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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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Alternative Positioning based on
Service Characteristics
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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Alternative Positioning based on
Service Characteristics
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
greater thanor equal topromises
ImproveCustomerEducation
ManageService
Promises
ManageCustomer
Expectations
ManageInternal
MarketingCommunication
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Goal:Delivery
greater thanor equal topromises
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
greater thanor equal topromises
Offer Choices
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Goal:Delivery
greater thanor equal topromises
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
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