service marketing ppt

Presented ByGroup 7

HepsyJikku John

MayaReshmaReshmiSherin

MARKETING PLANNING PROCESS

IF YOU DON’T KNOW WHERE YOU ARE GOING,IT DOESNOT MATTER WHICH WAY YOU ARE GOING: Lewis Caroll through the words of Cheshire cat in Alice in Wonderland

Definition

• It is the process by which an organization sets goals and formulates strategic plan for achieving them.

Service Marketing Planning Process

Strategic Context

Resource Allocation and Monitoring

Marketing Strategy Formulation

Situation Review

• Establishing strategic context:

- The mission statement - defines the purpose of its existence and its philosophy and provides direction to the management.

- E.g. Walt Disney

- In annual reports, websites, internal notice boards, conference rooms.

- Corporate objectives- aligned with mission

-act as scales to measure the company progress towards achieving mission.

- established in different mngt areas like customer service, innovation,

quality, empl perf,market share etc.

• Situation Review:

- Analyze the external and internal environment –competition, social economic conditions, political legal factors.

- Internal Env: strength and weakness of an org., fund position, labour mngt etc.

- Marketing audit is a systematic process of reviewing and evaluating a company’s operation.

-

-Analysis of market conditions, org conditions, env conditions and competition.

- carried out every year before the marketing plan is formulated.

- position and strategy of competitors, attractiveness of market, lifecycle stage of service needs to be considered.

Marketing Strategy Formulation

-here actual planning takes place.

-management tries to formulate strategies which are in line with corporate objectives.

-this includes – Establishing marketing objectives.– Formulating strategies.– Estimating expected results.– Identifying alternate strategies.

Resource Allocation and Detailed planning

• Last step in the planning process.• To execute the strategic plan we need to

allocate the resources.• The strategic plan needs to be divided into

short term and long term plans.• For each of these sub plans d detailed plan

needs to be laid down which specifies the objective ,the time limit and resources required.

Implementing the marketing plan

• To execute the plan effectively, the management should assign responsibilities to different departments and staffs.

• Need to arrange for the required funds and infrastructure facilities.

• The management should conduct regular meetings with the marketing team.

• Need to develop marketing budget for each year.

Monitoring ,review and control

• It is important to ensure that the organization is heading in right direction.

• Large service organizations collect information and prepare periodic reports for better monitoring (e.g.: sales reports).

• The report generally include information on – employee productivity– Costs incurred on marketing activities.

– Change in market share.– Revenues, profit , ROI– Effectiveness of advertisement.– Number of customer complaints

• Different techniques such as BCG matrix, Multiple Factor portfolio model, Life cycle analysis.

Distribution of services

• Distribution strategies of services are different from those for packaged goods.

• Since services are produced and consumed at the same point and cannot be inventoried, there is no scope for any inventories.

• E.g.. ICICI prudential Life insurance

- developed a multi channel distribution strategy.

- bancassurance(offering banking and insurance products at one time)

- direct marketing through individual agents, finance service consultants.

- runs operations at 23 locations.

- 43,000 advisors,12 bancassurance tie ups.

• ICICI prudential has an innovative way to distribute its products to Mumbai customers.

• Around 2 lakh people employed in Mumbai get their lunch from dabbawallahs. Who have a wide distribution network.

• The company sends around 50,000 direct mailers to office goers by hanging a mailer to the handles of meal dabbas.

• The distribution is timed perfectly – around the end of financial year when employees think of tax saving and planning to invest in financial services.

• Interested customers can fill up forms and mail it on a convenient time to interact with company agents.

Channel options for service providers

Service providers

Customerfranchisees

Electronic channels

Seller’s, buyer’s agents

Agents or brokers

Promotion of services

IntroductionWhy promotion for services?

• Intangible characteristics

Service providers often find it difficult to tangibilize their services in order to appeal to the target customers.

• Financial auditors, doctors, lawyers, tax consultants cannot advertise on an individual basis. They rely on word of mouth publicity, handouts, press releases etc.

Elements of promotion mix

(a) Personal Selling• Personal selling involves persuading an existing or

potential customer through oral communication, to purchase the service offering of the company.

• Different modes are: face to face conversations, tele marketing or internet chatting.

• Personal contact through face to face meetings are more successful in increasing business and building a rapport with the customer.

Example: Insurance promotion

• LIC is a government owned and trusted insurance company in India. They train the insurance agents on insurance policies, premium payment structure, process to redeem them etc.

Educate customers on different policies.Helpful to rural India.Encourage to pay premium money regularly.

(b) Advertising

Advertising types

Broadcast•TV•Radio•Internet

Cinema

Outdoor•Billboards, posters•Electronic displays•Transit advertising

Print•Newspapers•Magazines

Print Ads of Hotels

Print ads for Airlines

Outdoor Adverting

American Airlines ad at the Ogilvie Transportation Centre

ss• Variability in services: Even if the service offering is the same, due to the attitudes, expertise and skills of the personnel involved, the actual delivery can differ.

• Companies can publish newsletters with customer comments circulate them among potential customers.

• Service customers design advertising campaigns that attach tangible clues to intangible services.

• Eg: Airline industry advertises its friendly and pleasant employees interacting with customers, the rewards it received for safe, punctual travel. This assures in terms of safety and customer service.

(c) Sales Promotion• Companies adopt different sales promotion

strategies to pull the customers to regularly use their services – free coupons, cash discounts,warranties,contests etc.

• Eg: Andhra Bank promote their credit cards to potential customers by offering free user charges for the first yr of issue.

• Eg: Club Mahindra offers free holiday packages to potential customers - encourage them to buy club membership.

• Eg: HDFC offer free transfer of balance and low interest charges if customers transfer balance from other credit cards

(d) Publicity and Public Relations• Companies use publicity campaigns to bring in

awareness about their offers among customers and general public.

• Publicity involves use of information that induces interest towards a company, event or person.

• Eg: Event sponsorships, charitable donations.• Public relations is to maintain good relations with

company employees, customers, govt, regulatory authorities and public .

• PR activities are press releases, press conferences, public service official website, corporate identity materials like logo, brochures, stationery etc.

(e) Direct Marketing• Involves contacting potential customers directly

through telemarketing, direct mail and online marketing without any intermediaries in the process.

• Eg: Customer of an insurance company needs specific information or customized change in the service offering. This is not possible with an intermediaries.

• Personal touch to marketing activities.• Less expensive, more efficient.

Promotional Strategies for servicesServices cannot be inventoried. Matching demand with capacity is a challenge.

offer memberships in the form of advance purchase, loyalty schemes.(airlines – flier schemes –price discount on subsequent travel – when customer collects certain no: of points)

Role of service personnel differentiate service and gain competitive advantage

through customer service.

Taj group’s “She’s the Taj” campaign - what a woman(service personnel) stood for hospitality and care.

Cntd…..

Service delivery location a spacious, well-lit and well-ventilated cyber café

in a complex Vs a narrow one in a by-lane.

Customer as a co producer selecting investment options, ordering menu in

restaurants requires customer participation.

service providers stress on the role of customers in their promotion campaigns. At Masala Art – promoted by Taj hotels in Delhi – chef cooks in front of the customer.

PROCESS IN SERVICE MARKETING

• Element of the extended marketing mix of services marketing

• Outlines the procedures and methods to be followed to produce and deliver a service

• Explains a series of activities• Sequence and roles are played by the

Service providerIntermediaries

Customer

TYPES OF PROCESS

LINE OR FLOW OPERATIONS

Arranged in a logical flow or assembly lineOutput of a particular stage becomes input for the next

stageHigh coordination and speed of operation are necessaryInflexibility involvedCan be adapted to specific needsApplicable to fast food restaurants

JOP SHOP PROCESS• Activities and sequential arrangement based on the type

of job at hand• Flexible • Eg: In a coffee shop, the same set-up can be used to

serve Cappuccino, Café Latte or an Espresso. • Customization• Demands more service personnel• Eg: recruiting firms, management consultancies