Services Marketing

Marketing Strategies for Service Firms

In addition to traditional
marketing strategies, service
firms often require additional
strategies
• Service-profit chain
• Internal marketing
• Interactive marketing
 Services Marketing
Marketing Strategies for Service Firms

Service-profit chain links service firm profits

with employee and customer satisfaction
• Internal service quality
• Satisfied and productive service
employees
• Greater service value
• Satisfied and loyal customers
• Healthy service profits and growth
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 Services Marketing
Marketing Strategies for Service Firms

Internal marketing means that the service firm must

orient and motivate its customer contact employees
and supporting service people to work as a team to
provide customer satisfaction

Internal marketing must precede external marketing

 Services Marketing

Marketing Strategies for Service Firms

Interactive marketing means that service quality
depends heavily on the quality of the buyer-seller
interaction during the service encounter

Service companies face three major marketing tasks

• Increase Service differentiation
• Increase Service quality
• Increase Service productivity
 Services Marketing

Marketing Strategies for Service Firms

Managing service differentiation
creates a competitive advantage
from the offer, delivery, and image
of the service
• Offer can include distinctive features
• Delivery can include more able and
reliable customer contact people,
environment, or process
• Image can include symbols and
branding
 Services Marketing
Marketing Strategies for Service Firms

Managing service quality provides a competitive advantage

by delivering consistently higher quality than its competitors

Service quality always varies depending on interactions

between employees and customers.

Customer retention is perhaps the best measure of quality

Good service recovery

 Services Marketing

Marketing Strategies for Service Firms

Managing service productivity refers to the cost
side of marketing strategies for service firms
• Employee recruiting, hiring, and training strategies
• Service quantity and quality strategies

Be careful not to take service out of the service.

Branding Strategy: Building Strong Brands

Brand equity
The differential effect that knowing the
brand name has on customer response to
the product or its marketing.
Aveugle Dénommé

Préfère Pepsi 51% 23%

Préfère Coca-Cola 44% 65%

Indifférent 5% 12%
 Exercice
• Choose a brand among the following ones
and explain why is it a strong brand
 Brand valuation
• Definition: The process of estimating the total financial value
of a brand (see Interbrand)

• A powerful brand enjoys a high level of consumer brand

awareness and loyalty
• The company has more leverage in bargaining with resellers
• The company can more easily launch line and brand
extensions
• A powerful brand also offers the company some defense
against fierce price competition and forms the basis for
building strong and profitable customer relationships.
Branding Strategy: Building Strong Brands

the major brand strategy decisions involve brand positioning, brand

name selection, brand sponsorship, and brand development.

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Branding Strategy: Building Strong Brands

Brand Positioning

Brand strategy decisions

include:
• Product attributes
• Product benefits
• Product beliefs and values
(www.pampers.com)
 Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and
remember
3. Distinctive : Lexus, Sarenza, Caddie©
4. Extendable (ex Amazon.com, Danone)
5. Translatable for the global economy(Standard oil of Jersey =>Exxon
and not Enco)
6. Capable of registration and legal protection (it has not to infringe on
existing brand names)
Branding Strategy: Building Strong
Brands
Brand Sponsorship

4 options:
Manufacturer’s brand
Private brand
Licensed brand
Co-brand
 Branding Strategy: Building Strong Brands
Brand Development Strategies

L’Oreal multi brands of shampoos