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Unit 5
Services Marketing
SERVICE STRATEGIES
Contents
5.1 STRATEGIES FOR HEALTH INDUSTRY ................................................................................................ 2
5.1.a Some examples related to health industry ................................................................................ 2
5.1.b Strategies for Bridging Marketing and Technology ................................................................... 4
5.2 MARKETING STRATEGIES OF HOSPITALITY ....................................................................................... 5
5.2.a Trends affecting the hospitality industry include the following: ............................................... 6
5.2.b SOME EXAMPLES FOR HOSPITALITY INDUSTRY: ........................................................................ 7
5.2.c QUALITY MANAGEMENT IN HOSPITALITY INDUSTRY ................................................................ 8
5.2.D HOTELS REORIENT MARKETING STRATEGY TO MAXIMISE BUSINESS ...................................... 8
5.2.e Hotel Sales & Marketing Services ............................................................................................ 15
5.3 MARKETING STRATEGY IN TOURISM INDUSTRY ............................................................................. 16
5.3.a Some 15 marketing strategies for tourism industry: ............................................................... 17
5.4 FINANCIAL SERVICES MARKETING – TECHNIQUES AND STRATEGIES ............................................. 17
5.5 MARKETING PLAN FOR A LOGISTIC BUSINESS ................................................................................ 23
5.5.a Sales & Marketing Strategy ...................................................................................................... 24
5.6 EDUCATIONAL MARKETING: ........................................................................................................... 27
5.6.a Key Considerations for Educational Marketing: ...................................................................... 28
5.6.b Five Market Trends Suggest Rethinking Educational Sales Strategies Now ............................ 28
5.7 STRATEGIES FOR ENTERTAINMENT INDUSTRY ............................................................................... 29
5.7.a Movie Marketing Strategies ..................................................................................................... 29
5.7.b Strategic Marketing in Creative Industries .............................................................................. 30
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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5.1 STRATEGIES FOR HEALTH INDUSTRY
5.1.a Some examples related to health industry:
Medical practice marketing is now a fairly common concept for many physicians and clinics.
It wasn’t always that way, however, and Evanston Hospital in Illinois was one of the first healthcare
institutions to create an official marketing position within the company. Now, it’s widely accepted
that without a comprehensive healthcare marketing strategy, our practice is unlikely to be as
successful in new patient acquisition as it might. If we recognize you need marketing but simply don’t
know where to start, here are some essential steps to healthcare marketing that will put us on the right
track.
Step 1: Identify Your Patient
Humans! Unless yours is a veterinary practice, this part goes without saying. Or does it?
Many non-marketers get hung up the market research aspect and are unable to clearly identify their
prospective patients from the general mass of humanity. Even if you’re a general practitioner offering
family medical services and anyone is a potential patient, the defining factor is your budget. We
simply don’t want to be spending money marketing to non-profitable patients, so careful market
research and segmentation is important for successfully reaching a specific niche with your healthcare
marketing strategy.
Step 2: Choose Your Methods of Access
Once you’ve determined who your target audience is and divided it into segments based on
differentiators, you need to figure out the best method of reaching each group. Methods include:
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Having a website: However, just because you have one doesn’t mean you’re reaching the
right people.
Optimizing for search: The majority of prospective patients use online search to find
medical practices in their area, so your website needs to be optimized for search engine
indexing.
Regular updates: Do you have a content marketing strategy that keeps your website fresh
and helps you attract potential patients?
Social media: Are your various profiles consistently engaging with followers and bringing
you new leads?
Email marketing: Do you regularly send out news and information to existing patients?
Direct mail: Have you tried sending out a direct mail campaign to let local residents know
about your services?
Print advertising: Even if you can’t afford colour ads in mainstream publications, your local
newspaper is likely to have a classified section that a percentage of residents use, so if they
are part of your target market, you should be using the option.
Step 3: Determine Your Value Proposition
So you know who you want to reach with your healthcare marketing strategy and how you
plan to do so. But what are you going to tell them when you do? It’s not enough to list your services,
you have to give them a reason to want to use you. Most of the residents in your area are already
using a medical practice, so they need a good reason to change. And don’t worry about whether it’s
ethical or not – competition is good for everyone. It keeps the service providers on their toes and
benefits the patients. No, we aren’t suggesting that you compare your offering to anyone else’s – just
that you present the benefits of using your services in the very best light that you can:
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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What’s your value proposition? What do you offer that differentiates you from other healthcare
services?
What are the benefits to the patient of using your practice? For example:
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Being open for longer hours is a service, which gives patients the convenience of coming in
when it fits their schedule.
Offering onsite laboratory facilities eliminates the need to travel elsewhere for blood tests.
All this is part of your value proposition and helps to persuade prospects to try out your
practice and services.
Following these essential steps will enable you to formulate a workable healthcare marketing strategy
that will lead to successful patient acquisition for your practice.
Eileen Parzek
Marketing and information technology are two of the most important aspects of any business
organization. Traditionally, they have been opposing departments with different agendas, budgets and
staff. Yet, between the two are the skills and resources that power a successful and profitable
enterprise. Consider the strengths and assets of both IT and marketing, and for the moment, banish
budget, politics and organizational structure. Now, consider what your marketing department could
accomplish if it had the infrastructure and talents of IT. Technologists, consider the impact you could
have if you understood the vision, positioning and strategic plans of the marketing department.
Potential Impact
Look at the potential that emerges:
 Customer analysis--Capture customer trends and behaviour, and apply the data to
marketing strategies.
 Personalization--Develop online and offline marketing communication directly targeted to
individual customers.
 Customer feedback--Design efficient and effective online surveys to gather feedback from
customers.
 Community building--Develop an enthusiastic community of customers around your
products or services.
 Customer relationship management--Assess and integrate the right tools for your
organization and customers.
 Affiliate marketing--Create a network of Web sites and customers who resell products and
services, and recommend to their friends and customers.
 Communication--Develop and implement previously untapped channels.
 Permission-based marketing--Build a clean, "opt-in" list of interested customers and
prospects who want to hear the company's message.
 Intranets/extranets--Improved communication and automation of work flow between
internal and external stakeholders.
There is no question that a wise organization leverages the process and power of IT and the
strategic vision of marketing. Clearly, any of these strategies will have an effect on the bottom line.
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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Significant Barriers
However, significant barriers exist in most organizations, particularly those with an
established history and organizational structure.
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Miscommunication: Marketing and information technology have differing terminology and
jargon which leads to an inability to discuss the intentions, needs and common aims of each
group.
Different perspectives: Marketers and information technologists naturally have a unique
frame of reference for what they bring to an organization and where the organization is
headed.
Marketers are focused on the results of their efforts, while technologists are more focused on
the processes required to make it happen.
Politics: Depending on the history and age of the company, there frequently is a contentious
relationship between marketing and information technology staff.
This can range from general distrust to complete compartmentalization.
Competition: Closely related to internal politics, many marketing and information
technology departments are competing for budgetary and staffing resources.
Frequently, "ownership" of a project, and the glory that comes with it, can be a point of
conflict.
5.1.b Strategies for Bridging Marketing and Technology
What types of things can an organization do to minimize the barriers and harness the power of
technology in its marketing?
In a competitive business environment, knowledge often is used as a weapon. A company
might consider creating educational meetings where employees on each side have the opportunity to
educate their co-workers about their terminology, as well as perspectives. Establish an environment
where employees are encouraged to ask questions of each other, and are rewarded for efforts that
educate outside their department. The added benefit is that the "us versus them" mindset crumbles
when an effort is made within the company culture for the marketers and technologists to interact.
In some organizations, an individual who acts as a bridge between marketing and technology
will facilitate the fusion. Depending on the type and size of the organization, this facilitator may be a
single employee who speaks both IT and marketing fluently, a hybrid department led by a marketing
technologist or technology marketer, or an outside third party bridging the chasm between both.
People have become wary of technology for its own sake.
By appointing a neutral person who shares the knowledge and perspectives of both sides, the
organization can explore the ways that it can build technology-driven solutions that actually generate
new business and make money. It is possible to communicate an objective to both marketing and
technology staff in a way that will engage them in supporting each other.
Take, for example, the goal to improve Web traffic and increase orders and revenue. Once the
common goals are communicated, and the challenges are known, marketing can redevelop the content
of the Web site so that it speaks to the audience in clear, action-oriented language. Meanwhile, IT can
explore ways to capture the traffic that comes in and organize it in ways that marketing can use. There
is a common objective for every employee in an organization--the efficient and profitable growth of
the company. With strong leadership and deliberate education, employees can be guided to understand
the increased power and effectiveness that come with it.
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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5.2 MARKETING STRATEGIES OF HOSPITALITY
India has lots of luxurious as well as business five star hotels which are facing very tuff
competitions in today’s world. To face this competition, the hotels are using innovative marketing
strategies to improve their revenue and to face Market competition. This Research is an attempt to
analyze and evaluate the role of Marketing Strategy of five star hotels in India and its effects on
annual revenue. The focus of the report is to analyze Primary and Secondary Data and then to
measure how to Improve Hotels sales revenue by redesigning marketing strategy.
Basically marketing strategy provides the direction and guidance to achieve marketing
objectives of the firm. The analysis of marketing strategy can identify major competitors such
identification of major competitors would enable the firm to offer its appropriately designed
marketing mix in order to attained the objectives of the firm. Marketing strategy also has functions of
market segmentation. The marketing strategies are helps to identify the market segmentations a well
defined marketing strategy clearly describes whom (customers and markets) to serve and whom to
exclude. Also what to serve (product and services) and what to serve (which products or services to
avoid or stop serving, if such a products or a service does not bring the expected returns to the firm).
Marketing strategies helps to minimize risk due to changes in competitor’s strategies, changes
in technology, changes in product and services changes in consumers like and dislikes. If risk or
contingencies take place, the alternative strategies are put into action to minimize the risks. Marketing
Strategies may have various sales promotional strategies to put into action in order to face the
challenges of the competitors strategies. Marketing strategy helps a firm to identify the competitive
advantage.
With the competitive advantage:
With the help of marketing strategy a firm can identify the competitive differences on whose
strength the firm can compete effectively at the market place. A firm can enjoy competitive
differences on whose strength the firm can enjoy competitive differences in several areas such as:
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Corporate / Brand Image
Product Superiority
Services Superiority
Distribution Network etc.
Marketing Strategy also facilitates Organising, Directing, Controlling and Short term
planning of the Organising activities. Well defined marketing strategies can generate corporate image
of the firm. Dedicated shows, channels, magazines, events, radios and celebrity associations have
created an aspirations attribute for wellness offerings. The basic function of marketing, sales,
advertising and promotion is to find and retain enough guests to maintain a profitable level of
business. In large hotels there is usually a full time marketing and sales division or department
regardless of the hospitality firms size, a continuous sales effort is required to fill guestroom, dining
rooms, lounges, and meeting space. Sales must never be considered the sole responsibility of single
individual, sales is an important part of every employee’s job. In this age of new contribution and
investment, modernization, consolidation and merger, automation and growing competitions the name
of the game in the hospitality industry is to be “wearing out the carpet” that is, bring in the business.
Hospitality marketing strategy include new material on a number of topics, services to customers and
clients, increase in market shares, product and services innovation and development, enhancement of
corporate image, promotional strategies, relationship marketing, advertisement policy and public
relation, customers satisfaction and relationship, food and safety.
Today’s Hospitality Trend Successful hospitality management requires innovative and strong
marketing strategies to face today’s competitive business market. The study trend is often referred to
as environmental scanning in marketing circles and is an integral part of hospitality sales.
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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5.2.a Trends affecting the hospitality industry include the following:
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Relationship Marketing
Partnership marketing and Strategic alliances
Technology
Guest Preferences
Media Planning
Globalization
Product segmentation and branding
Consolidation
Environmental awareness
Hotel industry
Any hotel groups are committed to display through their behaviour and actions the following
conduct, which applies to all aspects of Hotels business:
The hotel groups promote corporate citizenship through their strategic public-private partnerships.
The causes Hotel groups are promote which include reducing malnutrition, promoting indigenous
artisans and craftsmen and enhancing employability of identified target groups by sharing their core
competencies as a leading hospitality company. The hotel groups have unique scope and opportunity
to develop raw potential into a skilled workforce that is immediately employable by various players in
the hotel industry. A majority of their community projects are focused around extending their key
strengths in food production, kitchen management, housekeeping, customer service and spas to
promote economic empowerment of candidates from vulnerable socio-economic backgrounds. The
hotel groups are fully committed to the cause of building a sustainable environment by reducing the
impact of their daily operations on the environment and improving operational efficiencies, resource
conservation, reuse and recycling of key resources.
Normally hotel group’s use the highest ethical standards - intellectual, financial and moral and
reflects the highest levels of courtesy and consideration for others. The hotel group are committed to
meeting and exceeding the expectations of their guests through there unremitting dedication to every
aspect of service. Hospitality basically puts the customers first, the company second and the self last.
Also the hotels groups are built to maintain teamwork, with mutual trust as the basis of all working
relationship. The hospitality industries main aims at leadership in the hospitality industry by
understanding its guests, and designing and delivering products and services which enable it to exceed
their expectations and always demonstrate care for customers through anticipation of their needs,
attention to detail, distinctive excellence, warmth and concern.
Every organisation which is related to hotel industry they are more multinational workforce which
has been exposed to different cultures, problems and situations and can use its experiences to enrich
the local employees whether in India or overseas. Basically hotel, responsive organizations
encouraging decision making at each level and which accept change an organisation which is
conscious of its role in the community, supporting social needs and ensuring employment from within
the local community.
In today’s competitive hospitality market it is especially important for properties to increase their
market share and profit. No business can afford to rest on its laurels, yet many hotels and restaurant
owners fail to recognize the benefit of having a good marketing strategy plan. Having a great idea is
not enough, sales advertising and promotional and public relation strategies must be formalized in to a
marketing strategy plan but that can be communicated throughout the organization.
Marketing Strategies are necessary if a property hopes to effectively compete in today’s market
place. Marketing is the foundation upon which sales is built. Marketing seeks out demand, identifies
the products and services that will satisfy demand and then employs strategic sales and advertising
techniques to reach customers.
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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If you try to sell without first utilizing marketing, we could easily sell to the wrong markets.
Without well define marketing strategy plan that is based on though research sales affords may be
waste. Since the marketing strategy plan is based on through research sales efforts may be wasted.
Since the marketing strategy plan is a guide for the two primary means of selling hospitality
properties, direct sales and advertising, it is necessary to understand the marketing plans role in sales
before delving into sales and advertising methods.
 Forces managers to think ahead and make better use of property resources Services marketing
like Quality, price and speed will be future mantras for survival of companies. Considering
the problems prevalent in hotel industry, each stakeholder needs to have clear focus on issues
corresponding to their area of operation.
 Focus and media facilitator are undertake regular and appropriate communication with the
users.
 Focus on building a business model which can be sustained from a financial point of view.
 Focus on providing support to enhance quality of the institutes and human resources being
trained by several Proliferations of media (print, television, event and radio) have contributed
in enhancing customer knowledge and increasing awareness about providers and their
offerings.
 Creates an awareness of problems and obstacles Identifies opportunities to increase market
share in some market segments and open new opportunities to increase market share in some
market segments and open new opportunities in previously ignored area.
 Sales responsibilities and coordinates and unifies efforts to reach the property’s.
 Ensure that marketing and sales promotions and advertising are not wasted because of
misdirect efforts.
 Helps evaluate the results of marketing and sales efforts.
5.2.b SOME EXAMPLES FOR HOSPITALITY INDUSTRY:
Grand Hyatt Mumbai
Hyatt is a global hospitality firm with widely recognized, industry leading brands and a
tradition of innovation developed over their more than fifty-year history. Grand Hyatt Mumbai is a
city landmark, spread over 10 acres in Mumbai. Grand Hyatt Mumbai is a five star deluxe lifestyle
complex that comprises comfortable hotel accommodation with Hyatt's signature. The mission of
grand Hyatt Mumbai is to provide authentic hospitality by making a difference in the lives of the
people. They focus on this mission in pursuit of their goal of becoming the most preferred brand in
each segment that they serve for their associates, guests, and owners. They support their mission and
goal by adhering to a set of core values that characterizes their culture.
Renaissance Mumbai Hotel & Convention Centre
Renaissance Mumbai hotel and Convention centre situated on the banks of Powai Lake,
Renaissance Mumbai Hotel & Convention Centre is a five star luxury business hotel in the port city
Mumbai. This hotel is spread over in15 acres of luxuriant greenery; it enjoys close proximity to
international and domestic airports. Loaded with top-notch facilities, the hotel caters to both business
and leisure travellers. They also offer luxurious accommodation in well-appointed rooms, overlooking
the panoramic views of the lake. Apart from the largest convention centre in the country, it offers a
range of dining choices, excellent leisure activities, modern spa and fitness centre. To put in concise
terms, Renaissance Mumbai Hotel and Convention Centre is the perfect place to stay for a business or
leisure trip in Mumbai.
Novotel Mumbai Juhu Beach
Novotel Mumbai Juhu beach Situated in the heart of the financial capital of India. Novotel
Mumbai Juhu Beach is a luxury business hotel. This hotel caters to the needs of both corporate
visitors and holidaymakers. They offer panoramic vistas of the Arabian Sea from its premises.
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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Novotel Mumbai is provides tranquil environment far from the hustle and bustle of the city. The hotel
also offers wide-ranging dining option, a state of the art spa.
Jw Marriott Hotel
JW Marriott Hotel is a famous hotel located in the posh area of Mumbai. It is also close
proximity to Mumbai's major business parks. The JW Marriott Hotel offers refined business and
leisure amenities, splendidly appointed accommodation and the supreme cuisine enveloped in
generous hospitality. This hotel is situated at Juhu, one of the stunning places of city. JW Marriott
Hotel is an ideal preference for tourist looking for convenience, opulence and unique personalized
services in homely surroundings. Thus, the hotel can be expressed as a perfect place for all types of
travellers, travelling either for business purpose or holiday making.
The Oberoi Hotel
The Oberoi Five star hotel is situated in the city’s prime business and shopping district of
Nariman Point. The Oberoi, Mumbai has been completely redesigned to be the ultimate destination
for contemporary style and luxury in the Mumbai city. The Oberoi Mumbai provide facilities like
excellent dining option, flawless services, supreme opulence and elegantly selected accommodations
for an unforgettable stay. Because of this hotel is providing world-class business and recreational
facilities therefore it is best suitable for every kind of travellers. The Oberoi hotel has 333 elegantly
furnished rooms and suites which are categorized as Executive Suite Room, Luxury Suite Room and
Deluxe Suite Room. All the rooms are fully equipped with modern conveniences.
5.2.c QUALITY MANAGEMENT IN HOSPITALITY INDUSTRY
Quality is considered as most powerful factor to achieving customer’s satisfaction. Therefore
it has very great importance in the hospitality industry. Five star hotels are positioned at the top of the
market, selling high quality product and services at high prices. Providing Quality food and services
like,
1. Providing a unique quality food and services is core of five star hotels philosophy.
2. They are providing, breathtaking location, best of modern amenities with personalized and warm
service delivered with genuine care.
3. The design and architecture of the hotels is inspired by the historical style of the region. And also
the luxurious interiors that replete with local arts and crafts to menus that offers an extensive selection
of local specialties and classical and folk dance and music performance.
5.2.D HOTELS REORIENT MARKETING STRATEGY TO MAXIMISE
BUSINESS
Some strategies of hospitality industry from the users and experts point of view:
With international and domestic hotel chains making a beeline to dot every metro and tier-II
city of India, marketing strategies of hotels also need to be reoriented towards the changing market
dynamics to tackle the intense competition. Hoteliers, having understood this, are focusing on
retaining the customer part from finding new ones to keep the momentum going. In order to achieve
this, hotels are now focused on developing innovative and competitive marketing strategies which
seek new ways to acquire retain and increase customers, thereby sustaining and developing in this
competitive era. The hotel industry is now adopting new technologies such as customer relationship
management tools to push their business.
Experts in the industry opine that marketing strategies are determined by various factors such
as product diversity, quality, market segment, marketing channel, geographic area covered, branding
etc. It also depends on the development of new products; hotel’s positioning in the market, innovation
and pricing policy, relationship with customers, partners, suppliers and competitors. Apart from this,
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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the strategies also consider the marketing complexity, stakeholders’ and customers’ expectations, and
dynamic external and internal environment.
Moreover, the hospitality landscape is evolving quickly as new technology demands that
hotels become more social and engaging in their marketing efforts. Hotels are witnessing a significant
change in the need and expectations of the consumers due to major shifts in the services and
technology landscapes. The emergence of online marketing and social media further complicated the
role of marketing professionals. Social media marketing tactics are being used to create visibility,
establish community and promote products and services around the world. Hotels have taken
advantage of social media marketing trends in developing strategies on Twitter, Facebook, Google+
and more. Social media is also used to get feedback from customers to improve product and services.
The customer feedback and opinion are considered very important and are incorporated in strategies,
campaign planning and execution. Customer intelligence is even more relevant and significant in the
current economic context. The bottom-line is to exceed guest expectation and ensure his loyalty and
retention.
Evolution role of Marketing Directors
Almost all marketing professionals whom T3 contacted for their opinion are unanimous in
that the role of Marketing Directors has evolved greatly and moved way beyond the conventional area
of advertising and public relations to a much bigger canvas that includes e-commerce, strategising,
image management, marketing communication, revenue generation and, of course, sales. “It is about
leading the marketing priorities with strategic initiatives to increase sales and distribution in the
region and also drive the outbound international sales to the Group’s network of hotels globally. One
also needs to manage relationships with key stakeholders, corporate guests and hotel partners,” says
Nikhil Dhodapkar, Regional Director-Sales & Marketing, Accor India, and adds that the shift from
mass marketing to highly targeted customer outreach and interaction, the emergence of online
aggregators and the growing importance of direct distribution channels have all upped what is
demanded from Marketing Directors and their teams.
Agreeing with him is Ramesh Daryanani, Area Director - Sales & Marketing, South Asia,
Marriott International. Daryanani opines that Marketing Directors form an integral part of the team for
creating and overseeing the hotel’s annual business and marketing plans, as well as managing the
sales team, in addition to maximising hotel revenue among all market segments. “The hospitality
industry today demands on-going promotions and advertising, and the Marketing Director’s team is
responsible for key decisions such as advertising placements, direct mail campaigns and other
activities. In a nut shell, the Marketing Director is a key player in understanding the role that
marketing and branding play for customers, while being actively involved in the process of marketing
and brand development,” he said.
Lokesh Kumar, Vice President - Development & Marketing - India at Movenpick Hotels &
Resorts, believes that Marketing Director plays a very important role for hotels because they
understand the market. He further says that due to a better understand of market dynamics, a fair
number of Marketing Directors are now moving to operation.
Rajiv Malhotra, Head of Marketing, South East Asia, and Hotels.com is of a similar opinion.
“Companies are becoming more social and interactive in their efforts, which make it imperative for
marketing professionals to be more versatile and up-to-date. Also, it is no longer about selling a
product, but selling an experience, and hence, the softer aspects become far more important. With an
increasing number of consumers making decisions through peer recommendations (user reviews),
marketing is much more than creativity, offers and promotions. Marketing is now integrated with the
product experience more than ever,” he stated.
Siegfried Espitalier Noel, Chief Marketing Officer, Constance Hotels & Resorts, commented
that the role has grown increasingly complex with the changing scenario in the industry, driven first
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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by online players, then meta search engines or online aggregators, and finally with the growing
importance of direct distribution channels. Shagun Sethi, Director of Sales & Marketing, Fairmont
Jaipur, reveals that marketing professionals are constantly challenged to keep pace with evolving
business trends and the aggressively expanding communications and distribution channels. Kanchan
Rizvi, Director of Sales & Marketing, Radisson Blu Hotel New Delhi Paschim Vihar, feels that the
role of Marketing Director has completely revolutionised. “Today, a successful Marketing Director is
the one who not only understands the market scenario keeping in mind their competitors, but also has
a handle on the latest trends and developments in the industry so that he / she can cash in on any
change that influences the business at that very time,” Rizvi said.
Aditya Shamsher Malla, Director of Sales & Marketing, Shangri-La’s Eros, New Delhi, stated
that Marketing Directors are business leaders working in close coordination with the General
Managers and assisting them in fulfilling top line obligations. “Market research, trend analysis, yield
management, profitability and long term strategy are an integral part of the role of a Marketing
Director in today’s context,” Malla said. Shubham Chandra, Director of Sales & Marketing, Hyatt
Regency Chennai, feels that marketing is about creating memorable experiences with humility and
innovation so as to become the preferred destination recognised for its genuine hospitality. “Our
endeavour has been to create a connection with the people and their psyche so as to be able to
understand and cater to their needs better,” Chandra said.
Dhodapkar opined that with the increasing ability to analyse data to drive pricing and revenue
management, the marketing function now has a much stronger impact on operational performance.
Today, most hospitality companies operate under the relentless scrutiny of social media, which has
enormous implications for brand management, communications and customer relations.
Shifting focus in marketing strategy
The marketing strategies of hotels are focused on tapping the potential of all those segments
that can generate business for hotels. While some hotels’ thrust is on the domestic market, some see
both domestic and overseas markets as equally important. Most of the chains are also tapping the
growing might of the Indian outbound sector as well. Rizvi feels that demand always existed in the
domestic market, however, it was never explored by the hoteliers all that much. “Today, with the
increased supply and pressure on occupancy, the focus has started shifting towards the domestic
market which is an ultimate source to pull revenue.” she revealed.
Malla opined that the world is focusing on India as a source market, so why should hotels not
do the same? “Hotel chains around the world, to woo the highest growing disposable income, have
addressed the specific demands of the Indian market. It is imperative that hotels in India recognise the
potential of the Indian customers across segments,” he questioned. Hyatt Regency Chennai’s
marketing strategy has always been a balance approach towards domestic and international tourism.
“We have tailor made packages focusing on the multiple needs of the business and leisure travellers, ”
Chandra said.
Kumar says that domestic travellers have always been higher than inbound and outbound
numbers. “Domestic traffic is quite important and marketing strategies are built up to tap domestic
market. One cannot deny international presence, but domestic market contributes the maximum to the
occupancy of the hotels. In Bangalore, overseas markets contribute 24-25 per cent in hotel business,”
he says citing the distribution statistics on GDSs.
Noel feels that hospitality brands such as Constance Hotels & Resorts, which are looking at
attracting the Indian tourist to their properties overseas, need to have a very strong strategy in place.
“We have been in the Indian market for about a year and have been able to get the key industry
influencers talk about us. However, a direct consumer engagement is something that is on our agenda
this year. There is a lot of ground work that has to be done for the brand in India and we intend to
work at the grass root level and then gradually move ahead,” he says and informs that Constance
Hotels will aim and strike partnerships with key travel agents, work closely with Tourism Boards
Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore.
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from destinations which have a presence in India, and come out with joint tactical promotions to stay
ahead in competition.
Accor targets customers across the spectrum depending upon the purpose of travel and
accordingly cater to their specific requirements. “Having a portfolio of brands from luxury to budget
allows us to tailor the right product and brand to cater to our customers, both for today and tomorrow,
and ensure the right product is made available to support our partners and ensure the viability of their
projects and investments,” Dhodapkar says and adds that Accor caters to both the business and leisure
travellers. The percentage of demand for each of these segments depends on the location of the hotel.
Malhotra argues that hotel bookings and packages have seen some growth in the domestic market in
the last few years. “However, as more and more standalone travel options such as LCCs, better busses
etc. become available to consumers, we see stronger growth in standalone hotel sales. In this regard,
we realised that localisation is the key to success in any market,” he states. Fairmont Jaipur’s primary
focus is on promoting the property through traditional media internationally and in India. “Using other
media such as the web, social, electronic media and radio, we are looking at robust activities to
engage the community and welcome them to experience our services. We are also focused on building
on our existing position as our strategies to focus on this niche market has been highly rewarding,”
Sethi reveals.
Do multiple brands from one chain make the task challenging?
Kumar says brands that have multitude of offering is actually in an advantageous position.
“Corporates have requirements in every price bracket. Having plethora of options, the contracting
process for Marketing Director of that particular chain becomes simple. He can offer all his properties
to one corporate and does a multi-hotel tie up in single go,” he says. Daryanani states that positioning
and building a brand differentiation with the same market does most definitely have its challenges, but
the mantra is to position the brand in its true identity. “All our brands have a distinct make up and
identity. We ensure that all platforms of communication speak the same language. Brand
differentiation is a slow and persistent process. It happens with strategic marketing support that helps
create the required distinction within the consumer mind space,” he informs. Noel also believes that
and marketing two properties in the same destination can at times become difficult. “However, this is
overcome by identifying with our audience, both in the trade fraternity and the end consumer pool,
and driving our promotional strategies in a targeted manner. The good side is we have more to offer
and a greater reach,” he adds.
Sethi, however, does not see any challenge emerging out of the presence of multiple brands in
the same city. “We have clear and distinct differential factors between our brands. Our customers are
well tuned to what to expect from each of our brands, even if we are in the same city. Targeting the
right customer for the right product, based on our positioning and pricing, has always created a
distinct demarcation for us, thus also making it easier for our customers to choose the right brand and
product of their choice.”
Rizvi echoes this opinion. “I don’t think positioning different brand under one chain is
challenging, provided the chain has positioned its brand well. There has to be clear definition and
positioning of each brand in the market. Today’s customer is well explored and seen the world and
understands the difference in star category hotels with benefits attached to the same. The challenge
comes when customer is not looking at the brand and is very price sensitive,” she says. According to
Dhodapkar, strong distribution in India is a key to a stronger presence and a meaningful market share.
“With a significant network of hotels in the country today, the sales network team is located in all key
feeder markets driving business to every hotel across the country. The network is built on a strategy
that gives each of the key markets its own hub that further enhances and strengthens the sales force,
giving the network the muscle it requires,” Dhodapkar says, and adds that the opening of new hotels
will give further ammunition to Accor’s sales team, helping them grow remarkably.
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Malla further adds that different hotels of the same chain in the same city are akin to different needs
of the same family being addressed from the same menu.
Challenges for marketing professionals
According to Daryanani, a marketer faces numerous challenges ranging from fast-changing
consumer tastes, increased competition, customer satisfaction, promotions and offers and pricing.
“These variables lead to new, complex marketing challenges that call for new thought processes and
solutions. Being updated with the business environment, keeping track of the competition,
understanding the trend and need of the current market, are few of the updates we need to keep in
mind while drawing up a marketing plan for any of our brands,” Daryanani says.
Rajiv Malhotra stated that one of the biggest challenges faced is adopting the right marketing
strategy in order to stay relevant and appealing to consumers in different markets. Another major
challenge is engaging with an ever changing consumer. “With the advent of social media and
smartphones, what was interesting yesterday is irrelevant today,” he adds.
Going a step further, Noel opines that the industry is currently transiting between two worlds
- one that is tech savvy and the other that is yet to embrace technology completely. “It is important
that we understand the differences between both and balance these worlds. We have been in the
Indian market for a year now and have understood the Indian traveller’s needs and demands. We are
customising our strategy to meet these needs,” he says.
Rizvi states that the marketing profession is very challenging as the pressure of producing is
very high with demand not growing up to the level of supply in the market. “One needs to focus on
the destination marketing of his product. We need to create a message house for our product which
drives the customer to the hotel. One needs to plan the marketing calendar for the hotel focusing on
the USP of the property, which can help drive in incremental revenue,” she adds. The major
challenges, according to Malla, are competition and product differentiation. “Our marketing strategy
focuses on customer segmentation and the brand. This helps position the hotel for long term
performance,” he comments.
Then, there are challenges that emerge in the development phase that did not involve
Marketing Directors in the past. “Now, with the evolving roles of marketing professionals, they are
usually seen as a part of the concept team at the very onset of a project,” Noel says. Kumar further
added, “Marketing professional, generally, used to join 6-8 months before the launch of the hotel.
However, this is changing as hotels now understand the importance of involving marketing
professionals since beginning so that promises made to owners are fulfilled.”
Dhodapkar shares this sentiment, “In Accor, the marketing team is very involved in
development, right from the inception to the more important stage where the brand is introduced.”
Marriott also believes in working as a team, “The aesthetics and essence of the brand is kept
in mind while planning, strategising and executing. Each brand of Marriott International has a unique
set of characteristics that form the foundation for marketing that particular property. From a marketing
perspective, we identify these characteristics of each brand, and adopt them in our marketing
strategies,” stated Daryanani.
Malhotra, however, reveals that marketing professionals have not being involved in product
development is a bit of an issue. “I have a background in Product Management which helps me
understand my colleagues in product a bit better. However, the advantage I have at Hotels.com is that
we share a lot of information and collaborate on several projects including product development. This
ensures that all the teams are aligned to a common goal,” said Malhotra.
Sethi does not agree that marketing professionals are not involved in the product development phase.
“What helps a lot is the fact that, with Fairmont, our hotels derive inspiration from the local culture
and aesthetics, in terms of design, décor, and architecture. This gives us enough of a heads up when
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planning for the positioning and brand development exercises,” says Sethi. Rizvi, however, feels that
not involving marketing professionals during product development, makes the job challenging.
However, she clarified that this was the traditional approach and way of a marketing professional.
“Today, a marketing professional is made well aware of the product development and its benefits
before they take the product to the market,” she says. Malla shared that marketing professionals are
involved with product development and feedback from the market is ploughed back to the product
development team. “The Marketing Director has an influential role in analysing the trends and
preferences which thereby decide the final outcome of the product,” he states.
Another challenge that Marketing Directors face today is to increase the demand throughout
the year, including lean seasons. According to Dhodapkar, frequent and ill-forecasted changes are a
challenge, and many a times it is not in your hands. “It is conventional planning and thinking out of
the box that will keep a brand afloat during hard times. One needs to make his product more
appealing. It is easier said than done, but it’s exciting if the team enjoys challenges, and that is what
we strive to do - to have fun while conceptualising anything new and different. If we are able to
proactively come up with an effective plan we are sure that we are well planned when the hard times
hit us,” he reveals.
Daryanani states that one of the key responsibilities of the marketing team is to maximise the
hotel’s revenues by developing programmes to increase occupancy and make profitable use of its
accommodation, meeting and leisure facilities. “They need to be aware of the factors that influence
the hotel industry in terms of competition and trends, and also gain a deep understanding of the needs
and attitudes of a hotel’s customers. Keeping in mind the current demand of the business
environment, the hotel marketing manager is responsible for coordinating marketing and promotional
activities to meet customer needs and achieve set goals for the low seasons,” he opines.
Malhotra adds that there is always a demand for travel, and though leisure travel is seasonal,
it is only a part of the overall business in India. However, occasionally, to boost demand for a given
destination or to take advantage of a special offer, one might be able to negotiate with hotels.
Hotels.com offers seasonal and occasion-led promotions, he revealed. Constance Hotels feels
that it’s always a big responsibility, and hotels are getting to that stage in India too. “We sometimes
also have to market the destination to generate interest in the travellers. Then there are times during
low seasons when we come up with attractive offers that will get a consumer to plan his travel,” he
says.
Rizvi believes that low season sales take the way ahead on marketing to push demand and
obtain a fair share from the market. “Though I believe that the hotel industry has changed, and to be
successful in the long run one needs to focus on ‘plan marketing activities for the year, one need to be
visible in the market through various marketing tools, and, more than that, be on his toes meeting
customer one to one to understand their ever changing needs and requirements,” she suggests. Malla
thinks that every strategy is complemented with a tactical plan which addresses short and medium
term shifts in demand, including political and economic instability. “Tactical plans are well defined
and are rolled out in accordance with the market condition,” she opines.
Online visibility and social media
Marriot’s focus has always been on maximising its online visibility through natural search
which drives a sizable number of visitors to its hotel websites along with supporting banner
campaigns. “We approach the social media piece as an engagement platform as opposed to a
marketing tool. Our hotels are extremely active on Trip Advisor which allows us to make our social
media activities scalable. Our hotels subscribe to social media listening platforms, thus helping us
with online reputation management, guest satisfaction levels and improving our social media
presence,” says Daryanani.
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Dhodapkar opined that the hospitality landscape is evolving quickly as new technology
demands that hotels become more social and engaging in their marketing efforts. “Travellers are
looking for the best value propositions, and consumer demand is pushing for hotels to make concerted
efforts on property upgrades and improvements,” he says and informs that half of the travel industry
will be using social media as a way of generating revenue and bookings. “Currently most of the
companies use social media as a revenue generating tool and we would definitely see more users over
the next five years. Facebook’s posts are already integrated into Bing search and Google+ emerged
with native integration into Google search. Hotels can no longer afford to linger over adding social
media to their marketing mix and it’s now a necessary element of traffic-driving success,” he adds.
Malhotra states that one of the main goals of the social media strategy of Hotels.com is
engaging with customers. “Through social media, communication with them on a one-on-one level,
which is difficult do in other mediums, becomes easier. Connecting with our consumers in this way
creates a bond which is much stronger than traditional media. Our strategy as of now is to listen to our
consumers and design incentives for them for sharing their views and suggestions with us. Of course
we also try making our social media communication as relevant and interesting as possible for our
consumers,” he says.
Noel believes that a social media strategy is of utmost importance for all the players right
now. “Our approach to social media is aligned with our overall vision of providing authentic
hospitality to our guests in all we do, and we do this through engaging posts and competitions on our
social media channels. We seek guest feedback and share offers and promotions regularly so that our
guests know what we are offering. Also, we heavily engage in SEO and online marketing campaigns
to ensure our positioning on the online platform is also as desired and easy for our guests to locate,”
Chandra adds.
“Over a period of time, we are looking at establishing ourselves on several other platforms
that are currently in their infancy stages, but have the potential to grow more within the Indian
markets. In addition to posting online videos of our upcoming developments and current activities, we
aim to broaden our reach over the coming months to a much larger audience with specific interests,”
Sethi said.
According to Rizvi, the latest trend in marketing is all about digital space whether it is OTA,
brand website or social media. “Going with the trend, our focus has also changed and we ensure that
we maintain our picture gallery on our website, and that content is of good quality and always updated
with latest happening in the hotel. We have associated with Revinate, which is platform to have all
social networking under one umbrella, which updates us with customer feedback on daily basis,” she
reveals.
Malla feels that the single most important goal of a social media campaign is engagement.
“Engaging with different segments of customers across the globe through social media helps in
product differentiation, communication and positioning. What works is engagement driven at different
levels through different tools but dovetailing into the overall marketing strategy of the hotel,” he says.
Talking about the impact of customer intelligence on things like strategy and planning,
campaign execution, customer experience and cross-channel effectiveness, Chandra stated that
customer intelligence is crucial for any planning because it helps one plan better when aware of the
expectations and needs of the target audience.
Dhodapkar believes that customer intelligence does offset the plan. However, the key is to
adapt quickly and effectively. “Accor has efficiently been able to adapt to the needs of its guests and
yet keep its strategy and brand standards,” he said.
Daryanani believes that consumers are perpetually connected and this has changed their
requirements. “There has been a significant change in the need and expectations of the consumers due
to major shifts in the services and technology landscapes. Hence, the customer feedback and opinion
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are considered very important and are incorporated in strategies, campaign planning and execution,”
he shares.
Noel says that analysing customer behaviour and experience is of utmost importance, and that
is one thing the Group bases most of their strategies on. “When a guest is leaving, we always ask for
their feedback. We take our comments on social networking sites and hotel reviewing sites very
seriously and are quick to respond too. There is no room for guess work anymore,” he opines.
According to Rizvi, increasing competition and supply has put tremendous pressure on hotels
to implement any strategy and execution of the same. “Today’s customer is updated with all the
offerings in the market and chooses the best available at the lowest price. Our whole strategy and
planning towards any program and campaign is based on customer feedback with a focus to produce
and sell what the customer wants to buy,” she adds.
Hence, to be successful, the marketing strategies need to choose the right segments, develop
differential products, devise alternative distribution channels, and use innovative processes that
produce high quality products at lower prices. Thus, a better marketing strategy helps hotels reach its
objectives.
Strategies of hotel sales & marketing:
Savvy sales and marketing strategies can make the difference between empty rooms and a
solidly booked hotel. Our comprehensive hotel sales and marketing services cover every area of
advertising and marketing-from online to in-person tactics. We’ll identify your needs, create a plan
for your operations, and then take you through each step of executing that plan.
5.2.e Hotel Sales & Marketing Services
Competitive Analysis:
Get an in-depth analysis of your local hotel sales competition. Find out where the unique
opportunities exist in your market that should be exploited, which hotels are taking your business-and
what can you do to beat them at their own game.
Market Research:
Plan B Hospitality Consulting will research your target market to determine the best hotel
marketing strategies to reach new clients and boost sales.
Hotel Marketing Plan:
We’ll create a hotel marketing plan that will direct all your hotel advertising and outreach
efforts. The hotel marketing plan we create will take into account all relevant factors such as budget,
competition and your hotel’s target audience.
Hotel Sales Promotion:
Based on our experience in hotel sales and marketing, we’ll create promotions tailored to your
needs across all platforms-from online hotel marketing and hotel marketing on the web to traditional
hotel advertising outlets.
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Trade Shows:
Hospitality trade shows offer a unique opportunity to network and create valuable new alliances in the
hotel industry. Plan B Hospitality Consulting can prepare everything from your employees who will
be working the booth to your trade show marketing materials.
Employee Training:
Increasing sales starts with employees who know how to make sales. Plan B Hospitality
Consulting will train your staff to increase sales while respecting the integrity of the hotel brand
standards.
5.3 MARKETING STRATEGY IN TOURISM INDUSTRY
The Accidental Tourist
"For Newfoundland and Labrador, there’s no such thing as an accidental tourist. It takes deliberate
planning and determined effort to visit here, compelled by curiosity and the promise of what’s unique
and different in our people, culture, lifestyle, and dramatic scenery."
Barriers & Opportunities
Travel distance, access, and cost continue to be significant barriers for visitors, and a competitive
disadvantage for the tourism industry in Newfoundland and Labrador. A short peak season, capacity
constraints during peak season, and increasing problems and delays at border crossings and in airports
make increasing tourism visitors and revenue even more difficult. Competing with well-known
tourism destinations that are well-funded and heavily advertised makes the job even tougher. Despite
these barriers, there are opportunities open to Newfoundland and Labrador Tourism.
Baby boomers are entering the empty nest stage of the family lifecycle. They have money, time, and
keen interest to explore destinations that are off the beaten track, unusual and unspoiled places where
few have gone before. Places like Newfoundland and Labrador. Ontario, our largest non-resident
market, still remains largely underdeveloped for Newfoundland and Labrador tourism. Our greatest
opportunity may lay in the launch of the new Tourism brand positioning and personality for
Newfoundland and Labrador – and the creative strategy which we use to express it. Our coastline, rich
history, unique culture, people, and natural environment remain our key strengths.
Marketing Objectives
The marketing objectives for Newfoundland and Labrador Tourism are to increase non-resident
visitation and expenditures from our core markets, thereby increasing the tourism industry’s annual
contribution to the economy.
The strategies and campaigns created to achieve these marketing objectives will also be guided by the
desire of government and the Tourism Board to extend the tourism season beyond the core summer
season in order to increase the economic benefit and the long-term viability of the industry.
Marketing Strategy
Newfoundland and Labrador Tourism will take a growth-strategy approach to marketing
Newfoundland and Labrador as a tourism destination. Advertising will reach and persuade visitors to
come to Newfoundland and Labrador, rather than to other destinations in their evoked set. Public and
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media relations will reinforce the key messages, delivering a consistent and relevant brand image of
the province, while sales and online initiatives will "close the loop."
The tourism product – in the form of attractions, experiences, and infrastructure – has a larger role to
play in increasing length of stay, amount of money spent per trip, and overall tourism revenues.
To be successful in attracting customers from competitors, it’s essential that we focus and concentrate
our resources on the best opportunity – and create programs and campaigns that are fully integrated.
5.3.a Some 15 marketing strategies for tourism industry:
Consider this. Let’s say you have just arrived in a foreign country for vacation. You’ve rented
a car and along with the car come either a road map or a navigation system. Getting from point A to
point B will be relatively easy for you because you have the directions, where to turn, when to stop,
when to go, and if you get lost you can get back on track with relative ease. Now, what would you do
without the map or the GPS? You’d be pretty lost wouldn’t you?
That is why you need a marketing strategy. If point B is your destination, that is, your
marketing objectives, then your strategy should outline the methods you will use in order to reach
those objectives.
However, a marketing strategy can cover many different functional issues so, determining the
best marketing strategy for your small tourism and hospitality business could require your
consideration of some alternatives. Here are fifteen marketing strategy options you can consider.
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Local, Regional or National Marketing Strategies
Seasonality Strategies
Product Strategies
Target Market Strategies
Competitive Strategies
Branding Strategies
Pricing Strategies
Packaging Strategies
Promotion or Event Strategies
Public Relations Strategies
Social Media Marketing Strategies
Advertising Strategies
Sales Strategies
Merchandising Strategies
Web and E-commerce Strategies
Having a combination of these strategies is really what you are aiming for. If you can organize
your companies marketing objectives under a selection of these strategies then you have a much better
chance of staying focused and ensuring you arrive at your destination on track and on time.
5.4 FINANCIAL SERVICES MARKETING – TECHNIQUES AND
STRATEGIES
Introduction
Rapid changes in the environment in which financial services firms operated forced many
organizations to develop a much more proactive approach to their marketing efforts. The diversity and
speed of change that has occurred in the financial services sector due to deregulation technical change
have lowered the barriers between different institutional or strategic groups resulting in a redefinition
of the market place.
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Banks in India were more conservative than their counterparts in the west till 1969, when
major commercial banks were nationalized. Environment became competitive and banks approach
towards customers and market underwent change.
Banks became conscious of their corporate image and its projection was attempted through
public relation efforts. ‘Customer need is a state of felt deprivation of some generic satisfaction
arising out of human condition. Some needs are not created by society; they exist in the very texture
of human biology and human condition'.
The needs of' customers are not static; they keep changing as environmental changes take
place. ? 'They buy goods and services to meet the changing needs and evaluate their purchases based
on their expectation. In order for an organization to supply consumers with products or services they
expect, marketers to understand the needs and motivations of existing and potential customers as they
go about making buying decisions. This knowledge is crucial to the development of suitable product
strategies, whereby a competitive advantage for a11 organization in its chosen markets is identified,
built and maintained.
Needs of Financial Services Consumer
There is a set of basic needs that usually a financial consumer may have.
Cash accessibility:
Customers need to have frequent access to cash and look to various money transmission tools
that cater to these needs such as ATMs, credit cards and cheques as well as telephone banking which
enables quick and easy movement of funds.
Asset Security:
Consumers need physical security of assets and one of the most basic functions of banks is
that of safekeeping. Consumers also need to protect one's assets from depreciation by earning a return
on their money.
Money transfer:
This refers to the need to be able to move money around. Technological developments have
made this possible and also have reduced reliance on cash.
Deferred Payment:
'This relates to the need for delaying payment of goods and services at a reasonable cost. The
range of credit cards, loans and mortgages cater to this need.
Financial Advice:
'4s financial products increase in number and complexity, consumers have a greater need for
information and advice in order to make appropriate purchase decisions Financial needs or objectives
form a hierarchy, which evolve over time.
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Criteria for Investment:
Investing in financial services is a crucial decision so far as a customer is concerned.
Customers in the personal segment are more conscious and choosy, as their hard-earned money has to
be invested wisely. Safety, Quality of service, returns and Liquidity are some of these aspects.
Safety:
Safety of funds is of paramount importance to an investor especially in the personal segment.
Quality of service:
One of the most important aspects that the modem customer looks for is quality of service
which is a critical factor in attracting and retaining customers especially the high net worth
individuals.
Returns:
People who have investible surplus also look for returns commensurate with the risk they
take. In financial services especially investments in banks gives returns to the customer in the form of
interest. In a deregulated market banks do enjoy some freedom in quoting their interest rates
depending upon the nature of deposit, period of deposit and currency of deposit.
Liquidity:
Customers who invest their surplus savings may require the funds at the time they require it.
Most of the customers do have plans for the future when they make investments. But then
contingencies may occur and they may like to withdraw the money. In such cases, liquidity assumes
importance to the customer.
Marketing Techniques in Banking
In simple terms application of marketing techniques in banking means a co-ordinated
organizational effort to reach the customer to fulfil his specific needs for getting his patronage by
maximizing customer satisfaction. In other words, the customer and his needs are central to marketing
and the specific needs are satisfied through utilization of people, products or services, price,
promotion, processes and branch location and distribution.. In the analysis of marketing techniques,
facilities and amenities inside the branch arid the processes are being looked into in detail.
In recent years Indian banks have urged their branches to adopt more and more marketing
techniques for achieving their business goals. The growing competition in the banking sector, both
within India and outside, has made it imperative for them to adopt various marketing strategies to gain
competitive edge over each other. Customer's needs have been made the focal point of attention by
banks.
Branch Location and Distribution
The starting point for the marketing of financial services to the customer is his local branch.
Because the business of a bank is largely centralized through its individual branches, it is important to
select the most promising locations wherever it is possible.
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In marketing, distribution is the means through which a seller makes his product available to
the buyer. The channels of distribution for bank's services should be thought of as any means used to
increase the availability and for convenience of the services that help to maintain existing bank users
or increase their use among existing or new customers.
However, banking today is not about where the branch is but where the customer is and banks
are resorting to the use of technology so that customers can access their accounts from remote
locations.
Technology
Advancement in technology has had a profound effect on the delivery of financial services in
the last decade, and the pace of change and level of impact is continually increasing. Technology was
first used in branches of banks as a means of reducing the cost of many routine processes, but now it
provides a cost effective and competitive solution to the delivery of products and communication with
customers.
Technology has enabled banks to target customers, provide customised products and services
to match their individual requirements. It has also enabled banks to strengthen relationships with its
customers as they now use the convenience offered by technology to stay in touch with their branch
and their accounts more.
Computerisation
Public Sector barks have been doing Branch Automation since 1993. The historic agreement
of October 1993 with the staff unions has opened up the vistas of computerization in every functional
area of banking. Central .vigilance commission has also directed the banks to computerize at least 70
percent of their total business by January 1,2000, making in non-negotiable with the unions has
cleared the road for bank managements to take advantages of banking technology to improve the
efficiency and decision making process for customer value creation.
Branch Mechanization is given top priority in State Bank of Travancore. The Bank had 320
fully computerized branches and 76 partially computerized branches as on 31'' March 2003. In order
to harness technology for better advantage, user- friendly back office automation software had been
developed in-house and the package had been implemented in 71 non-computerized branches. Total
business captured through computers reached 80% as at the end of March 2003.
630 branches/offices of the Rank have been provi8ded with E-mail connectivity, with scope
for further expansion. E-mail is extensively used by NRIs and for the Bank's inter branch inter
departmental communication. Online banking (with value added facilities like online requisition of
cheque books, E-mail alert etc.,) and mobile banking products are made available in computerised
branches.
Comprehensive Forex Trade Finance Software package is implemented in 47 "B" category
forex intensive branches. Bank has a software development team that keeps on modifying the
software packages to suit the specific requirements.
Automated Teller Machines
Banks are outdoing one another to attract retail clients with superior technology and much
better service levels. One way banks are doing this is by expanding their ATM networks. ATMs are
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one of the latest variants of the 'place' marketing factor. They increase the convenience factor as well
as saving the valuable staff time.
State Bank of Travancore is in the process of augmenting the fleet of ATMs which were 52 at
the end of the year 2003, as an effective delivery channel, to live up to the customer's expectations.
Online
Distribution and reach are also critical for efficient functioning of banks. ,4 large and fast
growing section of urban and semi urban population in India has woken up to the convenience of
electronic channels and banks are offering facilities like Telebanking and Online banking.
Telebanking
Face to face encounters are giving way to telephone encounters. Personal service is being
replaced by self-service, often through the medium of computers or easy to use machines. Web sites
are beginning to replace or supplement voice telephone contacts a selected number of branches of
State Bank of Travancore have been offering this facility to its customers as a value added service.
Single Window
In Single window system employees manning the counter shall handle all types of
transactions as desired by the management including payment and receipt of cash. This facilitates the
customer to put through the transactions at one counter instead of moving from one counter to another
and thus save time and the transactions are hassle free.
May I Help You Counter
May I help you counter functions almost like a reception counter from where customers can
get all the information and guidance that is required, whether it be regarding deposits, loans and
advances or other services. The required stationary items like vouchers, pay-in-slips, brochures etc.,
are also made available at this counter.
Teller
In spite of technological development the usage of cash in our country remains quite high.
Customers visiting a branch either for depositing money, withdrawing money for availing various
services from the bank often has to spend more time at the cash counter. Also, they may have to move
to other clerical counters as well to get the receipts for the deposits made which again takes more time
depending on the processes involved. To reduce waiting time and for speedier disposal most of the
banks have introduced the Teller system where Tellers facilitate single point acceptance and payment
of cash as also acceptance of cheque and issue of receipts. This also substantially reduces customer
complaints due to delays and increase customer satisfaction and customer retention.
Processes
Creating and delivering product elements to customers require the design and implementation
of effective processes that describe the method and sequence of actions in which service operating
systems work. Banks procedures should be designed in such a way that they should be not only
employee friendly but also customer friendly. The success of bank marketing rests heavily on the
simplicity and operational ease of bank systems and procedures. Customers expect speedy opening of
accounts, speedy acceptance of cash for credit to their accounts, legible written pass books, updated
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statements, collection of cheques with the least possible delay, intimation on maturity of deposits,
prompt execution of standing instructions and so.
Advice on Maturity of Deposits
Customers require advance information regarding the maturity of their deposits. It is possible
that customers may forget the date of maturity and may lose interest by late renewal of deposits. Also,
timely information regarding the prevailing rate of interest and any new product will serve to improve
customer service and delight the customer.
Accuracy of Pass books1Statements
Pass books and Statements are tangible evidence of the service that customers have purchased
from Banks. These are to be neatly written or printed and should be accurate.
Updated Pass books Statements
Most of the customers would like to keep track of their accounts on an ongoing basis and
banks should on a regular basis update the pass books or sent printouts of statements.
Ancillary Services
Banks provide ancillary services apart from accepting deposits and extending loans and
advances. The advantage of providing and developing existing ancillary services and introducing new
services by banks, in the organizational and marketing context, can be identified as follows:
 To improve profitability of existing bank products by 'bolting on' fee earning ancillary
services that will generate additional income.
 To help to lock in the customer as ancillary services require a high degree of staff-customer
contact.
 Diversifying through an established customer relationship into new areas offsetting the
problem of remaining in business, where intensifying competition will erode margin and also
to provide 21 mechanisms for adopting the existing infrastructure to new and profitable
purpose.
 Landing itself t the concept of a one-shop financial super market exploiting a full range of
retailing possibilities.
Creating new differentiated market positions through:
Developing new business opportunities and by providing a unique set of customer packages.
Safe custody of articles, Safe deposit lockers and remittance facilities are the most prominent among
the ancillary services offered.
Safe Custody
Safe custody of' articles is an ancillary service rendered by commercial banks to its
customers.
Safe Deposit Locker
Safe deposit lockers are provided by banks as an ancillary service to its customers for the safe
keep of their valuable items. Locker facility is used by banks to attract more business by making it
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more customer friendly by extending the usage hours, providing better amenities inside the locker
room etc., Offering such facility also improves the image of the branch as well as the bank.
Customer Service
Customer service in State bank of Travancore is accorded top priority and all efforts are made
to improve the customer amenities and redress their grievances. The performance in this area is being
reviewed at quarterly intervals by the Board of Directors. A fully fledged grievance mechanism to
address issues relating to customer complaints is in place. The customer service committee at the
branches, Zonal Office and Head Office were quite active to ensure that there was no deficiency in
this regard. The Bank continued its efforts to make SBT as the most preferred destination for the
customer.
Customer service can be improved if they can banks get a feel of what the customer thinks
about the bank. To get feedback about the satisfaction of service rendered one technique would be to
have regular customer meets. It gives an opportunity to customers to offer suggestions and help
bankers redesign their marketing techniques.
Good customer service represents shining 'moments of truth'. A moment of truth is any point
in the interaction during which a customer has an opportunity to gain an impression of the service
provided by the organisation. These are the critical interactions that leave the customers feeling
positive, enthusiastic, pleasantly surprised and therefore satisfied with the customer service.
Customer service is not the job of frontline staff alone. It should be bank wide obsession. As
marketing is concerned with mutually satisfying exchange relationships banks should evolve
appropriate marketing strategies to strengthen relationships and enlarge the customer base.
Bank Marketing Strategy
The Bank Marketing Strategy is a plan for action that determines how a bank can achieve its
goals and objectives in the light of the existing pressures exerted by competition and other noncontrollable variables on the one hand, and its limited resources on the other. It should be a strategy to
enhance the bank's strength in the market place and the banks have been achieving this through a
process of performance budgeting.
5.5 MARKETING PLAN FOR A LOGISTIC BUSINESS
Logistics companies are responsible for transporting goods from point A to point B and are
often tasked with managing the flow of a product from the time it leaves a manufacturing site, until it
reaches the consumer. To accomplish this task efficiently, logistics companies use technology to
dispatch and track packages throughout their journeys. Development of a marketing plan for a
logistics company is fairly straightforward.
Step 1
Define what services your company provides. Do you deliver raw materials to factories, or
finished products to consumers? Do you transport goods by ship to overseas locations, or focus on
goods that are shipped within the country by truck? Do customers use online tools to ship products
themselves, or work with your staff to book passage by phone? By clearly defining your services, you
can develop tactics to market your offerings.
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Step 2
Articulate your target market. Perhaps you focus on shipping goods for the electronics
industry, packages for online retailers or refrigerated food items for supermarkets. Do you seek a
small number of large customers or many smaller organizations? Try to define who your primary
market is, as well as any secondary markets.
Step 3
Identify your competition. Who offers similar services or targets similar clients? Be sure to
cast a wide net when considering your competition. You may find that when it comes to a group like
online retailers, your competition is not another logistics company, but rather the postal service. Other
prospects may use their own shipping department or a commercial courier. Identifying your
competition will help you develop tactics to position your company to compete with them.
Step 4
Identify your competitive advantage. Why would customers come to you instead of your
competition? Perhaps you offer lower prices, newer trucks, better service or high tech tracking tools.
Outline what makes you a better logistics choice than your competitors for your target market.
Step 5
Set a marketing budget. How much money will you allocate towards marketing your
business? Some companies will allocate a fixed amount of money for a year, while others allocate a
percentage of revenue that is calculated each quarter. Will marketing dollars be allocated to specific
target markets or directed to certain offerings or will budget dollars be spent promoting the company
as a whole? You need to know how much money you have to invest before you can consider specific
tactics.
Step 6
Using your marketing budget as a guide, determine how you will communicate your
differences to your target market. Consider where you will advertise, what trade shows you will
attend, or what industry groups you will join to get your message across. Also consider how your
competitors are delivering their message and whether you want to try similar media or try a different
approach.
5.5.a Sales & Marketing Strategy
The sales & marketing functions of logistics companies in India have long been focussed
towards creating short-term, price driven value for stakeholders, but have failed to impact long-term
shareholder value. This is exactly where steps in and assists the senior management in understanding
the customers of logistics companies. Our Sales & marketing strategies stand on the following four
cornerstones:
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It is critical to understand not just the customer’s needs, but the customer as well. It is firmly
believed that without this perspective, no sales & marketing strategy can ever add long term
value.
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Know your operational limits. In the logistics space, sales and marketing strategies very
strongly depend on the operational delivery capabilities of an organisation. To prevent out
client organisations from making the fatal mistake of not being able to deliver on
commitments, by making the right commitments in the first place.
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Analyse the cost to benefit proportion. A thorough analysis of the costs and the realistic
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benefits avoids our client organisations from wasting time, energy and effort on unproductive
initiatives. We need to appreciate the impact of failed initiatives on the internal team and
support our client teams with a detailed and thorough pre-effort analysis.
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Analyse the Risk involved in the strategy. Apart from the financial risks, we assess the nonfinancial risks associated with a strategy. In the logistics industry in India, public memory is
not short and we need to thoroughly and completely understand this fact. Our extensive
operational experience and sound understanding of the fundamentals of India’s logistics
Industry helps us develop strategies with known and controlled risks.
Some of the areas where we have to contribute for long-term value addition through sales and
marketing strategies are:

Customer & Market Assessment – We need to have a very strong knowledge base of cargo
flows (EXIM and Domestic) and factors that have historically affected these flows. We
should share our knowledge and understanding of the business in an endeavour to provide
customer and market insight.
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Branding & Communication – This is one of the most neglected aspects in the Indian logistics
industry but is increasingly gaining favour as client organisations are attempting to lock-in
long term value and service providers looking for long term customer lock-in.
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Channel Management – The logistics industry is highly heterogeneous in terms of effective
sales channels. This diversity is further complicated by the varied effectiveness of channel
across different parts of India. We need to provide a client organisation with a clear channel
management strategy that considers effectiveness specific to customer segments and
geographies.
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Portfolio Planning – While most organisations are striving to offer complete and integrated
logistics solutions and we need to provide them a clear understanding of what should be the
limitation on their immediate service offerings, and how should the same evolve towards
complete solutions in definite time horizons.
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Product Mix Strategy – We need to assist organisations in developing specific industry-based
products to offer to their customers. We have successfully helped various clients to structure
their services business through market-centric products.
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Pricing Strategy – In an industry plagued with poor customer retention and margins, we
support our clients by developing pricing strategies specific to service offerings and customer
segments also considering operational constraints. We need to help our client organisations
transform their customers from a fixed fee model to a KPI based payment structure.
Pricing in the logistics industry: Pressure rising international study reveals
According to Simon-Kucher’s Global Pricing Study, price pressure is higher in the logistics
industry than in other sectors – no matter the country. Only a strong positioning and committed
leadership can help companies in Europe, Asia, the Americas and the rest of the world to counter the
pressure.
Three-fourths of logistics companies are unable to get the prices they deserve for their
services. The causes, managers say, are the price-aggressive competitive environment and the
prevalence of standardized products. These were the findings of the Global Pricing Study 2012* with
151 respondents from the transportation and logistics sectors throughout Europe, Asia, Northern and
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Southern America. The study, conducted by the global strategy and marketing consultancy SimonKucher & Partners, also reveals that logistics companies are often the source of their own misery.
After all, successful companies, regardless of industry, have "pricing power" – the ability to charge
prices that reflect the value of their products and services. Still, its importance in the logistics sector,
where margins are considerably lower compared to other sectors, should not be underestimated.
Logistics companies with strong pricing power achieve on average 17 percent higher margins than
their competitors. "A strong market positioning and selling premium products greatly improve a
company's pricing power – which also guarantees international business success," says Dr. Philipp
Biermann, Partner at the global strategy consultancy Simon-Kucher & Partners.
Inept price increases
No matter the country, pressure is rising in the logistics industry, as customers continue to
demand discounts and over-capacities in several sectors drive prices down. What's more, almost twothirds of the responding transportation and logistics firms from a wide variety of countries are in the
midst of a price war, the study reveals. The cross-sector average is lower.
Even though 77 percent of the international respondents tried to raise prices in 2011, 20
percent failed completely (clearly more than in other sectors). Of those that did succeed in raising
prices, just two-thirds managed to take the price increase a step further and improve margins. Industry
expert Biermann explains: "What we are seeing here are only price adjustments. In other words, they
are simply passing on higher costs. These aren’t true price increases that will lead to higher profits."
So where's the problem? Company leaders need to step up and provide fresh impetus, the
study shows. With stronger management involvement and a specialized pricing organization, the
findings reveal, a company has the best chance to truly raise prices and achieve sustainable profits.
Simon-Kucher & Partners' Global Pricing Study 2012 confirms: In companies where pricing is a
boardroom matter, the chances are much greater that price increases will not only pass on higher
costs, but also ultimately boost margins.
Weak price implementation
The study also shows that the transportation and logistics sector underperforms when it comes
to implementing price increases in the market. Over two-thirds of the respondents failed to implement
more than 60 percent of their planned price increases. Compared to the cross-industry average, price
implementation in the logistics sector was lower. "When so many logistics firms are failing so often to
implement prices, it means that their price increases are just in theory, and not for practice," says
Biermann. There are, however, companies that have managed to push through up to 100 percent of
their planned price increases. One thing is clear here: Pricing power is not an industry-specific
phenomenon; every company can achieve it – with the right management guidance. Yet when it
comes to price implementation, the entire team must be involved. The sales team in particular must
fulfil strict guidelines; otherwise, sellers will try to drive prices down to achieve higher volumes.
Shipping and Logistics
Marketing Eye has extensive experience in providing marketing services to companies in the
shipping, supply chain and logistics sectors.
From multi-party logistics and shipping through to logistics, supply chain solutions and
technology companies, Marketing Eye is a leading provider of integrated marketing solutions and lead
generation campaigns.
Marketing Eye has worked extensively in the supply chain solutions area providing
companies that have end-to-end operations like shipping, stevedoring, transport, logistics, bulk
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handling, mining, and freight operations with a complete outsourced marketing team. We understand
the requirements of this sector and are able to provide strong advice and planning to execute
marketing strategies that are aligned to your overall business plan.
As a marketing firm in Atlanta, we are unsurpassed in our knowledge of this sector and are
able to add real value from day one.
Marketing Eye services include;
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Development of strategic marketing plans
Implementation of marketing campaigns
Branding and brand promotion
Public relations – industry, business and vertical market
Website development, search engine optimization
Government relations and industry organization lobbying
Advertising and strategic sponsorships
Award submissions and speech writing
Brochures and stationery development
Multimedia presentations and corporate videos
Newsletters and e-news
Event presentations
Direct marketing and related generation campaigns.
5.6 EDUCATIONAL MARKETING:
A New Strategy for Building Customer Loyalty Educating customers about products and
services has long been a priority for leading companies. But new Internet-based approaches now
enable them to develop far deeper customer relationships through ongoing education and information
sharing. You can too by applying our five critical success factors to your marketing challenge.
It’s no secret that the age-old maxim about educated consumers being the best customers has
taken on new significance in the Internet era. Advanced communications technologies now make it
possible for companies to interact directly with their clients, distributors, channel partners and other
important stakeholders in ways never dreamed possible until quite recently.
Leading companies are maximizing those opportunities with a variety of approaches to
support their business objectives. Instead of focusing solely on product-related information, they
pursue communication and learning strategies that emphasize flexibility, interactivity and
understanding with a fundamental focus on enabling customer success. Educational content is often
packaged for consumption via the Internet or mobile devices to win the favor of busy clients who are
deluged with information.
For example, outdoor adventure retailer REI provides expert advice with articles, videos, and
gear checklists, which meet customer needs while encouraging product purchases. In the financial
services field, State Street Global Advisors’ highly usable learning portal, created with the assistance
of Intrepid Learning Solutions, provides educational resources to investment professionals. And in the
IT profession, accounting software maker Intuit, Inc. offers extensive learning and networking
opportunities to serve its vibrant communities of small businesses and consumers, seamlessly
integrating product suggestions with education.
The impact of such educational marketing programs translates directly to the bottom line.
Research shows that customers who engage with a company’s educational marketing offerings are 29
times more likely to purchase a company’s product than those who are informed through media ads
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alone, and 5 times more likely to make a purchase than those reached by direct marketing. They are
also 94 percent more satisfied with their purchase and 93 percent more likely to tell friends about their
experience.
A properly developed and executed educational marketing initiative is the antithesis of a hardsell marketing campaign. It is a highly professional educational program dedicated to keeping valued
clients informed about important issues and trends related to their interests. Its singular purpose is to
help customers achieve success with their objectives and pursuits—not to push products and services.
Effective educational marketing applies best practices of adult learning theory to ensure that customer
engagement and success.
5.6.a Key Considerations for Educational Marketing:
Five Pillars for Success
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Make it easy
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Make it relevant
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Make it fresh
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Manage it
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Measure it
5.6.b Five Market Trends Suggest Rethinking Educational Sales Strategies Now
You are already being affected by several developments in the K-12 school market that negatively
impact traditional school sales and marketing methods. These trends will continue to impose
limitations on your efficiency in reaching your current customers and finding new ones. The changes
we’ve witnessed for the last few years are only the beginning. Again, I encourage you to listen to one
of our top education leaders, Jim Warford, say the same thing. The train has left the station, as the old
saying goes: You can either enjoy the ride or be thrashed around by it. Here are five trends that have,
and will continue to, put pressure on your education marketing and sales plans:
1. The ubiquity of the web. Universal access to faster, higher bandwidth networks means
educators you want to do business with can get the information they want and interact with
the people they choose to when it is convenient for them, and in a variety of satisfying
formats. They still love face-to-face interaction and prefer to press the flesh but, increasingly,
budgets and schedules make it less practical to do so.
2. Information overload. Voice mail and email combined with wireless access and ubiquitous
mobile communications devices create an information overload that makes it challenging for
decision-makers to manage their time and stay focused. Effectively, they have tuned you out.
3. Declining results from traditional methods. Response to traditional discrete push-type
communications channels is dropping. Attendance at educational conferences is stagnant due
to travel restrictions, especially at many national conferences. Conversion rates from direct
mail, email, and other forms of outbound communication are declining, making it more
difficult for suppliers to reach the audience of school administrators who make buying
decisions.
4. Product oversaturation and hype. Product feature sets are no longer the primary source for
meaningful competitive advantage for education marketing. In many core solutions areas -reading and math, for example -- the number of products to choose from is staggering.
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Administrators don't have time to sort it all out. Instead, they look for added value and more
substantive, continuous relationships with their suppliers.
5. The distribution juggernaut. The supply of education-market-savvy sales reps with school
market expertise is insufficient to meet demands. Cost of sales continues to be under pressure
and depress financial results for most education market companies. Demographics of the
population of experienced K-12 sales professionals suggest that this situation will worsen
during the next five years. The education market simply is not exciting enough or profitable
enough to attract enough talented people.
5.7 STRATEGIES FOR ENTERTAINMENT INDUSTRY
5.7.a Movie Marketing Strategies
The theatrical trailer is often the first chance to promote a movie to its target audience.
Starting up to a year before the release of a major studio movie, distributors run movie trailers that are
meticulously edited and audience-tested. The idea is to give moviegoers a taste of the laughs, special
effects and plot twists of the studio's upcoming releases, while leaving them wanting more. It's an art
form that's usually handled by special trailer production houses.
About the same time that the first trailers hit the theatres, the movie studio will unveil an
official Web site for the film. Typical movie Web sites allow visitors to view multiple versions of the
trailer, watch behind-the-scenes interviews and mini-documentaries, read plot synopses, download
cell-phone ringtones and desktop wallpaper, play games, and chat in forums and even pre-order
tickets. The official movie Web site is only the beginning of a much larger Internet marketing
campaign.
As the release date of the film draws closer, movie marketers try to get early favourable press
coverage in newspapers, magazines and on entertainment TV shows. The main movie publicity tactic
is something called a press junket. At a press junket, journalists, entertainment reporters and movie
critics are flown out to a special location for a day or weekend of interviews with the stars and
creators of the film. The actors, directors and screenwriters sit in separate rooms and the reporters are
brought in one by one to ask their questions.
Press junkets are highly controlled environments where interviews are often attended by
a publicist, who make sure interviews never veer from positive topics [source: Rosenbaum]. If you've
ever seen a TV interview with an actor sitting in front of a poster of their movie, that's from a press
junket.
Weeks before the movie opens nationwide, the promotions department starts an allout publicity blitz. The idea is to bombard the public with so many images and promos for the movie
that it becomes a "can't miss" event. Movie marketers will plaster the sides of buses with huge ads,
place billboards all around the city, run tons of teaser trailers on TV, place full-page ads in major
newspapers and magazines, and the movie's stars will show up on all of the major talk shows.
The Internet is proving to be a prime spot for these publicity blitzes. Promoters can place rich,
interactive ads on the Web sites most trafficked by their target audience. They can also release
behind-the-scenes clips, bloopers and other viral videos on video-sharing sites like YouTube. Or they
can release different media clips and let the fans create their own trailers.
Another popular strategy is to use highly visible product tie-ins and corporate partnerships. In
the weeks leading up to the release of "How the Grinch Stole Christmas," images of the green Grinch
appeared on packages of Oreos, boxes of Froot Loops and cans of Sprite. Even the United States
Postal Service got into the act, stamping letters with special "Happy Who-lidays!" messages. For
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marketing children's movies, the Holy Grail is getting promotional goodies in McDonald's Happy
Meals.
One final movie marketing strategy is the publicity stunt, an orchestrated media event where
someone does something incredibly silly, dangerous or spectacular to draw further attention to the
opening of the movie. An example is when the promoters of "The Simpsons Movie" transformed
dozens of nationwide 7-Eleven convenience stores into replica's of Springfield's own Kwik-E Mart
Unfortunately, movie promotion is not an exact science. Read about some common problems
with movie marketing in the next section.
Problems Associated with Movie Marketing
The trickiest part of movie marketing is that every movie is different. Every film is its own
standalone product with its own potential market segment. Just because your last kid's movie was a
huge hit doesn't mean that audiences will come in droves to the next one. There's no formula for
success, so marketers must be creative to grab the public's attention.
Moviemaking is an inherently risky business. Movie marketers try to alleviate some of that
risk by heavily promoting expensive films. Unfortunately, in the process, they make the films even
more expensive by adding on a huge marketing budget. There's always a chance that the marketing
campaign will stink just as bad as the movie, and suddenly the studio has thrown away twice the
amount of money. For example, Oliver Stone's epic "Alexander" cost $155 million to make and $60
million to market domestically and only took in $167 million worldwide.
The problem is that most big-budget movies are marketed to the widest audience possible.
Ads are placed on every TV network and stuck in every newspaper and magazine. There's no focus.
Chances are that with every blockbuster movie marketing campaign, millions of dollars are lost on
people who would never see the movie, no matter how good it is.
One solution is the idea of the nichebuster, a smaller movie marketed heavily to a highly
specific audience segment, says skateboarding fans or religious groups. One of the proponents of this
idea is 20th Century Fox, which recently launched a division called FoxFaith that will produce and
market movies to a Christian, family-oriented audience. This is called demographic
marketing rather than selling movies according to traditional genres like action, romantic comedy,
thriller, et cetera.
A final problem is that moviegoers are more media savvy than ever. While children are highly
susceptible to advertising, many adults recognize the publicity blitz for what it is: publicity. Some
moviegoers are starting to complain about the sheer magnitude of hype that surrounds major studio
releases.
This is another reason why the Internet is proving to be a powerful marketing tool. If studios
play their cards right, they can capitalize on social networks, viral video sites and other online
communities to sell their movies for them. The Net Generation moviegoer is much more likely to trust
his chat buddy's opinion than some talking head on E! Entertainment Television.
5.7.b Strategic Marketing in Creative Industries
Career Focus
The term "creative industries" refers to industries that supply goods that are commonly
associated with artistic, cultural, or entertainment value, such as film, television, music, publishing,
video games, the performing arts, sports, fashion, advertising, and other areas within the media and
entertainment sector.
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The course is primarily designed for students pursuing a career in the creative industries, or
who plan to work in companies that advise or support those sectors. It may also be interesting for
students seeking to advance their knowledge of strategic marketing in the context of a challenging,
rapidly changing environment.
Educational Objectives
The course starts with an examination of the defining properties of creative industries, and the
consequences for "winning" marketing strategies. Subsequent modules explore:
 How can firm’s best allocate resources across a portfolio of projects and for one project over
time? For example, does it pay to pursue a "blockbuster" strategy?
 How can firm’s best approach the management and marketing of creative talent? In particular,
how should companies invest in and capture value from superstars and the teams to which
they belong?
 How are digital technologies changing the creative industries? For instance, how are firms
affected by - and how can they benefit from - the increased pressure on prices and the larger
assortments offered online?
 The course ends with an examination of firms that fall outside the core creative industries but
that seemingly face similar challenges or opportunities.
Healthcare Marketing Strategy
Healthcare strategic planning calls for a deep, holistic look at your organization’s ambitions.
It lays the foundation for achieving growth goals and building a strong portfolio strategy to change
and grow.
Experts believes that effective strategy development carefully examines all strategic options
and places priority on each for information-based decision making. A good strategic planning process
maximizes the value of your existing market information and marketing research. This allows us to
make sound decisions to bridge the gap between where we are at and where we are going.
We need to work closely with our team to challenge existing assumptions, define objectives
and build an actionable plan. We must plan to decide where to focus, where to compete and how to
allocate resources. At the end of the process we will have a customized framework and tools to repeat
marketing strategy development for subsequent initiatives.
When working with good plans, we can expect:
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An information-based strategic marketing process that everyone in our organization can support
Interactive sessions that capture system knowledge and build consensus
A mechanism to establish clear goals to monitor success
Increased revenues through streamlined resources
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STRATEGIES IN SERVICE MARKETING:
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