UNIT 1: SERVICE MARKETING

 INTRODUCTION:

Service Marketing is a type of marketing that focuses on promoting and

selling services instead of physical goods. It uses specific strategies to increase
demand, highlight the benefits, and provide excellent customer service
experiences. This kind of marketing puts a strong emphasis on understanding
customer needs, providing customized services, ensuring customer satisfaction,
and keeping customers engaged to build loyalty and encourage repeat
business. The main goal is to make customers feel valued and give them a
positive and unforgettable experience that sets the business apart from its
competitors.

 CHARACTERSTICS OF SERVICES:
Service marketing is different from product marketing because services
have unique features that need special attention. Here are the main
characteristics of service marketing,

1. Intangibility: Services can't be seen, touched, or stored. This makes it hard

for customers to know what they're buying before they buy it. To help with
this, service marketing often focuses on creating a strong brand and using
customer stories and examples to show the benefits of the service.
2. Inseparability: Services are usually made and used at the same time. This
means the person providing the service is a big part of the customer's
experience. For instance, the experience you have at a salon depends a lot on
the hairdresser. Service marketing must ensure that service providers are well-
trained and capable of delivering a good experience every time.
3. Variability: The quality of a service can change depending on who's
providing it, when, and where. Because of this, service marketing needs to
make sure all service providers are consistent in what they do and that
customers know what to expect.
4. Perishability: Services can't be stored for later use or sale. For example, if an
airline seat isn't sold, it can't be used later. Marketing for services often
involves managing when services are offered to make sure they meet customer
demand without going to waste.
 NATURE OF SERVICES
Service marketing promotes intangible goods. It markets firms’ economic
services to customers. The items are not owned. Services satisfy the public only
when experienced.

Non-transfer of Ownership

No ownership is attached to the products. Neither the provider nor the user
owns the service. The provider owns only the physical infrastructure needed to
deliver the service. Nobody can own services, which are intangible. It disappears
after consumption and merely gives consumers experiences.

Expanded Marketing Mix

Service marketing uses a larger marketing mix than product marketing. It

comprises seven Ps: Product, Price, Place, Promotion, People, Process, Physical
Evidence. Product marketing mix comprises simply four Ps: Product, Price, Place,
and Promotion. The service marketing mix includes three more Ps since services
are different from physical products.

Inseparability of Consumption and Production

It emphasises simultaneous production and consumption. Service providers and

services are inseparable. Delivering services to clients requires a service
provider. Services cannot be used without the producer. Services are produced
and delivered simultaneously to customers.

Heterogeneous Products

Service marketing sells heterogeneous items. Each intangible product is unique.

Unlike actual products, these are not identical. The same service provider’s
services satisfy customers differently. Even if a customer uses the same service
provider multiple times, his satisfaction will vary. Service cannot be
standardised or quality controlled like physical items.

Managerial Function

Service marketing manages intangible product promotion. It oversees all

business and creates tactics for businesses to promote intangible products.
These tactics are tailored to services’ intangibility, perishability, inseparability,
variability, etc. It targets large-scale intangible product promotion to raise
market awareness.

 NEED AND IMPORTANCE OF SERVICE MARKETING

The service marketing mix is extremely important because it helps businesses
effectively market and deliver services, here are some of its benefits,
1. Addresses Unique Challenges: Services are different from physical products
because they are intangible, variable, and perishable. The service marketing
mix is tailored to handle these unique challenges by including elements like
People, Process, and Physical Evidence, in addition to the
traditional Product, Price, Place, and Promotion. This helps businesses ensure
that their services meet customer expectations consistently.
2. Enhances Customer Experience: By focusing on elements like people and
process, the service marketing mix ensures that every interaction the customer
has with the service is smooth, professional, and satisfying. This improves the
overall customer experience, making customers more likely to return and
recommend the service to others.
3. Builds Strong Relationships: Good service marketing helps build trust and
loyalty with customers. By consistently delivering quality services and engaging
customers effectively (through personalized promotions, attentive service, and
clear communication), businesses can establish long-lasting relationships.
4. Differentiates from Competitors: The additional elements of the service
marketing mix (People, Process, and Physical Evidence) allow businesses to
stand out from the competition. For example, a business can differentiate itself
by providing exceptional customer service (People), streamlining its service
delivery for better customer experiences (Process), or enhancing the physical
environment where the service is delivered (Physical Evidence).
5. Drives Business Growth: Effective use of the Service Marketing Mix can lead
to higher customer satisfaction, which in turn drives word-of-mouth promotion,
repeat business, and ultimately, business growth.
 OBJECTIVES OF SERVICE MARKETING:
1. Customer Satisfaction: Providing exceptional experiences to meet or
exceed customer expectations builds positive relationships. Satisfied
 customers are more likely to return and recommend the service to others,
increasing brand loyalty.
2. Building Trust and Loyalty: Establishing long-term relationships by
ensuring reliability and quality helps foster customer trust. Consistently
delivering on promises strengthens loyalty and makes customers feel valued.
3. Market Differentiation: Standing out in a competitive market by offering
unique value attracts attention and builds a strong brand identity. Businesses
that innovate and personalize their services gain a competitive edge.
4. Revenue Growth: Attracting new customers and retaining existing ones
boosts revenue and ensures steady business growth. Effective marketing and
excellent service encourage repeat business and referrals.
5. Adaptation to Trends: Leveraging technological advancements to enhance
service delivery ensures businesses stay relevant. Adopting trends like AI-
powered support or online platforms improves customer experiences and
widens reach.

 DIFFERENCE BETWEEN GOODS AND SERVICES:

Basis Goods Services

Services are intangible that

Goods are tangible items
cannot be seen, felt, touched
Meaning that can be felt, touched or
or seen; but are experienced
seen.
by the consumer.

Goods are tangible in Services are intangible in

Nature
nature. nature.

Services are heterogeneous

Goods are homogeneous
and depend upon the person
Type and can be produced
providing the service and the
exactly the same.
customer’s preferences.

The ownership of goods can

The ownership of services
Transfer of be transferred from one
cannot be transferred from
Ownership person(seller) to
one person to another.
another(buyer).
 Basis Goods Services

There is inconsistency in
services, as different
There is consistency in case
customers have different
of goods, as different
demands and get their
Inconsistency customers get
demands fulfilled accordingly.
standardised demand fulfill
For example, different people
ed. For example, laptops.
need different services in
salons.

The production and

consumption of goods can The production and
be separated. For example, consumption of services
Inseparability chairs are manufactured happen simultaneously. For
first and are used by example, eating food at a
consumers later after a restaurant.
while.

One can keep goods in One cannot keep services in

stock as inventory. For stock as inventory. For
Inventory
example, a warehouse full example, getting a haircut at a
of watches. salon.

There is involvement or
Involvement of customers
participation of customers at
Involvement at the time of delivery of
the time of delivery of
goods is not possible.
services.

Once provided, services

Once purchased, goods can
Return cannot be returned to the
be returned to the seller.
service provider.

Goods can and cannot be

Perishability Services are perishable.
perishable.
 DIFFERENCE BETWEEN SOFTWARE PRODUCT AND
SOFTWARE SERVICES:
Software Products Software Services

Software Products generally Software Services generally

represent high end work that is done represent low end work that is
by vendors. done by vendor.

Products includes activities that add Services includes activities that

higher value than activities of add lower value than activities
services. of products.

Software service companies

Software product companies usually
may or may not develop
develop products.
products.

Features of software services

Features of software products
include application security,
include efficiency, maintainability,
high availability, data security,
adaptability, etc.
etc.

Types of software product includes

There are no such type of
generic products, customized
software services.
products, etc.

List of software services

List of software products include
includes IT Security services,
Outreach, Zoho Desk, Freshdesk,
infrastructure support services,
Intercom, etc.
app maintenance services, etc.

Benefits of software product

Benefits of software service
companies includes provide right
companies includes flexibility,
product to market, control schedule
reduce time to benefit, easy to
and cost, focus on customer
use, requires lower cost, etc.
requirements, etc.

Number of labors required is not Number of labors required is

 Software Products Software Services

much high but should be talented very high for increasing effort
and expert. and its not necessary that they
should be highly skilled.

***
UNIT 2: MARKETING COMMUNICATION

 MEANING:
Definition: The Marketing Communication refers to the means adopted by the
companies to convey messages about the products and the brands they sell,
either directly or indirectly to the customers with the intention to persuade
them to purchase.
In other words, the different medium that company adopts to exchange the
information about their goods and services to the customers is termed as
Marketing Communication.

The marketer uses the tools of marketing communication to create the brand
awareness among the potential customers, which means some image of the
brand gets created in their minds that help them to make the purchase decision.

Marketing communication includes Advertising, Sales Promotion, Events and

Experiences (sponsorship), Public Relations and Publicity, Direct Marketing,
Interactive Marketing, Word-of-Mouth Marketing, Personal Selling. These tools
of communication are collectively called as Marketing Communication.

 ELEMENTS OF MARKETING COMMUNICATION:

1. Advertising: It is an indirect, paid method used by the firms to inform the
customers about their goods and services via television, radio, print media,
online websites etcAdvertising is one of the most widely used methods of
communication mix wherein the complete information about the firm’s
product and services can be communicated easily with the huge target
audience coverage.
2. Sales Promotion: The sales promotion includes the several short-term
incentives to persuade the customers to initiate the purchase of the goods
and services. This promotion technique not only helps in retaining the
existing customers but also attract the new ones with the additional
benefits.Rebates, discounts, paybacks, Buy- one –get- one free scheme,
coupons, etc. are some of the sales promotion tools.
3. Events and Experiences: Several companies sponsor the events such as
sports, entertainment, nonprofit or community events with the intention to
 reinforce their brand in the minds of the customers and create a long term
association with them.The name of the firm sponsoring the event can be
seen on the playground boundaries, player’s jerseys, trophies, awards in the
entertainment shows, hoardings on stage, etc.
4. Public Relations and Publicity: The companies perform several social
activities with a view to creating their positive brand image in the market.
The activities that companies are undertaking such as, constructing the
public conveniences, donating some portion of their purchase to the child
education, organizing the blood donation camps, planting trees, etc. are
some of the common moves of enhancing the Public Relations.
5. Direct Marketing: With the intent of technology, the companies make use of
emails, fax, mobile phones, to communicate directly with the prospective
customers without involving any third party in between.
6. Interactive Marketing: Interactive Marketing has recently gained popularity
as a marketing communication tool, wherein the customers can interact with
the firms online and can get their queries resolved online.
Amazon is one of the best examples of interactive marketing wherein the
customers make their choice and can see what they have chosen or ordered in
the recent past. Also, Several websites offer the platform to the customers
wherein they ask questions and get the answers online such as answer.com.

7. Word-of- Mouth Marketing: It is one of the most widely practiced method

of communication tool wherein customer share their experiences with their
peers and friends about the goods and services they bought recently.This
method is very crucial for the firms because the image of the brand depends
on what customer feels about the brand and what message he convey to
others.
8. Personal Selling: This is the traditional method of marketing communication
wherein the salesmen approach the prospective customers directly and
inform them about the goods and services they are dealing in. It is
considered as one of the most reliable modes of communication because it is
done directly either orally, i.e., face to face or in writing via emails or text
messages.
 PROCESS OF MARKETING COMMUNICATION:

Marketing communication is an effective way of conveying a company’s

message to its customers about its brand, products and services. The basic
marketing communication process involves the following constituents: Sender,
Encoding, Transfer Mechanism, Feedback, Response and Decoding.
• The SENDER is usually the company/firm that produces the product.
• ENCODING is communicating the message in comprehensible terms for the
customer.
• TRANSFER MECHANISM is the medium used to “transfer the message”.
• DECODING is the way a customer interprets the message.
• RESPONSE is the reaction of the customer on the message.
• FEEDBACK is a measure of how successful the advertising campaign was.
1. Sender
A sender is also referred to as a source and is the one who has a message to
convey. For example, a company or a brand manager can be considered as a
Sender. In a marketing process, it is important to ensure that the source or the
sender is realistic and trustworthy. Also, source can be direct or indirect.
2. Encode
The sender encodes ideas into a message. A brand manager, for example,
decides to advertise a new product.
3. Message
Based on the ideas given by the sender, the marketer creates an effective
message that is clear and effective enough to achieve the communication
objectives.
4. Receiver
The receiver is the person or group of people with whom the sender tries to
communicate and share the message. For example, customers are the receivers
for a company.
5. Decode
On receiving the message from the sender, the receiver decodes it. It I
important here that the sender and the receiver have common experiences in
order to decode the message at the receiver’s end as it was intended to be.
6. Feedback

feedback is considered as examining and evaluating how precisely the intended

message is being received by the receiver. Marketing research can be a way to
collect feedback from the receivers.
Essentially, it involves asking receivers if they have seen the message, whether
they remember the message, and their attitude towards the message (product).

 THE BUSINESS ENVIRONMENT AND THE MEDIA:

The business environment refers to the external elements and conditions
that affect the tasks, operations, and performance of the company. It includes
financial, mechanical, political, legal, social, and ecological components. The
impact of these variables on organizational well-being can result in both
opportunities and challenges. Controlling the business environment is essential
for organizations to adapt, make sound decisions on appropriate matters, and
keep up with the industry's commitment.
Business environment means the total of all individuals, institutions, and other
forces that are outside the control of a business enterprise, but that may affect
its performance. In other words, the business environment can be defined as
all those conditions and forces under which a business is operated. These
forces affect the working of the business, and it has to deal effectively with
them. It encompasses the climate or the set of conditions: economic, social,
political, or institutional, in which business operations are conducted.

Role of Media in Service Marketing:

1. Reaching target audience:
Media channels like television, radio, print, social media, and digital marketing
platforms are used to effectively reach potential customers and communicate
service benefits.
2. Building brand awareness:
Media helps create brand recognition and establish a positive image for the
service provider.
3. Customer engagement:
Interactive media allows for direct customer interaction, feedback collection,
and building relationships.
4. Reputation management:
Media can be used to address customer concerns, manage crises, and maintain
a positive brand reputation.
 APPROACHES IN MARKETING COMMUNICATION:
In service marketing, marketing communication approaches often focus on
building strong customer relationships through strategies like personal selling,
experiential marketing, word-of-mouth marketing, strong customer service
communication, testimonials, public relations, and digital engagement to
effectively convey the intangible nature of services and highlight their value
proposition.

Key approaches in service marketing communication:

1. Personal Selling:
Direct interaction with potential customers through sales representatives to
understand needs, address concerns, and tailor service packages, crucial for
complex services requiring detailed explanations.

2. Experiential Marketing:
Creating memorable experiences for customers to directly engage with the
service and its benefits, like in-store demonstrations, trial periods, or events.

3. Word-of-Mouth Marketing:
Encouraging satisfied customers to recommend the service to others through
positive reviews, testimonials, and referral programs.

4. Customer Service Communication:

Maintaining open communication channels with customers, providing prompt
and helpful support to build trust and loyalty.

5. Public Relations (PR):

Managing the company's image and reputation through press releases, media
relations, and community engagement to build credibility and positive
perception.

6. Digital Marketing:
Utilizing online platforms like social media, email marketing, and content
marketing to reach and engage potential customers, build brand awareness,
and foster customer interactions.
 STRATEGIES IN MARKETING COMMUNICATION:
A marketing communication strategy can be defined as the mechanism
that allows a company or organisation to transmit its values to the target
audience through communication channels, strategic actions and specific
timings.

Marketing communication strategies are essential for businesses to effectively

reach their target audience and achieve their marketing goals. Here are some
key strategies to consider:

1. Identify your target audience:

i. Understanding your audience is crucial for tailoring your message and

choosing the right communication channels.
ii. Conduct market research to gather demographic, psychographic, and
behavioral data about your target customers.
iii. Create buyer personas to represent your ideal customers and guide your
communication efforts.

2. Set clear objectives:

i. Define what you want to achieve with your marketing communication

strategy.
ii. Common objectives include increasing brand awareness, generating leads,
driving sales, and building customer loyalty.
iii. Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound)
to track your progress and measure success.

3. Develop a compelling message:

i. Craft a clear, concise, and consistent message that resonates with your
target audience.
ii. Highlight your unique selling proposition (USP) and the benefits of your
products or services.
iii. Use storytelling and emotional appeals to connect with your audience on a
deeper level.

4. Choose the right communication channels:

Select the channels that your target audience frequents and that align with your
objectives and budget.

i. Consider a mix of traditional channels (e.g., print, TV, radio) and digital
channels (e.g., social media, email, search engine optimization).
ii. Integrate your channels to create a cohesive and consistent brand
experience.

5. Create engaging content:

i. Develop high-quality, informative, and entertaining content that captures

your audience's attention.
ii. Use a variety of formats, such as blog posts, articles, videos, infographics,
and social media updates.
iii. Optimize your content for search engines and social media platforms to
increase visibility and reach.

6. Build relationships and engage with your audience:

i. Foster two-way communication with your audience through social media,

email, and other channels.
ii. Respond to comments and questions promptly and provide valuable
information and support.
iii. Encourage user-generated content and create a sense of community around
your brand.

7. Measure and analyze your results:

i. Track key metrics, such as website traffic, social media engagement, lead
generation, and sales conversions.
ii. Use analytics tools to measure the effectiveness of your marketing
communication efforts.
iii. Analyze your data to identify what's working and what's not, and make
adjustments to your strategy accordingly.

8. Stay up-to-date with the latest trends:

i. The marketing landscape is constantly evolving, so it's important to stay

informed about new trends and technologies.
ii. Follow industry blogs, attend conferences, and experiment with new
platforms and tools.
iii. Adapt your marketing communication strategy to stay ahead of the curve
and maximize your results.

 KEY REASON FOR “GAP4” INVOLVING COMMUNICATION:

Communication gap refers to a breakdown or lack of effective communication
between service providers and customers. This can lead to misunderstandings,
dissatisfaction, and a negative impact on the overall service experience. There
are several key reasons for communication gaps in services:

1. Language Barriers: Differences in language can hinder effective

communication between service providers and customers. For example, if a
customer speaks a different language than the service provider, it can be
challenging to convey information accurately, leading to misunderstandings.
2. Lack of Clarity: Unclear or ambiguous communication can create gaps in
understanding. For instance, if service providers fail to provide clear
instructions or explanations, customers may not fully comprehend the
information, resulting in confusion or misinterpretation.
3. Technological Issues: Technical problems, such as poor network connectivity
or malfunctioning communication tools, can disrupt communication
between service providers and customers. This can lead to delays, dropped
calls, or distorted messages, causing a breakdown in communication.
4. Cultural Differences: Cultural variations in communication styles, norms, and
expectations can contribute to communication gaps. For example, certain
cultures may have different levels of directness or formality in their
communication, which can lead to misunderstandings or misinterpretations.
5. Lack of Active Listening: Ineffective listening skills can hinder effective
communication. If service providers fail to actively listen to customers' needs,
concerns, or feedback, it can result in a communication gap and a failure to
address customer expectations.
6. Information Overload: Overwhelming customers with excessive information
can lead to confusion and a communication gap. Service providers should
ensure that they provide relevant and concise information to avoid
overwhelming customers
To overcome communication gaps in services, it is essential for service providers
to prioritize effective communication strategies, such as using clear and concise
language, actively listening to customers, addressing cultural differences, and
utilizing appropriate communication tools..
 UNIT 3: PROMOTION AND DISTRIBUTION OF
SERVICES

 PROMOTION -MEANING AND CONCEPT:

The process of Promotion includes all the activities that persuade and
make the customers aware of the product making them interested in
purchasing them. A seller can be successful in selling his product when he has
good communication skills and a positive influence on his customers. He can
easily convince the customers to buy the products and also invite more
customers by using different promotional techniques such as providing
discounts, organising contests, etc. For example, when a company uses a
campaign or a logo on its products, it usually indicates an idea about the
product or something that catches the attention of people and makes them
interested in buying the product.

Types of Promotion

1. Advertising

Advertising means to advertise a product, service or a company with the help of

television, radio or social media. It helps in spreading awareness about the
company, product or service. Advertising is communicated through various mass
media, including traditional media such as newspapers,
magazines, television, radio, outdoor advertising or direct mail; and new media
such as search results, blogs, social media, websites or text messages.

2. Direct Marketing

3. Direct marketing is a form of advertising where organizations communicate

directly to customers through a variety of media including cell phone text
messaging, email, websites, online adverts, database marketing, fliers, catalog
distribution, promotional letters and targeted television, newspaper and
magazine advertisements as well as outdoor advertising. Among practitioners,
it is also known as a direct response.

4. Sales Promotion
Sales promotion uses both media and non-media marketing communications for a
pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability.

5. Personal Selling

The sale of a product depends on the selling of a product. Personal Selling is a

method where companies send their agents to the consumer to sell the products
personally. Here, the feedback is immediate and they also build a trust with the
customer which is very important.

6. Public Relation

Public relation or PR is the practice of managing the spread

of information between an individual or an organization (such as a business,
government agency, or a nonprofit organization) and the public. A successful PR
campaign can be really beneficial to the brand of the organization.

Promotion is a marketing strategy that informs customers about a product,

service, or brand. The goal of promotion is to increase awareness, create
interest, and generate sales.

 How does promotion work?

1. Create awareness: Promotion helps customers learn about a product,
service, or brand.
2. Create interest: Promotion can make customers interested in a product,
service, or brand.
3. Generate sales: Promotion can convince customers to buy a product, service,
or brand.
4. Create brand loyalty: Promotion can help customers become loyal to a
brand.
 OBJECTIVES:

Promotion is a crucial element of the marketing mix that involves

communicating with target audiences to inform, persuade, and remind them
about an organization's products, services, or brand. The objectives of
promotion can be broadly categorized into the following:
1. Creating Awareness:
 Introducing new products or services: Promotion plays a vital role in making
potential customers aware of new offerings in the market. This can be
achieved through various channels like advertising, public relations, and
social media campaigns.
 Increasing brand visibility: Promotion helps to enhance the visibility of a
brand, making it more recognizable and familiar to the target audience. This
can be done through consistent messaging, logo placement, and
sponsorships.
 Educating consumers: Promotion can be used to educate consumers about
the features, benefits, and uses of a product or service. This is particularly
important for complex or innovative products that require explanation.

2. Generating Interest:
 Creating excitement: Promotion can generate excitement and buzz around a
product or service, making it more appealing to potential customers. This
can be achieved through creative advertising, contests, and events.
 Stimulating curiosity: Promotion can pique the curiosity of the target
audience, encouraging them to learn more about the offering. This can be
done through teaser campaigns, interactive content, and influencer
marketing.
 Building desire: Promotion can create a desire for the product or service by
highlighting its unique value proposition and how it can fulfill the needs and
wants of the target audience.

3. Driving Sales:
 Increasing demand: Promotion can stimulate demand for a product or
service, leading to higher sales volumes. This can be achieved through price
promotions, discounts, and loyalty programs.
 Encouraging trial: Promotion can encourage potential customers to try a
product or service for the first time. This can be done through free samples,
demonstrations, and money-back guarantees.
 Facilitating purchase: Promotion can make it easier for customers to
purchase a product or service by providing clear information about where to
buy it and how to make a purchase.

4. Building Brand Loyalty:

 Reinforcing positive perceptions: Promotion can reinforce positive
perceptions of a brand, strengthening customer relationships and
encouraging repeat purchases. This can be achieved through customer
testimonials, loyalty programs, and personalized communication.
 Creating a sense of community: Promotion can foster a sense of community
among customers by highlighting shared values and interests. This can be
done through social media groups, online forums, and events.
 Providing excellent customer service: Promotion can be used to
communicate a commitment to excellent customer service, building trust
and loyalty among customers.

5. Enhancing Public Image:

 Communicating company values: Promotion can be used to communicate
the values and mission of an organization, enhancing its public image and
reputation. This can be done through corporate social responsibility
initiatives, public relations campaigns, and thought leadership content.
 Building trust and credibility: Promotion can help to build trust and
credibility by providing transparent and accurate information about the
organization and its offerings. This can be done through third-party
endorsements, certifications, and awards.
 Managing reputation: Promotion can be used to manage the reputation of
an organization in the event of a crisis or negative publicity. This can be done
through proactive communication, crisis management plans, and social
media monitoring.

 ADVERTISEMENT AND SALES PROMOTION OF SERVICES:

Advertising is a component of a company's marketing strategy. Companies use
advertising to share information about their products or services through
various media. The advertising landscape has changed with technology, with
print and broadcast advertising serving as the traditional format and digital
advertising serving as a more modern option. With technology, companies gain
new ways of targeting consumers and tracking the effectiveness of their
advertising campaigns.
Companies today have access to a wide variety of advertising options.
Advertisements can reach customers in various places, including while watching
television, traveling through town or browsing the internet. To determine which
types of advertising best suits its needs, a company may need to consider
numerous factors, such as budgets or the consumers it wants to target.

 TYPES OF ADVERTISING:
1. PRINT ADVERTISING:
It refers to printed advertisements, often seen in newspapers and
magazines. However, this category also includes other printed materials, such as
brochures, directories and flyers. Companies can place advertisements in local
newspapers–whether throughout the paper or within the classifieds section—to
target consumers within a geographic location.

2. DIRECT MAIL ADVERTISING:

DIRECT MAIL is a type of print advertising that sends advertisements to
customers through the mail. Examples include brochures, catalogs, newsletters
and flyers. This approach enables companies to identify an even more targeted
market than other print advertising formats because it distributes ads via a
direct mailing list.

3. TELEVISION ADVERTISING:
Television advertising is a type of broadcast advertising where
companies advertise their products or services through 20-, 30- or 60-second
TV commercials. It can be costly but enables companies to repeat their
advertisements regularly. The costs to air television commercials can vary due
to the following factors:
 The ad length
 The time of day
 The television show
 Frequency of airing
 The geographic reach
 The number of networks

4. PODCAST ADVERTISING:
 In podcast advertising, companies can sponsor podcasts or have
advertisements for their products or services played during the episodes.
Typically, podcasts play ads at the beginning, middle and end of episodes.
Similar to radio advertising, companies can research which podcasts are most
popular with their target audience.

5. SOCIAL MEDIA ADVERTISING:

Companies use social media advertising to promote their products or
services on various platforms. Social media advertising, like other digital
advertising, enables companies to target specific audiences. They may focus on
reaching customers based on their geographic location, age group or buying
habits. They can either pay for the platforms to promote their advertisements,
or they can use more organic methods.

6. MOBILE ADVERTISING:
Mobile advertising reaches consumers through any mobile device with
internet connectivity, such as a cellphone or tablet. These advertisements may
appear to consumers through social media, on web pages or within apps. For
example, a customer playing a mobile game may receive ads for similar games
between gameplay rounds. The benefit is that these advertisements can reach
consumers no matter where they are. If individuals enable location settings,
companies may even be able to target them via geographic location

 CHALLENGES OF SERVICE ADVERTISING:

Services advertising can face challenges such as generating leads, allocating
budget, and identifying the target audience.

 Generating leads
It can be difficult to generate quality leads, especially when trying to reach the
right audience.

 Data privacy
Digital marketing agencies must follow data protection laws and be careful
about how they share data
.
 Budget
Limited budgets can make it difficult to use all the potential of each marketing
channel.
 Allocating budget
Small and medium-sized businesses often struggle with allocating enough
budget, but larger companies may also face this challenge.

 Identifying the target audience

It's important to identify who you want to reach and who is most likely to take
action.

 Data quality
Poor quality data can make it difficult to analyze and derive insights that can
help optimize campaigns.

 SALES PROMOTION OF SEVICES:

"Sales promotion in services" refers to marketing tactics used by service-based
businesses to temporarily incentivize customers to purchase their services by
offering discounts, special packages, bonus features, or other attractive deals,
aiming to boost short-term sales and attract new clients.

 Key points about sales promotion in services:

 Focus on customer experience:
Unlike product-based sales promotions, service promotions often highlight the
benefits and unique aspects of the service experience to entice customers.
 Variety of promotional methods:
This can include limited-time offers, loyalty programs, referral bonuses, free
consultations, introductory pricing, bundled packages, and special promotions
tied to events or holidays.
 Goal to drive engagement:
The primary objective is to encourage customers to try a service, upgrade to a
higher tier, or purchase additional services.

 TYPES OF SALES PROMOTION:

1. Competitions and giveaways:

Customer competitions can be about getting the most engagement on a social

media post your brand is tagged in, or a social media challenge that enters them
in a giveaway. This is a fun way to both create buzz around your business and
reward customers for being avid supporters and promoters of your brand.
2. Free trial or demo

Free trials are a great way to get a lead to try out your product or service with
no risk to or commitment from them. In practice, retailers can offer free
samples at the point of purchase, and B2B or B2C services might offer a free
trial or demo of their products or services so that their leads and potential
customers can take the product for a spin.

3. First purchase coupon

If someone becames connected to your business in a way other than making a

purchase, such as a free trial, it might take time for them to warm up to
becoming a paying customer.

To speed up the process, offer a discount on their first purchase. In fact, some
brands even offer discounts on first purchases in their welcome email as a way
to thank their new customer or lead for joining their community. For best
results, limit the offer to a couple of days. Even if they don’t use the coupon,
they may browse your products or services and learn more about your business

4. Buy one, get one free

“Buy one, get one free” (also called BOGOF), or “Buy two and get the third free”
are commonly-used sales promotion tactics. These campaigns, which are among
the most well-known product promotion examples are useful when you want or
need to sell several products at once.

This type of promotion can also work to build brand awareness, as your
customer may share the extra items with a friend or family member.

5. Coupon or voucher code

Coupons are versatile because they can be delivered in a variety of ways, such
as via your website, social media, or print materials like on your receipts or
product packaging. Coupons are a great way to thank current customers or
incentivize first-time customers to return.

 DISTRIBUTION CONCEPT:
Distribution is a process of making goods and services available to end users or
customers who require them. Its primary objective is to efficiently store and
handle the products and supply them in the best possible condition to
consumers in different locations.
 Distribution refers to spreading products throughout a marketplace so
consumers can purchase them in different locations.
 There are primarily two types of distribution methods — direct and indirect.
These two methods have certain sub-types, like selective and exclusive.
Businesses must choose the right strategy to maximize sales.
 A distribution channel’s length depends on the number of third parties or
intermediaries required to get the products to consumers. The more
intermediaries in a distribution network, the higher the company’s cost.
 Distribution management involves specific activities, such as logistics and
warehousing.

 CHANNELS OF DISTRIBUTION IN SERVICES:

The distribution channel is the chain of intermediaries or businesses through
which the goods and services flow. This channel can be long or short, depending
on the number of intermediaries necessary to make the goods and services
available to consumers in different regions. That said, manufacturers earn lower
profits if the channel is longer, as they must pay every intermediary involved in
the distribution network.

Distribution management is fundamental to any business’s sales and involves

various activities. Let us look at such activities in detail.

1. Direct:
With the direct channel, the company sells directly to the customer. For
example, a brewery that brews its own beer and sells it to customers at its own
brick-and-mortar location employs a direct channel of distribution. The seller
delivers the product or service directly to customers. The vendor might also
maintain its own sales force or sell its products or services through an e-
commerce The direct channel approach requires vendors to take on the
expense of hiring and training a sales team or building and hosting an e-
commerce operation.
2. Indirect:
Indirect channels use multiple distribution partners or intermediaries to
distribute goods and services from the seller to customers. Indirect channels can
be configured in the following ways:
 With the single-tier distribution model, vendors develop direct relationships
with channel partners that sell to the customer.
 In the two-tier distribution model, the vendor sells to distributors that
provide products to channel partners, which, in turn, package products for
the end customer. Two-tier distribution helps smaller channel partners that
would have difficulty establishing direct sales relationships with large
vendors.
3. Hybrid:
Hybrid channels combine the characteristics of direct and indirect channels. The
seller uses both direct and indirect methods. For example, a manufacturer
might sell an item on its e-commerce website, but then an intermediary delivers
the physical product to the customer. The customer still has a direct interaction
with the seller, but an intermediary is also involved.
4. Franchise Model:
A "franchise model in service marketing" refers to a business model where an
established company (franchisor) allows independent individuals (franchisees)
to operate a service business under their brand name, utilizing their business
model, operational procedures, and marketing strategies to deliver services to
customers within a specific geographic area, in exchange for a fee and
adherence to set standards; essentially, it's a way for a service-based company
to expand rapidly by licensing its brand and expertise to others to run their own
locations.

 OBSTACLES IN DISTRIBUTION:
In service marketing, key obstacles in distribution include the intangible nature
of services, difficulty in inventory management due to perishability,
inconsistency in service delivery across different providers, challenges in
managing customer expectations, and limited ability to standardize service
delivery across various channels, making it difficult to achieve consistent
distribution across a market.
1. Intangibility:
Services cannot be physically displayed or touched, making it challenging to
showcase their value and features to potential customers, impacting
distribution strategies.

2. Inseparability:
Services are typically produced and consumed simultaneously, meaning the
service provider is often directly involved in the delivery process, which can
limit distribution options and require careful management of provider-
customer interactions.

3. Perishability:
Services cannot be stored for later use, making it difficult to manage
capacity and match supply with demand, leading to potential lost revenue if
not distributed effectively.

4. Heterogeneity:
Service quality can vary depending on the service provider, leading to
inconsistency in customer experience across different distribution channels.

5. Customer involvement:
High customer involvement in the service delivery process can create
challenges in managing expectations and ensuring a smooth distribution
experience.

6. Limited reach:
Depending on the service type, reaching a wide customer base can be
difficult, especially if the service requires a physical location or specific
expertise.

 RECENT TRENDS IN DISTRIBUTION:

The service sector is dynamic, and distribution strategies are constantly
evolving to meet customer expectations and leverage technological
advancements. Here are some of the recent trends in distribution in service
marketing:

1. Omni-channel Presence:
 Seamless Integration: Customers expect a consistent experience across all
channels, whether it's online, mobile, in-person, or through social media.
Services are focusing on integrating these channels to provide a seamless
and personalized customer journey.
 Example: A bank offering mobile banking, online account management, and
in-person branches, all connected and allowing customers to start a process
in one channel and finish it in another.

2. Digital Transformation:

 Technology Integration: Services are leveraging technology to enhance

distribution. This includes using mobile apps, online platforms, AI-powered
chatbots, and data analytics to improve accessibility, personalization, and
efficiency.
 Example: A healthcare provider offering telehealth consultations through a
mobile app, allowing patients to access medical advice remotely.

3. Personalization and Customization:

 Tailored Experiences: Customers expect services to be tailored to their

individual needs and preferences. Distribution strategies are focusing on
personalization, using data and insights to offer customized services and
recommendations.
 Example: A streaming service recommending movies or TV shows based on a
user's viewing history and preferences.

4 . Digitalization and Automation:

 Technological Advancements: Digital technologies are transforming service

distribution. This includes the use of mobile apps, online platforms, artificial
intelligence (AI), and automation.
 Efficiency and Convenience: Digitalization streamlines service delivery,
making it more efficient and convenient for customers. For example, online
booking systems, chatbots, and self-service portals enhance customer
interaction and accessibility.
 Data-Driven Insights: Digital platforms generate valuable data that service
providers can use to understand customer preferences, personalize offerings,
and optimize service delivery.
 SIGNIFICANCE OF MARKET SEGMENTATION IN SERVICE
MARKETING:
Market segmentation is a marketing strategy that divides a broad target market
into subsets of consumers with common needs, preferences, or characteristics.
This approach allows businesses to tailor their marketing efforts and products to
meet the specific needs of different groups. Segmentation can be based on
various factors, such as:

a. Demographics (age, gender, income)

b. Firmographic (for organizations & employees)
c. Geography (location, climate)
d. Psychographics (lifestyle, values)
e. Behavior (purchasing habits, product usage)

Market segmentation is crucial for businesses aiming to address diverse

customer needs and enhance their competitive edge effectively. By dividing a
broad market into distinct segments, companies can more precisely tailor their
strategies to target specific groups. Let's understand importance of market
segmentation with the help of examples.
Enhanced Targeting: Segmentation enables businesses to identify and focus on
the segments most likely to purchase their products.
Example: Apple targets tech-savvy and premium-segment consumers willing to
pay more for advanced features and quality. This targeted approach is evident
in its marketing strategies and product designs, which appeal specifically to
these segments.
Personalized Marketing: Companies can create personalized marketing
campaigns by understanding different segments.
Example: Netflix uses viewer data to segment its audience based on viewing
habits and preferences. This allows them to recommend personalized content
to users, increasing engagement and satisfaction.
Resource Allocation: Segmentation helps businesses allocate their marketing
resources efficiently.
Example: Amazon uses segmentation to identify prime markets for different
product categories. In electronics, they might target tech cities like Bangalore in
India and San Francisco in the USA to ensure better ROI for their marketing
spend.
Competitive Advantage: Market segmentation provides a competitive
advantage by allowing businesses to tailor products and marketing strategies to
meet specific customer needs, differentiating them from competitors.
Example: Coca-Cola segments its market by occasion and demographics. It
offers a range of products, from Coke Zero for health-conscious adults to fruit-
based drinks for children, catering to diverse preferences and gaining a
competitive advantage in different regions
Market Expansion: Identifying and targeting new customer segments through
segmentation increases opportunities and growth in previously untapped
markets.
Example: Ford Automobile uses segmentation to identify potential customers
for different car models. In India, they might focus on economic models for cost-
conscious consumers, while in the USA, they could target luxury segments with
high-end models.
Customer Retention: Tailoring products and services to specific customer
segments enhances satisfaction and loyalty, improving customer retention.
Example: Samsung offers a wide range of smartphones catering to different
segments—from budget phones popular in India to high-end models preferred
in the USA. This approach helps retain diverse customer groups by meeting their
specific needs.
Product Development: Understanding distinct customer segments drives
targeted product development, leading to offerings that better meet specific
needs and preferences.
Example: L'Oréal develops beauty products by considering different regions'
diverse skin tones and textures. They offer products suitable for these varied
skin types, ensuring relevance and appeal across these markets

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