The Benefits of Service Marketing - Essay Example

SERVICE MARKETING . by Course Professor Institution City and state Date Service Marketing Bargaining Power of Members In the context of Australian Marketing Institute (AMI) scenario in regard to abrupt introduction of the levy to its members, among the five forces influencing services in an economy the bargaining power of members or the clients has its significant impact. The bargaining power of the consumers is a notable biggest force affecting the AMI’s business (Henry 2011). This force describes basically AMIS’s members and the strategic influences and impact of these members as the key major stakeholders of the Australian Marketing Institute. The members of the association have notably increased therefore the bargaining leverage and the ability of them negotiating and being part of the decisions made by AMI is inevitable. This force has significant influence because of its sensitivity to changes in the cost in this case the levy introduction and the members are concerned on the manner in which this introduction was communicated to them as well as the timing. Members are the key financiers of the Australian Marketing Institute and therefore have influence over the strategic directions ascribed by the Institute. The perceptions by the members on the value of the services offered by the institute to them affect the decisions and business operations of the institute (Conrad & Poole 2012). With the recent developments and concerns of members AMI should have a way of justifying the introduction of the levy. The Institute directors should convene a meeting for all the stakeholders and explain to them the relevance and importance of the underlying levy. They should also increase the level of stakeholder engagement more importantly in making decision that affects them (Schermerhorn 2010). Principles of Service Communication Challenges It is evident that AMI headquarters have violated in its communication of the service levy to its audience who are its members. The following are the notable key principles that have been violated. Communication Accessibility Directors at AMI headquarters have no well established channels that facilitate effective communication accessibility and the physical accessibility equally to all members. It is evident that they have not taken into consideration the use of effective accessible means that can accommodate its members (Tourish & Hargie 2004). There is no provision for the sufficient time for the provision of communication support. Directors at AMI can solve this issue by making sure that information should be sent to its audience at least 30 working days in advance before making key major announcement. Incorporation of Different Communication Support Needs Communication of the service levy to its members notably involves communication with members in need of different communication support needs. This is attributed to the large number of members of AMI. It is evident that AMI has not observed incorporation of inclusive communication which is necessary at all time. They should have provided information in regard to the communication of the service levy. Therefore it is important for AMI to engage in good communication practice so that they can reach their target audience more effectively and access their service at any time. To provide communication accessible services it is important for AMI to ensure that different formats of communication are adopted that meet customer needs (Tourish & Hargie 2004). Communication is a Two-way Process AMI have failed to ascribe to the principle of understanding and expression in their communication. Quality service delivery communication requires that there should be understanding between the service provider and the users of the service. AMI did not seek understanding from its members before communicating the introduction of the service levy. AMI should have initiated staff training so as to effectively communicate the matter to its members through speech, writing and other formats of communication (Tourish & Hargie 2004). AMI should have time allowance for understanding with its stakeholders mainly the members before making such important announcement affecting its business operations. Flexible Communication AMI in the announcement of the service levy did not adopt flexible communication approach. Therefore, with 6000 members they have not been able to fully match this communication approach with its member’s needs. They did not consider how the changes on levy service will be delivered affect its members. AMI should come up with an accessible service and adopt methods that are flexible in approach to its members. Effective Members’ Participation Approach AMI has not identified the full implications of the levy service and its underlying changes to the members. They did not involve the end-users mainly the members from the beginning of the service levy change process. AMI could have a proper plan for the service change to ensure that the communication process involve all the stakeholders. Persistent and consistent communication It is evident that AMI did not take into consideration that simple changes on the way of communication could have affected their service delivery. AMI could have adopted communication approaches that may take longer but deliver positive impacts and increase their members’ satisfaction (Ravens 2013). Enhancing Good Relationship with Existing and New Members The impact of the service levy introduction has affected the relationship between AMI and its existing as well as new members. It is important to develop good environment that facilitate understanding and cooperation thus enhancing solving of disputes amicably. The first step that AMI should take is to convene stakeholders meeting and establish committees from both the management team and members to discuss issues underlying the introduction of service levy in such short notice. It is important to hold these meeting on a regular basis and this will allow amicable discussion and resolving of issues among the Institute and its members. Secondly is the focus on participation and cooperation in all the Institutes activities (Missoni & Alesani 2013). It is important for AMI to encourage full participation of both existing and new customers in decision making, setting of goals and objectives and problem solving. The formed committees from both sides should come up with collaborative solutions. AMI should focus on effective training to both its management team and its members mainly on consensus-building. This will improve and enhance relationship between the stakeholders through sessions of rebuilding relations and discussion as well as mutual agreement between members and the Institute on specific areas of concern (Carroll 2015). Service Offerings that Ami Should Consider Implementing With the introduction of the service levy, AMI should consider improving its service offering by investing on key specific areas that will be of benefit to its members. The notable key areas that should be focused on considering investing include. Rolling out and Sponsoring Member for CPD Progamme AIM should invest in the introduction of this programme which will ensure its members achieve chartered marketing status. This initiative will enable members to remain professional, compliant and effective since the program ensure that member are up to date with new dynamics in the fast-moving corporate world of marketing. This program will also enable member to tract their progress and become recognized in their achievements thus member’s confidence is enhanced giving members additional credibility (Missoni & Alesani 2013, p. 38). This programme facilitates career development of its members as it enables them access to various range of tools. This requires AIM to invest in the establishment of a Professional Development Centre. Establishing Effective and Efficient Digital Means of Accessing Information AIM should invest further in the context of improving networking opportunities which will enable them share information and connect at every level in regard to marketing community both locally and internationally. It is also important to invest further in marketing magazines that brings out the latest thinking in marketing field from various leading global experts. They should also focus on the introduction of interactive webinars where members can readily access practical marketing knowledge at anytime. AIM should also focus on the fully establishment that offers free expert and legal advice to its members in regard to employment, business and other issues pertaining corporate world. Implementing Digital Means of Accessing Information Digital means of accessing information means that information can be easily accessed by members through websites, applications, and online documents. AIM investments on effective digital means of accessing information with ensure that information reaches its members timely and it will achieve greater membership engagement (Carugati & Rossignoli 2011). Implementation Scope The implementation of this initiative requires funding to ensure that it is fully implemented. It is important to note that this service offering faces the challenge of accessing adequate funding because of AIM budget constrain and commitment to other services deliveries such as maintaining and building memberships and other key service deliveries. AMI committee should take into consideration incorporation of best practice, effective leadership and focus on the realization of value to their members while implementing this service delivery. There is the potential failure of this service delivery offering if costs are not managed properly, inadequate staff training, lack of innovations that provide value to its members and lack of necessary skills and awareness to its members on the importance of embracing digital access of information. Ways of Solving the Underlying Challenges It is important for AIM to partner with a trusted partner that will facilitate digital accessibility of information to its members (Carugati & Rossignoli 2011). The chosen partner should be specializing in media access services and should focus on improving AIM professional development accessibility, website accessibility, organizational overall information accessibility strategy and availability of organization information online. AIM will also benefit from the partnership through collaborative leadership and research in regard to organizational digital accessibility issues. AIM should focus on the provision of cost effective training in digital accessibility for its members. It is important for them to allocate part of the dedicated funds for the investment on training members as an incentive and maximum utilization of the introduced service levy. Implementation of digital access of information should be grounded and found on the recognized global standards and best practices should be adopted so as to improve accessibility. AIM through member trainings should provide opportunity to its members to create networks which will enable them share marketing best practices, common effective initiatives and collaborative access of information. These solutions will ensure that AIM investment on improving digital access of information to its members becomes a success. Brand Strengthening AIM can strengthen its brand by uniquely and effectively executing its internal and external operations. AIM can strengthen its brand in the following ways. Effective Organizational Communication Process Integrating corporate communication is essential in the organization building and strengthening of its brand. This factor fall under internal and external brand strengthening is it involves communication with internal and external audience. Internal communication entails departmental communication on the other hand external communication involves audiences which include investors, regulators, employees and analysts. AIM can strengthen its brand through effective and efficient integration of its organization corporate communications (Aaker 2009, p. 72). Their brand will strengthen attributed to the service communication to its both internal and external audiences. AIM can also strengthen its brand through effective corporate communication framework that facilitates management of corporate entity and aligning resources with its mission and vision. Improving Media Relations AIM should focus on outward communications that advances its mission, vision and objectives. To strengthen its brand AIM should ensure that it keeps up with the current trends in the marketing corporate world. It should have an effective corporate means of advertising and information about the services. Effective application of media relations will ensure that AIM builds a positive reputation thus encouraging branding of its name. Membership Relations Membership relations basically focus on the internal communication and identifying and resolving key issues affecting members. The organization brand is strengthening when the corporate communications focuses on the improvement of members’ relations. Strong member relations strengthen the organization brand as it builds credibility in the eyes of the existing and new members (Seeger, Sellnow, & Ulmer 2003). Through best member relations AIM will be able to build a strong reputation as well as positive corporate identity. Government Relations AIM should have an effective communication means that aims to achieve all the compliance to the government regulative system. It is important for any organization to ensure that it adheres to the government set standards and regulation. This will ensure that the organization become responsive to the set ethical standards (Aaker 2009). Organizations with strong ethical standards and good government relations have strong brands and positive reputation. References Aaker, DA, 2009, Brand portfolio strategy: Creating relevance, differentiation, energy, leverage, and clarity. Simon and Schuster, New York. Carroll, CE 2015, The handbook of communication and corporate reputation. John Wiley & Sons, New York. Carugati, A., & Rossignoli, C 2011, Emerging themes in information systems and organization studies. Springer Science & Business Media, New Jersey. Conrad, CR., & Poole, MS 2012, Strategic organizational communication: In a global economy. John Wiley & Sons, New York. Henry, A 2011, Understanding strategic management. OUP Oxford, Oxford. Missoni, E., & Alesani, D 2013, Management of international institutions and NGOs: Frameworks, practices and challenges. Routledge, London. Ravens, C 2013, Internal brand management in an international context. Springer Science & Business Media, Boston. Schermerhorn, JR 2010, Management. John Wiley & Sons, New York. Seeger, MW., Sellnow, TL., & Ulmer, RR 2003, Communication and organizational Crisis. Greenwood Publishing Group, London. Tourish, D., & Hargie, O 2004, Key issues in organizational communication. Psychology Press, Chicago. Read More