Effective Service Promotions

7/29/2019 Effective Service Promotions

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Effective Service Promotions


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A firms promotion or communication strategy informs,

persuades and reminds target markets, including

customers, employees and stockholders about the firms

goods and services.


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The term communication mix describes the array of

communication tools available to marketers that deliver the

firms communication strategy.

Like products, managers of service firms need to select theappropriate communication tool to convey their message.


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Communication tools

Tools EffectPersonal selling Two-way communication

Advertising Faster, greater reach

Publicity Credible as communicated by third

party, cheap

Sales Promotion Ensures short-term gains

Sponsorship Allows to target narrow, desired

target audience and provides option

to adapt to customers changing

media habits


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Service Communication Strategy


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Selecting Target Markets

Target

Markets

Profit

Growth

Potential

compatibil

ity with

orgnl

resources

Objectives


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Setting Communication Objectives

PLC Stage CommunicationObjective

Communication Tactic

Introduction Informational Introduce the service offering

Create brand awareness

Prepare way for personal efforts

Encourage trial

Growth & Maturity Informational &

Persuasive

Create a positive attitude relative to

competitive offerings

Provoke immediate buying action

Enhance firms image

Maturity and Decline Persuasive &

Reminder

Encourage repeat purchase

Provide ongoing contact

Express gratitude to exiting customers

Confirm past purchase decisions


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Deciding Communication Budget

Budget Setting Technique DescriptionTop-down Budgeting Budget set by upper management

Bottom-up Budgeting Budget set by product-level or brand manager

Bottom-up/ Top-down Budgeting Budget set by product-level or brand manager

and revised by upper management

Top-down / Bottom-up

Budgeting

Budget set by upper management and revised

by product-level or brand manager

Percentage of Sales Technique Budget is set as a % of Sales

Incremental Technique Budget is increased by a fixed % every year

Affordable Technique Budget is set on what you can afford

Competitive Parity Technique Budget is set on the basis of competitive

behaviour

Objectives and Tasks Techniques Budget is set on the amount necessary to

achieve a set of tasks


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Formulating Positioning Strategy

Positioning strategy is how the firm is viewed by consumers

relative to its competitors.

Positioning strategy speaks of the firms differential

advantage.


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Formulating Positioning Strategy

Product Differentiation Personnel Differentiation

Features CompetencePerformance Courtesy

Conformance Credibility

Durability Reliability

Reliability Responsiveness

Repairability Communication Style

Design (integrates the above)

Image Differentiation Service Differentiation

Symbols Delivery (Speed, Accuracy)

Written Audio/ Visual Media Installation

Atmosphere Customer Training

Events Consulting Service

Repair

Misc. Service

Documents

Effective Service Promotions