Closing the Customer Gap


The gaps model says that a service marketer must first close the customer gap between customer perceptions and expectations. To do so, the provider must close the four provider gaps, or discrepancies within the organization that inhibit delivery of quality service. The gaps model focuses on strategies and processes that firms can employ to drive service excellence.

Customer perceptions are subjective assessment of actual service experiences. Customer expectations are the standards or reference points for performance against which service experiences are compared and are often formulated in terms of what a customer believes will or should happen.

The sources of customer expectations consist of marketer-controlled factor (such as pricing, advertising, and sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-mouth communications, and competitive offerings). In a perfect world, expectations and perceptions would be identical: customers would perceive that they receive what they thought they would and should. In practice these concepts are often separated by some distance. Broadly, it is the goal of service marketing to bridge this distance.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Advertisements

Exceeding Customer Expectations


We often focus on meeting customer expectations by closing the gap between customer perceptions and expectations. There’s a difficulty in meeting expectations because of all the factors that must be coordinated to deliver on the firm’s service promises. However, an increasingly popular service maxim urges companies to “exceed customer expectations.”—to delight, excite, surprise, and otherwise amaze. According to this formulated belief, merely meeting customer expectations is not enough; a company must exceed them to retain customers. This is an appealing slogan as well as one that sets a high performance standard for employees, but it holds the potential to overpromise to both customers and employees. In attempting to exceed customer expectations, a company must understand a) what type of expectations can and should be exceeded, b) what customer group or segment is to be targeted, and c) the impact exceeding  expectations has on future expectations of customers.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Global Marketing Place


Several factors have forced countries to extend their economic views to events outside their own national borders. First, international agreements are being negotiated in attempt to increase trade among nations. Second, the growth of electronic commerce and related computer technologies brings previously isolated countries into their marketplace for buyers and sellers around the globe. Third, the interdependence of the world’s economies is a reality since no nation produces all of the raw material and finished goods purchased by its citizens or consumers of all its output without some exporting to other countries. Evidence of this interdependence is illustrated by the introduction of the Euro as a common currency to facilitate trade among the nations of the European Union and the creation of trade alliances.

Service firms also play a major role in today’s global marketplace. In many cases, global marketing strategies are almost identical to those used in domestic markets. Rather than creating a different promotional campaign for each country, marketers use the same ad with spectacular results.

Domestic marketing strategies may need significant changes to adapt to unique tastes or different cultural and legal requirements abroad. It is often difficult to standardize a brand name on a global basis.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Material Requirements Planning (MRP)


A production plan may be broken down into three major parts:

  1. The master production schedule (MPS)
  2. The material requirements planning system (MRP)
  3. The detailed shop schedule.

Each of these three parts is often complex. Remember that the aggregate planning level aggregates both products and resources. MPS and MRP are at the one lower tactical planning level: resources remain aggregated, but products are dealt with at the individual product level. MRP aggregates resources by simply assuming any product can be produced by waiting a given lead time. The detailed shop schedule takes the schedule proposed by MRP and produces from it a more realistic schedule that considers actual machine availability. Customer orders basically drive the MPS, which in turn drives MRP, which orders raw materials and production of various stages and quantities in order to meet demand in a timely fashion.

The control of the production system has three parts, each of which uses as input the output of the previous part:

  • Part A—Collect and integrate the information required to develop the master production schedule.
  • Part B—Determine the planned order releases using MRP.
  • Part C—Determine detailed shop floor schedules and resource requirements.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Regulation, Deregulation


Regulation is the increase or expansion of government regulation, especially in areas where the regulatory activities had previously been reduced. Deregulation is the removal or scaling down of regulatory authority and regulatory activities of government.

There is legitimate need for government regulation in modern economies, but regulation is not without its problems. Businesses feel these problems first-hand, often because the regulations directly affect the cost of products and the freedom of managers to design their business operations. In the modern economy, there are serious issues of regulatory cost and effectiveness that cannot be overlooked.

The call for regulation may seem irresistible to government leaders and officials, but there are always costs to regulation. In recent years, more attention has been given to the costs of government regulation. An old economy adage says, “There is no free lunch. Someone equally has to pay for the benefits created.” This is the rule of cost, and it applies in all socio-economic systems, whether free market or central state control.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Role of Entrepreneur


An entrepreneur is an individual who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something. The free enterprise system provides the conditions necessary for entrepreneurs to succeed. In the past, entrepreneurs were often inventors who brought all the factors of production together to purchase a new product.

Entrepreneurs are constantly changing business practices with new technology and innovative management techniques.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Previous Older Entries