Module 2

Communication?
Two-way process of reaching mutual
understanding, in which participants not only
exchange (encode-decode) information, news,
ideas and feelings but also create and share
meaning.
In general, communication is a means of
connecting people or places.
In business, it is a key function of management--
an organization cannot operate without
communication between levels, departments
and employees.
Communication Process
 Communication Mix
Marketing communications is essentially a
part of the marketing mix.
The marketing mix defines the 4Ps of
marketing and Promotion is what marketing
communications is all about.
It is the message your organization is going
to convey to your market.You need to be
very particular about different messages you
are going to convey through different
mediums.
Purposes of Marketing
Communications
Informs, persuades and reminds
Attempt to influence feelings, beliefs, or
behavior
Position and differentiate the service
Helps Customers to evaluate Service
Offerings
Add Value through Communication Content
Facilitate Customer Involvement in
Production
Stimulate Demand to match Capacity
The Integrated Marketing
Communication MIX
Advertising: A paid, impersonal mass
communication with a clearly-identified
sponsor.
Sales promotion: Demand-stimulating
activity designed to supplement advertising
and facilitate personal selling.
Direct marketing: Form of communication
that allows businesses and nonprofits to
communicate straight to the customer, with
techniques such as mobile messaging, email,
interactive consumer websites, catalog
distribution
 Public relations: A planned communication
effort by an organization to contribute to
generally favorable attitudes and opinions
toward an organization and its products.
Publicity: A special form of public relations that
involves news stories about an organization or
its products.
Personal selling: The direct presentation of a
product to a prospective customer by a
representative of the selling organization.
Cyber Marketing: Internet based promotion
through websites, banners, social medias, etc.
Module 3
Service Marketing
 Service Delivery Introduction
Delivery is the process of transporting goods
from a source location to a predefined destination.
There are different delivery types.
Cargo (physical goods) are primarily delivered
via roads and railroads on land, shipping lanes on
the sea and airline networks in the air.
Certain specialized goods may be delivered via
other networks, such as pipelines for liquid
goods, power grids for electrical power
and computer networks such as
the Internet or broadcast networks for electronic
information.
 The general process of delivering goods is
known as distribution
The study of effective processes for
delivery and disposition of goods and
personnel is called logistics.
 Four Key Elements of a Service
Delivery System

Service Service
culture Quality

Employee Customer
Engagement Experience

The content of each element will naturally vary from company to company and is in
essence the service strategy of the company. But all elements must be considered and in
place.)
 Service Culture is built on elements of leadership principles, norms,
work habits and vision, mission and values. Culture is the set of
overriding principles according to which management controls, maintains
and develops the social process that manifests itself as delivery of service
and gives value to customers
Employee Engagement includes employee attitude activities, purpose
driven leadership and HR processes. Even the best designed processes
and systems will only be effective if carried out by people with higher
engagement
Service Quality includes strategies, processes and performance
management systems. The strategy and process design is fundamental to
the design of the overall service management model
Customer Experience includes elements of customer intelligence,
account management and continuous improvements. Perception is king
and constantly evaluating how how both customer and end-user perceive
service delivery is important for continuous collaboration. Successful
service delivery works on the basis that the customer is a part of the
creation and delivery of the service and then designs processes built on
that philosophy this is called co-creation.
Marketing channels and distribution
 Business-to-business (B2B)
distribution occurs between a producer and
industrial users of raw materials needed for
the manufacture of finished products. For
example, a logging company needs a
distribution system to connect it with the
furniture manufacturer
Business-to-customer (B2C)
distribution occurs between the producer
and the final user. For instance, the furniture
manufacturer sells the furniture and sells it to
retail stores, who then sell it to the final
customer.
Types of Marketing Intermediaries

Marketing intermediaries, also known as

middlemen or distribution intermediaries,
are an important part of the product
distribution channel.
Intermediaries are individuals or
businesses that make it possible for the
product to make it from the manufacturer
to the end user, essentially facilitating the
sales process.
 Types:
Agents or brokers are individuals or companies that act as an extension of the
manufacturing company.Their main job is to represent the producer to the
final user in selling a product. Thus, while they do not own the product directly,
they take possession of the product in the distribution process. They make
their profits through fees or commissions.
Wholesalers are independently owned firms that take title to the merchandise
they handle. In other words, the wholesalers own the products they sell.
Wholesalers purchase product in bulk and store it until they can resell it.
Wholesalers generally sell the products they have purchased to other
intermediaries, usually retailers, for a profit.
Retailers come in a variety of shapes and sizes: from the corner grocery store,
to large chains like Wal-Mart and Target. Whatever their size, retailers purchase
products from market intermediaries and sell them directly to the end user for
a profit.
Types of Distribution Channels:

Broadly, Channel of distribution is of two

types viz.,
(1) Direct Channel
(2) Indirect Channel.
 Direct Channel or Zero Level Channels:
When the producer or the manufacturer directly sells
the goods to the customers without involving any
middlemen, it is known as direct channel or zero level
channel. It is the simplest and the shortest mode of
distribution. Selling through post, internet or door to
door selling etc. are the examples of this channel. For
example, Mc Donalds, Bata, Mail order etc.
Methods of Direct Channel are:
(a) Door to door selling
(b) Internet selling
(c) Mail order selling
(d) Company owned retail outlets
(e) Telemarketing
 Indirect Channels:
When a manufacturer or a producer
employs one or more middlemen to
distribute goods, it is known as indirect
channel.
 Manufacturer-Retailer-Consumer
(One Level Channel):
This channel involves the use of one
middleman i.e. retailer who in turn sells
them to the ultimate customers. It is
usually adopted for speciality goods. For
example Tata sells its cars through
company approved retailers.
Manufacturer Retailer
Consumer
 Manufacturer-Wholesaler-Retailer-
Customer (Two level channels):
Under this channel, wholesaler and
retailer act as a link between the
manufacturer and the customer. This is
the most commonly used channel for
distributing goods like soap, rice, wheat,
clothes etc.
Manufacturer Wholesaler
Retailer Customer
 Manufacturer-Agent-Wholesaler-
Retailer-Consumer (Three level
channels):
This level comprises of three middlemen i.e.
agent, wholesaler and the retailer. The
manufacturers supply the goods to their
agents who in turn supply them to
wholesalers and retailers. This level is usually
used when a manufacturer deal in limited
products and yet wants to cover a wide
market.
Manufacturer Agent Wholesaler
Retailer Consumer
Service Channels
Distribution channels for services are
usually short: either direct or using an
agent.
While in many situations stocks are not
held, the role of the wholesaler, retailer or
industrial distributor is different in service
supply chains.
Channel Selection
Following are the main factors which help
in determining the channels of
distribution:
Product Related Factors
Company Characteristics
Competitive Factors
Market Factors
Environmental Factor
1 Product Related Factors:
(a) Nature of Product:
In case of industrial goods like CT scan machine, short channels like zero
level channel or first level channel should be preferred because they are
usually technical, expensive, made to order and purchased by few buyers.
Consumer goods Ike LCD, refrigerator can be distributed through long
channels as they are less expensive, not technical and frequently purchased.
(b) Perishable and Non- Perishable Products:
Perishable products like fruits or vegetables are distributed through short
channels while non perishable products like soaps, oils, sugar, salt etc.
require longer channels.
(c) Value of Product:
In case of products having low unit value such as groceries, long channels
are preferred while those with high unit value such as diamond jewellery
short channels are used.
(d) Product Complexity:
Short channels are preferred for technically complex goods like industrial
or engineering products like machinery, generators like torches while non
complex or simple ones can be distributed through long channels.
2 Company Characteristics:

(a) Financial Strength:

The companies having huge funds at their
disposal go for direct distribution. Those
without such funds go for indirect
channels.
(b) Control:
Short channels are used if management
wants greater control on the channel
members otherwise a company can go in
for longer channels.
 3 Competitive Factors:

Policies and channels selected by the

competitors also affect the choice of
channels. A company has to decide whether
to adopt the same channel as that of its
competitor or choose another one. For
example, if Nokia has selected a particular
channel say Big Bazaars for sale of their hand
sets, other firms like Samsung and LG have
also selected similar channels.
 4 Market Factors:

Size of Market:
If the number of customers is small like in case of
industrial goods, short channels are preferred while if
the number of customers is high as in case of
convenience goods, long channels are used.
Geographical Concentration:
Generally, long channels are used if the consumers
are widely spread while if they are concentrated in a
small place, short channels can be used.
Quantity Purchased:
Long channels are used in case the size of order is
small while in case of large orders, direct channel may
be used.
5 Environmental Factor:

Economic factors such as economic

conditions and legal regulations also play a
vital role in selecting channels of
distribution. For example, in a depressed
economy, generally shorter channels are
selected for distribution.
 Functions of Distribution
Channels:
The primary function of a distribution channel is to bridge
the gap between production and consumption.

A close study of the market is extremely essential. A sound

marketing plan depends upon thorough market study.

The distribution channel is also responsible for promoting

the product. Awareness regarding products and other offers
should be created among the consumers.

Creating contacts or prospective buyers and maintaining

liaison with existing ones.

 Understanding the customer's needs and

adjusting the offer accordingly.

Negotiate price and other offers related to the

product as per the customer demand.

Storage and distribution of goods

Catering to the financial requirements for the

smooth working of the distribution chain.

Risk taking for example by stock holding

 Role of technology in service
marketing process
Technology is influencing the practice of
services marketing.
It has resulted in tremendous potential for new
service offerings.
It is shaping the field of service enabling both
customers and employees to get and provide
customized services.
The technology has been the basic force behind
the service innovation.
Automated voice mail, interactive voice
response systems, fax machines, ATMs etc., are
possible only because of new technology.
The role of technology and physical aids in service
delivery system are summarized below:
Easy accessibility of service: Internet based
companies find that internet makes offer of new
services possible. The Wall Street Journal offers an
interactive edition where customers organize the
newspapers content according to their needs.
Internet based bill paying service ensures
convenience to the customers while availing
services. The connected car will allow people to
access all kinds of services while on the road.
Cars are equipped with map and routing software
which direct drivers to specific locations.
Accessing the Web via cell phones is possible
nowadays. Thus, technology is a vehicle for
delivering existing services in more useful ways.