SERVICE MARKETING:

UNIT - I
Understanding services marketing: Introduction, services in the modern economy, Classification of
services, marketing services Vs. Physical services, services as a system.
Service Marketing and its importance.
A service is any act or performance that one party can offer to another that is essentially intangible
and does not result in the ownership of anything. Its production may or may not be tied to a physical
product (Kotler, 2004)
A service business is one in which the perceived value of the offering to the buyer is determined
more by the service rendered than the product offered (Goncalves, 1995)
The term services covers a heterogeneous range of intangible products and activities that are
difficult to encapsulate within a simple definition. Services are also often difficult to separate from
goods with which they may be associated in varying degrees.
service: an act or performance that creates benefits for customers by bringing about a desired
change inor on behalf ofthe recipient.
Services marketing is a sub field of marketing, which can be split into the two main areas of goods
marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and
services marketing.
Services are economic activities offered by one party to another. Often time-based, performances
bring about desired results to recipients, objects, or other assets for which purchasers have
responsibility. In exchange for money, time, and effort, service customers expect value from access to
goods, labor, professional skills, facilities, networks, and systems; but they do not normally take
ownership of any of the physical elements involved.
Service in Modern Economy:
As consumers, we use services every day. Turning on a light, watching TV, talking on the telephone,
riding a bus, visiting the dentist, mailing a letter, getting a haircut, refueling a car, writing a check, or
sending clothes to the cleaners are all examples of service consumption at the individual level. The
institution at which you are studying is itself a complex service organization. In addition to educational
services, today's college facilities usually include libraries and cafeterias, counseling, a bookstore,
placement offices, copy services, telecommunications, and even a bank. If you are enrolled at a
residential university, campus services are also likely to include dormitories, health care, indoor and
outdoor athletic facilities, a theater, and perhaps a post office.
Customers are not always happy with the quality and value of the services they receive. People
complain about late deliveries, rude or incompetent personnel, inconvenient service hours, poor
performance, and needlessly complicated procedures. They grumble about the difficulty of finding
sales clerks to help them in retail stores, express frustration about mistakes on their credit card bills
or bank statements, shake their heads over the complexity of new self-service equipment, mutter
about poor value, and sigh as they are forced to wait in line almost everywhere they go.

Suppliers of services often seem to have a very different set of concerns than the consumer. Many
suppliers complain about how difficult it is to make a profit, how hard it is to find skilled and motivated
employees, or how difficult it has become to please customers. Some firms seem to believe that the
surest route to financial success lies in cutting costs and eliminating "unnecessary" frills. A few even
give the impression that they could run a much more efficient operation if it weren't for all the stupid
customers who keep making unreasonable demands and messing things up! Fortunately, in almost
every industry there are service suppliers who know how to please their customers while also running
a productive, profitable operation staffed by pleasant and competent employees. By studying
organizations such as Charles Schwab, Intrawest, Aggreko, Southwest Airlines, eBay, and the many
others featured in this book, we can draw important insights about the most effective ways to manage
the different types of services found in today's economy.
Services make up the bulk of today's economy, not only in the United States and Canada where they
account for 73 percent and 67 percent of the gross domestic product (GDP), respectively. India has
more than 53.7% contribution from Service Sector in GDP.
The service sector accounts for most of the new job growth in developed countries.
In fact, unless you are already predestined for a career in a family manufacturing or agricultural
business, the probability is high that you will spend your working life in companies (or public agencies
and nonprofit organizations) that create and deliver services.
As a nation's economy develops, the share of employment between agriculture, industry, and services
changes dramatically. In most countries, the service sector of the economy is very diverse and
includes a wide array of different industries, ranging in size from huge enterprises that operate on a
global basis to small entrepreneurial firms that serve a single town. It comes as a surprise to most
people to learn that the dominance of the service sector is not limited to highly developed nations.
Services Sector in India
India ranks fifteenth in the services output and it provides employment to around 23% of the total
workforce in the country. The various sectors under the Services Sector in India are construction,
trade, hotels, transport, restaurant, communication and storage, social and personal services,
community, insurance, financing, business services, and real estate.
Services Sector contribution to the Indian Economy.
The Services Sector contributes the most to the Indian GDP. The Sector of Services in India has the
biggest share in the country's GDP for it accounts for around 53.8% in 2005. The contribution of the
Services Sector in India GDP has increased a lot in the last few years. The Services Sector contributed
only 15% to the Indian GDP in 1950. Further the Indian Services Sector's share in the country's GDP
has increased from 43.695 in 1990- 1991 to around 51.16% in 1998- 1999. This shows that the
Services Sector in India accounts for over half of the country's GDP. According to 2010 statistics
Service Sector contribution is 55.2% (est) in Indias GDP.
The Reasons for the growth of the Services Sector contribution to the India GDP
The contribution of the Services Sector has increased very rapidly in the India GDP for many foreign
consumers have shown interest in the country's service exports. This is due to the fact that India has

a large pool of highly skilled, low cost, and educated workers in the country. This has made sure that
the services that are available in the country are of the best quality. The foreign companies seeing this
have started outsourcing their work to India specially in the area of business services which includes
business process outsourcing and information technology services. This has given a major boost to the
Services Sector in India, which in its turn has made the sector contribute more to the India GDP.
The Services Sector in India must be given boost
Services Sector Growth Rate in India GDP registered a significant growth over the past few years. The
Indian government must take steps in order to ensure that Services Sector Growth Rate in India GDP
continues to rise. For this will ensure the growth and prosperity of the country's economy.
Special Characteristics of Services
Services are said to have four key characteristics which impact on marketing programmes. These are:

Intangibility

Inseparability

Heterogeneity variability

Perishability (simultaneous production/consumption)

Intangibility:
Services are activities performed by the provider, unlike physical products they cannot be seen,
tasted, felt, heard or smelt before they are consumed. Since, services are not tangibles, they do not
have features that appeal to the customers senses, their evaluation, unlike goods, is not possible
before actual purchase and consumption. The marketer of service cannot rely on product-based clues
that the buyer generally employs in alternative evaluation prior to purchase. So, as a result of this, the
services are not known to the customer before they take them. The service provider has to follow
certain things to improve the confidence of the client:
The provider can try to increase the tangibility of services. For example, by displaying a plastic or a
clay

model

showing

patients

an

expected

state

after

plastic

surgery.

The provider can emphasize on the benefits of the service rather than just describing the features.
Not all the service product has similar intangibility. Some services are highly intangible, while the
others are low i.e. the goods (or the tangible component) in the service product may vary from low to
high.
For example: Teaching, Consulting, Legal advices are services which have almost nil tangible
components; While restaurants, fast food centers, hotels and hospitals offer services in which their
services are combined with product (tangible objective) , such as food in restaurants, or medicines in
hospitals etc.
Inseparability
Services are typically produced and consumed simultaneously. In case of physical goods, they are
manufactured into products, distributed through multiple resellers, and consumed later. But, incase of
services, it cannot be separated from the service provider. Thus, the service provider would become a
part of a service.

For example: Taxi operator drives taxi, and the passenger uses it. The presence of taxi driver is
essential to provide the service. The services cannot be produced now for consumption at a later stage
/ time. This produces a new dimension to service marketing. The physical presence of customer is
essential in services. For example: to use the services of an airline, hotel, doctor, etc a customer must
be physically present.
Inseparability of production and consumption increases the importance of the quality in services.
Therefore, service marketers not only need to develop task-related, technical competence of service
personnel , but also , require a great input of skilled personnel to improve their marketing and inter
personal skills.
Perish ability
Services are deeds, performance or act whose consumption take place simultaneously; they tend to
perish me the absence of consumption. Hence, services cannot be stored. The services go waste if
they are not consumed simultaneously i.e. value of service exists at the point when it is required.
The perishable character of services adds to the service marketerss problems. The inability of
service sector to regulate supply with the changes in demand; poses many quality management
problems. Hence, service quality level deteriorates during peak hours in restaurants, banks,
transportation etc. This is a challenge for a service marketer. Therefore, a marketer should effectively
utilize the capacity without deteriorating the quality to meet the demand.
Variability
Services are highly variable, as they depend on the service provider, and where and when they are
provided. Service marketers face a problem in standardizing their service, as it varies with
experienced hand, customer, time and firm. Service buyers are aware of this variability. So, the
service firms should make an effort to deliver high and consistent quality in their service; and this is
attained by selecting good and qualified personnel for rendering the service.

The above characteristics are generally referred to in many texts as being what makes services
marketing so different. However, this assumption should be queried on a number of grounds. Like all
sweeping generalizations, generalizations concerning services marketing do not always represent the
full picture.

Consider the question of tangibility. In the main, services can be broken down into three main
classifications:

Rented goods services

Consumer-owned goods services

Non-goods services

Difference between services and Goods / Marketing Services Vs Physical Services:

Physical Services
Tangible
Independent
Transfer of ownership
It is measured in terms of quantity.
Produced used by Rawmaterials
selling is a part of the production of service.

Marketing Services
Intangible
Dependent/Pure Service
No Transfer of Ownership
It is not measured in terms of quantity.
No Rawmaterials
services
are
produced
and
consumed

Selling is depends on production of goods.

All factors of Production are required
Goods needs to store

simultaneously(inseparable)
Selling is a part of the production of service.
No need of all Production factors
Cannot store services

Classification of Services:

Business services.

Communication services.

Construction and related engineering services.

Distribution services.

Educational services.

Environmental services.

Financial services.

Health-related and social services.

Tourism and travel-related services.

Recreational, cultural, and sporting services.

Transport services.

Other services not included elsewhere.

Business Services : Deals with various business oriented services like

Business consulting services,
Business Assessment Services,
Marketing Services
Business Outsourcing Services
Processing Services
Employment services
Advertising

 Consultation services

Communication Services:
IT enables services
Voice based services
ISP services
Mobile Communications
Satellite Communications

Engineering Services:
Constructions Services
Installation Services
Consultancy services
Customization Services

Distribution services:
Finance Distribution
Domestic
International
Trade
Information Technology
Natural Resources Distribution

Educational Services:
Day Care Centers
Primary Schools
Intermediate colleges
PG
Professional Courses (Engineering, Medical, CA, Business Management Hotel
Mgt etc.,
Occasional Courses

Environmental services:
Natural Resources Development Services
Conservation Project Services
Environmental Support Services

Financial Services:
Auditing Services
Consulting Services

MARKETING SERVICES vs PHYSICAL SERVICE:

There are many differences in marketing a product compared to a service. One difference is that with
a product, it is generally something the consumer can touch. Services are more based on creating an

end result. Another difference that is normally found in marketing a service compared to a product is
the guarantee. It is harder to guarantee a service, although it can be done, while it is fairly easy to
guarantee a product. Another big factor is cost. Pricing products is easier than pricing services. For
example, one copywriter may charge ` 250 for the service of writing a sales letter while another
copywriter may charge `10,000 to write a sales letter. Which service is better? What is the price based
on? How does one copywriter justify charging `250 and the other justify charging `10,000? It can be
based on experience and proof of being able to generate the results the consumer wants. Service is
more psychological marketing.
SERVICE MARKETING AS SYSTEM:
A service system (or customer service system, CSS) is a configuration of technology and
organizational networks designed to deliver services that satisfy the needs, wants, or aspirations of
customers.

Internal marketing (IM) is a process that occurs within a company or organization whereby the
functional process aligns, motivates and empowers employees at all management levels to deliver a
satisfying customer experience. Over recent years internal marketing has increasingly been integrated
with employer branding, and employer brand management, which strives to build stronger links
between the employee brand experience and customer brand experience. According to Burkitt and
Zealley, "the challenge for internal marketing is not only to get the right messages across, but to
embed them in such a way that they both change and reinforce employee behaviour".
Key concepts of internal marketing include:

IM functioning as a continual internal 'upskilling' process.

Alignment of the organizations purpose with employee behavior.

Employees internalizing the core values of the organization.

Motivation, reframing and empowerment of employee attitude.

Inside-out management approach.

Retaining a positive customer experience throughout the business objectives

Benefits of Internal Marketing:

encourages the internal market (employees) to perform better;

empowers employees and gives them accountability and responsibility;

creates common understanding of the business organisation;

encourages employees to offer superb service to clients by appreciating their valuable

contribution to the success of the business;

helps non-marketing staff to learn and be able to perform their tasks in a marketinglike manner;

improves customers retention and individual employee development;

integrates business culture, structure, human resources management, vision and

strategy with the employees' professional and social needs;

creates good coordination and cooperation among departments of the business.

External Marketing: External environment includes the competition, other rivals, the market
conditions, customer's tastes and preferences. The list goes bigger than that. Anything can be
included under competition. The existing rivals, the possible rivals, the product group rivals, and
alterantive products to satisfy that particular need also come under external environment. The
government policies including trade policies, restrictions, foreign trade policies also come under this.
Availability of raw materials and even the customer mindset at that particular period of time can also
be considered a part of the external environment.
Interactive Marketing: refers to the evolving trend in marketing whereby marketing has moved
from a transaction-based effort to a conversation. John Deighton argued that interactive marketing
features the ability to address an individual and the ability to gather and remember the response of
that individual leading to the ability to address the individual once more in a way that takes into
account his or her unique response(Deighton 1996). Interactive marketing is not synonymous with
online marketing, although interactive marketing processes are facilitated by internet technology.
The ability to remember what the customer has said is made easier when we can collect customer
information online and we can communicate with our customer more easily using the speed of the
internet. Amazon.com is an excellent example of the use of interactive marketing, as customers record
their preferences and are shown book selections that match not only their preferences but recent
purchases.
Interactive Marketing allows customers and prospects to participate in the process of building a
brand's image in a certain market or target group's minds. Thanks to the consumer's ability to
"interrupt" a brand's communications and to complement or modify its messages to fit his or her
perception, the process of building the brand itself is crowdsourced among its main target group, with
or without the brand manager's intervention.

UNIT II
CUSTOMER RELATIONSHIP MARKETING:

Relationship mkt. is attracting, maintaining & (in multi-service organizations) enhancing

customer relationship.

An integrated & coordinated effort to identify, maintain & build up a network with individual
customers & employees & continuously strengthen the network for mutual benefits of both
sides, through interactive, individualized & value added contacts continuously over a longer
period of time.

Relationship mkt. is to identify, establish, maintain & enhance,& when necessary terminate
relationships with customers so that the objective regarding economic & other variables of all
parties are met. This is achieved thru exchange & fulfillment of promises.

The new millennium is in the midst of explosive change witnessing rapidly changing market conditions,
volatile equity markets, reconstructed value chains and new global competitors. And Customers
themselves are changing natural customer loyalty is a thing of past. Little wonder then, the concept
of customer relationship management (CRM) has taken center stage in the business world for
sustainable business advantage.
Long-term

success

requires

a great

Customer Relationship

Management

strategy. A

technology-enabled CRM strategy to meet Customer-focused objectives involves the vast majority of
any organizations activity.
No doubt about that Customer relationship management (CRM) has become a top priority for
companies seeking to gain competitive advantage in todays stormy economy. However, confusion
reigns about exactly what CRM is, how to best implement it, or even what role it should play in
enhancing customer interaction.
Customer Relationship Management (CRM) is a process by which a company maximizes
customer information in an effort to increase loyalty and retain customers business over their
lifetimes.
The primary goals of CRM are to

Build long term and profitable relationships with chosen customers

Get closer to those customers at every point of contact

Maximize your companys share of the customers wallet

THE NATURE OF SERVICE CONSUMPTION:

When it comes to marketing a service it can at times be more challenging than marketing a product.
You are not selling something that is tangible; you are in fact selling the invisible.
When selling a service the customer experience is extremely important to closing the deal and
marketing effectively. The experience has an impact on the perceived value of the service.

Services also tend to have the reputation built on one person. The people involved in selling and
performing the service have the ability to make or break a company's reputation. It's harder to do
damage control for service companies, which means you must always be on your game and your
reputation must remained untarnished and pristine.
Consumers often find it more difficult to compare service vendors. They cannot touch or feel the
product; rather they have to trust that the service will be performed as promised. How can you help
your consumers compare you to other vendors?
A service cannot be returned. If a service is purchased, but does not live up to the consumers
expectation they cannot return it for a new product. This costs the consumer time and as individuals
we often few our time as more valuable than money.
Understanding customer needs and expectations:
Understanding customer needs and expectations is very important to a service-oriented organization
as it protects against dissatisfied customers or, even worse, those who take their business elsewhere
without voicing their complaint. After customer needs and expectations are identified, customer
satisfaction must be monitored and the findings used to generate improvements. Proactively
conducting customer satisfaction surveys also generates a positive impression on customers about the
organizations interest in them.

When a customer begins a relationship with a company he or she already has a specific set of
expectations.

These expectations are based on their perceptions of service, company and your

industry. They are formed through personal past experience, and the experience of others with
whom the customer interacts.
Consider the last time customer went into a self-service gas station. What did you expect? Other than
the pump to be working, not much else? After all - you are doing all the work. You have the
opportunity

to

Satisfy,

Dissatisfy

or

Impressand

two

of

these

are

bad.

Delivering below expectations is obviously bad, but in the context of creating loyalty, so is simply
satisfying customers, because they are getting nothing more or less than they expect.
If it exceeds your expectations, youre impressed, and If the service you receive meets your
expectations you are satisfied. If it is below your expectationswell, you know. Creating customer
value and loyalty comes from consistently exceeding expectations.

Prof. Benjamin Schneider and Prof. David E. Bowen published an article called "Understanding
Customer Delight and Outrage". Delight and outrage? That may sound a bit melodramatic but this
concept is critically important to providing basic customer service. Consider this hypothetical bell curve
measuring the quality of service delivery in general: Basically, most service falls into the median of the
curve - the take it or leave it level of service. If you provide this level of service the customer will be
satisfied. You at least met their expectations. Schneider and Bowen actually break the bell curve
distribution into four levels along a continuum:

Customer loyalty is the degree to which customers will patronize your business and your business
alone because you've developed or created an emotional bond with them. You've gone beyond their
expectations and addressed something more innate - their emotional needs as a consumer. Customers
have come to expect fast, friendly service. They expect to get an answer to their questions. They
expect you'll answer their call promptly and return their messages. Do those things well and you'll be
in the game. But will you win their loyalty? Not necessarily. If you fail, have you lost them forever?
Again, not necessarily.
Research shows customers are willing to accept some failure in terms of these expectations. Fail
continuously and that's a different story. This is the "ambivalence" part of the model. Next time they
need your product or service they may, if it's convenient, patronize your business. But they won't seek
out your business purposefully. To do that, they must be delighted with your service. They must be so
impressed with your service that they become a dedicated follower.
Schneider and Bowen refer to these customers as "apostles". They will sing the praises of your
business to friends, family and coworkers.
At the other end of the spectrum it's possible to so utterly offend the basic needs of your customers
that they'll wilfully take every opportunity to sabotage your business. They become a terrorist
according to Benjamin and Bowen. They'll tell every person who'll listen about the time your business.
Each time, they're likely to embellish the story. So what creates such an extreme emotional reaction
to service in some customers? According to Schneider and Bowen these reactions occur when you
surpass the needs of a customer (delight) or you offend those needs. Not just fail to meet them - you
(in the mind of the customer) intentionally deprived them of those needs.
The Six Basic Needs of Customers
1.

Friendliness:
Friendliness is the most basic of all customers needs, usually associated with being greeted
graciously and with warmth. We all want to be acknowledged and welcomed by someone who
sincerely is glad to see us. A customer shouldnt feel they are an intrusion on the service
providers work day!

2.

Understanding and empathy:

Customers need to feel that the service person understands and appreciates their
circumstances and feelings without criticism or judgment. Customers have simple expectations
that we who serve them can put ourselves in their shoes, understanding what it is they came
to us for in the first place.

3.

Fairness:
We all need to feel we are being treated fairly. Customers get very annoyed and defensive

when they feel they are subject to any class distinctions. No one wants to be treated as if they
fall into a certain category, left wondering if the grass is greener on the other side and if
they only received second best.
4.

Control:
Control represents the customers need to feel they have an impact on the way things turn
out. Our ability to meet this need for them comes from our own willingness to say yes much
more than we say no. Customers dont care about policies and rules; they want to deal with
us in all our reasonableness.

5.

Options and alternatives:

Customers need to feel that other avenues are available to getting what they want
accomplished. They realize that they may be charting virgin territory, and they depend on us
to be in the know and provide them with the inside scoop. They get pretty upset when they
feel they have spun their wheels getting something done, and we knew all along a better way,
but never made the suggestion.

6.

Information:
Tell me, show me everything! Customers need to be educated and informed about our
products and services, and they dont want us leaving anything out! They dont want to waste
precious time doing homework on their own they look to us to be their walking, talking,
information central.

Strategic responses to the intangibility of service performances:

UNIT - III
SERVICE MARKETING SEGMENTATION
The Process of Market Segmentation:
Segmentation is the term given to the grouping of customers with similar needs by a number of
different variables. Once this has been done, segments can be targeted by a number of targeting
strategies. The stage that then follows is known as positioning which is the place that products or
services occupy in the marketplace in relation to the competition, as perceived by the target market.
The underlying principle of market segmentation is that individual customers have different product
and service needs. Mass marketing, the marketing of a single product to everyone, is rarely a viable
strategy, just as it is to customize products to an individual.
The market segmentation process:

The segmentation process is generally regarded as consisting of three stages;

Segmentation,
Targeting,
Positioning.

Segmentation variables:
The first stage of the segmentation process involves the selection of suitable variables for grouping
customers. These are also referred to as base variables or the segmentation basis. There is rarely one
best way of segmenting a market and more than one variable can be used. There are a number of
segmentation variables that can be used for consumer and business-to-business markets.
Segmentation analysis:
Research plays an important role in segmentation as segmentation analysis requires a range of data
form a wide variety of sources on markets, customers attitudes, motives and behaviour as well as
competitor information.
Targeting:
Targeting is the next step in the sequential process and involves a business making choices about
segment(s) on which resources are to be focused. There are three major targeting strategies:
undifferentiated, concentrated, and differentiated. During this process the business must balance its
resources and capabilities against the attractiveness of different segments.
Positioning:
Positioning follows on logically from the segmentation and targeting stages. Customer perceptions are
central to the product position especially in relation to the competitions offering. The product or
service has to satisfy key customer requirements and this has to be clearly communicated to
customers. A tool that helps marketers understand customer perceptions of their brand is perceptual
mapping and a simple 7- step approach can be used to develop a clear positioning strategy. However,
a number of positioning problems can arise.
Getting the most out of market segmentation:
Market segmentation, targeting and positioning are not always easy to apply and problems can arise
for a number of reasons. There are a number of steps that can be taken to avoid these problems and,
in addition, there are a set of segmentation criteria that can help.
Market segmentation: the future.
The two key factors that will affect segmentation in the future are competitive and technological
forces. In addition, there is a rising trend towards one-to-one marketing.
Conclusion:
The underlying principle of market segmentation is that the product and services needs of individual
customers differ. Market segmentation involves the grouping of customers together with the aim of
better satisfying their needs whilst maintaining economies of scale. It consists of three stages and if
properly executed should deliver more satisfied customers, few direct confrontations with competitors,
and better designed marketing programmes.

In simple:

CUSTOMER PORTFOLIO:
A customer portfolio is a mutually exclusive group of customers that share similar behaviors and
preferences when interacting with your business. Armed with this detailed customer insight, you will
have the power to execute Lights-Out Marketing to grow the value of your customers and your
business.
Customer Portfolios delivers coordinated, multi-channeled marketing that is targeted, measurable, and
timed to the precise moment for the individual customer. We provide marketing services and
technology to help our clients execute Lights-Out Marketing programs.
It is through the utilization of customer insight and our business platform that Customer Portfolios is
able to create intelligent Lights-Out Marketing programs. These behavior-triggered marketing
programs are based on such specifics as the customers segment, life cycle stage, and purchasing
behavior. This will deliver relevance to your customers and impact to your business without the need
for on-going, hands on attention.
In short, our Lights-Out Marketing services will enable your business to grow quickly and effectively by
growing the value of your customer portfolios.
Consumer portfolio is crucial to every business.
departments directed to customers.

A customer portfolio is composed of groups or

Say for example, Company As customer portfolio may be

composed of restaurants, grocery stores, entertainment hubs, etc.

Big business establishments such as corporations and companies which run series of businesses avail
of consumer portfolio services to see to it that all their groups are working properly and are
progressing. The goal of making a portfolio is to be able to manage the limited resources of a
business without incurring risks and while maintaining efficiency in their operations.

Moreover,

consumer portfolio is used to evaluate if a particular business group is performing well or not.
Consumer portfolio services generate report through intensive researches and assessment of all the
aspects of such group including funds, manpower, resources and facilities, and the like. The portfolio
also shows the feasibility of a business in relation with the current market and state of economy.
SELECTING THE APPROPRIATE CUSTOMER PORTFOLIO:
Taking a deeper look at the customer portfolio:
Creating a clear view of your customer portfolio allows you to identify where your profits come from
and how you can mine the market for more profitable growth. Applying this analysis to the entire
market enables you to grow profitably and focus resources, time, and energy to where the best
opportunities are. Also, by honing your sales focus, you build a deeper and richer understanding of key
customers, providing your company with a competitive edge against the competition.

Step 1 Selecting the Right Criteria for Identifying Your Home Run customers:
The initial step begins by selecting the right criteria for identifying successful customers across your
portfolio. In other words, what makes a customer a Home Run for your company. Depending on each
companys situation the right criteria may be different. For example, a small company (or new line of
business), might define success as driving top-line sales growth at the expense of earnings; therefore
sales growth is a key criteria. On the other hand, a well established company may focus on profitable
growth. In this case, profit margin is one of the key selection criteria. These criteria must be easy to
measure and track as well as provide a historical basis to provide insights into trends and changes

This snapshot helps to provide a view on the varied profit levels across the entire portfolio and serves
as a way to check perception vs. reality by providing answers to critical questions:
Are we as profitable as we thought?
Does our overall level of profitability look right?
Do large accounts provide as much profit as we thought?
Do we have a balanced portfolio in terms of contribution per account?
Step 2 Identifying Home Runs in your Portfolio:
By applying these criteria and thresholds to your customer portfolio it is possible to separate
customers into different categories depending on where they appear relative to both axes. This view
provides a simple but very powerful way to examine your customer portfolio. While some companies
may see this exercise as fairly simple, our experience indicates that, though simple, many senior
executives have not viewed their customer portfolio through this lens, making the analysis very
valuable and insightful.
Step 3 Defining profitable customer profiles:
Once the Home Run customers have been identified, dont stop there. By taking a closer look at these
customers, youll gain insights on which markets you should target and where best to spend your
limited sales resources.
To accomplish this task youll need to segment and profile them, slicing the Home Runs using select
variables. We call these select variables attributes, which are those characteristics that help
differentiate segments of the Home Run pie. For example, the attributes may include select
demographic characteristics, the size or location of the account, or psychographic data. Some
attributes may be particular to your industry, while others may be more general. The nature of your
business and customers will help determine which key attributes you should consider for this step that
you have only profiled your Home Runs. Therefore, the resulting market opportunity may not be as
large as you would expect initially. Another key consideration during this step is to understand the
competition. Who is currently serving these markets and where are they positioned? Mapping the
footprint of each competitor and cross-checking it against your target profiles helps you see who is
where and how strongly you are positioned against the competition.
Step 5 Developing a go-to-market strategy based on target customers identified:
The final step in the analysis involves using the insights developed above as a foundation to build a
powerful go-to market strategy. The current white paper does not explore how to develop your new
go-to-market strategy. That topic is broad and reserved for subsequent papers. However, we do want
to highlight the benefits of a revised go-to-market strategy, based on our approach. A market strategy
based on Home Run customers and focused on helping your sales force tailor their efforts to targeting,
retaining, and serving these key customers provides widespread benefits that lead to more profitable
sales:

Reduced acquisition costs and improved conversion ratios -- a more focused approach and

knowledge on target markets.

Reduced servicing costs -- as the number of customers with the same profile grows within
your portfolio, you learn to serve them more efficiently.

Increased retention rate -- by gaining expertise on certain customer types, you deepen your

relationship with them, thus, diminishing the likelihood of losing them.

Better resource utilization -- by having a sales force that is more focused on converting
potential Home Runs.

Creating and maintaining valued relations:

In any business, it is very important that maintain healthy relations with customers. However the
customer term can be clients, patients, accountholders, constituents, buyers, callers, owners, renters,
for example. Without the customer, at least in our society, our business becomes nothing. The
customer can fire any of us, at anytime, merely by taking her or his business somewhere else.
Every business success is depend greatly on how well we deliver value to our customers and how
well we cultivate our relationships with those customers to keep them coming back and back and
back again.
KEYS TO A SUCCESSFUL CUSTOMER RELATIONSHIP
Show respect to the customer: Customers loved us because we respected them and their time.
And we made sure that we translated that respect to actions they could see and feel. Figuring out
whom to talk to and how and when to get service has become overcomplicated, conflicting, and just
plain out of whacka real obstacle course. We have forced customers to try to figure out our
organization charts in order to do business with us. Instead of seamlessly executing a customer
interaction, we deliver discontinuity wherever there are organizational breaks. Customer service? It is
in these hand-offs that customer failures occur. So simplify the roadmap for customers. Make it clear
for them how they can do business with you in a way thats actually beneficial to them. Give
customers a choice. Do not bind your customer into the fake choice of letting him opt out of
something. Deliver what you promise. There is a growing case of corporate memory loss that
annoys and aggravates customers every day. Work to believe. Very few shreds of respect remain, if
any, after weve put customers through the third degree that many experience when they encounter a
glitch in our products and services and actually need to return a product, put in a claim, or use the
warranty service.
Deliver what the customer wants:

Customers are an invaluable asset to any business

establishment. Meeting their varying demands and expectations should be the

primary objective of every company. Creating a clientele is easy. Keeping it is a
whole new ball game. Determine what target customers want (not just what they
need right now) by asking them in person or as part of a mail or telephone survey ,
or by using other mechanisms (e.g., electronic tracking and researching marketing
trends) to determine what they want. Be aware that advertising, word of mouth, and
public relations influence customers expectations. Meeting customers basic needs
or expectations does not always bring high levels of satisfaction. Exceeding
expectations produces high satisfactiontherefore, determine customers ideal

desires. Generally we should know the expectations of the customers before we

deliver.

Promises should be delivered

Price & quality of service

After Sale service.

Values Relationship with customers

Reliability and Trust

Customers are looking for empathy.

Improve the relationship with the customer:

Develop a relationship with all your visitors and customers. Tell them how much you
appreciate them visiting your web site or buying your product.

Solve your customer complaints by being quick and friendly. The faster you respond, the more
your customers feel you care about them.

Lower your negative word of mouth marketing. You'll always have customers that are
dissatisfied. Try to them as much as possible.

To complaining customers. You can refund their money, give them a discount, give them a free
gift, solve the problem quickly, etc.

Never think your customers are satisfied with their purchase. You should be constantly finding
new ways to better your product and service.

Attract a lot more customers by giving them clear ordering instructions. Give them all the
information they need so they can complete their order easily.

Email each visitor a satisfaction questionnaire after they purchase. This will allow you to
improve your order system, customer service, site, etc.

Remind your visitors that you're human not just a web site. You could publish information on
your family life, a picture of yourself, a profile, etc.

Provide a "Contact Page" on your web site. Give your visitors as many options to contact you
as possible. This'll add credibility to your business.

Create a customer focus group. Invite ten to twenty of your most loyal customers to meet
regularly. They will give you ideas and input on how to improve your customer service. You
could pay them, take them out to dinner or give them free products.

Invite your customers to company meetings, luncheons, workshops or seminars. Create

special events for your customers like parties, barbecue's, dances etc. Make a point for
yourself and your employees to interact with them at these event to get valuable feedback for
your business.

Give your visitors tons of choices so they don't get the feeling of being controlled. Offer them
a variety of ways to order, contact you, navigate, etc.

Make your visitors feel good about themselves by giving them compliments. If they feel good
they will also feel good about buying from your web site.

Create a long term relationship with your entire customer base. You can stay in touch with
them through mails, with greeting cards, etc.

Improve your business by promoting customer feedback. Tell them you want their honest
opinions about your business, good or bad.

Answer all your e-mail messages as quickly as possible. Nothing will lose a sale quicker than
not responding to a prospect in time.

Encourage your customers or visitors to e-mail you questions about your product or web site.
Just include your sig file with your reply.

Train yourself and your employees to be polite to all your customers, even if they're shouting.
Solve their problem quickly and it may even turn into a sale.

Ask your customers what they would like to see offered by your business in the future. This
type of information can boost your sales.

Interact with your online customers on a regular basis. This'll show them you care about them.
You could use a chat room, forum or message system.

Try out new technologies that make it easier to communicate with your customers over the
net.

Remember your customer is always right, even if they are not. Resolve all conflicts quickly and
painlessly. They are the lifeblood of your business.

Create a bond with your visitors by bringing up likes or dislikes you have in common with
them in your ad copy. Just make sure you do your research.

Send greeting cards offline or online to customers on holidays. You'll get the chance to
increase your orders by including your ad inside the card.

Follow-up regularly with all your prospects and current customers. When people see your ad
more than once they are more likely to buy.

Give your prospects extra incentives so they will order quicker. It could be free shipping, a
faster shipping option, free gift wrapping, etc.

Give visitors a free sample for filling out your online survey or they usually won't. Surveys will
give your business valuable intelligence for your business.

Give your new customers surprise free gifts. This will increase their loyalty and give you more
word of mouth advertising.

Keep your loyal customers happy because they are your future profits. Give them discounts
and free gifts as often as possible.

Give your customers a surprise bonus for buying. When you give customers more than they
expect, there is a good chance they will buy from you again.

Use incentives to gain referrals if you don't have an affiliate program. Tell people when they
refer customers you will award them with free products.

Give customers a discount on their total order to increase sales. You could give them a
discount for ordering over price of the product or service.

Make your customers get excited about your business and they will tell their friends. Give
them a free vacation certificate, a coupon, etc.

Give your prospects extra confidence so they will order. Use endorsements, testimonials, a
strong guarantee or warranty, etc.

CUSTOMER LOYALTY:
Building Customer Loyalty:
Loyalty is faithfulness or a devotion to a person, country, group, or cause. Customer loyalty is all
about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring
you even more customers. However, that focus is not how you build customer loyalty.
Why is customer loyalty important?

Profit derived from increased purchases

Profit from reduced operating costs

Profit from referrals to other customers

Profit from price premium

Creating bonds with customers

Deepening the relationship (cross/up selling)

Reward-based bonds

Social bonds

Customization bonds

Structural bonds

Customer bonds through membership relationships and loyalty programs

Customer Lifetime Value (CLV):

Value of each individual customer throughout his expected lifetime as a customer to

the firm

The sum of all CLVs for all customers is called as Customer Equity

Calculating CLV requires a thorough understanding of the costs and revenues

associated with a customer on a year-by-year basis

Build loyalty by

Keeping touch with customers using email marketing, thank you cards and more.

Treating your team well so they treat your customers well.

Showing that you care and remembering what they like and dont like.

Build it by rewarding them for choosing you over your competitors.

Build it by truly giving a damn about them and figuring out how to make them more success,
happy and joyful.

In short, you build customer loyalty by treating people how they want to be treated. Does your
marketing plan include strategies and tactics for customer loyalty & customer retention?

UNIT - IV
Creating value in a competitive market: Positioning a service in the market, value addition to the
service product, planning and branding service products, new service development.
Positioning a service in the market:
In marketing, positioning has come to mean the process by which marketers try to create an image
or identity in the minds of their target market for its product or Service, brand, or organization.

positioning is defined as the way by which the marketers creates impression in the
customers mind.
Positioning process:
Generally, the positioning process involves:
1.

Defining the market in which the product/service or brand will compete (who the relevant
buyers are)

2.

Identifying the attributes (also called dimensions) that define the product 'space'

3.

Collecting information from a sample of customers about their perceptions of each product on
the relevant attributes

4.

Determine each product's share of mind

5.

Determine each product's current location in the product space

6.

Determine the target market's preferred combination of attributes (referred to as an ideal

vector)

7.

Examine the fit between:

The position of your product/Service

The position of the ideal vector

Positioning concepts:
More generally, there are three types of positioning concepts:
1.

2.

3.

Functional positions

Solve problems

Provide benefits to customers

Get favorable perception by investors (stock profile) and lenders

Symbolic positions

Self-image enhancement

Ego identification

Belongingness and social meaningfulness

Affective fulfillment

Experiential positions

Provide sensory stimulation

Provide cognitive stimulation

Positioning a service in the market:

Companys position in the market place evolves from the defining characteristics of its product or
service; namely, pricing, quality, service, distribution and packaging. It is critical for you to
define their market position. If you do not, your competitors will do it for you. Through the initial
strategy process or a stand-alone market analysis, at Image Perspective, we seek to discover your
unique positioning. Once it is defined, we exploit it to secure a memorable position in the mind of your
customers or prospects.
When positioning your company, it is important to consider the following elements: the attributes that
differentiate your product or service in the market place, your competition and the demographics of
your target market. Product positioning is part of the overall process of market segmentation, but
involves a narrowing of focus. "Segmentation analysis tells us how the market is defined and allows us
to target one or more opportunities," Glen L. Urban and Steven H. Star wrote in their book Advanced
Marketing Strategy. "Product positioning takes place within a target market segment and tells us how
we can compete most effectively in that market segment."

The key to product positioning understands the dimensions consumers use to evaluate competing
marketing programs and make purchase decisions. It may be helpful for small business managers to
create a graph in order to map consumer perceptions along several different dimensions. Once
consumer perceptions are understood, the next step is to select the best positioning for the service
and take steps to align the marketing program behind this positioning choice. Some examples of
possible positioning choices include quality, reliability, and unique features or benefits. Before delving
into service positioning further, it may be helpful to understand the process and goals of market
segmentation.
POSITIONING OPTIONS
Once

marketers

have

mapped

consumer

perceptions

of

competing

brands

and

gained

an

understanding of the target segment, the next step is to select a position for their services. In
positioning a service within a market segment, marketers should try to maximize the share of
consumer choices attained by their service in order to achieve long-run profitability for the firm.
Strategies that can help marketers to maximize share include adding features desired by consumers or
advertising to improve consumer perceptions. Both of these strategies can be costly, however, so it is
important for companies to balance the cost of making such expenditures with the payoff.
Marketers have several different positioning options available to them. One positioning option is
quality emphasis, which includes not only defect-free production but also service design and customer
service that meets or exceeds customer expectations. Another positioning option available to
marketers involves offering unique features or benefits that consumers are unable to find in competing
services, from environmentally-friendly production aspects to trendiness. Ideally, such features and
benefits grow out of the company's unique sources of competitive advantage in the marketplace. This
makes it difficult for competitors to match the features and benefits without incurring high costs. "If
we develop a unique competitive advantage on a dimension of importance to a significant portion of
the market, we can enjoy a substantial share and high margins," Urban and Star noted. Of course,
continued market research and innovation are necessary to maintain such a competitive advantage.
In some cases, rather than selecting a service position within the accepted structure of a market
segment, a company may instead try to create a new dimension of importance to consumers. But
creating a new dimension is difficult and usually results from major service innovations. Another
option available to marketers is to position services across different, yet overlapping, market
segments. It is important to note, however, that since some consumers may belong to both segments,
positioning claims for a service should never conflict. To avoid confusing consumers, it may be
necessary to use a different brand name for the service in each segment, or to make a broad appeal
to both segments and then change the positioning slightly within each segment.
Positioning a Service in Market:

The Search for Competitive Advantage

Understanding Consumer Choice Behavior

Creating a Competitive Position

Steps in Developing a Positioning Strategy

Developing Positioning Maps

1. The Search for Competitive Advantage: Firms should be selective in their targeted
customers and distinctive in their own presentation.

The Need for Focus in Competitive Strategy

Identifying and Selecting Target Segments

a. The Need for Focus in Competitive Strategy :

Firms should adopt a strategy of market segmentation.

In service businesses, however, firms adopt the practice of partial customization,

which offers a standardized core product but tailor supplementary service elements to
fit each individual buyer.

b. Identifying and Selecting Target Segments:

A target segment is one selected from among the broader market by specific firms.

Target segments should be selected on the basis of their sales, profit potential, and
the firms ability to match or exceed competing offerings directed at the same segment

2. Understanding Consumer Choice Behavior: Services emphasize experience qualities and is

harder to evaluate.
a. Developing a Service Concept for a Specific Segment
b. Importance versus Determinance
a. Developing a Service Concept for a Specific Segment:

Research is needed to identify what attributes of a service customers deem important

and the competitions performance on such services.

Each individual attribute different priorities to different services.

b. Importance versus Determinance

Consumers usually make their choices between alternative service offerings on the
basis of perceived differences between them.

The marketers task is to identify which attributes are determinant and to be aware of
how well each competing service performs on these determining attributes.

3. Creating a Competitive Position: Positioning is the process of establishing and maintaining

a distinctive place in the market for an organization and its individual product offerings.
Repositioning involves changing the existing position, which revises service characteristics or
redefines target market segments.
a. Copy Positioning versus Product Positioning
b. Positionings Role in Market Strategy
a. Copy Positioning versus Product Positioning:

A position reflects how consumers perceive the products performance on specific

attributes relative to that of one or more competitors.

Positioning is associated with the communication elements of the marketing mix,

notably advertising, promotions, and publicity.

Copy positioning is to create images and associations for broadly similar branded
products.

Product positioning entails more substantive attributes relating to product performance,

price, and service availability.

To improve a products appeal to a specific target segment, it may be necessary to change

its performance on certain attributes, to reduce its price, or to alter the times and
locations when it is available or the forms of delivery that are offered.

Advertising and publicity help enhance the images only if the services are up to par in
terms of performance, price, and availability.

b. Positionings Role in Market Strategy:

Positioning plays a pivotal role in marketing strategy because it links market analysis and
competitive analysis to internal corporate analysis.

For multiproduct service businesses, it is particularly important that there be some

consistency between the positions held by different services offered at the same location,
since the image of one may spill over onto the others.

An explicit positioning strategy is valuable in helping prospective customers to get a

mental fix on a product that would otherwise be rather amorphous.

Value addition to the service product:

What should be the core and supplementary elements of the service product?

The core addresses the customer's need for a basic benefitsuch as transportation to a
desired location, resolution of a specific health problem, or repair of malfunctioning equipment

Supplementary services facilitate and enhance use of the core service; they range from
information, advice, and documentation to problem solving and acts of hospitality

Facilitating supplementary services: Supplementary services that aid in the use of the
core product or are required for service delivery

Enhancing supplementary services: Supplementary services that may add extra value for
customers

1. Information

Customer needs may include directions to the physical location where the product is sold (or
details of how to order it by telephone or Web site), service hours, prices, and usage
instructions. Further information, sometimes required by law, could include conditions of sale
and use, warnings, reminders, and notification of changes.

Customers may want documentation of what has already taken place, such as confirmation of
reservations, receipts and tickets, and monthly summaries of account activity

2.

Order Taking:

Applications
Membership in clubs or programs
Subscription services (e.g., utilities)
Prerequisite-based services (e.g., financial credit, college enrollment)

Order Entry
On-site order fulfillment
Mail/telephone order placement
E-mail/Web site order placement
Reservations and Check-in
Seats
Tables
Rooms
Vehicles or equipment rental
Professional appointments
Admission to restricted facilities (e.g., museums, aquariums)

3. Billing Elements:

Periodic statements of account activity

Invoices for individual transactions

Verbal statements of amount due

Machine display of amount due

Self-billing (computed by customer)

4.

Payment:

5.

self-service
-

Exact change in machine

Cash in machine with change returned Elements

Insert credit/charge/debit card

Electronic funds transfer

Mail a check

Enter credit card number online

Direct to payee or intermediary:

-

Cash handling and change giving

Check handling

Credit/charge/debit card handling

Coupon redemption

Tokens, vouchers, etc.

Consultation:
Advice
Auditing
Personal counseling
Tutoring/training in product usage
Management or technical consulting

6.

Hospitality

Greeting

Food and beverages

Toilets and washrooms

Waiting facilities and amenities

Lounges, waiting areas, seating

Weather protection

Magazines, entertainment, newspapers

Transport

Security

Safe Keeping

Caring for possessions customers bring with them

Childcare
Pet care
Parking facilities for vehicles
Valet parking
Luggage handling
Storage space
Safe deposit boxes

 Security personnel
Caring for goods purchased (or rented) by customers
Packaging
Pick-up
Transportation
Delivery
Installation
Inspection and diagnosis
Cleaning
Refueling
Repairs and renovation
8. Exceptions

Special requests: There are many circumstances when a customer may request service that
requires a departure from normal operating procedures. Advance requests often relate to
personal needs, including childcare, dietary requirements, medical needs, religious
observances, and personal disabilities. Such special requests are common in the travel and
hospitality industries.

Problem solving: Situations arise when normal service delivery (or product performance)
fails to run smoothly as a result of accidents, delays, equipment failures, or customers
experiencing difficulty in using the product.

Handling of complaints /suggestions /compliments: This activity requires well-defined

procedures. It should be easy for customers to express dissatisfaction, offer suggestions for
improvement, or pass on compliments, and service providers should be able to make an
appropriate response quickly.

Restitution: Many customers expect to be compensated for serious performance failures.

Compensation may take the form of repairs under warranty, legal settlements, refunds, an
offer of free service, or other forms of payment-in-kind.

8. Examples of Exceptions

Special requests in advance of service delivery

Children's needs
Dietary requirements
Medical or disability needs
Religious observances
Deviations from standard operating procedures

Handling special communications

Complaints
Compliments
Suggestions

Problem solving

 Warranties and guarantees against product malfunction

Resolving difficulties that arise from using the product
Resolving difficulties caused by accidents, service failures, and problems with staff or other
customers
Assisting customers who have suffered an accident or medical emergency

Restitution
Refunds
Compensation in kind for unsatisfactory goods and services
Free repair of defective goods

Planning and branding service products:

Branding is one of the most important aspects of any business, large or small, retail or business to
business. An effective brand strategy gives you a major edge in increasingly competitive markets. But
what exactly does branding mean? How does it affect a small business like yours?
Branding basics:
Simply put, your brand is your promise to your customer. It tells them what they can expect from your
products and services, and it differentiates your offering from your competitions offering. Your brand
is derived from who you are, who you want to be, and who people perceive you to be. Are you the
innovative maverick in your industry, or the experienced, reliable one? Is your product the high-cost,
high-quality option, or the low-cost, high-value option? You cant be both, and you cant be all things
to all people. Who you are should be based to some extent on who your target customers want and
need you to be. The foundation of your brand is your logo. Your website, packaging and promotional
materials all of which should integrate your logo communicate your brand.
Brand strategy:
Your brand strategy is how, what, where, when and to whom you plan on communicating and
delivering on your brand messages. Where you advertise is part of your brand strategy. Your
distribution channels are part of your brand strategy. And what you communicate visually and verbally
are part of your brand strategy.
Brand equity:
Consistent, strategic branding leads to strong brand equity, which means the added value brought to
your companys products or services which allows you to charge more for your brand than what
identical, unbranded products command. The most obvious example of this is Coke vs. generic soda.
Because Coca-Cola has built powerful brand equity, it can charge more for its product. The added
value intrinsic to brand equity frequently comes in the form of perceived quality or emotional
attachment. For example, Nike associates its products with star athletes, hoping customers will
transfer their emotional attachment from the athlete to the product. Its not just the shoes features
and benefits that sell the shoe.
Defining your brand:
Defining your brand is like a journey of corporate self-discovery. It can be difficult, time-consuming
and uncomfortable. It requires, at the very least, answers to the questions below:

What is the mission of your company?

What are the benefits and features of your products/services?

What do your customers and prospects already think of your company?

What qualities do you want them to associate with your company?

Do your research. Learn the needs, habits, and desires of your current and prospective customers.
Dont rely on what you think they think. Know what they think. Because defining your brand and
developing a brand strategy can be complex, consider leveraging the expertise of a nonprofit smallbusiness advisory group or a U.S. Small Business Development Center.
Planning and branding service products:
There are two extremes in business competition today, highly furious competition and customers that
are more demanding than ever before. Marketing and its associated marketing planning process are
therefore of great importance for organizations, products and individuals.
Companies need to focus more on the customer-needs and should shift to the customer relationship
paradigm, if they would like to build competitive customer-value driven marketing strategies.
Branding is one of the most important aspects of any business, large or small, retail or business to
business. An effective brand strategy gives you a major edge in increasingly competitive markets. But
what exactly does branding mean? How does it affect a small business like yours?
Brand is your promise to your customer. It tells them what they can expect from your products and
services, and it differentiates your offering from your competitions offering. Your brand is derived
from who you are, who you want to be, and who people perceive you to be. Are you the innovative
maverick in your industry, or the experienced, reliable one? Is your product the high-cost, high-quality
option, or the low-cost, high-value option? You cant be both, and you cant be all things to all people.
Who you are should be based to some extent on who your target customers want and need you to be.
The foundation of your brand is your logo. Your website, packaging and promotional materials all of
which should integrate your logo communicate your brand.
Brand strategy:
Your brand strategy is how, what, where, when and to whom you plan on communicating and
delivering on your brand messages. Where you advertise is part of your brand strategy. Your
distribution channels are part of your brand strategy. And what you communicate visually and verbally
are part of your brand strategy.
Brand equity:
Consistent, strategic branding leads to strong brand equity, which means the added value brought to
your companys products or services which allows you to charge more for your brand than what
identical, unbranded products command. The most obvious example of this is Coke vs. generic soda.
Because Coca-Cola has built powerful brand equity, it can charge more for its product. The added
value intrinsic to brand equity frequently comes in the form of perceived quality or emotional
attachment. For example, Nike associates its products with star athletes, hoping customers will
transfer their emotional attachment from the athlete to the product. Its not just the shoes features
and benefits that sell the shoe.

Defining your brand:

Defining your brand is like a journey of corporate self-discovery. It can be difficult, time-consuming
and uncomfortable. It requires, at the very least, answers to the questions below:

What is the mission of your company?

What are the benefits and features of your products/services?

What do your customers and prospects already think of your company?

What qualities do you want them to associate with your company?

Do your research. Learn the needs, habits, and desires of your current and prospective customers.
Dont rely on what you think they think. Know what they think. Because defining your brand and
developing a brand strategy can be complex, consider leveraging the expertise of a nonprofit smallbusiness advisory group or a U.S. Small Business Development Center.
Brand elements
Brands are spread through various elements:

Name: The word or words used to identify the company, product, service, concept

Logo: The visual trademark that identifies the brand

Tagline or Catchphrase: Nokia connecting people Nike Just do it

Shapes: The distinctive shape of the Coca-Cola bottle

Graphics: The dynamic ribbon is also a trademarked part of Coca-Cola's brand.

Color: Owens-Corning is the only brand of fiberglass insulation that can be pink.

Sounds: A unique tune or set of notes Airtel ringer

Movement: Lamborghini has trademarked the upward motion of its car doors.

Smells: Scents, such as the rose-jasmine-musk of Chanel No. 5 is trademarked.

Taste: KFC has trademarked its special recipe of 11 herbs and spices for fried chicken.

Global brand
A global brand is one which is perceived to reflect the same set of values around the world. Global
brands transcend their origins and create strong enduring relationships with consumers across
countries and cultures. They are brands sold in international markets. Examples of global brands
include Facebook, Apple, Pepsi, McDonald's, Mastercard, Gap, Sony and Nike,citebank,icici,kingfisher
etc., These brands are used to sell the same product or services across multiple markets and could be
considered successful to the extent that the associated products are easily recognizable by the diverse
set of consumers.
Global brand variables
The following elements may differ from country to country:

Corporate slogan

Product names

Product features

Positionings

Marketing mixes (including pricing, distribution, media and advertising execution)

These differences will depend upon:

Language differences

Different styles of communication

Other cultural differences

Differences in category and brand development

Different consumption patterns

Different competitive sets and marketplace conditions

Different legal and regulatory environments

Different national approaches to marketing (media, pricing, distribution, etc.)

New Service Development - Hierarchy of Service Innovation

1.

Major service innovations: It is very much required to place a new service based on the
innovations which meet the customers expectations and needs.

2.

Major process innovations: using new processes to deliver existing core services in new
ways with additional benefits. Ex. All Universities innovates their existing Academics.

3.

Product line extensions: additions to current product lines by existing firms. Ex. Airline
services.

4.

Process line extensions: distinctive new ways of delivering existing products ex. Online
order processing and deliver to home.

5.

Supplementary service innovations: adding new facilitating or enhancing service elements

to an existing core service adding parking at a retail site or agreeing to accept credit cards
for payment

6.

Service improvements: most common type of innovation; they involve modest changes in
the performance of current products, including improvements to either the core product or to
existing supplementary services - movie theater might renovate its interior, adding
ergonomically designed seats with built-in cup holders

7.

Style changes: the simplest type of innovation; typically involving no changes in either
processes or performance - repainting retail branches; outfitting service employees in new
uniforms

Service companies must find ways to create meaningful competitive advantages for their products by
responding to specific customer needs and developing a distinctive service strategy that responds to
those needs better than any competing product.

Successful positioning strategies are based on

relating the opportunities (and threats) uncovered by market and competitive analysis to the firm's
own strengths and weaknesses.

UNIT - V
Pricing strategies for services: Service pricing, establishing monetary pricing objectives,
foundations of pricing objectives, pricing and demand, putting service pricing strategies into
practice.
SERVICE PRICING:
Pricing is the process of determining what a company will receive in exchange for its products or
services. Pricing factors are manufacturing cost, market place, competition, market condition, and
quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a
fundamental aspect of financial modeling and is one of the seven Ps of the marketing mix. The other
three aspects are product, promotion, and place. Price is the only revenue generating element
amongst the four Ps, the rest being cost centers.
Pricing is based on three critical points:
What your product or service will be worth to your customers - its value.
What it costs you to produce your product or provide your service.
The price your competitors charge.
1. Cost and price versus value:
1.1 Successful businesses maximise their profits by matching their pricing with the value customers
put on their products or services.
The cost is the total outlay required to create a product or service.
The price is your financial reward for providing the product or service.
The value is what the customer thinks the product or service is worth.
For a plumber to fix a burst pipe, it may be Rs.5 for travel, Rs.3 for materials and Rs.10 for one
hours labour. But the value to the customer is far greater than the Rs.18, so a plumber may
charge up to Rs.50. Computer printer ink cartridges can cost less than Rs.5 to manufacture.
However, to the user who cant print without them, their value is much higher - and so is the price.
1.2 Product pricing is often built on a cost-plus basis, while service pricing is generally created on
perceived value.
However, both methods require a complete understanding of costs and the competition.
2. Building a cost structure
Your cost structure provides a basis for what you need to charge. But it will not necessarily show you
what you can - and should - charge.
2.1 Divide your costs under two headings: variable and fixed.
Variable costs will increase when your sales increase (eg goods and materials).
Fixed costs remain largely constant, regardless of how much or little you sell (eg rent, salaries,
business rates).

2.2 As long as the price you sell at is higher than the variable cost, each sale will make a contribution
towards covering fixed costs - and making profits.
For example, a car dealership has variable costs of Rs.9,000 per car sold and total fixed costs of
Rs.200,000 a year.
The contribution required depends upon the volume of sales. If the company sells 80 cars each
year, it needs a contribution of at least Rs.2,500 per car (ie Rs.200,000 divided by 80) to avoid
making a loss.
2.3 Based on this cost structure, the company can assess the consequences of different price levels.
Selling the cars at less than Rs.9,000 (the variable cost per car) is suicidal.
The more you sell, the more money you lose. Selling 80 cars at Rs.9,000 will mean a loss of
Rs.200,000 per year, as none of the fixed costs will be paid for.
Selling cars at Rs.11,500 will result in breakeven, assuming the target 80 cars are sold,. If more or
fewer than 80 are sold, profits will be correspondingly higher or lower.
3. Checking the competition
It is certain that you will face competition in some form. This gives you an opportunity to benchmark
your potential pricing.
3.1 Phone your rivals and ask for a price quote.
If your competitors know you, get someone else to call.
3.2 Use this information as a framework. It is probably unwise to set your prices too much lower or
higher without good reason.
Too low and you will throw away profit.
Too high and you will lose customers, unless you can offer them something not available elsewhere.
4. Marking up
4.1 Cost-plus pricing is a traditional method, usually based on two elements:
The mark-up you must add to the cost to make the desired profit, and
The mark-up used by competitors. The mark-up is usually expressed as a percentage of the cost.
4.2 Ensure all your costs have been factored in before applying the mark-up.
If the final price looks uncompetitive, review the size of the mark-up.
Never obliterate the mark-up to make the price competitive. Try to change the cost base rather
than give up potential profit.
4.3 Different products and businesses apply very different mark-ups. For example, retail mark-ups
include:
Fridges: cost plus 25 per cent.
Branded clothing: cost plus 135 per cent.
Jewellery: cost plus 250 per cent or more.
5. Margins
5.1 Margins indicate the percentage profit a business makes after applying a mark-up.
For example, if a business buys a product for Rs.10 and marks it up by 50 per cent, thus selling it
for Rs.15, the margin is 33 per cent (the value of the mark-up, divided by the selling price x 100).

5.2 Margins are good barometers of how important particular products or services are to the
profitability of your business.
The higher the margin, the more lucrative it could be.
Low-margin, low-volume products should not occupy large chunks of your time or storage space at
the expense of higher-margin products.
6 Value-based pricing
The alternatives to cost-plus pricing focus on what customers are willing to pay.
This perceived-value pricing takes a number of forms:
Pricing Objectives:
Pricing objectives or goals give direction to the whole pricing process. Determining what your
objectives are is the first step in pricing. When deciding on pricing objectives you must consider: 1)
the overall financial, marketing, and strategic objectives of the company; 2) the objectives of your
product or brand; 3) consumer price elasticity and price points; and 4) the resources you have
available.
Some of the more common pricing objectives are:

maximize long-run profit

maximize short-run profit

increase sales volume (quantity)

increase monetary sales

increase market share

obtain a target rate of return on investment (ROI)

obtain a target rate of return on sales

stabilize market or stabilize market price: an objective to stabilize price means that the
marketing manager attempts to keep prices stable in the marketplace and to compete on nonprice considerations. Stabilization of margin is basically a cost-plus approach in which the
manager attempts to maintain the same margin regardless of changes in cost.

company growth

maintain price leadership

desensitize customers to price

discourage new entrants into the industry

match competitors prices

encourage the exit of marginal firms from the industry

survival

avoid government investigation or intervention

obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel

enhance the image of the firm, brand, or product

be perceived as fair by customers and potential customers

create interest and excitement about a product

discourage competitors from cutting prices

use price to make the product visible"

build store traffic

help prepare for the sale of the business (harvesting)

social, ethical, or ideological objectives

get competitive advantage

Pricing and Demand:

The concept of price and demand is arguably the most important in economics. First, the law of
demand, which states that the lower something's price it, the more people want it. As just about any
other thing in economics, demand can be represented in a graph. The following demand curve shows
the relationship above. As the price goes up, demand comes down and vice versa. As demand goes
up, price comes down. A demand curve like this can be created by getting a variety of products,
plotting them on the graph (their price and the amount of the product purchased) and fitting a line to
these points.

Fig : demand curve

Service Pricing Strategies:
Pricing strategy must address the central issue of what price to charge for a given unit of service at a
particular point in time, no matter how that unit may be defined. It's essential that the monetary price
charged should reflect knowledge of the service provider's fixed and variable costs, competitor's
pricing policies, and the value of the service to the customer

Few Pricing Strategies:

Premium Pricing:
Use a high price where there is uniqueness about the product or service. This approach is used where
a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard
Cruises, Savoy Hotel rooms, and Concorde flights.

Penetration Pricing:
The price charged for products and services is set artificially low in order to gain market share. Once
this is achieved, the price is increased. This approach was used by France Telecom and Sky TV.
Economy Pricing:
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Ex. Airline
services provide Economy class.
Price Skimming:
Charge a high price because you have a substantial competitive advantage. However, the advantage is
not sustainable. The high price tends to attract new competitors into the market, and the price
inevitably falls due to increased supply.

UNIT VI
Service promotion: The role of marketing communication. Implication for communication strategies,
setting communication objectives, marketing communication mix.
The role of Marketing Communication:
Marketing communication is a strategic part of the marketing process and not merely a single part
thereof. Communication is the message that is relayed to the customer rather than the nuts and bolts
of the technology that delivers it. Communicating with your customers enables you to deliver your
message to them so that they will react to it.
Marketing communication presents a set of messages to target market through numerous media or
cues. The messages try to create a favorable response from the market towards the companys total
product offering. The company tries to get back adequate feedback from the consumers which points
out their response, reaction and their reinterpretation of the messages. The feedback enables the
company to improve and modify its total product offering.
company

through

marketing

research/information

Market responses are collected by the

system.

Just

as

two-way

conversation

communicates more effectively than a one-way lecture, likewise marketing communication will be
more effective when the marketer uses the research input to have two-way communication. The
receipt, decoding and response to message are all under the direct controller of receivers rather than
the sender.

Marketing communications, in one form or another, are essential to a company's success

Scope of marketing communication: Some people still define it narrowly as the use of paid
media advertising, public relations and professional sales people

But this view doesn't recognize the many other ways that a firm can communicate with its
customers

The location and atmosphere of a service delivery facility, corporate design features like the
consistent use of colors and graphic elements, the appearance and behavior of employees,
Web site designall of these factors contribute to an impression in the customer's mind

Communication efforts serve not only to attract new users but also to maintain contact with an
organization's existing customers and build relationships with them

Nurturing customer relationships depends on a comprehensive and up-to-date customer

database, and the ability to make use of this in a personalized way

Marketing communications can be used to communicate with service employees as well as

with external customers

Internal communications from senior managers to their employees play a vital role in
maintaining and nurturing a corporate culture founded on specific service values

Well-planned internal marketing efforts are especially necessary in large service businesses
that operate in widely dispersed sites, sometimes around the world

Even when employees are working far from the head office in the home country, they still
need to be kept informed of new policies, changes in service features, and new quality
initiatives

Effective internal communications can help ensure efficient and satisfactory service delivery,
achieve productive and harmonious working relationships, and build employee trust, respect,
and loyalty

Commonly used media include internal newsletters and magazines, videotapes, Intranets
(private networks of Web sites and e-mail that are inaccessible to the general public), face-toface briefings, and promotional campaigns using displays, prizes, and recognition programs

Implication for communication strategies:

Intangible Nature of Service Performances: Since services are performances rather than objects,
their benefits can be difficult to communicate to customers.

Service providers should use tangible cues whenever possible in their advertising campaigns,
especially for low-contact services that involve few tangible elements

It is also helpful to include "vivid information" that will produce a strong, clear impression on
the senses, especially for services that are complex and highly intangible

MasterCard television and print advertisements emphasize the tangible things that can be
purchased with its credit cardcomplete with a listing of the price of each item. In each ad, all
of the items purchased with the card lead to a priceless experience (a clever and memorable
reference to the concept of intangibility)

At a very basic level, some companies have succeeded in creating tangible, recognizable
symbols to associate with their corporate brand names

Easily recognizable corporate symbols are especially important for international companies
when services are offered in markets where the local language is not written in Roman script
or where a significant proportion of the population is functionally illiterate

Customer Involvement in Production: In high-contact services, customers are often concerned

about the risks associated with service delivery and consumption

The providers of such services have both a legal and a moral responsibility to educate their
clients

When customers are actively involved in service production, they need training to help them
perform well-just as employees do

One approach recommended by advertising experts is to show service delivery in action

Some dentists show their patients videos of surgical procedures before the surgery takes
place. This educational technique helps patients prepare mentally for the experience and
shows them what role they should play during service delivery

Evaluating Service Offerings: Even if you understand what a service is supposed to do, you may
have difficulty distinguishing one firm from another and knowing what level of performance to expect
from a particular supplier

What can a service business do to attract your attention and your patronage? Possible
solutions include: providing tangible clues related to service performance; highlighting the
quality of equipment and facilities; and emphasizing employee characteristics such as their
qualifications, experience, commitment, and professionalism.

Some performance attributes lend themselves better to advertising than others.

When an airline wants to boast about its punctuality, reporting favorable statistics collected by
a government agency offers credible support for this claim.

However, airlines don't like to talk overtly about safety, because even the admission that
things might go wrong makes many passengers nervous.

Instead, they approach this ongoing customer concern indirectly, advertising the expertise of
their pilots, the newness of their aircraft, and the skills and training of their mechanics

In low-contact services "where much of the firm's expertise is hidden, firms may need to
illustrate equipment, procedures, and employee activities that are taking place backstage

Supply-and-Demand Management: Many live services are time-specific and can't be stored for
resale at a later date.

Advertising and sales promotions can help to change the timing of customer use and thus help
to match demand with the capacity available at a given time

Demand management strategies include reducing usage during peak demand periods and
stimulating it during off-peak periods

Low demand outside peak periods poses a serious problem for service industries with high
fixed costs, like hotels

Importance of Contact Personnel: In high-contact services, service personnel are central to service
delivery. Their presence makes the service more tangible and, in many cases, more personalized
Reduced Role for Intermediaries: Intermediaries like retailers often play a key role in promoting
products and teaching customers about their characteristics

Services are less likely than goods to be sold through channel intermediaries

Firms in the travel and insurance industries, which make extensive use of independent agents
and brokers, must compete with other brands not only for physical display space but also for
"top-of-mind" recall if they are to obtain adequate push from intermediaries in the distribution
channels

Internal communication, personal selling, motivational promotions, and effective public

relations can be critical in maintaining successful working relationships between intermediaries
and service firms

Setting communication objectives:

Create memorable images of specific companies and their brands

Build awareness of and interest in an unfamiliar service or brand

Build preference by communicating the strengths and benefits of a specific brand\

Compare a service with competitors' offerings and counter competitive claims

Reposition a service relative to competing offerings

Stimulate demand in low-demand periods and discourage demand during peak periods

Encourage trial by offering promotional incentives

Reduce uncertainty and perceived risk by providing useful information and advice

Provide reassurance (e.g., by promoting service guarantees)

Familiarize customers with service processes in advance of use

Teach customers how to use a service to their own best advantage

Recognize and reward valued customers and employees

When planning a campaign, marketers need to formulate specific communications objectives

and select the most appropriate messages and tools to achieve them

Let's assume that a rental car agency has defined the need to increase repeat purchase rates
among business travelers as one of its key strategic objectives.

In pursuit of this objective, the firm decides to implement an automatic upgrade program and
an express delivery and drop-off system.

For this plan to succeed, customers must be informed about these new features and educated
on how to take advantage of them.

A specific set of communications objectives might be:

1. to create awareness of the new offering among all existing customers;
2. to attract the attention of prospective customers in the business traveler segment, inform
them of the new features, and teach them how to use the new procedures effectively;
3. to stimulate inquiries and increase pre-bookings; and
4. to generate an increase in repeat patronage of 20 percent after six months

Planning a marketing communications campaign should reflect a good understanding of the

service product and the ability of prospective buyers to evaluate its characteristics in advance
of purchase.

It's also essential to understand target market segments and their exposure to different
media, as well as consumer awareness of the product and attitudes toward it.

Decisions include determining the content, structure, and style of the message to be
communicated, its manner of presentation, and the media most suited to reaching the
intended audience

Additional considerations include: the budget available for execution; time frames (as defined
by such factors as seasonality, market opportunities, and anticipated competitive activities);
and methods of measuring and evaluating performance.

MARKETING COMMUNICATION MIX:

A marketing communications mix is the same as a promotion mix and is just another term for
promotion mix. There are five marketing communications to put into the mix: Advertising, Sales
Promotion, Public Relations, Personal Selling, and Direct Marketing. This basically all boils down to a
mix of promotional efforts to bring in sales and increase brand equity.

The Traditional Marketing Communication Mix

The first step in the marketing communication process is deciding what components of the Marketing
Communication Mix you are going to utilize in communicating with your target audience. The five
traditional elements of the MARCOM mix are Advertising, Direct Marketing, Personal Selling,
Public Relations and Sales Promotion. These are discussed below. The Marketing Communication
Process, Marketing Communication Strategy and Marketing Communication Plan pages also provide
additional thoughts and tools for optimizing your marketing communication mix.
The traditional components of the marketing communication mix are discussed below and put into
perspective for successful marketing to today's consumers by today's business. Although marketing
underwent a great transformation similar to that of business as a whole in the twentieth century, the
traditional components of the marketing communication process are still in use and important today.
Advertising

This is the mass media method of marketing communication and provides exposure to the largest,
most geographically dispersed audience at the lowest cost per head. That being said, advertising costs
can add up quickly with mediums like television, radio and even online advertising which can be
prohibitively expensive for many businesses.
Other traditional forms of paid advertising include newspapers and magazines, the Yellow Pages,
billboards, signs and posters. As well, advertising on buses, benches, gas pumps and even public
restrooms is in vogue today. Basically, any medium which provides an opportunity to target "eyes
and/or ears" can be a venue for advertising and you can see examples of successful promotion in the
most unlikely places.
Direct Marketing
This marketing communication competency enables companies to reach out directly to consumers
without intermediary channels such as those required for advertising. This component of the
marketing communication process includes direct mail, catalogs, coupons and inserts, telemarketing,
online marketing and television infomercials. Done correctly, Direct Marketing is extremely effective in
the long run and allows for a targeted marketing approach to specific consumers to create valuable
lasting relationships.
Direct Marketing is the marketing communication method that enables companies to interact with a
relatively large number of customers and encourage a "call to action" or "most wanted response"
which is usually a purchase. The downside of Direct Marketing is that it is usually unsolicited and seen
as a nuisance by the general public. Telemarketing, e-mail spamming and junk mail are universally
despised and so Direct Marketing tools should be used with thought and caution.
Personal Selling
This is the most dreaded as well as the most expensive of all methods in the marketing
communication process. However, if you are a small business owner or otherwise have the ability to
personally sell and build relationships with customers, it can be one of the most rewarding aspects of
the marketing process, both personally and professionally.
Just as with traditional marketing, successful selling begins and ends with the customer. The whole
objective is to ascertain needs and create the best solution for customers. Along the way you build
relationships and continue to gather information about how you can better serve customers which is
your reason for being in business in the first place.
Sales and marketing are fundamental to the survival of any business and both involve creating
customers for the business value you have created. The former targets one person (or entity) whereas
the latter targets many. Both engage, inform and persuade through a variety of communicational
tools. Aligning both will increase your success regardless of conditions. Successful sales and successful
marketing both begin with an attitude and that attitude is customers first.
Public Relations
This refers to how you handle your relationships and the flow of information with your various
"publics" or the people who have a stake in or are affected by your business. This includes the general
public, consumers, shareholders, employees, partners, competitors and the government.

PR becomes a more and more crucial element of the marketing communication mix as a business or
organization grows larger. That being said, it is still a vital component of the marketing communication
process to think about for smaller businesses as well. PR tools include press and media releases,
lobbying, charitable and public events, advertorials, financial reports, promotional collateral, facility
tours, sponsorships, interviews and any other method for the promotion of a positive image to people.
Being "people conscious" starts with the individual and carries through to the organization. Once
again, people buy from people at the end of the day and the most successful people and organizations
are those that benefit other people the most. As with many facets of sales and marketing, PR also has
a "good" and "bad" side.
The good side of PR is fostering socially conscious business practices whereas the bad side is
epitomized in shady political lobbying, "spin doctors" and so forth that divert from the truth as
opposed to promote it. Suffice it to say that in today's connected world, more than ever, any sized
organization needs to be cognizant that it operates within the larger framework of society and has
corresponding responsibilities.
Sales Promotion
This is the last traditional component of the marketing communication mix that is discussed here as
part of the marketing communication process. Sales promotion simply refers to purchase incentives
that you provide your customer with. These can assume a number of forms including offering free
goods or services, coupons and vouchers, gifts and prizes, discounts, samples, financial incentives,
charitable promotions and any other value-add over and above your standard product or services.
Sales Promotions are generally short-lived, "one off" incentives intended to provide consumers with
that last "push" to buy. The main takeaway is that regardless of the size and type of your business,
you should continually look at ways in which to create additional value for customers. Your customers
will appreciate it and, in facts, customers have been shown to pay premium prices for real value and
real service.
Marketing Communication Process
While the information age may have changed how the world runs and how business is done, some
fundamental principles still hold true for marketing in general and the marketing communication
process as well. Being aware and aligning yourself to these principles will lead to success. After all,
people continue to buy from people, technology and the hustle and bustle of modern life
notwithstanding.
The Marketing Communication Process page covers additional individual marketing communication
tools such as e-mail, flyers, mailing lists, newspaper and magazine ads, Yellow Pages, merchandising
and packaging, trade fairs and events and eMarketing. As well, other disciplines related to the
marketing communications mix such as branding, product placement, underwriting, graphic design,
sponsorship and online marketing are touched on in that section.
Marketing Communications is a very broad discipline and there are a tremendous number of ways and
means for reaching out to your customers in today's high tech world. The goal of these sections is not
to provide an exhaustive study but to touch upon the various elements of the marketing

communication mix so that you are equipped with the basic facts for further inquiry and
experimentation. As well, a lot of the "bunk" is deconstructed and presented in plain language to make
your study of the various marketing communication processes and tools as easy as possible.
Marketing Communication Strategy
Just like you cannot always predict the market in general, similarly you cannot always predict which
element of the marketing communication mix will prove most successful. You will change your
Marketing Communication Strategy as your business grows and evolves, always focusing on those
areas that provide maximum return for your efforts. As with every aspect of your overall marketing
strategy,

marketing

communication

management

requires

careful

planning,

monitoring

and

adjustment to continually refine your approach and achieve the best results.
Good promotion captures the imagination and is celebrated by sales and marketing professionals as
well as the general public (see the much-touted NFL Super Bowl Ads for example). Stories abound of
super-successful advertising campaigns that struck the right cord with the right message at the right
time to create phenomenal results (the Canadian Cassie Awards annually showcase the best ads by
Canadian advertisers and agencies). Promotion has the power not only to create sales but have an
effect on the social consciousness as a whole.
The Marketing Communication Strategy page discusses the basics of marketing communication
planning to your best advantage as per your business needs. The real secret to marketing
communication success lies in diligent research and an understanding of human nature and your
particular target audience.
The Marketing Communication Plan
Creating a Marketing Communication Plan is necessary to create programs around and effectively
utilize the various components of the marketing communication mix. What elements are you going to
utilize first? How are the various elements going to interact with each other? How much is all of this
going to cost? As with most things, careful planning in this regard will pay far greater dividends than
the relatively haphazard spontaneous approach of "let's do what feels right".
Your Marketing Communication Plan may be relatively simple and consist of an ad in the Yellow Pages
which works fine for your business. However, as you grow - and in order to grow - looking at
successful new ways of communicating with your target audience will keep you focused on your
essential value proposition and keep you connected to you what your customers want in addition to
create new customers.
The Marketing Communication Plan page is a step-by-step approach with examples of how you can put
together an effective communications plan for your organization, product, service or idea.
Integrated Marketing Communication Plan
Integrated Marketing Communication is the last piece of the marketing communication mix puzzle
and, according to the American Marketing Association requires that that "all brand contacts received
by a customer or prospect for a product, service, or organization are relevant to that person and
consistent over time. What does this mean to you and me?

Well for one, it necessitates a coherent go-to-market strategy and message, one that is reflected at
every customer contact point. It also means that the various sales and marketing tools, methodologies
and approaches you use for creating customers are in sync and reflect the "total whole" of your
business. Just like the various organs of your body work in sync, so should the various parts of your
business - and in this case, your marketing communication mix - complement one another as well.
The Integrated Marketing Communication page takes you through the basic fundamentals of IMC, as it
is known, and shows you the thought process involved in aligning the various components of your
marketing communication mix for sales and marketing success.

UNIT VII
Planning and managing service delivery: Creating delivery systems in price, cyberspace and
time. The physical evidence of the service space. The role of intermediaries, Marketing plans for
services: The marketing planning process.

--ALL THE BEST--