Promotion and Communication of Services

7/28/2019 Promotion and Communication of Services

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Promotion andCommunication of Services

Dr. Nripendra Singh


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Objectives of the Session

To understand

Importance of Communication and its Types

Communication Issues for Service Marketers Objectives of Promotions

Elements of the Promotion Mix

Promotional Strategies for Services

How to Design a Specific Service Promotion

Strategies for Effective Promotions


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Importance of Communication and its Types

Helps the organization to stay in touch

with internal and external customers.

An organizations success depends on

communicating effectively with its external

and internal customers

Internal Communication

External Communication


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Types of Communications

Types of

communication

Internal

communication

External

communication

Oral Intercom (internaltelephone lines)

Telephone, customer call

centers

Written Newsletters, internalmemos, notice boards

Company newsletters,statements, business

magazines

Face to face Meeting,presentations

seminars

Seminars, meetings,

presentations at the client

premisesOnline e-mails, internet,

intranet, websites

Internet, official websites

Media Advertising through print,radio, television


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Objectives of Promotions

To increase the awareness of customers

about the new services.

To encourage the intermediaries

To face the competition


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Elements of the Promotion Mix

Promotional mixElements

Advertising

Publicity &Public relations

PersonalSelling

Direct

MarketingSales promotions


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Personal Selling

Personal selling involves

persuading an existing or a potential

customer

through oral communication

to purchase the service offering of the

company.

Aims to develop a rapport with the customer To enjoy a high success rate.


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Chapter - 12 8

Advertising

Advertising Types

Broadcast

Print

Newspapers

Magazines

CinemaTV

Radio

Internet

Outdoor and retail

Bill boards and posters

Electronic displays

Transit advertising

Retail store displays


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Sales Promotions

Used by companies

to improve the sales of a product or service

by encouraging the existing customers to use the

service more frequently

by attracting new customers to use their services.

through

Discounts,

Allowances,

Allowances to intermediaries


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Publicity and Public Relations

Publicity

To create awareness about their offers among the existing

and potential customers and even the general public.

Public relations To maintain good relations with a companys employees,customers, stockholders, government, regulatory

authorities, and general public at large.

It is aimed at enhancing a companys image and prestige

among its internal and external customers.


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Direct Marketing

To contact the existing and potential

customers directly through

Telemarketing,

Directing mail,

Online marketing (e-mail and official

websites),

without employing any intermediaries in theprocess.


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How to Design a Specific Service

Promotion?

Which service to promote

Who would be the target customer

What would be the value added to the product/brand

Is the timing right for promotion and how long shoulda promotional campaign be run.

Is the timing right for promotion and how long shoulda promotional campaign be run

Who is benefited from the promotions How to differentiate a promotional campaign


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Strategies for Effective Promotions

Effective planning

Focused objectives

Perfect timing

Adding value through tie-ups andpromotion overlays

Employee motivation

Well differentiated

Regular evaluation of the campaign


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Exercise

Develop a promotion campaign for a luxury

hotel.

Focus on what will be the content and media

used for promotion.


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Case: Westin Starwood Hotels Purpose/core service to provide rest to tired

travelers. Therefore to promote at such aplace/position where the customer can relatetiredness and relaxation.

Local Train Station

Escalator waterfall Train compartments (Cars)

Under water world

Snow covered mountains

Green rainforest

Sauna bath

Tunnel walls Blooming Flowers & Waves Crashing (Flip book Effect)

Non-traditional Media Shuttle, Escalator,

Platform Wraps; 3D Billboards - Skydivers


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Role of Marketing Communication

Position & Differentiate the Service

Can Airlines advertise Safety?

Promote the contribution of employees

Maths Tution - Jha Sir; Qualification & Credentials

Promote the Backstage Operations

Bourneville Chocolate How coffee beans are

selected from Ghana; Starbucks

Open Kitchen concept Haldiram, Doughnuts


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Role of Marketing Communication

contd.

Add value through comm content Messages set expectations reasonably realistic

Facilitate Customer involvement in Service Production

Doctors use video before operation cust know what to

expect; will be cooperative. Price discounts to promote new services, or vice-versa

like Citibank charges a Penalty to promote ATM or Online

Stimulate or Dampen Demand

Saloons do not get business on Tuesday; Big Bazzar onwednesday

Airlines and Hotels upgrading room and free breakfast

Limited menu Only Thali, during lunch time


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Challenges of Services Comm

Problems of Intangibility Generality: Seats and Services are similar in Airlinescreate a distinctive value proposition by comm -superior than competitors.

Abstractness: Difficult to promote Financial Security,

Expert advice, Safe Transportation createcomparative charts, graphs.

Nonsearchability: Credence attributes createevidences by sharing satisfying experiences ofprevious custoomers Compliment/Suggestion

registers in Hotels Mental Impalpability Services can be complex and

novel create story lines to show the benefitsMaggi, Insurance (LIC); Testimonials Photo ofcelebrity in saloons and hotels.


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Challenges of Services Comm contd.

Tangible Cues Use pictures/artifactsChefs signatures, Cake

developed for Tom Cruse at Leela Palace.

Comparative Data Design a campaign for rides

like roller coaster in a Theme Park.

Use Metaphors

Rock of Gibraltar used by Prudential to show

corporate strength. Amitabh Bachan and Shahrukh Khan in ICICI Bank

for sustainability and long-term performance.


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Message through Service Delivery Channels

Service Outlets: Servicescape Crafting theService Environment

Frontline Employees: face-to-face, telephone,

email. Especially important for New Customers;For up-selling and cross-selling eg. ICICI Banktried to cross-sell Insurance policy.

Self-Service Delivery Points: Clear signage, Step-

by step instructions (diag or video), extremelyuser-friendly, cross-selling or promoting newservices eg. ATM

S f M i d b t t


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Sources of Messages received by target

audience

Sources of messages recvd. by a

Target Audience

Marketing ChannelsWord of mouth

Blogs and online ratings

Media editorialAdvertising

Public relations

Online marketingWeb site

Direct marketing

Sales promotion

Personal selling

Product Channels

Front line employees

Service outlets

Self service delivery points

Messages from outside theOrganization


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New Media (used by service providers)

TiVo: Digital video recording; Stores up to some 30minutes of TV programs; Though it is negative forAds, but Measurable, as it confirms how many

users have recorded it; Eg. Schwab & Co put a 30sec spot which could be converted to 5 min. videoon Pro Golf Program.

PODCASTING: iPod + Broadcast eg. Webinar, video &

mobile podcasting, Blogcast (attach AV file onblog); used by consultants, trainers and institutionsas it confirms that viewer is interested in a specificshow.

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New Media contd.

Mobile Ads: Mobile + GPS can be used to

promote services in real-time. Eg. As u enter a

Mall u get a discount coupon for shops.

Web 2.0: umbrella term used for social media

like You Tube, FB, Twitter etc. Service

providers do use these to make selective

comments on it.

You Tube: Lukes Panacea81, video tutorial on

make-up tips.

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Messages Originating from Outside

Organization

Word of Mouth: most powerful tool for services

Creative ads are made for people to talk positive about the coeg.Virgin Atlantic (James Bond; too revealing dress of a student), Idea,Vodafone, Insurance etc .;

Referral incentive scheme ;

offer-promotions eg. On Two subscriptions, Fee for third is waivedoff.

Pass Along Emails: Viral marketing to promote untapped potential

People respond to jokes, virus alerts, stories, religious message,voting eg. Anna Hazare movement

Research proved that 40% messages are actually forwarded,therefore firms can use it effectively, by creative writing so thatreceiver believe on it.

Online WOM: Blogs and other social media

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Chapter - 12 25

Thankyou

Promotion and Communication of Services

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