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  1. 1. Services MarketingService Promotion-Unit-3
  2. 2. Meaning Of Promotion “Promotion is a process ofcommunication, involvinginformation, persuasion andinfluence.”
  3. 3. Objectives of Promotion Promotional campaigns are targeted at consumersto increase their awareness of a new serviceoffering and encourage them to try it outExample: and Visa Promotional campaigns can also be targeted atintermediaries to encourage them to offer newservices or make the existing intermediaries givean extra push for the servicesExample: Insurance Companies
  4. 4. Objectives of Promotion Conti.. The promotional objectives targeted atcompetition help a service provider todevelop offensive or defensive strategiestargeted at one or more competition in themarket
  5. 5. Promotion-Mix The term “Promotion-Mix” is used to refer to thecombination of different kinds of promotional toolsused by a firm to advertise and sell its products. The main promotional tools or activities whichmakeup the promotion-mix are:1. Personal Selling2. Advertising3. Public Relations and Publicity4. Sales Promotion5. Direct Marketing
  6. 6. Personal Selling Persuading through oral communicationMerits:a) Enables a marketer to attract the attention of theprospective customers, create interest in their minds,increase their desire to purchase and persuade themto act and make a purchase.Example: Investment agentb) Creates an opportunity for the marketer to develop arelationship with the customer.Example: Service executive of a resort
  7. 7. Advertising “It is any paid form of non personal, presentationof goods, by an identified sponsor through themedia.” Service providers should involve front lineemployees in designing the advertising campaignExample: Taj group hotels Service providers should design advertisingcampaigns that attach tangible clues Companies should advertise services that theycan possibly deliver
  8. 8. Advertising Conti..Merits:a) A company can improve its brand image andbrand equity with the help of advertising.b) It also helps the company in differentiatingand positioning its products from those of itscompetitors.
  9. 9. Sales Promotion “Sales promotion may be defined as any step that istaken for the purpose of increasing sales.”Merits:a) Sales promotion strategies are used bycompanies to stimulate potential customers totry their products or to attract competitor’scustomers to shift loyalties.b) Sales promotion tends to increase sales for aperiod.
  10. 10. Publicity and Public Relations Publicity involves using of information thatinduces interest towards a company, event,or person.For example, Publicity includes eventsponsorship, charitable donations etc.
  11. 11. Direct Marketing Contacting the existing and potential customersdirectly through telemarketing, direct mail, andonline marketing (e-mail and official websites),without employing any intermediaries in theprocess Merits:a) Immediate feedbackb) Personal touchc) Less expensive
  12. 12. Difference between Services and PackagedGoods in the context of Promotion Services can not be inventoried Reduced role of intermediaries Role of service personnel Service delivery location Customer as a co-producer
  13. 13. In view of these differences service providerscan adopt any of the promotional technique: Sampling Premiums Prize promotions Price/Quantity promotions Refunds and future discounts Coupons
  14. 14. How to Design A ServicePromotion?1. Which Services to Promote?2. Who would be the Target Customer?3. What would be the Value Added to the Product/Brand?4. Is the Timing Right for Promotion and how longa Promotional Campaign be Run?5. Who is benefited from the Promotions?6. How to Differentiate a PromotionalCampaign?
  15. 15. Strategies For EffectivePromotion Effective Planning Focused Objectives Perfect Timing Adding Value through Tie-Ups andPromotion Overlays Employee Motivation Well-Differentiated Campaign Regular Evaluation of the Campaign
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