Effective Service Promotions

A firms promotion or communication strategy informs, persuades and reminds target markets, including customers, employees and stockholders about the firms goods and services.

 The term communication mix describes the array of communication tools available to marketers that deliver the firms communication strategy. Like products, managers of service firms need to select the appropriate communication tool to convey their message.

Communication tools
Tools Effect Personal selling Two-way communication Advertising Faster, greater reach Publicity Credible as communicated by third party, cheap

Sales Promotion Ensures short-term gains Sponsorship Allows to target narrow, desired target audience and provides option to adapt to customers changing media habits

Service Communication Strategy

Selecting Target Markets

Profit

Objectives

Target Markets

Growth Potential

compatibil ity with orgnl resources

Setting Communication Objectives

PLC Stage Introduction Communication Objective Informational Communication Tactic Introduce the service offering Create brand awareness Prepare way for personal efforts Encourage trial Create a positive attitude relative to competitive offerings Provoke immediate buying action Enhance firms image Encourage repeat purchase Provide ongoing contact Express gratitude to exiting customers Confirm past purchase decisions

Growth & Maturity

Informational & Persuasive

Maturity and Decline Persuasive & Reminder

Deciding Communication Budget

Budget Setting Technique Top-down Budgeting Bottom-up Budgeting Description Budget set by upper management Budget set by product-level or brand manager

Bottom-up/ Top-down Budgeting Budget set by product-level or brand manager and revised by upper management Top-down / Bottom-up Budgeting Percentage of Sales Technique Incremental Technique Affordable Technique Competitive Parity Technique Objectives and Tasks Techniques Budget set by upper management and revised by product-level or brand manager Budget is set as a % of Sales Budget is increased by a fixed % every year Budget is set on what you can afford Budget is set on the basis of competitive behaviour Budget is set on the amount necessary to achieve a set of tasks

Formulating Positioning Strategy

Positioning strategy is how the firm is viewed by consumers relative to its competitors. Positioning strategy speaks of the firms differential advantage.

Formulating Positioning Strategy

Product Differentiation Features Performance Conformance Durability Reliability Repairability Design (integrates the above) Image Differentiation Symbols Written Audio/ Visual Media Atmosphere Events Service Differentiation Delivery (Speed, Accuracy) Installation Customer Training Consulting Service Repair Misc. Service Personnel Differentiation Competence Courtesy Credibility Reliability Responsiveness Communication Style