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Promotion Presentation Transcript

  • 1. Services MarketingService Promotion-Unit-3
  • 2. Meaning Of Promotion “Promotion is a process ofcommunication, involvinginformation, persuasion andinfluence.”
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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