Page 267 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes  geographical location (FM radio services, newspaper services, Bank of Madura which was
predominantly in South India before being merged with ICICI Bank, etc.),
specialized needs of the customers (a not-for-profit service organization managing an old

age home, Monginis franchising system to cater to life-style foods like cakes, pastries,
patties, croissants etc., prosthesis and medical aids like Jaipur Foot marketing company,
ICICI starting a subsidiary only for shipping needs through SCICI which got swallowed
in the reverse merger, RBI hiving off its Agricultural and Rural Development Cell, ARDC,
into a full-fledged institution National Bank for Agriculture and Rural Development,
NABARD),
A segment can be a customer group by age (teenagers), mother and child market (Johnson

& Johnson), outdoor and sporty types (Countryside, the adventure sports company).
Focus strategy helps a service firm to concentrate on satisfying the needs of its target customers
better. They can use either the Differentiation or Cost Leadership strategies or both, within the
overall Focus strategy. Pressman is into financial services advertising while Mudra Institute of
Communications, Ahmedabad (MICA) is a B-school for advertising industry. SOTC, before
being taken over by Swiss travel management company Kuoni was only into outbound tour
packages. The reasons ranged from better predictable and manageable infrastructures abroad to
better understanding of the Indian customers and their preferences. They were therefore able to
uniquely position themselves with their “Ghar ka khana” (‘Food like at home’) promotions.

Figure 14.3: Porter’s Competitive Advantage Strategies Model

High
C o st L e a d e rsh ip
F o cu s D iffe re n tia tio n

P ro fitab ility
(R etu rn o n
In ves tm e n t)
N o C o st L e a d e rsh ip
N o F o cu s

N o D iffe re n tia tio n

Low

N a rro w B ro a d
S co p e o f ta rg et m arke t
!
Caution BCG Matrix, GE Business Screen and Michael Porter’s Model is used for Corporate
and SBU level planning as well as for marketing strategies.


Challenges to Iconic Brands – Case of Starbucks
Case Study

It is a widely accepted notion that world is indeed flat. Economic boundaries are being
demolished. Companies are no longer constrained to their national markets. Internet has
become a great leveller of field between companies and customers. Price has yet again
taken central stage. And brands are under increasing threats from private labels.
Contd...

262 LOVELY PROFESSIONAL UNIVERSITY