Page 39 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes Stage 2: Identification of Key Decision Factors

The service marketer identifies all those variables that influenced his decision.

Example: For ICICI to go into retail banking, it would analyze the new banking norms
(government policy), market share of the existing players (competitors), growth and potential
of the market (customers), etc.
Stage 3: Identifying the Socio-cultural Factors

The service marketer should identify and evaluate the influence of such social and group forces
as demographic changes, social class, culture, family and household influences, value systems,
reference group influences and the consumer-decision-making process.

Example: ICICI would have taken into consideration the age distribution of the market,
the income and occupation of prospects, the spread of the population in metros and other towns,
product development and communication strategy. It would also have analyzed the banking
needs of the market and their inclination towards time-saving devices.
Stage 4: Analysis of each of the Key Variables Separately
All the above variables are independently analyzed and all other details are collected for each of
them. The sources of data are secondary as well as primary.
Stage 5: Selection of Scenario Logics
The collected data are then extrapolated and projections are made. The scenario build-up is
supported with more evidence.

Example: Thus for ICICI, the growing middle-class and its aspirations for a better banking
climate would be relevant to the decision to go in for retail banking.

Other evidence could be the consumerism of the middle-class, their upscale lifestyles, etc.
Self Assessment

Match the following activities given in Set A with the stage (of Scenario Building Approach of
Environmental Scanning) at which they are undertaken (in Set B):
Set A

11. XYZ Beauty Salons decides that it will open its salon in ABC city.
12. XYZ Beauty Salons analyses all the external and internal marketing variables.
13. XYZ Beauty Salons studies the age distribution and male-female ratio in ABC city.
14. XYZ Beauty Salons identifies its competitors in ABC city.

15. XYZ Beauty Salons checks whether it has enough resources to set up a salon in ABC City.
Set B
(a) Stage 1 (b) Stage 2
(c) Stage 3 (d) Stage 4

(e) Stage 5

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