Strategy management

1. POSITIONING OF SERVICES
 Importance of Positioning
 Positioning involves both launching new brands into
the marketplace (new brand positioning), and
repositioning old brands
 As a result of competitive pressure the consumer is
becoming increasingly confused

2.  The key to a successful positioning strategy is to
promote the feature in which the company is best
 Because of intangibility and other features
associated with services, consumers find that
differentiation of services can be more difficult
and complex.

3.  Successful positioning makes it easier
 Positioning is a strategic marketing tool
 Positioning involves giving the target market segment
the reason for buying your services
 It also offers guidelines for development of a
marketing mix

4. METHODS OF POSITIONING
 Services can be positioned in 6 different ways. They
can be positioned by service attributes, use of
application, price/ quality relationship, service class,
service user, or competitor.

5.  Service attributes involve positioning the service in
terms of what it does best.
 Use or application can be used for positioning. Some
fitness centers will cater to individuals who want to
reduce weight, while others position themselves for
individuals who want to exercise or on weight lifting or
conditioning
 Price- Quality relationship can also be used for
positioning a firm.

6.  service class. Pizza Hut wants to be positioned as a
‘dine-in restaurant’, not a fast-food restaurant.
 Some services are positioned according to service
users.
 Service providers can also position themselves relative
to a competitor.

7.  STEP -1: DETERMINE THE CORRECT POSITION:
 The first step in determining the correct position for a
service is to identify the firm’s competitors. It is
important to look at competition from a consumer’s
view point. In making a purchase decision, what
vendors do consumers consider? The list of vendors
generated is the competing firms.


8.  STEP-2: ASSESS CONSUMER PERCEPTION:
 The second step in the process is to assess consumers’
perceptions of each firm in the industry. Consumer
perceptions are crucial in positioning.

9.  STEP-3: DETERMINE THE POSITION OF EACH
FIRM:
 Based on information gained from consumers, the
third step is to determine the position of each firm
within the industry. Using the position map is an
excellent method of doing this. The map will allow
firms to see where they are relative to their
competition.

14.  STEP-4: ANALYSING CONSUMER PREFERENCES:
 The fourth step in determining the correct consumer
position is to analyze consumer preferences. This
information is difficult to obtain but is important in
making a positioning decision. Analyzing consumer
preferences involves determining why consumers
prefer one firm over another.

15.  STEP-5 MAKING CONSUMER POSITION
DECISION:
 if a firm is unhappy with the position it occupies in
consumers’ minds, it may want to reposition itself. In
choosing a new position, firms must be very careful.
Changing the position of a firm in consumers’ minds is
very difficult since positions become very entrenched.
Consumers have to be convinced that what they
believe about a firm in reference to its competition is
wrong or that it must be modified.

16.  STEP-6: DEVELOP A STRATEGY:
 The final step in the process is to develop a strategy to
implement the new position or to reinforce the current
position.


17.  https://www.slideshare.net/hisema/services-
marketing-service-positioning
 https://simplicable.com/new/service-positioning

19. SERVICE MARKETING TRIANGLE

20.  Service marketing involves 3 types of marketing:
 EXTERNAL MARKETING
 INTERNAL MARKETING
 INTERACTIVE MARKETING

21.  1. External Marketing: "Setting the Promise"
 Marketing to END-USERS.
 Involves pricing strategy, promotional activities, and
all communication with customers.
 Performed to capture the attention of the market, and
arouse interest in the service.

22.  Internal Marketing: "Enabling the Promise"
 Marketing to EMPLOYEES.
 Involves training, motivational, and teamwork programs,
and all Communication with employees.
 Performed to enable employees to perform the service
effectively, and
 Keep up the promise made to the customer.

23.  . Interactive Marketing: (Moment of Truth,
Service Encounter)
 This refers to the decisive moment of interaction
between the front-office employees and customers, i.e.
delivery of service.
 This step is of utmost importance, because if the
employee falters at this level, all prior efforts made
towards establishing a relationship with the customer,
would be wasted.

24. Designing a service delivery
system
 How is the service concept delivered?
 The delivery of a service typically involves six factors:
 The accountable service provider and his service
suppliers (e.g. the people)
 Equipment used to provide the service (e.g. vehicles,
cash registers, technical systems, computer
systems)

25.  The physical facilities (e.g. buildings, parking,
waiting rooms)
 The requesting service consumer
 Other customers at the service delivery location
 Customer contact

26. Physical Evidence (or)
Servicescape
 Physical evidence is everything a company physically
exhibits to the customer. It includes the physical
environment of the service outlet, the exterior, the
interior, all tangibles like machinery, certificates,
receipts, service personnel.

27.  service companies should first identify the users of the
services cape. Based on usage, services capes can be
classified into three types
 self service,
 Interpersonal service and
 Remote service.

28. Physical Evidence at Landmark
 Landmark is one of the most well-known retail
bookstores in the country. It has around 40,000 titles
at any given point of time
 At Landmark, the marketing team has a clear program
- coming up with a certain number of events at every
store every year.
 An assurance of pollution-free air can also become a
selling proposition for service companies

29.  Noise
 Music
 Smell
Servicescape Dimensions
 The quality of the materials used in the construction
of physical structures at work, the presence of
certificates and photographs, the floor coverings and
architectural values communicate symbolic meanings
and create an aesthetic impression

30.  Ø Cognitive responses are influenced by beliefs, the
way in which the individual categorizes the
stimulation and the symbolic meanings he develops
for the stimuli.
 Ø Emotional responses are influenced by the mood
of the individual and also the attitude he has
developed against the service firm.
 Ø Physiological responses include pain, comfort,
movement and physical fitness. The interplay of these
factors finally results in customer response or
employee response

31. COMPETITIVE DIFFERENTIATION OF SERVICES
 A business must set itself apart from its competition.
 To be successful it must identify and promote itself as
the best provider of attributes that are important to
target customers- GEORGE S. DAY
 The major service differentiators are: the. Basic
Service Package (BSP), accessibility, interaction,
customer participation, tangibles used, service
personnel, service channel, service image and
service recovery

32. Basic service package
 Service personnel
 Service channel
 Service image
 Service recovery

33. Service Channel
 Direct Delivery of Service
 Services are intangible and experiential and not
involving in moving through a chain of firms that begins
with manufacturer and ends with consumer
 Many services are delivered directly from the service
producer
 Ex: air Travel (airlines), health care

34. Delivery of service through
intermediaries
 Direct or company owned channels(starbucks)
 Franchising
 Agents & brokers
 Electronic Channel

35. PRICING OF SERVICES
 “A customer perception of what is a ‘reasonable price’ is
more important than what you want to charge for your
product or service. And the customer decides what’s
reasonable based on perceived value for money, not
price. It’s creating this perception of value that tells the
customer - the price is right. “

36. The Key ways that service prices are
different for consumers
 Customer knowledge of service prices
 Service variability limits knowledge
 Providers are unwilling to estimate prices
 Individual customer needs vary
 Collection of price information is overwhelming

37. Approaches to pricing services
 Cost based pricing
 Price = direct cost+ overhead cost + profit margin
 Costs are difficult to trace
 Labour is more difficult to price than material
 Costs may not equal the value that customers perceive
the services are worth

38.  Competition based pricing
 Small firms may change too little to be viable
 Heterogeneity of services limits comparability
 Prices may not reflect customer value

39.  Demand based
 Monetary prices must be adjusted to reflect the value of
nonmonetary costs
 Information on service cost is less available to
cutomers;hence,price may not be a central factor

40. Pricing strategies
 Value is low price
 Discounting
 Odd pricing( 299 rather than 300)
 Syncho pricing
 Place differential( front seat and balcony in theater)
 Time diiferential(calls after 10.pm)
 Quantity differential(no of tickets in park)
 Differetial as incentive
 Penetration pricing

41. Value is everything i want in a
service
 Prestige pricing
 Skimming pricing

42. Value is the quality I get for the price I
pay
 Value pricing
 giving more for less( bundle offers)
 Market segementation pricing

43. Value is all that I get for all that I gave
 Price framing
 Price bundling
 Mixed bundling(a=10,b=10,c=10 but a+b+c =25 )
 Mixed leader bundling ( a=20, b=5 if not b=20)
 Mixed joint bundling(a=30 b and c free)
 Complementary pricing
 Results – based pricing

44. Integrated Service Marketing
Communication
 We can have the best or most innovative products or
services, but if the internal and external
communications are weak, then the demand for your
products or services raises a personal flag of concern

45.  When planning your strategy for Integrated Marketing
Communication or IMC, we should have dialogue
with your customers by inviting interaction
through the coordinated efforts of content,
timing and delivery of your products or services

46.  By ensuring direction, clarity, consistency, timing and
appearance of your messages, conveyed to your
targeted audience, these factors will help avoid any
confusion about the benefits of your brand, through
the connection of instant product recognition.

47.  Integrated marketing communication is part of that
marketing mix included in your marketing plan.
 IMC strategies define the target audience, establish
objectives and budgets, analyzes any social,
competitive, cultural or technological issues, and
conducts research to evaluate the effectiveness of your
promotional strategies.

49. DHL
 DHL entry in U.S
 Federal and united parcel owned 70 %
 DHL ‘-225 Countries 6%
 2003 acquired airborne
 1.2 billion to boost u.s market
 150 million on IMC
 Ogilvy and Mathew ad Agency
 Video in NY time square
 Ad of train

50.  New website
 Free hot dogs campaign

51. Advantages of integrated services
 Greater control of the promotional process allows for
more synergy among each of the communication
program elements

52.  More convenient for clients to coordinate all
promotional efforts with one agency
 Agencies with IMC capabilities can create a single
image for the client

53. Disadvantages of integrated
services
 Synergy and economies of scale are often not achieved
by a single agency handling all communication areas

54.  Internal conflicts often arise within various
departments within a large agency over areas such as
advertising, public relations or sales promotion

55.  Limits client’s ability to take advantage of specialists in
various IMC areas