SM UNIT -4.ppt strategic management ppt is
- 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.
- 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
Editor's Notes
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