CH15E-中山大學(xué)吳柏林教授-Kotler營(yíng)銷(xiāo)管理(第11版)-絕密資料

Chapter15-—DesigningandManagingServices

Overview:

AstheUnitedStatesmovesincreasinglytowardaserviceeconomyandbeyond,marketersneedtoknowmoreaboutmarketingserviceproducts.Servicesareactivitiesorbenefitsthatonepartycanoffertoanotherthatareessentiallyintangibleanddonotresultinownershipofanythingtangible.Servicesareintangible,inseparable,variable,andperishable.Eachcharacteristicposesproblemsandrequiresstrategies.Marketershavetofindwaystomaketangibletheintangible;toincreasetheproductivityofproviderswhoareinseparablefromtheproduct;tostandardizequalityinthefaceofvariability;andtoinfluencedemandmovementsandsupplycapacitiesbetterinthefaceofserviceperishability.

Becauseservicesgenerallyareintangible,customersperceivethemasamoreriskypropositionandevaluationmoredifficult.Accordingly,theytendtorelymoreonpersonalreferencesorinformationsources,reputation(brandnameandimage),andthepriceand/orfacilitiesoftheserviceproviderasanindicationofquality.Amongthemeansbywhichtheserviceprovidercanreinforcetheseelementsandovercometheperceptionsofriskistoreducethecomplexityinvolvedwiththeservice(paperworkandbureaucracy),stressthepositiveelementsoftangibilityintheservice,makeallcommunicationswiththecustomerveryclearandunambiguous,andfocusconstantlyonservicequality.

Serviceindustrieshavetypicallylaggedbehindmanufacturingfirmsinadoptingandusingmarketingconcepts,butthisischanging.Servicesmarketingstrategycallsnotonlyforexternalmarketingbutalsoforinternalmarketingtomotivateemployees,andinteractivemarketingtocreateskillsintheserviceproviders.Further,inthefuturecustomerswillusemoretechnicalandfunctionalcriteriatojudgethequalityofservices.

Evenproduct-basedcompaniesmustprovideandmanageaservicebundlefortheircustomers;infact,theirservicesbundlemaybemorecriticalthantheproductinwinningcustomers.Theservicemixincludespre-saleservicessuchastechnicaladviceanddependabledelivery,aswellaspostt-saleservicesincludingpromptrepairandpersonneltraining.Themarketerhastodecideonthemix,quality,andsourceofvariousproductsupportservicesforcustomers.Servicemarketers,tosucceed,mustcreatecompetitivedifferentiation,offerhighservicequality,andfindwaystoincreaseserviceproductivitywithoutreducingtheperceivedservicelevel.

LearningObjectives:

Afterreadingthechapterthestudentshouldunderstand:

Howservicesaredefinedandclassified

Thedistinctivecharacteristicsofservicesasopposedtogoods

Howservicefirmscanimprovetheirdifferentiation,quality,andproductivity

Howgoods-producingcompaniescanimprovetheircustomer-supportservice

ChapterOutline:

Introduction

TheNaturenatureofServicesservices

Definition:Anyanyactorperformanceonepartycanoffertoanotherthatisessentiallyintangibleanddoesnotresultintheownershipofanything.

Mayormaynotbetiedtoaphysicalproduct.

CategoriesofServiceserviceMmix

Puretangiblegood

Tangiblegoodwithaccompanyingservices

Hybrid

Majorservicewithaccompanyingminorgoodsandservices

Pureservice(degreeofpeopleandequipmentbasedserviceactivityprovidesanimportantvariableinthegoods-to-servicemix).

CharacteristicsofServicesservicesandThetheMmarketingIimplications

Intangibility-—servicescannotbeseen,heard,touched,tastedorfelt.Acriticalelementhereisthesignsorevidenceofservicequalitytotransformintangibleservicesintomeaningfulbenefits

Inseparability-—servicesareproducedandconsumedsimultaneously,andtheprovider-clientinteractionisanimportantaspectintheoutcome.

Variability-—thequalityofaservicedependsonwhen,whereandbywhomtheyareprovided,withtrainingacrucialdifferentiator.

Perishability-—servicescannotbestoredforlateruse.Thereareseveralstrategiesthatcanbeusedforproducingabettermatchbetweenservicedemandandsupply.

MarketingStrategiesstrategiesforServiceserviceFirmsfirms

Tthreeadditional““Ps〞〞:

peoplePeople(shouldbecompetent,caringandresponsive),

physicalPhysicalevidence(developmentofalookandobservablestyle),

Processes(howtheserviceisdelivered).

Goal:achieveahighlevelofinteractivemarketingbetweenproviderandclient.

ManagingDdifferentiation–—offering,fasterandbetterdelivery,image(perceivedbycustomers,andtodevelopadifferentiatedoffer,deliveryorimageasthealternativetopricecompetition)

ManagingServiceserviceQquality-—onewaytodifferentiateisthroughconsistentlyhigherqualityservicethatmeetsorexceedscustomerexpectations(perceivedversusexpectedservice).

Gapsthatcauseunsuccessfulservicedelivery(5):Gapbetween:

consumerConsumerexpectationandmanagementperception

managementManagementperceptionandservice-qualityspecification

serviceService-qualityspecificationsandservicedelivery

serviceServicedeliveryandexternalcommunications

perceivedPerceivedserviceandexpectedservice.

Determinantsofservicequality(5):

Reliability

Responsiveness

Assurance

Empathy

tTangibles

Excellentlymanagedservicecompanies-—commonalities:

Strategicconcept:"“customerobsessed"〞

Top-managementcommitment

highHighstandards

selfSelf-servicetechnologies

monitoringMonitoringsystems

satisfyingSatisfyingcustomercomplaints

satisfyingSatisfyingemployeesaswellascustomers

ManagingProductivityproductivity(approachestoimproveserviceproductivityandtoreducecosts)(7).

Goalistoavoidpushingproductivitytoohardd,and

Enhanceperceivedquality('“high-tech"〞versus'“high-touch."〞)

ManagingPproductSsupportSservices

Product-basedindustriesmustprovideaservicebundletocustomersandrespondtospecificcustomerworriesrelatedto

Reliability

Service

Dependability

Maintenance.

Post-saleServiceserviceStrategystrategy

Majortrendsinproductsupportservice(buildinginmorereliability,serviceunbundling,thirdpartyserviceorganizations,servicecontracts,risingcustomerservicechoices,risingqualityofcompanycallcentersandCSRs)

Summary

Lecture—:“ServicesMarketingIninthe21stTwenty-firstCentury〞

Thislecturefocusesonthechangingroleofstrategyinanimportantservicesmarketingsettingandthebroadervalueofeffectiveservicesmarketing.

TeachingObjectives:

Stimulatestudentstothinkaboutthedifferencesbetweenserviceandproductmarketing.

Developanunderstandingofsomeoftheareaswhereservicemarketinghaschangedandbecomeeffectivelymarketing-oriented.

Roleofservicestrategiesandpoliciesinhelpingthefirmachieveabettermarketposition.

Discussion

Introduction

Therearemanyareasofservicemarketingthathavelonghavebeenrecognizedandothersthatarejustbeginningtoemergemoreprominentlyforfutureattention.Thelatterincludestourism(excludingairlines,hotelsandtravelagencies),childcare,andbusinessservices.Thisdiscussionwillconsiderdevelopmentsinoneormoreoftheseareas.

TourismMarketing

TourismandrelatedareasofservicemarketingintheU.S.UnitedStatestraditionallyhaveoperatedinarelativelyfragmentedanddisjointedmanner.Interestingly,despitethevastamountofattentiongiventotourismintheUnitedStates.S.,therehasbeenverylittleefforttomarketitproperly.Infact,manyofourcompetitorsfortheinternationaltourismdollarplacefarmorecreativityandrawspendingontourismthantheU.SUnitedStates.TheUnited.StatesS.ranks33rdthirty-thirdintheworldinmarketingdollarsspentontourism,comingjustafterTunisia.

Themainconcernofmanyprofessionalsinthetourismindustryisthattheindustrymustfocusmuchmoreonpleasingcustomersandkeepingthemhappyandsecure.Otherwise,aswesawfollowingSeptember11,2001,touristsandothervisitorswilldefecttocompetitorswhoprovideabettersolutionfortheirneeds.

Fortunately,thereweresignsevenbefore9/11/01September11,2001,thattheprocesshadbeguntochange.AstheU.S.economybecamemorematureandservice-orientedduringthelate1990s,manyAmericancities,statesandfirmsjumpedonthetourismbandwagon.TheyrecognizedthateventhoughtourismwasthesecondlargestindustryintheUnitedStates.S.,thelackofaunifiedmarketingapproachworkedagainstestablishingcoherentmarketingplansandprograms.

Statesandcitiestraditionallyconductedmostpublicsectortourismmarketing,andwhilethefederalgovernmentdidsometourismmarketing,thefocusonotherspecialinterestprogramsresultedincutsfromthemeagersumsofthepast.Theprivatesector,hotel,motel,chains,etc.,havedoneandcontinuetodothemajorityofthetourismmarketingintheU.SUnitedStates.

Mainstreammarketers,whoavoideddirectinvolvementintourisminthepast,arebeginningtotakeapositiononthematter.Further,theimportanceofmarketingintheprocessisbecomingevenmoreevidentindiscussionsthroughouttheUnitedStatesU.S.Concernsarerisingaswelookatourinfrastructureintermsofwhetherornotitprovidesapleasingsituationforvisitors.Unfortunately,evenbeforetherecentsecurityconcerns,customsofficialsandothersatairportswerechidedforslowandsometimesungraciousbehavior.Thisisaprimecauseoftourismdissatisfaction.Perceivedfeelingsofdangeralsooftenarementionedasacatalystforaspoiledtrip,andthereareeffortsinmanystatesandcitiestocorrecttheproblemandtheperceptioneventhoughthesecuritypressureincreasedmarkedlyafter9/11/01September11,2001.Butthereareotherissues.Forexampleasubstantialnumberoftouristsarriveatourborderswithnoprovisionavailabletoexchangecurrency.Thiswouldnothappeninanyothermajordevelopednation.

Thereis,however,aneffortinmanyareastospotlightculturalresourcesthatattracttourists.ManytopproponentsofAmericanculturearedevelopingverymarketing-orientedstances,portrayingthevitalroleofAmerica’’sculturalheritageasamajortreasurethatdeservestobecarefullymarketed.Increasingly,thereisalsoaninterestinthedevelopmentofanationalstrategicmarketinganalysis.

Thereisrecognitiongiventowellmarketedattractionssuchasthe““NewOrleansDeltaBluesFestival〞〞thatarethewaveofthefuture.Theviewisthatitisnicetohaveexcellenttransportationandsmilingcustomsofficials,buttouristswillstayawayifthere’’snothingofinteresttoexperience.

GarrisonKeillor,of““PrairieHomeCompanion〞〞fame,andoneofthemostimportantfiguresinAmericanculturetoday,pointsoutthatwhileinfrastructure,aneducatedworkforce,andsuperiortechnologyareimportanttothehealthoftravelandtourism,inthefinalanalysismostpeopletraveltoAmericatoexperienceandcelebrateitsdiverseculturalheritage.

Wehavetobecareful,however,thatwedonotover-marketourculture.KeillornotesthatalthoughNewOrleansrecentlybuiltfinehotelsandaconventioncenter,thestrategicplannersseeminglyforgottonurtureyoungjazzplayers.Thus,thecityhasextraordinarytourismfacilitiesandareputationforexcellentmusic,butthebestexamplesoftheAmericanjazzculturearefoundinsmall,obscuretowns,notinNewOrleans.

Weshouldrecognizetheimpactofmarketingintourism.Consideringthetraditional4Psofmarketingtobeonlythetipoftheiceberg,weneedtotakeamacro-approachintourismmarketingbyplanninganddevelopingoptimum,long-termmarketingstrategiesforthetourismindustry,focusingonthebestinourcultureratherthansomeofthelesssavorysidesofAmericanlife.

MarketingandAdvertising

1.CIGNAoffersarangeoffinancialservicesforindividuals,businesses,andcorporateemployees.TheadinFigure1focusesonthebenefitsofbuyingthecompany'’slife,accident,anddisabilityinsurance.

a.WhoisthetargetmarketfortheCIGNAinsuranceproductsfeaturedinthisad?WhatdoesCIGNAdointhisadtomakeitsservicesseemmoretangibletothismarket?

b.WhatelementsofperishabilityandvariabilitymightCIGNAhavetoconsiderwhenmarketingitsservices?

c.Whatpostsalepost-saleserviceissueswouldbeparticularlyvitalforCIGNAcustomers?Howcanthecompanyaddresstheseissuesinitspostsalepost-postsaleservicestrategy?

Answer

:

a.Thetargetmarketisbusinessmenwithchildren,particularlyentrepreneursorsmallbusinessowners(judgingbythecopywording"“plansthatmakesenseforyourcompanyandforyou"〞).Tomakeinsuranceseemmoretangible,CIGNAmentionssomeofthecostlythingsthatparentsoftenbuyfortheirchildren,suchasbracesandcollege.Theadalsoshowsafatherhugginghischildren,whichmakesthesituationmoretangible.

b.CIGNAmightneedtoconsiderperishabilityintermsofhigherdemandforitsserviceswhileitsadcampaignruns.Duringthatperiod,CIGNAwouldhavetobereadytorespondtocustomersastheymakeinquiriesaboutinsurancepolicies.Also,end-of-yearperiodstendtobebusierforbusinessinsurance,soCIGNAmustbereadytohandlehighdemandatthattime.Regardingvariability,CIGNAmustensurethesamehighqualitycustomerserviceregardlessofthewayinwhichcustomerscontactthecompanyorthelocationoftheservicereps.Thisrequiresconsistentandongoingtraining,aswellasconsistentsupervision.Studentsmayofferotherideasaboutperishabilityandvariability,aswell.

c.Afterthesale,CIGNAcustomerswouldbelikelytocontactthecompanywithquestionsabouttheircoverage,tofileclaimsforpayment,andtodiscusspricingforrenewalorforadditionalcoverage.CIGNAcouldaddresstheseissuesthroughapostsalepost-postsaleservicestrategyfocusingonavailabilityofcustomerservicerepresentatives,periodiccontacts(bymail,phone,e-mail,etc.)toupdatecustomersaboutthestatusoftheiraccounts,andthroughadsandothercommunicationsthatreassurecustomersthattheyhavemadetherightdecisionbychoosingCIGNA.Studentsmayhaveadditionalsuggestionsaswell.

2.AstheadinFigure2shows,oneofthewaysKinko'’sdifferentiatesitsprintingservicesisbyassigningaCommercialAccountManagertoshepherdbusinesscustomers'’projectsfromtheplanningstagethroughprintingandon-timedelivery.

a.WhatprimaryandsecondaryservicefeaturesarepartarepartsoftheKinko'’soffering?

b.Howdoesthisaddemonstratethequalityofthepeople,physicalevidence,andprocessatKinko'’s?

c.Whichgapsindeliveringqualityservicemightbeparticularlyupsettingtoacustomerbuyingprintingservices?WhatdoesKinko'’sdotoreassurecustomersthattheywillreceivetheexpectedservice?

Answer:

a.Theprimaryservicefeaturesareone-stopprintingandcopying.Thesecondaryservicefeaturesincludepersonalizedservice(offeredthroughtheCommercialAccountManager),amongotherin-storeandonlinefeatures.

b.Becausephotocopyingservicesareintangibleuntilcustomershavetheprintedproductinhand,demonstratingthequalityofthepeoplehelpsdifferentiateKinko'’sfromitscompetitors.Here,theadstressesthepersonalattentionandexpertiseoftheCommercialAccountManager,aswellasthededicationoftheKinko'’steam"“toproducingqualitydocumentsontime."〞Asphysicalevidence,Kinko'’sshowsaneatlydressedKinko'’sco-workerinacorporateapron(stressinghisdedicationtoqualityandschedule)andaprofessional-lookingCommercialAccountManager(whoisreadytovisitthecustomer'’spremisestodiscussprintingneeds).Theadalsoexplainsthecompleteprocess,startingwiththeCommercialAccountManager'’svisittodiscussneeds,herabilitytotailora"“documentmanagementprocess"〞tomeetthecustomer'’sneeds,andherabilitytoworkwiththerestoftheKinko'’steamtogetthejobdoneontime.

c.Customersbuyingprintingservicesmightbeparticularlyupsetatagapbetweenperceivedandexpectedservice—inwhichcustomersexpectedonelevelortypeofservicebutperceivedthattheyactuallyreceivedanotherlevelortype—andatagapbetweenservicedeliveryandexternalcommunications—inwhichtheyfailedtoreceivethekindofpersonalized,quality,on-timeservicedescribedinthisad.Toreassurecustomersthattheywillreceivetheexpectedservice,thisKinko'’sadoffersatoll-freenumberforcustomerstocallwithquestionsorforinformationaboutCommercialAccountManagers.Italsolistssomeoftheprintingservicesthatcustomerscanutilize,includingelectronicfilesubmission,pickupanddelivery,and24-houroperation.

32. Adnumbertwohree:Ad#3

Concierge,thetravelplanningWebsitefeaturedinthisad,providesinformationalservicesas"“theonlinehomeofCondéNastTraveler."〞

a.CanConciergebeconsideredapuretangiblegoodorapureservice?Doesitfallinbetweenthetwoextremes?Whataretheimplicationsforitsmarketingstrategy?

b.WhyisinseparabilityaparticularlyimportantissueforonlineserviceproviderslikeConcierge?

c.HowmightConciergeuseself-servicetechnologytoenhanceitsoffering?

Answer:

a.Conciergeisamajorservicewithaccompanyingminorgoodsandservices,becauseithelpscustomerswithtravelplanning—whichentailstangiblessuchasticketstubs,airlineamenities,andsoon.Therefore,Conciergemustpaycloseattentiontothereliabilityofitsonlineservicesaswellasthequalityofthetangiblesthataccompanytheservice.

b.CustomerscannotseparatetheproductionandconsumptionofanonlineservicesuchasConcierge.Therefore,ifcustomersexperiencedifficultiesusingtheservice—suchasaninabilitytoaccesssomepartsoftheWebsite—theywillbedissatisfiedbecausetheyperceivethattheserviceisnotcompleteorlackstheexpectedquality.

c.Studentscanusetheircreativityinansweringthisquestion.Forexample,Conciergemightuseself-servicetechnologytoprovideone-clicklivetextorvoicechatwithrepresentatives,whichwouldaddahumandimensiontotheoffering.

4.Adnumberfour:Ad#4

BestBuyinvitesshopperstobrowsetheBestBuyWebsitebeforevisitinganyofitslocalstorestobuyelectronicsandappliances,asthisadindicates.

a.Ifconsumersstartbylookingatproductsontheretailer'’sWebsite,whateffectmightthisresearchhaveontheirserviceexpectationsoncetheyactuallygoshoppinginaBestBuystore?

b.HowisBestBuyusingthisadtomanageitsdifferentiation?

c.IsperishabilityaproblemforaretailerlikeBestBuy?Explain.

Answer:

a.BestBuyshopperswhostartbylookingattheretailer'’sWebsitemighthavemorerealisticexpectationsoftheproducts(andprices)theywillseeinthestore.Theywillalsohaveabetterideaoftheproductcategories,in-storeservices,andproductfeatures.Studentsmayprovideadditionalanswers.

b.First,BestBuyislettingcustomersknowthattheycanenjoytheconvenienceofshoppingatanyhourfromanywhereusingtheretailer'’sWebsite.Second,itisshowingthattheWebsiteandstoresfeaturethelatestproducts(suchasdigitalTVs).

c.PerishabilityisaproblemforBestBuy,becausetheretailercannotstoreitsservicesduringslowtimestouseduringpeakdemandperiods,suchastheyear-endholidaygift-givingperiod.Ifthestorecannotserveitscustomersduringpeakperiods,theywillbedissatisfiedandmaygoelsewhere.Thus,althoughadsmaybringcustomersintothestore,theywillbuyonlyiftheyreceivetheservicetheyexpect—andtheywillreturntobuyagainonlyiftheyreceivegoodservice.

OnlineMarketingToday

Asdiscussedearlier,Schwabcombineshigh-touchandhigh-techservicestoallowitsbrokeragecustomerstoplacetrades,researchsecurities,oraccessaccountinformationatanyhour.GeoffPenney,chiefinformationofficer,saysthecompany'’sstrategyemphasizes"“peopleandtechnologyworkingtogether"〞todeliverservice"“acrossallofourcustomertouchpoints...inourinvestmentcenters,onthephone,ontheWebsite,andwithoursoftwareproducts."〞Onthehigh-techside,Schwabcontinuallyupgradesitstechnologyfordifferentcustomersegments,includingspecialsoftwareforactivetraders.Onthehigh-touchside,thecompanyfocusesonhiring,training,andmotivatingitsskilledworkforce.

ToseeSchwab'’sonlineapproachtoservice,visititshomepageat.Notethedifferentlinksforcustomersandnon-customers.Alsolookatthearrayofinformationavailableonthehomepage.HowdoesSchwabmakeitsservicesseemmoretangibleonthissite?Whataspectsofthesitewouldbeparticularlyvaluabletoaveryactivetrader?Toafirst-timeinvestor?WhataretheimplicationsforSchwab'’sservicestrategy?

Answer:

Schwabmakesitsonlineservicesseemmoretangiblebyshowingarangeofservicesthatcustomerscanusetoexploreinvestmentsandmakefinancialservicesdecisions,suchasresearch,marketnews,stockquotes,andafreedemonstration.Averyactivetraderwouldparticularlyappreciatethefreereal-timequotes,whileanewinvestorwouldfindthe"“howto"〞investmentinformationvaluable.Schwabmustthereforeprepareaservicestrategythatwouldsatisfythedivergentneedsofthiswidespectrumofinvestmentcustomers,fromnovicestoexperiencedtraders.

You’’retheMarketer—:SonicPDAMarketingPlan

Allmarketersneedtodevelopaservicestrategywhenpreparingtheirmarketingplans.Iftheyaremarketinganintangibleproduct,theywillwanttoconsiderhowtomanagecustomers'’expectationsandsatisfaction;iftheyaremarketingsomethingtangible,theywillwanttocreatesuitablesupportservices.

YouareplanningproductsupportservicesforSonic'’snewpersonaldigitalassistant.Startbylookingovertheinformationanddecisionsalreadydocumentedinyourmarketingplan.Thenrespondtothefollowingquestionstomapyourservicestrategy(indicating,wherenecessary,anyadditionaldataorresearchyoumayneed):

WhatsupportservicesdobuyersofPDAproductswantandneed?Reviewwhatyouknowaboutthismarketanditsneeds;alsothinkaboutwhatSonic'’scompetitorsareoffering.

HowcanSonicmanagegapsbetweenexpectedandperceivedservicetosatisfycustomers?

Whatpostsalepost-postsaleservicearrangementsmustSonicmaketohandlerepairsandotherissuesthatariseafterthepurchase?

WhatkindsofguaranteesshouldSonicoffertobecompetitive?

WhattypeofinternalmarketingdoesSonicneedtobeabletoimplementitsservicestrategy?

ConsiderhowyourservicestrategywillsupportSonic'’soverallmarketingefforts.Summarizeyourrecommendationsinawrittenmarketingplanor,ifyouareusingMarketingPlanProsoftware,entertheinformationundertheProductOfferingheadingandtheServicesectionundertheMarketingMixheading.

Answer:

Sonicmayneedmoreresearchtouncoverspecifics,butingeneral,PDAbuyerswouldwantconvenientaccesstorepairservicesifneeded,aswellasagoodwarrantyofferandinformationaboutupgradesandupdates.Soniccanmanagethegapsbetweenexpectedandperceivedserviceby(1)managingexpectationsthroughcommunicationsthatexplainwhatthecompanyofferssocustomersdonothaveexpectationsthatexceedactualservicedeliveryand(2)researchingcustomersatisfactionandperceptionsofservicetouncoverproblemsthatcanbeaddressed.Tobecompetitive,SonicwillhavetoofferatleastthesameguaranteeasitmajorrivalsPalmandHandspring.IfSonic'’sproductsarebetterqualitythanthoseofrivals,itcantakeasmallriskandofferabetterguarantee.Sonic'’sinternalmarketingmustincludetrainingofcompanyemployees,distributors,andrepairorservicecenters;studentsmaysuggestadditionalinternalmarketingprograms.

MarketingSpotlight—:MerrillLynch

MerrillLynchwasfoundedwhenCharlesMerrillandEdmundLynchopenedanunderwritingfirmonWallStreetin1914.Thecompanybuiltalegacyofpersonalizedservice,andbecamethefirstmajorfirmtointroduceinvestingtothemassmarket.CharlesMerrillcoinedthephrase““BringingWallStreettoMainStreet〞〞andiscreditedwithhelpingtochangeconsumerattitudesaboutinvesting.MerrilladvocatedsoundinvestmentstrategyandmadeitaccessibletotheAmericanpublicusingadvertisementswithtitleslike““HowtoInvest.〞〞MerrillLynchhad400,000clientsby1956,makingitthelargestbrokerageinthecountry.In1971,thecompanyunveileditsnow-famousbulliconwithanadvertisingcampaigntitled““MerrillLynchIsBullishOnAmerica.〞〞In1977,MerrillLynchintroducedoneofitsmostinnovativeandsuccessfulproducts,theCashManagementAccount,whichcombinedchecking,moneymarket,andmarginaccounts.

AModernMerrillLynch

AsmoreAmericansturnedtoinvestingtoprotectandbuildtheirwealth,MerrillLynchdistinguisheditselffromotherbrokerageswiththefinancialsecurityitcouldprovide,thehighlevelofserviceitoffered,thepersonalcontactsitestablishedwithitsretailoffices,andtheadvancedfinancialresearchitperformed.AsMerrillaggressivelyexpandedintoinstitutionalinvestingandbankinginthe1980s,itsimageasamainstreetbrokeragebecamesomewhatmuddled.Thecompany’’sassociationwithhighfinanceandcorporateWallStreetbecameanegativeafterrecessionandscandalsshooktheeconomyinthe1980sandearly1990s.SoMerrillstreamlineditsoperationsanddevelopedadvertisingcampaignswiththemeslike““ATraditionofTrust〞〞thatwereintendedtoinspireconfidenceintheeverydayinvestor.Thecompanycontinuedtogrowitsretailbrokeragebusinessesandotherfinancialservicesduringtherestofthedecade.

Recently,MerrillLynchfounditselfunderassaultfromanunlikelysegment:discountbrokers.OnlinetradingsitessetupbydiscountbrokerslikeAmeritradeandCharlesSchwabattractedwavesofnewinvestorsastheInternettookholdinthelatterhalfofthe1990s.Merrillwasslowtomoveonline,primarilybecauseitsbrokerswerereluctanttoseethecompanygivetotalcontroloftradingtoinvestorsviaanonlineportal,andthecompanywasconcernedabouttheeffectofaproprietaryInternete-commercesiteonitsheritageasafull-service,customer-focusedbroker.Atthesametime,MerrillLynchwaslosingcurrentclientsandfailingtoattractnewonesasInternettechnologygainedpopularityamonginvestors.In1998,Schwab’’sassetsunderma