Answer to Question #208973 in Management for Prabhdeep

Question

SUBJECT : SERVICE MARKETING

Explain the method of assessing the services marketing opportunities and the customer expectations. (Assume any service of your choice).

Answer 1

Assessing the services marketing opportunities and customer expectations is an important part of service marketing so as to make the most out of opportunities in a constantly shifting environment in a constantly shifting environment. The method of assessing the services marketing opportunities and the customer expectations for a service such as banking entails:

• Segmenting the customer base - this entails the bank investigating what the addressable market size is for the market they're entering. This includes conversations about the total addressable market, the serviceable available market and the serviceable obtainable market. Another approach would be assessing potential market by redirecting focus to the target consumer base and segmenting them based on features such as age, purchasing power, lifestyle and a common pain point they face. This entails establishing a mental map of each market segment and being aware of social and psychological factors influencing potential customers' purchase decisions.
• Evaluating customers' buying power - understanding the psyche of potential consumer base can tell how much they are willing to shell out for a quality product. Analyzing the target market's average purchasing patterns provides information such as how the market chooses to make its transactions e.g. in Southeast Asian countries, e-wallets are the preferred mode of payment.
• Leveraging current events - this entails making use of specific events and holidays with promotional offers. Target markets look for specific services during events. For instance, Covid-19 caused fintech companies to provide free tools and software for core banking and lending in a bid to convert legacy banks that hadn't been fully automated to adapt to fintech.
• Diversifying the portfolio - a bank can explore adjacent market opportunities by diversifying its product offerings and the company portfolio. A well-thought out product resonates well not only to existing clients but also potential customers.