Seal of Good Local Governance (SGLG) 2024Final.pptx
Positioning OF service marketing
1. POSITIONING PROCESS
• The positioning process is important to be identified and followed
by any organization which wants to implement its marketing
strategy soundly.
• It is a difficult task to identify and select a positioning strategy and
thereby the correct positioning process for an organization.
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4. Role of Services in an Economy
Service enterprises are organizations that facilitate
the production and distribution of goods, support
other firms in meeting their goals, and add value to
our personal lives.
James Fitzsimmons
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7. MARKETING CHALLENGES OF
SERVICES:
• Clients can't see or touch services before
conceptualize and evaluate from the client
perspective, creating increased uncertainty and
perception of risk.
• From the firm's perspective, service in quality, and
set price.
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8. • Services are often produced and consumed simultaneously
• This creates special challenges in service quality management that
product companies do not even consider.
• Products are tested before they go out the door. If a product has
quality problems while in production the company can fix them
and customers are none the wiser.
• Service production happens with the customer present, creating a
very different and challenging dynamic.
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9. • Trust is necessary
• Some level of trust in the service organization and its
people must be established before clients will engage
services.
• This is as important, sometimes more important, than
the service offerings and their value proposition.
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10. • Competition is often not who you think
• Competition for product companies are other
product companies.
• Competition for service companies are often the
clients themselves
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11. • Brand extends beyond marketing
• Brand in service businesses is about who you are as much
as what you say about yourself.
• And internal brand management and communications
can be equally as vital to marketing success as are external
communication.
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12. • Proactive lead generation is difficult
• Many service companies have tried, and failed, at using lead
generation tactics that work wonders for product companies.
• Implemented correctly, traditional product techniques, such
as direct marketing and selling, can work for services, but the
special dynamics of how clients buy services must be
carefully woven into your strategy.
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13. Service deliverers often do the selling
Many product companies have dedicated sales forces.
For services, the selling is often split between sales, marketing,
professional, and management staff.
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14. • Marketing and sales lose momentum:
• Most product companies have dedicated marketers and sellers.
• They market and sell continuously, regardless of the revenue
levels they generate. In many services companies the marketers
and sellers also must manage and deliver.
• This can often lead to the Services Revenue Rollercoaster-wide
swings between revenue and work overflow, and revenue and
work drought.
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15. • Passion is necessary yet elusive(difficult to describe):
• The more passion, spirit, hustle, and desire your staff
brings to the organization every day, the more revenue
and success you will have.
• The correlation between staff passion and financial
success is direct and measurable
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16. CONSUMER BEHAVIOUR
• Consumer behaviour is the study of how individual
customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs
and wants.
• It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions.
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20. • Varies from consumer to consumer
• Varies from region to region and country to county
• Information on consumer behaviour is important to the marketers
• Leads to purchase decision
• Varies from product to product
• Improves standard of living
• Reflects status
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23. LOW INVOLVEMENT
• Low involvement products, as the name suggests, are
products where the consumer does not need to think too
much before purchasing the product.
• There is not much risk involved in low involvement purchase,
as a result of which decision making is much faster.
• Most FMCG products can be classified as a low involvement
product.
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25. • Low price
• A soap has a very less price and mostly all soaps perform the same function.
Hence, Soaps are low involvement purchase.
• Low risk factor
• A consumer will think very less when purchasing chips or chocolates for himself
but he might think longer and in depth when purchasing a watch for himself or
his loved ones.
• Not much differentiation
• If Bisleri is not available, the customer will buy Aquafina or any other mineral
water brand that is available.
• Brand switching
• Availability and distribution
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26. • Impulse buying
• Chocolates are kept at checkout counter in FMCG stores. Similarly accessories are
kept at checkout counters in Mobile stores or in stores of consumer durables. If
you need the accessory, you might buy it on impulse, because many accessories can
also be characterised as low involvement purchase.
• Repeat purchase
• I have always used head and shoulders as a shampoo. So i always purchase the same.
Purchasing a shampoo from the market is a no brainer for me. But if i am going to
purchase something new for the first time, i might think a bit more. Still i won’t
think of purchasing a shampoo as much as purchasing a new laptop or a new car.
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27. high involvement
• A high involvement product is a product where extensive thought process is
involved and the consumer considers a lot of variables before finally making
a purchase decision. Many times, high involvement purchases involve
multiple buyers or multiple influencers who influence a single buyer.
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29. • High price
• Differentiation is important
• Brand recall and valuation
• Look at speakers of Bose which are considered as high involvement
products mainly because of their premium price in a category where
there are cheap speakers as well.
• Customer perceived risk
• A team of purchase managers decides to buy a state of the art
equipment for their factory. This is a B2B high involvement purchase.
Naturally, because the company is spending a huge amount for the
new equipment, they have the fear that the machine should be high
performing and efficient, else all the money and time invested will be
wasted.
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