Analyzing Customers Desired Service Output Levels

Last Updated on Sun, 06 Aug 2023 | Marketing Insight

fn designing the marketing channel. the marketer must understand the service output levels desired bv targel customers. Channels produce five service outputs:

!, I.ol size - The number of units the channel permits a typical customer in purchase on Orte occasion, fn buying ears for its fleet. Hertz prefers a channel from which it can buy a large lot si?.c; a household wants a channel that permits buying a lot Size of one.

2. Wailing and delivery time - I he average time Customers of that channel %vait for receipt of the goods, Customers increasingly prefer faster and faster delivery channels. Spatial convenience-The degree to which the marketing channcl makes it easy for customers to purchase the product. Chevrolet, for esample. offers greater spatial eonve-

A customer cperales a Kcii^ rciiilab ia $ rem 1 outlet Mm labs often appear in tela* slccs lhat also have photo processing departments, tike Vtelgrcens and CVS stores.

nieuce ihan Cadillac, because die re arËmûreChevrolet dealers. ( Hit;violet's greater market decentralization helps customers save on transportation and search crisis in buying and repairing an automobile, it. Product tttriefy-The assortment breadth provided by the marketing channel. Normally, customers prefer a greater assortment because more choices increase the chanced F finding what ihey need, 5, Servlcebackifp-The add-on services (credit, delivery Installation, repairs) provided by the channel, The greater (he service backup, the greaier the work provided by the channel,"1

I'he ruarketing'Charinel designer knows thai providing greaier service outputs means Increased channel costs and higher prices for customers. Different customers have ditïcrent service needs. The success of discount Stores indicates that many consumers are willing to accept smaller service outputs if they can save money

Establishing Objectives and Constraints

Channel objectives should he stated in terms of targeted service output levels. Under competitive conditions, channel institutions should arrange their functional tasks to minimize total channel costs and still provide desired levels of service outputs.1,1 Usually, planners can identify several market segments that want different service levels. Effective planning requires determining which market segments to serve and the best channels for each,

Channel Objectives vary with product characteristics, I'erisliable products require more direct marketing, EHrlky products, such as building materials, require channels that minl-inize the shipping distance and I he amount of handling. Nonstandard products, such as custom-built machinery and specialized business forms, are sold directly by company sales representatives. Products requiring installation or maintenance services, such as heating and cooling systems, arc usually sold and main lamed by the company or by franchised dealers. I tigh-un il-value products suc h as generators and turbines tire often sold through a company sales force rather than intermediaries.

Channel design must take into account ihc strengths and weaknesses of different types of intermediaries. I'or example, mauufacHirers' reps an! able to contact customers at a low cost per customer because the total cost is shared by several clients, but the selling effort per custom er is I ess i nie n se i ha ti i I' company sales reps d id the sell i ng. < ha n nei design i s also i nfl u-enced by competitors' channelsChannel design must adapt to the larger environment. When economic conditions are depressed, producers want to move their goods to market using shortev channels and without services that add to the final price of the goods. I.egal regulations and restrictions also affect channel design. U.S. Jaw looks unfavorably on channel arrangements that may tend to substantially lessen competition or create a monopoly.

Identifying Major Channel Alternatives

Companies can choose from a wide variety of channels for reaching customers, -from sales forces to agents, distributors, dealers, direct mail, telemarketing, and the Internet, Each channel has unique strengths as well as weaknesses. Sales forces can handle complex products and transactions, but they are expensive. The Internet is much less expensive, but it cannot ha (telle com plex prod nets. Dis t ri butors ca n create sales. In (t the co mpanv loses d i rec t contact with customers.

The problem is further coin pi lea ted by the fact that most companies now use a mix of channels. Each channel hopefully reaches a different segment of buyers and delivers the right products in each at the lea si co si. When this does not happen, there is usually channel conflict and excessive tost.

A channel alternative is described by three elements: I he types of available business in terni ediariL1 s, the number of intermediaries needed, and the terms ant! responsibilities of each channel member.

types OF INTERMEDIARIES A firm needs 10 identify the types of intermediaries available to carry on its channel work.

Innovalive markfiii'.g Ctennefr Calyx arid Corolla pells Isomers through direct dsli^fjy wilh a or 'it catalog and an online store.

i'or example, n iC5t*equt}itnem n■ ¡.lhlifitctlinrr developed an audio device for delecting poor mechanical ¡connections in machines with moving parts. Company executives feU (Ms product would sell in all industries where electric, combustion, or steam engines were used, such as aviation, automobiles, railroads, food canning, construction, anil oil-The sales forte was smalt. The problem was how to reach these diverse industries effectively. The following alternatives were identified;

o Expand the company's direct sales force. Assign sales representatives lo contact all prospects in ah area, or develop separate sales forces for the diiferent industries.

s Hire manufacturers' agents In different regions or end-use industries to sell the new equipment.

a l-ind distributors in the different regions or end-use industries tfiat will buy and carry the device Give them exclusive distribution, adequate margins, product (raining, and promotional support.

Table 15.2 lists channel alternatives identified by a consumer electronics company that produces cellular car pi ¡on essoin panies should search for innovative market big channels. Med ion sold 600,000 i'CJs in Europe, mostly via major one- or two-week 'burst promotions" eh Aldi's supermarkets20 Columbia 1 louse hasstit&cessfully merchandised music albums through Hie mall. Other sellers such as Marry ami David and Calyxg Corolla have creatively sold fruit and flowers, respectively, through direct delivery. (See "Marketing Insight: How CarMax Is Transforming the Auto HusineKS.")

Di:SIGNING AMO MANAGING VALUE NETWORKS AND CHANNELS

Continue reading here: Modifying Channel Arrangements

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Readers' Questions

  • robel kiros
    What is deired service?
    1 year ago
    • A desired service is a service that a customer or user wishes to receive. This can include any kind of service, such as customer service, product delivery, repair service, installation service, or other types of services.
    • Jennifer
      How to analysis of customer service outputs?
      1 year ago
      1. Gather customer service output data: Identify the customer service outputs that need to be analyzed and collect the relevant data.
      2. Analyze customer service output data: Analyze the data to identify trends, patterns, and correlations.
      3. Identify customer service areas of improvement: Use the analysis to identify areas that need improvement regarding customer service outputs.
      4. Develop and implement customer service improvements: Based on the areas of improvement identified, develop and implement strategies to improve customer service outputs.
      5. Monitor customer service performance: Track the customer service outputs to ensure that performance improvements are taking place and that customer service standards are being met.
      • william
        How does to marketr analyze customer desired service output level?
        1 year ago
        • To marketr, customer desired service output level is analyzed by looking at customer feedback, studying customer trends and preferences, leveraging customer segmentation, analyzing customer purchasing patterns, and using data to identify key customer service metrics such as satisfaction level, loyalty, and engagement. Additionally, marketr can employ sentiment analysis to measure customer sentiment and tailor services accordingly.
        • anke
          What is customer desired service output level?
          1 year ago
          • Customer desired service output level is the level of service that customers expect to receive from a business. This level of service can vary depending on the products or services provided, the customer’s needs and preferences, and the company’s commitment to providing a high level of customer satisfaction. It also depends on the customer’s expectations, as well as the company’s ability to meet those expectations. Quality of service, timely delivery, value for money, and customer service are all factors that factor into customer desired service output level.
          • angelo ricci
            How could you analyze customers desired service output levels?
            1 year ago
            1. Monitor customer feedback: Collecting customer feedback can be one of the best ways to gauge the desired service output levels. Use surveys or focus groups to understand the customer experience and identify their needs.
            2. Analyze customer service metrics: Look at customer service metrics such as average wait times, number of repeat calls, and customer satisfaction scores to understand how well your customer service is meeting customer demands.
            3. Track customer service requests: Analyze customer service requests to understand the types of issues customers have and the level of service they are expecting.
            4. Evaluate customer service performance: Evaluate customer service performance to identify areas of improvement and determine the level of service customers are expecting.
            • Michael
              How marketer can analyze customers desired output level?
              1 year ago
              • Marketers can analyze customers desired output level by collecting and analyzing customer feedback, such as surveys, focus groups, and customer interviews. This will allow marketers to better understand what customers are looking for, and tailor their product and services to meet those needs. Additionally, marketers can use data analytics to gain insight into customer preferences and behaviors, which can help inform decisions on product and service offerings. Marketers can also look at customer engagement metrics such as average purchase value, frequency and length of transactions, to assess overall customer satisfaction. Finally, marketers can look into customer reviews and ratings to gain insights into customer opinion and satisfaction levels.
              • Eric
                How a marketer can analyse customer desired service output levels?
                1 year ago
                • There are a variety of methods that a marketer can use to analyse customer desired service output levels. These include:
                1. Customer Surveys or Interviews: Conducting customer surveys or interviews can provide valuable insights into the level of service output customers expect. This can help marketers to better understand customers’ needs and requirements.
                2. Social Media Monitoring: Analyzing customer conversations on social media can provide insights into what type of service output customers are expecting. This can help marketers to tailor and improve their services to meet customer expectations.
                3. Customer Service Metrics: Analyzing customer service metrics such as response times, customer satisfaction rates, and customer complaints can provide valuable insights into desired service output levels.
                4. Service Level Agreements: Examining the terms of service level agreements (SLAs) can provide valuable insights into desired service output levels. SLAs typically outline both customers’ expectations and the services that service providers are contractually obligated to provide.
                5. Online Reviews: Analyzing online reviews of the service can provide insights into customer desired service output levels. Customers are often more vocal about their experiences and expectations in online reviews, which can be a valuable source of information for marketers.
                • bertha
                  Why important to analyze service outputs?
                  1 year ago
                  • Analyzing service outputs helps to identify gaps in service delivery and areas where improvements can be made. It can identify areas of customer dissatisfaction, where customer service can be improved, and help to identify trends in customer demand and preferences. It also helps to measure the effectiveness of service staff and managers and identify areas where additional training or motivation may be required. Analyzing service outputs can also help to identify opportunities for further cost savings and suggest ways to improve efficiency.
                  • Rudigar
                    What are five output levels channels produce service output levels?
                    1 year ago
                    1. Physical Outputs: Physical outputs are tangible products or services created and provided to customers. Examples include goods, products, packages, documents, and other tangible items.
                    2. Information Outputs: Information outputs are data or content that can be consumed. Examples include brochures, books, magazines, reports, news bulletins, and other digital or printed material.
                    3. Psychological Outputs: Psychological outputs are intangible items produced to fulfill a customer’s expectations and desires. Examples include a feeling of satisfaction, emotional connection, and value or security provided by the channel.
                    4. Social Outputs: Social outputs are the result of a customer’s interactions with the channel. Examples include customer support, advice, and reviews, as well as brand awareness.
                    5. Financial Outputs: Financial outputs are the result of a customer’s monetary exchange for goods and services. Examples include fee structures, discounts, and promotional offers.
                    • colomba
                      What are the service output desired by target customers?
                      1 year ago
                      • Target customers may desire a variety of outputs from a service, depending on the type of service and their individual needs. Generally speaking, some of the most common service outputs desired by target customers include: • Quality products or services that meet their expectations • Timely delivery or execution of services • A satisfactory customer experience • Competitive prices and/or discounts • Personalized support • Easy access to information • Helpful resources and tools • Convenient payment options • Guarantees and warranties • Easy returns or exchanges • Reliable and secure services
                      • Asmait
                        How a marketer can analyze customer desired service output levels?
                        1 year ago
                        1. Conduct surveys and focus groups: Surveys and focus groups are a great way for marketers to gather customer feedback on desired service output levels. By asking customers directly what types of service they expect and value, marketers can gain valuable insights into customer expectations and preferences.
                        2. Use customer service metrics: Marketers can use customer service metrics to measure and analyze customer desired service output levels. By tracking KPIs such as customer satisfaction, response times, and customer churn, marketers can identify areas of improvement and make changes to better meet customer needs.
                        3. Analyze customer service data: By analyzing customer service data, marketers can understand what types of service customers are expecting and determine how well the organization is meeting these expectations. This data can be used to identify patterns, inform strategies, and make decisions on how to better serve customers.