Promotion and Communication of Services

Dr. Nripendra Singh

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 Written

Intercom (internal Telephone, customer call centers telephone lines) Newsletters, internal Company memos, notice boards statements, magazines Meeting, presentations seminars newsletters, business

Face to face

Seminars, meetings, presentations at the client premises

Online Media

e-mails, internet, Internet, official websites intranet, websites 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

Elements of the Promotion Mix

Direct Marketing Promotional mix Elements

Sales promotions

Publicity & Public relations

Advertising

Personal Selling

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.

Advertising
Outdoor and retail
Bill boards and posters Electronic displays Transit advertising Retail store displays

Broadcast
TV Radio Internet Advertising Types Cinema

Print
Newspapers Magazines Chapter - 12

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

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 websites),

(e-mail

and

official

without employing any intermediaries in the process.

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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 should a promotional campaign be run. Is the timing right for promotion and how long should a 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 promotion overlays Employee motivation Well differentiated Regular evaluation of the campaign

and

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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.

Case: Westin Starwood Hotels

Purpose/core service to provide rest to tired travelers. Therefore to promote at such a place/position where the customer can relate tiredness 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

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

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 on wednesday Airlines and Hotels upgrading room and free breakfast Limited menu Only Thali, during lunch time

Challenges of Services Comm

Problems of Intangibility
Generality: Seats and Services are similar in Airlines create a distinctive value proposition by comm superior than competitors. Abstractness: Difficult to promote Financial Security, Expert advice, Safe Transportation create comparative charts, graphs. Nonsearchability: Credence attributes create evidences by sharing satisfying experiences of previous custoomers Compliment/Suggestion registers in Hotels Mental Impalpability Services can be complex and novel create story lines to show the benefits Maggi, Insurance (LIC); Testimonials Photo of celebrity in saloons and hotels.

Challenges of Services Comm contd.

Tangible Cues
Use pictures/artifacts Chefs 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.

Message through Service Delivery Channels

Service Outlets: Servicescape Crafting the Service Environment Frontline Employees: face-to-face, telephone, email. Especially important for New Customers; For up-selling and cross-selling eg. ICICI Bank tried to cross-sell Insurance policy. Self-Service Delivery Points: Clear signage, Stepby step instructions (diag or video), extremely user-friendly, cross-selling or promoting new services eg. ATM

Sources of Messages received by target audience

Product Channels Front line employees Service outlets Self service delivery points Messages from outside the Organization Marketing Channels Advertising Public relations Online marketing Web site Direct marketing Sales promotion Personal selling Sources of messages recvd. by a Target Audience Word of mouth Blogs and online ratings Media editorial

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New Media (used by service providers)

TiVo: Digital video recording; Stores up to some 30 minutes of TV programs; Though it is negative for Ads, but Measurable, as it confirms how many users have recorded it; Eg. Schwab & Co put a 30 sec spot which could be converted to 5 min. video on Pro Golf Program. PODCASTING: iPod + Broadcast eg. Webinar, video & mobile podcasting, Blogcast (attach AV file on blog); used by consultants, trainers and institutions as it confirms that viewer is interested in a specific show.
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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 waived off. 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 that receiver believe on it. Online WOM: Blogs and other social media
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Thank you
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