Services marketing crm (customer relation management)

SERVICES MARKETING - CRM (customer relation management).

CONTENT

I. INTRODUCTION:

After studying marketing management disciplines, I decided to present topics 1,
(marketing-Customer Relation Management Services) because this is a fascinating
subject for those who want to create added value, satisfying day more and more
customers' needs. Helping businesses more efficiently. Content research topics include:
1.Explain the role and significance of services in the modern economy.
2.Answer the following:

a/The marketing planning process.
b/Monitory marketing planning and services.
3.Answer the following:
a/Service market segmentation.
b/Customer loyalty.
4.Answer the following:
a/Planning and branding service products.
b/New service development.
5.Write a detailed note on pricing strategies for services.

II. BODY:

Question I: Explain the role and significance of services in the modern economy:

* The modern economy:
Following the former viewpoints, the products are divided into two different kinds that
are goods and services. Products are made with high cost that its major cost is materials.
Formerly, Services were understood as the intangible products, and known as Electricity ,

Banking, Transportation, Communication services, etc...
Nowadays, The advances of science and technology have promoted globalization trend of
every aspect of social life which created condition to form modern economy that there are
many opportunities but also serious challenges in competition. In contrast to classical
economic viewpoints , the modern economy made product with low cost that its major
cost is knowledge of people who made it.
The modern economy is the economy that based on knowledge for economic growth, in
which the products are understood in more widen meaning, they are not only the tangible
goods but also the intangible goods (services) that can be separated or survived in the
tangible goods when customers used it, and then the services will make the tangible

goods more valuable.
For example:
A customer buy a smartphone instead of buying a cellphone, he or she wants to use it in
order to satisfy his or her simple need which is only calling and receiving call. With
scientific and technologic progresses, smartphone supported more benefits and values
than his (or her) expectation, such as:
_ The utility softwares support global positioning, roadmap, trade-banking, movie
service, video call, etc... and by these utility of services not only increase customer's
satisfaction but also make smartphone more value than its real value. In addition, design
services created a fashionable style for cellphone that helps to increase the style and value
of the users.
_ Passenger transportation services will gain competitive advantage if it is augmented
extra services as meal service, watching movie, massage, magazine etc...
_ Especially in information technology and communication technology. Products were
made in that are the product "intelligent". It is the product not only contains a high
information content but also a high knowledge content than classical industrial products,
making it capable of using, infor
mation processing, to meet needs of individual customers. In 2000, the smart products
(eg, personal navigation system) has created 30% of the value of a type of luxury cars

and become increasingly competitive factors in the cars manufacturing sector.(source:
" />Organization=SKHCN&MenuID=8001&ContentID=33794").
Indeed, The services influence the human life, competitive position of business and all of
economic, political and societal sector, so they are very important in modern economy
and they have the main role following:
- Reduced operating expenses, production cost and prices
- Increased profit.
- Created Competitive differentiation
- Increased product quality
- Increased used efficiency and value
- Increased responsiveness
- Increased market Share
- Increased customer loyalty

Question II:

a/ The Marketing Planning Process:
Planning is one of four administration functions. From the viewpoint of leaders, In order
to plan a marketing process, I think that we should manage to realize the following steps:
1_ Identify the objective of the marketing planning:
Marketing objectives are identified based on the business objectives of the enterprise.
Understand this business objectives to help outline the direction and planning of
marketing activities to achieve the business goals set. Understanding the goal of helping

planners know: where the target market is, how many revenue and market share that
company have, which can calculate how much resources we need for the marketing
planning, such as: the budget for marketing (How many percent of total Revenue for it...),
human resource (Identify the role of some internal functional department "EX: Planning,
Finance, Management, organized department..."), and the fund of time for each step.
2_ Identify the target Customers:

When product (goods or services) is offered to the market, there is only a small group of
customer who will buy it. Therefore, the mission is, identifying as exact as possible the
group of customer in order to focus marketing strategy. The target customer is a group or
individual (noted to principle 80/20,"Leave 80 percent of customers (keeping target
customer) in return for 80 percent of profits."), whether it was group or individual,
marketing object is still as individual.
In this step, classify necessarily target customer that according to place, Income, or age
etc... and gain a better understanding of history and habit of purchase of the target
customers.
3_ Identify advantage of Products

. Benefits of product must be the strenght or competitive advantage ( Vividness
and Distinctness).
4_ Identify current competitive position of enterprise:
Using the Five Forces Analysis Tool that determine competitive power in a business
situation. These are:
Supplier Power: Enterprise should know who they are, they were big group or small
group, The degree of influence and control of suppliers over enterprise to drive up prices
which was strong or weak in order to change suitable strategy.
Buyer Power: Enterprise need to know the number of buyers, the importance of each
individual buyer to enterprise and degree of influence of buyers that they drive prices
down and cost to buyers when they use product of other suppliers.
Competitive Rivalry: Judging the number and capability of enterprise's competitors to see
if enterprise is strong or weak in supply quanlity of products and services.
Threat of Substitution: Enterprise will be weaken if the customers can use products by
manufacturing rather than buying.
Threat of New Entry: Power of enterprise is also affected by the ability of people to enter
enterprise's market. If the condition is good and easy for people enter the market, power
of enterprise maybe decrease. Enterprise should have strong and durable barriers to take
fair advantage of it.

5_ Analysis SWOT:
This looks at the strengths, weaknesses, opportunities and threats facing an enterprise, in
which the intrinsic environment gives information about the strengths and the weaknesses
of enterprise compare to competitors such as resources, skills and qualifications of human
resources, abilities response customer's needs.
The outside environment gives information about the opportunities and threats, which
enterprise should exploit all of the opportunities and against threats.
6_Marketing Strategy (Build following the results of the steps above).

7_ Marketing Planning: (Should prepare some planning for each segment in order to
choose)

. Analysis clearly about Company's resource.
. Current business Method of Company (Target Product and Service)
. Research the Customers and Consumers
. Research Competitors.
. Detail Marketing Planning (judge potential markets, build communicative
programs, promote the communications programs to declare the value of the enterprise)
8_ Marketing strategy Implementation.
9_ ( Step by Step Controlling and Adjustment)

b/Monitor Marketing Planning and service:
Monitoring of a marketing planning strategy requires businesses to understand the
specific targets were set for the future of the company . The goal is measurable , feasible,
and is assigned through budgeting . A marketing strategy consists of defining the product
vision ( service ), place, price and promotion details and then match enterprise's vision to
the budget that has been identified. Note on services of the business and its cost.
Additional services related to adding value to existing services to achieve sales
increasing. Valuation based on market and business goals. Reduce costs by improving
processes, adding new technology, etc... For example, if a 3D movie service shop

compare their services with other providers, pricing services be very competitive.
However, by providing a special glasses to protect the customer's eyes from harm, this is
a way to provide an extra service to the old service with fees to prepare the glass and
increasing of quantity of customer , which can improve profitable margin of the business.
Establish a marketing plan requires setting a vision based on what customers want and
what businesses can provide. The marketing strategy must focus not only on providing
services but also on the entire business to succeed .
Monitoring the effectiveness of a marketing plan to ensure that the enterprise's
investment is not wasted.
- Choose the right tools to keep track of each strategy in the marketing plan.
- Develop monitoring system at the beginning of each marketing campaign .
- Monitor the response of sales before and after the launch of a marketing campaign .
- Survey information specifically related to the success of marketing campaigns .
- Eliminate the marketing strategy is not effective .
Monitoring is necessary to control the entire process of marketing planning .
Administrators should assign specific tasks to the functional departments and a standard
set of periodic reports on the progress of the work assigned , administrators need to
organize parts collected feedback information from functional departments to resolve
issues promptly in the implementation process.
( Be prepared several plans to choose from ) Enterprises should consider :
_ It is a simple marketing plan ( to follow the main target )
_ It is expressed in writing .
_ It must be clear (for easy understanding)

_ Controlling , checking and suitable adjustment when it is going to carry out in wrong
direction.

Question III:
a/Service market segmentation:

Market segmentation is method that dividing a broad target market into smaller
market that is large enough and appropriate with consumers who have common needs
and priorities in order to business effectively and appropriate with enterprise resource.
According to content that I answered in the question #1 above, Services in modern
economy that have a wider significant than before and it has properties following:
* Inseparability: production and consumption of service can not be separated. Lacking
one of it is impossible; This characteristic makes customers:

• Must be present to enjoy the service;
• To be difficult to recieve invariable value of service;
• To be influenced by the service provider, the attitude of the service providers, and the
environment where the supply occurs.
In this trait, service supplier need to: Use the dealer network to reach customers; Use of
modern telecommunication facilities: distance learning, remote consultation ...; There are
human resource management policies separately (especially for staff who have regular
contact with customers); Develop a friendly relationship and attachment with customers.
* Intangible: no clear shape. Can not see before consumption; This characteristics makes:
• Customers are difficult to imagine how service is;
• Customers are difficult to try before buying;
• Customers are difficult to assess the quality of services;
• Customers need look through brand, price to assess the quality of services;
• Customers seek advice of acquaintances, sellers;
Noted in service marketing consist of, Increasingly use of tangible factors in the service
promotion, building and maintaining friendly relations with customers, communication
and advising their clients to choose services, Recruitment , maintaining sales team on
skills, qualification and Imaging building good brand reputation.
* Inhomogeneity: services have no uniform quality;
Althought, each service that has usually an uniform standard but because of its quanlity
was depended on knowledge, skills, attitudes, and physical status of staff who supply
services so the service quanlity had uneven. For example, health and mental status of a

service provider is changed every so often the service quanlity is also similar. The more
service providers, the more difficult ensure uniform quality. The human factor is very
important here. Enterprise can use easily the new technologies that automate service
providing, but not any services can be also automated, so enterprises need to have
specific human resources management policies to the service staff because polite and
affable communication of service providers is a attractive factor for customers.
* The simultaneity and No storage: production and consumption of services occur
simultaneously and no being able to store services. Because of this characteristic that
enterprise should: Regularly monitor the level of customer satisfaction, Focus on Quality

Management, apply the use of flexible labor, apply price discrimination policies over
time, forecast custommer demand accurately, provide self-service facilities.

Unlike tangible goods, services are produced and consume at the same time, and
then did not stored in warehouses and sell them when the need arises . Therefore ,
producers are not easy to implement demand-supply balance . For example, The power
plants provide electricity to electric nets, when consumer use it at this time the process of
service providing will be appear. (services will be ceased if power plants stop working)
the service providers involved in the process of creating service.
This characteristic made influence on:

• Customers must be present to enjoy service;
• Customers are required to provide service location;
• Influenced by services providing process , the attitude of the service provider , and the
environment where the supply occurs;
• Provider is difficult to achieve economies of scale;
• Difficult to achieve uniformity in quality ( dependent on staff to provide service);
• Difficult balance between supply and demand services;
• The relationship between the customer and the supplier service has a great impact on
customer perception of the quality of services .

The market segmentation created good conditions for enterprise to prepare their
own strengths and resources to business success in selected segment. Enterprises will
base on the market segment in order to focus on 20 percent of people to achieve 80
percent of profit with low cost .
Businesses can based on the following four criteria to segment its services market:
_ Geographical criteria : This is the basis of market segmentation. It is commonly applied
for the difference of demand that is often tied to geography ( Nation, regions , rural ,
urban , domestic, foreign ) ;
_ Psychology criteria: Basis of market segmentation that is presented such as
attitude ,motives , lifestyle , interests , cultural values ...
The use of the criteria according to psychology based on the basis that psychological
factors play an important role affecting the behavior selection and procurement of
consumer goods . The criteria in this category are often used to support the criteria by
population - social . In some cases, it is also used as the main segmental criteria.
_ Anthropological criteria : criteria group in this category include: gender , age ,
occupation , education level , family size , marital status , income , social class , religion ,
ethnicity , race ... anthropological criteria mentioned above are commonly used in market
segmentation because: needs , desires and purchasing power of consumers is the main
base creates differences in the needs and buying behavior, and addition, the
characteristics of the population - to measure social . The criteria of this type of data is
usually available because they are used in many different purposes . Most consumer
goods are required to use this criterion in segmentation . However , depending on the
specific services that people use some specific criteria in the group . For example : age
and of the family life is often used to segment markets Transportation service, Online
Games, etc...

_ Consumer behavior criteria: Under this criteria, the consumer market will be split into
homogeneous groups of the following characteristics: Reasons for shopping, looking for
benefits, the amount and rate of use, loyalty, use status (used; unused, do not use). When

selecting the segmental criteria, the criteria of this group have been many marketers
believe that the characteristics of behavior is the best starting point to form market
segments.
General trends, people use a combination of multiple segmental criteria because it is
always in mutual relationships.

Figure of Five Forces Determining Segment Structural Attractiveness.
Source: Marketing management - an Asian perspective, 4th Edition

The competitive power of supplier or strength of provider that is shown by the quantity
and size of competitors versus business, it decided to competitive pressure and their
negotiating power. (to be reviewed in each segment separately).
The competitive pressure of buyers can affect the entire business operations of the
industry directly. They are now pressuring prices through purchasing decisions or
purchases. The issue would be researched consist of Size, Importance, and Costs for
customer substitute service.
Potential entrants are not currently available in the industry but could affect the
segments in the future. Potential competitor are more or less and their influences are
strong or weak which will depend on: The attractiveness of the industry, barriers to entry,
scientific and technical advances in the industry, capital, distribution system , branding,
customer systems, materials, inventions, human resources, the protection of the
government, etc. ..
Competitive pressure from alternative service; Alternative services are services that
can satisfy the needs of equivalent services in the industry. Competitive pressures
primarily of replacement services are able to meet demand than products and services in

the industry, adding another factors are the price, quality, convertible routines, the other
elements of the environment as culture, politics, technology will affect alternative
service. for example, OpenOffice software capable replacement for the Microsoft Office
software but There are few users of OpenOffice because of it is difficult to change their

habits.
Competitive pressures in the industry ( in the segment ) ; The enterprises are in the
same industry will compete directly to each other in order to create back pressure on the
industry that create a competitive strength . In an industry, following factors will increase
the competitive pressure on rivals :
+ Status of the industry : Demand , high growth rate , amount of competitors and amount
of dominance competitors in each segment, the factors of barriers of entry.
+ The retreat barriers : As barriers of entry , the factors of retreat barrier making the
separating from the industry is difficult such as technology barriers , investment capital,
binding of laborers, bounding of involved government organizations and the binding
strategies and plans.
Enterprise should also distinguish what service market we provide on, B2B or B2C. This
issue is important, it affects the establishment of criteria for the segmentation:
For users are businesses ( B2B ) , they know clearly about services that they want to buy.
They want competitive prices in order to bring profit to their business. Even though, the
target market is small and concentrate but their purchasing decisions often through many
comments, prolong time . They wanted to get advice from colleagues , businesses that
used the services (they want to buy). In the B2C market , customers are individuals .
They want to have good prices, and they can find information from the retail stores and
many other sources of information , but they still want to buy services from a reliable
provider . With some of different between two kind of market above, market
segmentations are also made by various criteria.
Although there are many different ways to segment a market. However, not all market
segments are always efficient way. Depending on resources, the advantage of company
and conditions of convenient data collection for analysis, market assessment, enterprises
should choose proper ways for segmentation.

b/Customer loyalty:

Customer loyalty is expressed through behavior and attitudes , their emotions . For

example , in the provision of services Air ticket through the Internet , we can evaluate
customer loyalty through their work have regular access to the vendor's site or not
( expression through attitudes , emotions for wanting to buy services ) , using statistical
methods we can understand that they are usually available on flights provided by the
vendor or not . If both survey on evaluation results that the high frequency of these, they
are loyal customers . Therefore, to make loyal customers with services that are provided
by enterprise, firstly, we should make customers feel good about vendor's services
through trademark, effective , attentive attitude of providers, prices, etc... secondly,
concentrate to customer segmentation about loyal factor in order to create suitable

marketing strategy in each segment.
Customer Satisfaction,The first step towards building a base of loyal customers is to
improve the customer satisfaction with enterprise's products and services. In my opinion,
enterprise should perform a standardized survey of the enterprise's customers using
questionnaires. The process of improving customer satisfaction is continuous. Asking
customers what they would like to see to improve. Enterprise will try to make
improvements and then asking customer again with the same questions. In the end,
satisfied customers are loyal customers.
Maintaining customer loyalty is really an important goal for any enterprise. Loyal
customers themselves are boss who help enterprise maintain profit and steady
development. Customers perform their loyalty in many different way that enterprise
should be aware of, take care, and prolong its life. This is key to the growth of a
company.

The Policy lean to Customer loyalty .
- Focus on Customer and Consumer
- Satisfy potential Customers, Customers (gainning step by step)
- We may divide our Subjects into eight Groups and promote them by the ways above:

Source: />hang-trung-thanh-86336

1. Suspect Customer: To make first impression by strengthen Ad. on (TV, Event,
Newspaper, and Sponsor.)

Example: A company provide 3G Internet service. Their target market is a rural zone
where has no internet line and there was no one whom known this service, so this
company built an advertisement campaign in which they didn't select ad on TV and
newspaper because high cost. They built the store for service providing and invited
agricultural Expert to organize agricultural seminar in order to promote science and
technology advance through the information on website that base on internet 3G, and
addition online mathematical software that was freely provided to student in primary
school and high school, and then many people known 3G internet service. That farmers
and parents were gradually became prospects of the company.

2_ Prospect : They are people who aware of advantageous service, they visited the
service store.
At there, the company try to make first impression in many way of face to face, service
sample (e.g. 3G USB...), an internet accessing place that price per hour was set higher
than the case using 3G USB at home. Furthermore, the store promote the Prospect tries

free using in one week. Result, most of them became the first time customers of the
company.

3. First time Customers (FTCs): In this step, the customers are increased more
valuable service when they are presenters company's service to other people. FTCs
receive service warranty card when buying. Installation is freely provided in customer's
place, present gift for customer in their birthday, etc... These are force that make
customers to return more time.

4. Repeat Customers: Company should make customers love service of company

by: Give them value of service as bigger than what the company's commitment, adding
interesting to customers using the company's services.
The customer are presented valuable gift in anniversary each year. Company could
express gratitude to customers that repeatly by "low level loyalty card".

5. Clients: In this step, Putting customers into the chain of bill point system, which
the benefit will be increased gradually with the bill point, discount coupon, etc... bring
them more benefits.

6. Member, 7. Advocate,8. Partner (The company will increase the level of
customer care from the Member to Partner, but in these three customer segments,
companies need to treat customers as well as employees of the company).

Question IV:
a/ Planning and branding service products:
Brand’s strategy of company should be based on company goals. Having a clear and
concise brand strategy leads to stronger overall brand equity. Enterprise should know
how people feel about or perceive its product, and how much they are willing to pay for
it.
Brand is not its product, or its name which, It’s what customers perceive about company,
and how company make them feel. So company need to figure out the different trait
from competitor's product and extra service value beyond what company provide, and
make it a part of brand strategy of company. (valuable Brand).
"Decide which aspect is the most important about product or service of company, and
make it a part of every aspect of your brand communication." (Copyright © 2014
HubSpot, Inc.).
A brand is a name , term , design , symbol , or combination of factors determine a
product or service and distinguishes it from its competitors . Brands include factors such
as :
Brand Name : A Brand , also known as a product brand , is a word , group of words,

letters , or numbers that represent a product or service .
Trade Names : A trade or brand name of the company , identify and promote a company
or a division of a particular company .
Brand marks : A brand mark is a unique symbol , colors , letters , or other design
elements . It can recognize visually and should not be pronounced .
Commercial character : A character is commercial signs have human form or
characteristics .

Trademarks : A trademark is a word , name , symbol , device , or any combination of
these factors is given legal protection by the federal government . Trademarks shall be
used to prevent other companies use similar elements can be confused with a brand .
There are three kinds of brands , one for each type of company that brands its products :
National brands ( manufacturers ) : The brand is owned and initiated by national
manufacturers , service companies ; also known as producer brands .
Private distributor brands ( wholesaler and retailer ) : Brand built and owned by the
wholesale and retail trade; also called private brands , store brands , dealer brands , or
private labels .
Generic Brand : generic brand is a product that does not carry a company identity . They
are often sold in supermarkets and discount stores .
The company manufactures and sells generic brands do not advertise or promote many of
these products , and therefore they can pass the savings to customers .
Branding Strategy:
Some branding strategies used to meet the sales targets and company are : brand
extension , brand licensing , co-branding.
Brand extensions are a branding strategy that uses an existing brand name to promote a
new product or improvement in the company's product line .
The risk of this strategy is more expanded product line and diluting the brand with too
many products .
Brand licensing related to a license agreement that legally the company received a license
fee , such as royalties, to allow another company to use its brand , mark its brand , its

commercial character . ( A duly authorized by the owner of the registered trademark
brand allow another company ( licensee ) to use its brand name , brand mark , or trade
character for a fee ).
Co-branding is a combination of one or more brands in the manufacture of a product or
in the delivery of a service.
(source : Marketing Essentials Chapter 31, Section 31.1)

Brand is very important, it make products and services to increase value. Therefore, the
product positioning must be associated with the following attributes:
Consistency: (the message announced by the company in accordance with the company's
brand or not). If not careful, enterprise will have trouble differentiating itself from
competitors.
Emotional connection: Find a method to connect at a deeper level with customers as
family members who can agreed to pay more money to buy service of enterprise even
though the services of competitors is equivalent but cheaper.

Reward and Cultivate: If products of enterprise created customer satisfaction, when
the brand of products accounted for an important position in the hearts of customers. Let's
reward them, so they will tell their friends about enterprise, and act as your brand
ambassadors.
Measure: The measure whether the tactics sorted well with the overall brand strategy of
the company, and if they do not, you do not invest too much that you can not re-

evaluated.
Be Flexible: If your old tactics aren’t working anymore, don’t be afraid to change them
just because it worked in the past. Take the opportunity to engage your followers in fresh,
new ways.
Watch Out for Competitors: Keep an eye on competitors of company when
experimenting with brand strategy of company, and keep the difference from
competitors.

b/ New service development:
The new service development process consist of recognizing chances and opportunities in
a fast changing technological environment.
New service development relates to all the activities involved in realizing new service
opportunities, including product or service design, business model design, and marketing.
Service development is mostly seen to make how company find, reach, and approach
customers. How company keep these customers satisfied with new possible services.
Innovative technology provides important opportunities for new service development.
For a company to stay competitive, it is important to keep services and processes up to
date.
Service development is mostly seen as growing an enterprise through a number of
techniques. The mentioned techniques differ, but in fact all of them are about traditional
marketing.
When supplying a solution, it is important to focus on the total offering you give instead
of only focusing on the product or service.
The people use to chart the factors that are involved and create synergy between them,
new service development draws heavily upon the fields of technology and business
networks. The new service development process involves recognizing chances and
opportunities in a fast changing technological environment. For example, Electrical
equipment manufacturers should recognize that rising electricity prices are an opportunity
to create the electrical saving equipments.
(Innovative technology provides important opportunities for new service development).

The process of developing; growth, directed change. Development is the application of
research findings to a plan or design for the production of new or substantially improved
materials, devices, products, processes, systems, or services, before the start of
commercial production or use. Human resource development consists of training,
organization, and career development efforts to improve individual, group, and
organizational effectiveness. the complete process of bringing a new product to market.
Today, Planning and creating services consist of tangible and intangible products.

Enterprise should focus on core product.
The new service development process consist of recognizing chances and opportunities in
a fast changing technological environment.
New service development relates to all the activities involved in realizing new service
opportunities, including product or service design, business model design, and marketing.
Service development is mostly seen to make how company find, reach, and approach

customers. How company keep these customers satisfied with new possible services.
Innovative technology provides important opportunities for new service development.
For a company to stay competitive, it is important to keep services and processes up to
date.
Service development is mostly seen as growing an enterprise through a number of
techniques. The mentioned techniques differ, but in fact all of them are about traditional
marketing.
When supplying a solution, it is important to focus on the total offering you give instead
of only focusing on the product or service.
The people use to chart the factors that are involved and create synergy between them,
new service development draws heavily upon the fields of technology and business
networks. The new service development process involves recognizing chances and
opportunities in a fast changing technological environment. For example, Electrical
equipment manufacturers should recognize that rising electricity prices are an opportunity
to create the electrical saving equipments.
(Innovative technology provides important opportunities for new service development).
The process of developing; growth, directed change. Development is the application of
research findings to a plan or design for the production of new or substantially improved
materials, devices, products, processes, systems, or services, before the start of
commercial production or use. Human resource development consists of training,
organization, and career development efforts to improve individual, group, and
organizational effectiveness. the complete process of bringing a new product to market.
Today, Planning and creating services consist of tangible and intangible products.

Enterprise should focus on core product, core value and augmenting the core of service of
company.
As stated in the previous section, to develop new services, enterprises should note pricing
strategy (sales penetration, concentrate price, skimming price, competitor base price) and
BCG matrix applied to the strategic direction for the business operations of the company.
BCG Matrix consider two factors is the growth of the market and the enterprise market
share in their respective markets. BCG matrix applied to the strategic direction for the
business operations of the company. Matrix BCG consider two factors is the growth of
the market and the enterprise market share in their respective markets. Enterprises must
identify himself in any part of the BCG matrix and should try to develop new services or
not.

Based on the product life cycle, company should develop new services, such as added
value of products when product is going to pass the peak of the product life cycle to
create a new cycle of product or service.

Question V: (Pricing strategies for services).
How to price services of company.
Prices of services may be more complicated than the price of a product, which tends to be
driven by unit cost .
There are many reasons to consider the business value of their service - can the cost of
business has increased , or businesses that want to finance the expansion of its business .
Enterprises should begin by identifying the benefits of enterprise services provided to
customers , and attribute values for each benefit .
Market research of business
The next step is to conduct some simple market research . Businesses can identify
competitors , the service they provide and their prices .
If businesses see that the current price is its expected or higher than competitors ,
enterprise risk losing advantage over the competitors . This does not mean that businesses
should reduce the price , however - if the competition is too low , businesses have added

services to the enterprise value of the product is suitable .
Calculate the cost of the business : Enterprise calculate direct and indirect costs to your
service provider customers , including labor and training costs , costs and marketing costs
. Enterprises should reflect the cost price of products and services .
There are two basic pricing models : cost-plus prices , including breakeven cost of
business ; and value-based pricing , which takes into account the value of services for
business customers .
A price match the expected benefits of the customer . Enterprises may have created loyal
customers by providing high -quality service or more are considered to be better than
your opponent .

Collect feedback on the value of the enterprise : Enterprises need to understand the sense
of the market value of the services now provided . Find out if the customer accepts the
price , acceptable reasons , knowledge content of products and services that customers
want .
The best time to collect feedback on your services immediately after you have provided it
.
Set a price : When prices rise , businesses need to consider product and service value
worthy of the price that businesses are not recommended .
You should try to consider your pricing every six months to ensure proper in the market .
Businesses must anticipate a number of planning schemes and pricing strategies . Price of
business must be consistent with the plan and the plan selected .

III. CONCLUSION:

Market research can be understood as a simple public gathering, synthesizing and
analyzing information about businesses or products that provide enterprise. The
information includes price, customer service, delivery operations, the company's new
products, customer behavior, buying habits of the consumer ... Enterprises should master
the principles of marketing , see it as the key to drive enterprise to success.

Reference:
* />plan.html#ixzz334UsqNcj, (Accessed: 23:30, May 25, 2014).
* />Comprehensive-Brand-Strategy.aspx (Accessed: 24:14, May 30, 2014).
* (Accessed: 20:14, May 31, 2014).