Encoding

Message

Decoding

Medi
a
Sender

Receiver
Noise

Feedback

Response

Identifying
Target
Audience

Determining
Communicat
ion
Objectives

Design the
Message

Select
Communicat
ion Channels

Determine
Promotion
Budget
Managing &
coordinating
the
Communicatio
n Process

Measure
Promotion
Results

Decide on
Promotion
Mix

Promotional mix is the combination of strategies, that a company

uses to communicate the service benefits to customers &
influence them to buy.
Advertising
Any paid form of non personal presentation & promotion by an
identified sponsoror in such media as magazines, newspapers,
television, radio, outdoor posters, sing board etc.
Personal Selling
An oral presentation of the service in a conversation with one or
more prospective purchasers for the purpose of making sales
Sales Promotion
Those marketing activities that stimulate consumer purchasing
& dealer effectiveness such as displays, shows, exhibitions,
demonstrations, coupons, contests, etc.
These are usually short term activities

Publicity
Non personal stimulation of demand for a product or service by
generating commercially significant news in published media or
by obtaining a favorable presentation on radio, television etc.
Public Relations
The planned & sustained effort to establish & maintain good
will between an organisation & its publics.
These publics are all the groups of people & organisations
which will have an interest in the service company.
Word of Mouth
Personal recommendations by the current users of the service.
It constitutes the favorable references made by satisfied
customers of the service.
Direct Marketing
It encompasses a number of media like direct mail,
telemarketing, mail order etc. used to promote service directly to
individual customers.
Net Advertising

 Promise what is possible

Tangible the intangible
Communication continuity
Capitalizing on word of mouth
Direct communications to employee
Make the service understood
Observe the long term effects of marketing communication
Feature the working relationship between customer &
provider
Reduce customer fears about variations in performance
Determine & focus on relevant service quality dimensions

Advantages
Control
Mass Communication
Cost Effective
Support other elements of marketing mix
Can be highly effective in creating strong brand image & appeal

Disadvantages
High development costs
Rising costs of media space & airtime
Lack of immediate feed back
Problems concerned with credibility
Low attention focus of audience

Identifying
Target Audience

Establishing
Objectives

Media
TV, Cinema,
Radio,
Newspapers,
Magazines/Journ
als, Outdoor,
Advertising

Determining
Advertising
Effectiveness

Selecting The
Media

Developing The
Advertising
Budget

Developing
Advertising
Messages

Sales promotion consists of a variety of incentive tools mostly

short term designed to stimulate quicker or greater purchase of
particular services by consumers or the trade.
While advertising offers a reason to buy, sales promotion offers
an incentive to buy.
Sales promotion include tools for:
Consumer promotion (samples, coupons, cash refund offer,
price off, premiums, prizes, free trial warranties, patronage
rewards, demonstrations contests)
Trade promotion (buying allowance, free service, allowance,
cooperative advertising, advertising & display allowance, push
money, dealers sales contests)
Sales force promotion (bonuses, contests, sales rallies)

Internal Factors
Promotion is now more accepted by top management as an
effective sales tool
More service managers are qualified to use promotion tools
Service managers are under greater pressure to increase their
current sales

External Factors
The number of competitors have increased
Competitors use promotions frequently
Many brand services
Consumers are more deal oriented
The trade has demanded more deals from the service providers
Advertising efficiency has declined because of rising cost, media
clutter & legal restraints

Establishing Sales
Promotion
Objectives

Selecting Sales
Promotion Tools

Sales Promotion
Tools
Sampling
Price/Quantity
Promotions
Coupons
Sign up Rebates
Future Discounts
Gift Premiums
Prize Promotions
Evaluate the
Sales Promotion
Results

Implement &
Control Sales
Promotion
Programme

Developing Sales
Promotion
Programme

Pretest the Sales

Promotion
Programme

Personal selling is defined as personally persuading or aiding a

prospective customer in purchasing a product or service or
accepting or acting on an idea.
The features that distinguish personal selling from advertising,
sales promotion, & publicity include
1.) Face to face interaction with the customer or buying
influencer
2.) Greater flexibility in the sales presentation
3.) The opportunity to persuade or bring about attitude formation
or change

Managing Sales Force

Training
Incentives
Corporate Culture
Understanding the Sales Process

The Pre-approach

The Sales
Presentation

Overcoming
Objections

Follow Up

Closing The Sale

 Orchestration of service purchase encounter by identifying

buyer needs & expectations, applying appropriate technical &
presentational skills, management of impressions & eliciting
positive customer participation
Facilitation of a quality assessment by the customer by
establishing standards of expected performance & using
expectations as a basis for judging service quality
Making the service tangible by helping buyers determine what
they should be looking for, educating buyers for alternate
services & educating buyers about the uniqueness of the
service
Emphasis on organisations image by assessing customers
awareness levels of the generic service & sales representative
& communicating relevant image attributes of the service firm
& the sales representatives.
Use of references from external sources to encourage satisfied
customer to become involved in a word of mouth campaign &
help develop & manage favourable publicity for the service

 Recognition of customer involvement during the service design

process & the customers capacity to help generate
specifications & test concepts
Apart from giving information, the salesperson should also ask
questions & listen to customers answers. One way
communication removes the interactive advantage of personal
selling & may fail to identify a customers true needs.
Service features should be linked to benefits as they will be
valued by customers. This is particularly important for highly
complex & abstract services.
Complex information should be used selectively. Over
complication may overwhelm customers & leave them feeling
belittled by the salesperson. Such detailed information is more
effectively used in response to specific questions.
The presentation should not be price oriented but should allow a
potential customer to balance the overall costs with the overall
benefits possible. There is suggestion that price sensitivity is
generally less important for service than for goods.
The salesperson should show a deep knowledge of their
particular area, therefore, the training of sales personnel is
technical as well as sales skills is important. Without a respect

Word Of
Mouth/References

Expectations/Purchas
e
(old/new customers)

Experiences

Interactions
(moments of truth)

Public relation is defined as- the planned & sustained effort to

establish & maintain goodwill between an organisation & its
publics.
Publicity refers to communications about organisations, products
or services which is not paid for or sponsored by the
organisation.
Some characteristics of public relations are:Low cost
Audience specificity
Believability
Difficult to control
Competition for attention

Promotion Tools in Public Relations

Publicity through the media/press releases/press conferences
Involvement in social & community initiatives
Sponsorship of events
Public announcements & special publications
Corporate brochures, in-house journals & other publicity
material
Lobbying

Public relations is concerned with a number of

marketing tasks:Building or maintaining image
Supporting the other communication activities
Handling problems & issues
Reinforcing positioning
Influencing specific publics
Assisting the launch of new services.

 Sponsorship is one of the major publicity activities undertaken

by service organisations.
Through sponsorship service organisations can try to make
their service tangible & attempt to get customers to link the
image of its organisation or of specific services with a more
tangible event or activity.
Sponsorship involves investment in events or causes so that
an organisation can achieve objectives such as increased
awareness levels, enhanced reputation etc.
Sponsorship is attractive to service companies as it allows the
relatively known characteristics of an event or activity being
sponsored to help enhance the image of an organisations
own inherently intangible services.
A further advantage of sponsorship is that it allows a company
to avoid the general media clutter usually associated with
advertising.

 It is simply a form of marketing in which products or services

moved from producer to consumer without an intermediate
channel of distribution.
It is an interactive system of marketing which uses one or
more advertising media to effect a measurable response
and/or transaction at any location.
The key elements of a direct marketing system are as
follows:
An accurate record of the names of existing customers, former
customers & prospective customers classified into different
groups
A system for recording the results of communications with
targets. From this, the effectiveness of particular messages
and the responsiveness of different target groups can be
assessed.
A means of measuring & recording actual purchase behaviour.
A system to follow up with continuing communication where
appropriate

Another key communications element for service

businesses is corporate design/identity which refers to the
consistent use of distinctive color, symbols, lettering &
layout so such tangible elements as signage, retail
storefronts, vehicles, uniforms & stationery to provide a
unifying & recognizable theme linking all the firms
operations.