Service Marketing 4 - (Service Promotion)

8/9/2019 Service Marketing 4 - (Service Promotion)

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FOURTH P

PROMOTION


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INTEGRATEDSERVICESCOMMUNICATION


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CUSTOMER

COMPANYExternal

Communicationsto CustomersGAP 4

Service Delivery

Provider GAP 4Provider GAP 4


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Promotional tools The promotional mix, consists of a

blend of marketing tools that include

the following five main promotionaltools:

Advertising

Personal selling

Sales promotion

Public relations

Direct marketing


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The marketing

communications system


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The changing

communications environment

Two major forces have changed marketing

communications:

Mass markets have fragmented and emphasis

is focused on building relationships withcustomers in narrowly defined targeted

market segments.

New technologies have opened opportunities

for unique communication methods

associated with media fragmentation from CDcatalogues to interactive television.


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The need for integrated

marketing communications


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Positioning ofS

ervice

Development of Service

Concept by identification of

attributes

The purpose of using the service

The Decision maker

The timingUser is an individual or a group

Composition of the group


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Positioning ofS

ervice

1 Distinguish between

Important and Determinant

attributes

Quantifiable and Qualitative

(highly judgmental) attributes

2 Avoid Undesirable position

Fuzzy position

Unknown position


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Brand positioning


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Branding


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HOW IS A BRAND BORN?

Humans are constantly accumulatingobservations of the surrounding world.

Brand contacts may emanate from many

sources Designed messages (e.g. advertising, brochures)

Product messages (such as the physical structure..) Service messages (e.g. contacts during the service

process..)

Unplanned messages (e.g. word of mouth, news)

Customers form their personal perception of a brandfrom individual morsels of information

Brand contacts - Brand relationship - Meaning


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BrandingCOMMODITY

BRAND

PRODUCT

INSTITUTIONUNIQUE

IDENTITY+

+

Brand is defined as signature of commitments.

Branding should be fresh, contemporary, consistent,

coherent, continuous and unique.


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Branding Key questions:

Real value in the customers

mind.

Factors underlying that value.

Capture and captivate value in a

singular conveyance.


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Brand Building -

Methodology

Design elements that represent

image/essence of the

company/product after

identifying the Single most

important output

Set stage for proper framework both from strategic and

creative standpoint


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Brand Needs -

Positioning Redefined

What is

Consumer looking for?

In consumers mind that already

belongs to competitors?

That belongs to/ could belong to

our brand?


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B

ridged Needs

A key insight validated many

times over is that thefunctional and physiological

benefits of a brand should be

capable of description by theSAME SINGLE WORD.


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B

ridged Needs Integrated idea

Big, relevant, motivating, UNIFYING idea

Relate to product/service as a whole BUT

More than one competing Brand may be

offering a satisfaction or partial

satisfaction of the category need


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B

ridged Needs

FunctionalFunctional(F)(F)

PsychologicalPsychological(P)(P)


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Bridged Needs

Example

Is about PrestigeCitibank

Is about user

friendlinessMicrosoft

Is about hospitalitySingapore

Airlines

Is about beautyLux

Is about healthLifebuoy

Is about protectionColgate


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Bridged Positioning

Brand needs to offerBestexpression of chosen Bridged

Need DISCRIMINATING. Discriminator allows the brand

to appropriate to itself aBridged Need, by offering most

compelling way of satisfying theneed

BRIDGED POSITIONING.


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DISCRIMINATOR (D)

BRIDGED NEEDS (F)

BRIDGED POSITIONING (P)

Bridged Positioning


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Bridged Positioning-

Example

BRANDBRIDGED

NEEDS

BRIDGED

POSITIONING

Colgate Protection Total Protection

Lifebuoy Health Germ Killer

Lux Beauty Glamorous Beauty

Singapore

AirlinesHospitality Oriental Hospitality


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Branding Idea

Example

BRANDBRIDGED

POSITIONINGBRANDING IDEA

Colgate Total Protection Insulating Ring

Lifebuoy Germ KillerSportsmen &

Workers

Lux Glamorous BeautySoap of the

starsSingapore

AirlinesOriental Hospitality Greeting Cards


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Positioning

(Distinguishing Difference)

Difference Importance

Highly Valued to the Prospect

Distinctiveness

Distinctly Superior to competitor Communicability

Possible to communicate in simple and strong way

Superiority

Not easy to be copied

Affordability

Customer willing to pay more

Profitability

Generate additional profit


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Feedback measurements for two brands


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Alternative Positioning based on

Service Characteristics

Response to a

CharacteristicsBasis for Position

Intangibility Offer a tangible

representation

Reputation and special

capabilities

Expertise position

Reliability position

Innovativeness position

Performance position

Offer an augmented

product

Product Augmentation

Extra services


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Response to a

characteristics

Basis for Position

HeterogeneitySuperior selection,

training, and monitoring of

contact personnel

People advantage

Package the service More attractive

packaged offering

Industrialize the service

production process

Superior product

through technology


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Response to

CharacteristicsBasis of Position

Inseparability

Use multi-size locations Accessibility

Customize the service Extra attention given to

individual requirements.

Offer a complete

service line

Satisfaction of more user

needs


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Positioning Strategy

Schematic

Action Plan

Analysis of differentdifferentiation

against competition

Selection ofappropriateattributes

Articulationof Positioning

CompetitiveAnalysis

InternalAnalysis

Target

SegmentationMkt. Analysis


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Food for thought

The McDonalds brand logo is

now more recognised than theChristian cross


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Brandscapes

British Airways Toyota Nat Geographic AT&T Switch Nectar

Cumbria Thistle Hotels Kluwer Springer SHEFC Emerald BUBL


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Birth of a brand

Focal point in brand building for physical products

4

3

MANAGEMENT

CUSTOMER 1

5

2

EMPLOYEE EMPLOYEE EMPLOYEE

4

ManagementCustomer

5

2

Employee Employee Employee

Focal point in brand building for service products


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Search for Competitive Advantage in

Services Requires Differentiation and

Focus

Intensifying competition in service sector threatensfirms with no distinctive competence andundifferentiated offerings

Slowing market growth in mature service industriesmeans that only way for a firm to grow is to take sharefrom competitors

Rather than attempting to compete in an entire market,firm must focus efforts on those customers it can serve

best

Must decide how many service offerings with whatdistinctive (and desired) characteristics


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Basic Focus Strategies

forServicesBREADTH OF SERVICE OFFERINGS

NUMBER

OF MARKETS

SERVED

Narrow

Many

Few

Wide

ServiceFocused

Unfocused(Everything

for everyone)

MarketFocused

Fully Focused

(Service andmarket focused)


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Four Principles of

Positioning Strategy1. Must establish position for firm or product in

minds of customers

2. Position should be distinctive, providing one

simple, consistent message

3. Position must set firm/product apart from

competitors

4. Firm cannot be all things to all people--must

focus

Jack Trout


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Developing a

Market Positioning Strategy

- Size

- Composition

- Location

- Trends

Marketing

Action

Plan

MARKET

ANALYSIS

INTERNAL

ANALYSIS

- Resources

- Reputation

- Constraints

- Values

COMPETITIVE

ANALYSIS

- Strengths

- Weaknesses

- Current

Positioning

Define, Analyze

Market Segments

Select

Target Segments

To Serve

Articulate

Desired Position

in Market

Select Benefits

to Emphasize

to Customers

Analyze

Possibilities for

Differentiation


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Positioning of Hotels in Kolkata:

Price vs. Service Level

Expensive

ParkHigh

ServiceModerateService

Grand

Taj

Great Eastern

Kennilworth

Airport AshokRaat Din

Park guest house

Hindustan

Peerless

LessExpensive


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Positioning of Hotels in Kolkata:

Location vs. Physical Luxury

High Luxury

ShoppingDistrict

andConventionCentre

Hindustan

Moderate Luxury

Financial

District

Inner

Suburbs

GrandTaj

Park

Airport AshokPeerless

Kennilworth

Park Guest House

Great Eastern

Raat Din


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Positioning after New Hotel

Construction:

Price vs. Service Level

Expensive

Great EasternHigh

ServiceModerateService

TajHyat

ITC Sonar BanglaGrand

Hindustan

Park

Kennilworth

Airport Ashok

Lansdowne hotel

Park Guest House

Peerless

Raat Din

No action?

Action?

Less Expensive

Astor


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Positioning after New Hotel

Construction: Location vs. Physical

LuxuryHigh Luxury

DLF

FinancialDistrict

InnerSuburbs

Hyat

Taj

ITC

Splash ClubGrand

Airport

AshokHindustan

LansdowneRaat Din

Park Guest

House

Peerless

Astor

No action?

Action?

Moderate Luxury

Kennilworth

ShoppingDistrictandConventionCentre


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Positioning Maps Help Managers

to

Visualize Strategy Positioning maps display relative performance of competing firms

on key attributes

Research provides inputs to development of positioning maps

Challenge is to ensure that

attributes employed in maps are important to target segments

performance of individual firms on each attribute accurately

reflects perceptions of customers in target segments

Predictions can be made of how positions may change in the light

of new developments in the future

Simple graphic representations are often easier for managers tograsp than tables of data or paragraphs of prose

Charts and maps can facilitate a visual awakening to threats and

opportunities and suggest alternative strategic directions


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Promotion-Media Mix

selection TVscores over others in Tangibalizing the

intangibles

Print is preferred for financial products needing

communication of rational details/ arguments Hoardings are used for brand reinforcement, as

reminders or for location guidance

Direct Mail used to knock at the target more

concentradedly

Event sponsorship is used to popularize brand Word of Mouth works best


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Effective Promotion Strategy

in Service Mktg. Develop a calendar of promotion (which

product, when, in which market, with what

objective, technique)

Limit promotion objective

Limit time

Decide promotion tie-ins

Consider promotion overlays

Ensure appropriate differentiation

Evaluate effectively


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Methods used to set the

promotional budget Affordable method

Setting budget at what the company canafford.

Percentage of sales method Setting the budget at a determined

percentage of current or forecasted sales,or as a percentage of sales price.

Competitive parity method

Matching competitor spend.

Objective-and-task method

Defining specific objectives and settingbudgets for those objectives to be achieved.


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Holistic Marketing for

Services


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Communications and theCommunications and the

Services Marketing TriangleServices Marketing Triangle

Internal MarketingInternal MarketingVertical Communications

HorizontalCommunications

Interactive MarketingPersonal Selling

Customer Service CenterService Encounters

Servicescapes

External MarketingCommunication

AdvertisingSales PromotionPublic RelationsDirect Marketing

Company

CustomersEmployees


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Goal:Delivery

greater thanor equal topromises

PrepareCustomers

for theServiceProcess

ClarifyExpectationsafter the Sale

Approaches forApproaches forImproving Customer EducationImproving Customer Education

TeachCustomersto Avoid

PeakDemandPeriods

andSeek Slow

Periods

ConfirmPerformanceto Standards


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Integrated Services

Marketing Communications

Concept of Integrated Services Marketing

Communication

Key reasons for service communication problems

Four key ways to integrate marketing

communication in service organizations

Specific strategies for managing promises,

managing customer expectations, educating

customers, and managing internal communications

Perspective on the popular service objective of

exceeding customer expectations


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Approaches forIntegrating Services MarketingCommunication

Goal:Delivery


ImproveCustomerEducation

ManageService

Promises

ManageCustomer

Expectations

ManageInternal

MarketingCommunication


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Goal:Delivery


OfferService

Guarantees

CreateEffectiveServices

Communications

MANAGING SERVICE PROMISES

MakeRealisticPromises

CoordinateExternal

Communication

Approaches forApproaches for

Managing Service PromisesManaging Service Promises


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Communicate Criteria forService Effectiveness

Create Tiered-ValueOfferings

Approaches forApproaches forManaging Customer ExpectationsManaging Customer Expectations

NegotiateUnrealistic

Expectations

Goal:Delivery


Offer Choices


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Goal:Delivery


Approaches for ManagingApproaches for ManagingInternal Marketing CommunicationsInternal Marketing Communications

Create EffectiveVertical

Communications

Align BackOffice Personnel

w/ External Customers

Create EffectiveHorizontal

Communications

CreateCross-Functional

Teams


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QuestionsQuestions

Date post:	30-May-2018
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Service Marketing 4 - (Service Promotion)

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