c onsultancy service service marketing
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Consultancy Services Marketing
Prepared by :Abhishek SasanMunish Arora
Marketing of Consultancy Services Consultancy is an act of being a consultant who is a professional who provides
professional or expert advice in a particular area.
Consultancy services fall towards the extreme right in service continuum where the
intangible dominant is high.
Marketing of Consultancy services consist of following features:
1. Intangibility
2. It can’t be stored
3. Variation in standard delivery
4. Perception of performance standards
Significance for Marketing of Management Consultancy Services
Many management consultants seeks to emulate more established professionals.
Indian management consultant is dependent for a livelihood on fees.
Projects are the main source of income for individuals and firms doing
management consulting.
Capabilities of Management Consultancy
Market knowledge and capability
Consulting competencies
Consulting skills, behavior and ethics
Interpersonal and communication skills
Ability to work in a fast paced environment
Following questions must be asked by the management consultants themselves as follows:
Which clients really want from us?
What is the client’s satisfaction level we are creating?
What is our professionalism’s level?
How we do project ourselves to our clients?
What steps must we take to improve our quality of services
Evolution of a Marketing Strategy
Product planning—a. Consultancy specialization is a productb. Problem solving is another productc. Technique based productsd. Process-oriented approach is a product
Market segmentation
Positioning strategy for marketability
Organization of marketing function
Sales promotion and code of ethics
Criteria for choosing marketing methods
Define the long-term and short-term objectives
Determine strengths in terms of expertise
Conduct market research for segmenting the market.
Evolve a marketing plan and organize the marketing function.
Select sales promotional methods
Implementing the marketing plan.
Service Delivery Models
The Biggest Consulting Firms
• Accenture (IT, Operations, HRM)• Cap Gemini (IT, Operations)• CSC (IT, Operations)• IBM BCS (IT)• PWC (IT, Operations, HRM)• KPMG / Bearing Point (IT, Operations) • Deloitte (IT, Operations)• McKinsey & Co. (Strategy, Operations)• BAH (Strategy, Operations)• Mercer (Strategy, HRM)• Anderson (Operations)• A. T Kearney (Strategy, HRM)• Monitor (Strategy)• BCG (Strategy)• A.D. Little (Strategy)• Bain & Co. (Strategy)
Segmentation
• Industry– Telcos - Health– Digital Media - Manufacturing– Finance & Banking - FMCG& Retail– Utilities - Transportation
• Function– Strategy - HRM– Operations - IT (incl. e-business)
• Sector– Non-profit– Public– Private
/ Utilities
Technology Providers
Software Providers
Service providers
McKinsey
IBM
A.T. Kearney
Oliver Wyman
Deloitte
Accenture
PwCCSC
EDS
Scient
Sapient Diamond
Strategy Consultants
A Consulting Typology
Initial Contact Definition Proposal & Contract Data Collection
Data Analysis
Decision-making,PlanningIntervention
Disengaging
Review
The Consulting Life-cycle
Five basic principles of consulting
• Focus on the Relationship: Understanding the personality and expectations of client, client organization and all other stakeholders
• Clearly Defined Role: Defined roles and responsibilities for both clients, other stakeholders and consulting team
• Visualize Success: Helping the client see the end at the beginning
• You Advise, They Decide: Client is the best person to decide• Be Oriented Towards Results: Ensuring that the solution
addresses end user concerns, user training, implementation and maintenance constraints
Consulting skills and tools
• Consulting organizations that use holistic and structured tools rather than rely on simple process are more likely to provide clients with a rounded and appropriate review. The Business Improvement Review is one such tool. It is holistic in that it looks at all of the PRIMO-F factors:
• People• Resources• Ideas and Innovation• Marketing• Operations• Finance
POTENTIAL ENTRANTS
New single or small New single or small consultants consultants Low barriers of entry
BUYER’S POWER No switching costs No switching costsNew compensation New compensationsystems systemsMake consultants partly Make consultants partlybear the risk bear the risk
SUBSTITUTES IT-& Technology- IT-& Technology-companies companiesInhouse-Consultancies
SUPPLIER’S POWER Clients seek for Clients seek for integrated solutions integrated solutions
COMPETITIVE RIVALRY Increasing because of Increasing because ofeconomic situation, new economic situation, new competitors and competitors and continuous changes continuous changes
Porter’s 5 Forces in the Consulting Industry
7 principles for marketing consulting services:
1. Regard the clients’ needs and requirements as the focal point of allmarketing!2. Remember that every client is unique!3. Don’t misrepresent yourself!4. Don’t oversell!5. Refrain from denigrating other consultants!6. Never forget that you are marketing a professional service7. Aim at an equally high professional performance in marketing andin execution
The Services Marketing Triangle
Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
“enabling thepromise”
“delivering the promise”
“setting thepromise”
RELATION BUILDING
1.Regard the clients’ needs and requirements as the focal point of allmarketing!2. Remember that every client is unique!3. Don’t misrepresent yourself!4. Don’t oversell!5. Refrain from denigrating other consultants!6. Never forget that you are marketing a professional service7. Aim at an equally high professional performance in marketing andin execution
7 P’s
Traditional Marketing Mix
• All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:
Product Price Place Promotion
Product
The price is highly dependent on the case-size. It is obvious that a small case involves fewer consultants and needs lesser time than a case for a global company undertaken in several countries during a longer space of time.
Nowadays exists also the opportunity that consultancies ‘take over’ clients businesses. Deutsche Bank for instant outsourced its data processing service centre in Heidelberg (Germany), which is now managed by CSC (Computer Science Corporation). Both, Deutsche Bank and CSC share a profit equally
Price
Tangibility Spectrum
TangibleDominant
IntangibleDominant
SaltSoft Drinks
DetergentsAutomobiles
Cosmetics
AdvertisingAgencies
AirlinesInvestment
ManagementConsulting
Teaching
Fast-foodOutlets
Fast-foodOutlets
Expanded Marketing Mix for Services
PRODUCT PLACE PROMOTION PRICEPhysical goodfeatures
Channel type Promotionblend
Flexibility
Quality level Exposure Salespeople Price level
Accessories Intermediaries Advertising Terms
Packaging Outlet location Salespromotion
Differentiation
Warranties Transportation Publicity Allowances
Product lines Storage
Branding
PEOPLE PHYSICALEVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicatingculture and values
Signage Level of customerinvolvement
Employee research Employee dress
Other tangibles
Expanded Marketing Mix for Services