Presented By

Group 7
Hepsy
Jikku
John
Maya
Reshma
Reshmi
Sherin
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 se

ts goals and formulates strategic plan for ac
hieving them.
Service Marketing Planning Pr
ocess
Strategic Context

Situation Review

Marketing Strategy
Formulation

Resource Allocation
and Monitoring
• Establishing strategic context:

- The mission statement - defines the purpose of its exist

ence and its philosophy and provides direction to the ma
nagement.
- 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 –competi

tion, social economic conditions, political legal factors.

- Internal Env: strength and weakness of an org., fund po

sition, labour mngt etc.

- Marketing audit is a systematic process of reviewing an

d 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, attracti

veness of market, lifecycle stage of service
needs to be considered.
Marketing Strategy Formulation

-here actual planning takes place.

-management tries to formulate strategies whi
ch are in line with corporate objectives.
-this includes
– Establishing marketing objectives.
– Formulating strategies.
– Estimating expected results.
– Identifying alternate strategies.
Resource Allocation and Detailed plan
ning

• Last step in the planning process.

• To execute the strategic plan we need to allo
cate the resources.
• The strategic plan needs to be divided into s
hort term and long term plans.
• For each of these sub plans d detailed plan n
eeds to be laid down which specifies the obj
ective ,the time limit and resources required
.
Implementing the marketing plan

• To execute the plan effectively, the manage

ment should assign responsibilities to differ
ent departments and staffs.
• Need to arrange for the required funds and i
nfrastructure facilities.
• The management should conduct regular m
eetings with the marketing team.
• Need to develop marketing budget for each
year.
Monitoring ,review and control

• It is important to ensure that the organizatio

n is heading in right direction.
• Large service organizations collect informat
ion and prepare periodic reports for better m
onitoring (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 F
actor portfolio model, Life cycle analysis.
Distribution of ser
vices
• Distribution strategies of services are different from those
for packaged goods.
• Since services are produced and consumed at the same po
int and cannot be inventoried, there is no scope for any in
ventories.
• E.g.. ICICI prudential Life insurance
- developed a multi channel distribution strategy.
- bancassurance(offering banking and insurance p
roducts at one time)
- direct marketing through individual agents, fina
nce 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 distribut
ion network.
• The company sends around 50,000 direct mailers to
office goers by hanging a mailer to the handles of m
eal 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 pro
viders
Service Customer
providers franchisees

Electronic channels

Seller’s, buyer’s agents

Agents or brokers
Promotion of servic
es
Introduction
Why promotion for services?

• Intangible characteristics
Service providers often find it difficult to tangibilize
their services in order to appeal to the target custome
rs.
• 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 p
otential customer through oral communication, to pu
rchase 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 m
ore successful in increasing business and building a r
apport 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
Outdoor
•Billboards, posters
•Electronic displays
•Transit advertising

Broadcast Cinema
•TV Advertising
•Radio types
•Internet

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 th
e same, due to the attitudes, expertise and skills of the p
ersonnel involved, the actual delivery can differ.
• Companies can publish newsletters with customer com
ments circulate them among potential customers.

• Service customers design advertising campaigns that att

ach tangible clues to intangible services.
• Eg: Airline industry advertises its friendly and pleasant
employees interacting with customers, the rewards it re
ceived for safe, punctual travel. This assures in terms of
safety and customer service.
(c) Sales Promotion
• Companies adopt different sales promotion strategie
s to pull the customers to regularly use their service
s – free coupons, cash discounts,warranties,contests
etc.
• Eg: Andhra Bank promote their credit cards to poten
tial customers by offering free user charges for the f
irst yr of issue.
• Eg: Club Mahindra offers free holiday packages to
potential customers - encourage them to buy club m
embership.
• Eg: HDFC offer free transfer of balance and low int
erest charges if customers transfer balance from oth
er credit cards
(d) Publicity and Public Relati
ons
• Companies use publicity campaigns to bring in awarenes
s 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 compa
ny employees, customers, govt, regulatory authorities and
public .
• PR activities are press releases, press conferences, public
service official website, corporate identity materials like l
ogo, brochures, stationery etc.
(e) Direct Marketing
• Involves contacting potential customers directly thro
ugh telemarketing, direct mail and online marketing
without any intermediaries in the process.
• Eg: Customer of an insurance company needs specifi
c information or customized change in the service off
ering. This is not possible with an intermediaries.
• Personal touch to marketing activities.
• Less expensive, more efficient.
Promotional Strategies for serv
ices
 Services cannot be inventoried.
 Matching demand with capacity is a challenge.
 offer memberships in the form of advance purchas
e, loyalty schemes.(airlines – flier schemes –price discoun
t on subsequent travel – when customer collects certain no
: of points)

 Role of service personnel

differentiate service and gain competitive advantage th
rough customer service.
 Taj group’s “She’s the Taj” campaign - what a woma
n(service personnel) stood for hospitality and care.
Cntd…..
 Service delivery location
 a spacious, well-lit and well-ventilated cyber café i
n a complex Vs a narrow one in a by-lane.

 Customer as a co producer
selecting investment options, ordering menu in r
estaurants requires customer participation.
service providers stress on the role of customers
in their promotion campaigns. At Masala Art – prom
oted by Taj hotels in Delhi – chef cooks in front of th
e customer.
 PROCESS IN SERVICE MARKETING

• Element of the extended marketing mix of service

s marketing
• Outlines the procedures and methods to be follow
ed to produce and deliver a service
• Explains a series of activities
• Sequence and roles are played by the
Service provider
Intermediaries
Customer
 TYPES OF PROCESS
LINE OR FLOW OPERATIONS

 Arranged in a logical flow or assembly line

 Output of a particular stage becomes input for the next st
age
 High coordination and speed of operation are necessary
 Inflexibility involved
 Can be adapted to specific needs
 Applicable 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 ser
ve Cappuccino, Café Latte or an Espresso.
• Customization
• Demands more service personnel
• Eg: recruiting firms, management consultancies