are increasing in consumer engagement. For ex, music artists now live stream their content through VR so that enthusiasts who are unable to attend the concert in person can still be part of the experience.
Ethical marketing refers to application of marketing ethics into the marketing process. Ethical marketing is result of socially responsible and culturally sensitive business community. Marketing ethics has a benefit to the society as a whole, both in short term and long term. Ethical marketing involves an honest and factual representation of a product or service to the customers. Ethics in service marketing refers to applying standards of fairness, moral rights, to marketing decision making, behavior and practice in the organization
Ethical marketing is always a wisest root to success. Dealing with ethics should be the core part of the service industry as service industry depends on mutual trust.
Ethics involves marketing practices in terms of social marketing. The idea of social marketing is the existence of justice in society and among consumers. The business emphasizes balance among business profit, consumer needs and desires, and society’s long-term concerns. The goal of social marketing is well being of the society.
Importance of marketing ethics
- Customer loyalty - importance of marketing ethics first and crucial factor is to win trust and loyalty of its customers on a long-term basis. It is basic nature of a human is to go for a brand that is genuine in its nature, it provides exact products and services that are shown in the marketing campaign. Hence it important for the marketers to display the details of services offered that are true in each and every aspects
- Long term gains - the importance of marketing ethics is not only long term goals and objectives of a company but also other long term gains such as customer loyalty, high incredibility in the market and in the minds of the customers, enhanced brand value, increase market share, increase sales and revenue. The marketing ethics helps to meet short term and long term goals in successful manner.
3. Builds credibility - when the company follows the marketing ethics on a continuous and consistent basis in all its marketing and promotion campaigns it slowly and gradually builds authentic image in the market that result in building credibility for the company within the industry.
4. Leadership - when a company understands marketing ethics as one of the important and crucial factor it attains the status of a leader in the market that result in various benefits such as loyal base of customers, higher sales, and increased market share, working as a source of inspiration for one and all in the market.
5. Satisfy basic human needs and wants - the importance of marketing ethics helps the company to fulfill and satisfy basic human needs and wants of trust, integrity and faith. These are the factors customer look forward from the brands which result in the purchase of service offered by the firm. When the company satisfy basic needs of the customer, then the firm enjoy long term benefits such as faith, trust, loyalty and good word of mouth publicity
6. Displays rich culture - following the marketing ethics, the company not only enjoys the benefits from external environment but even the internal environment which comprises of staff and employees. The staff feels immense pride working with a genuine brand and helps the management to attain its objectives.
7. Attract talents - it attracts new talent to get associated with the company as internal employee vendor, partners, consultants. As getting associated with firms following marketing ethics will boost their professional career path. It also helps the company to attain its objectives in a short period of time in a successful manner.
8. Attains financial goals - in order to grow and expand the company, the management needs investors and financial partners who will provide required funds and investments to launch new services, enter new market and try innovative promotion techniques. Hence its important to follow marketing ethics to attain financial goals.
9. Enhanced brand value - the customers look up to the company that follows marketing ethics in dedicated manner , sell what is displayed in the advertisement, exceed expectations of customer, sell quality services, set new benchmark in the market to follow. All this factors result in enhancing brand value of the firm.
Unethical practices in service sector
Unethical practices are the action that don't conform to the acceptable standards of business operations. This will lead to loosing good faith and loyalty of customers and jeopardizing profitability.
- Misleading advertising- it is also known as false advertising. It means giving wrong information to customers through advertisements. Misleading advertising also includes exaggerating or downplaying information to make your services seem better than it really is. This will affect the brand image of the firm and dissatisfy the customer which will result in losing the firm profits.
2. Black hat link building - violating search engine guidelines in order to increase the brand awareness refers to black hat link building. For example, hidden link in the website which does not have permission to use.
3. Contacting people without consent- contacting people without their consent is an unethical behavior. Sometimes many companies irritate or bother prospect customer by bombarding them with emails. The can spam act allow the company to email people one time without their consent. Emailing more than once without consent is unethical marketing.
4. Exploiting emotions- exploiting emotions or such a news event happen once in a while which Make a quick exit when consumer complaints about feeling manipulated.
5. Stereotyping- stereotyping or depicting women is merely to draw attention for the product and services. Using women for services which is not related to women is unethical.
