Chapter 5

Designing the Communications Mix

for Services

Advertising Implications for Overcoming Intangibility (Fig. 5-1)

Problem Advertising Strategy • Generality - objective claims Document physical system capacity

Cite past performance statistics - subjective claims Present actual service delivery incident

• Nonsearchability Present customer testimonials Cite independently audited performance• Abstractness Display typical customers benefiting • Impalpability Documentary of step-by-step process,

Case history of what firm did for customerNarration of customer’s subjective experience

Source: Mittal and Baker

Other Communications Challenges in Services Marketing

• Facilitate customer involvement in production – prepare customers for service experience and demonstrate roles– teach customers about new technologies, new features

• Help customers to evaluate service offerings– provide tangible or statistical clues to service performance– highlight quality of equipment and facilities– emphasize employee qualifications, experience, professionalism

• Simulate or dampen demand to match capacity– provide information about timing of peak, off-peak periods– offer promotions to stimulate off-peak demand

• Promote contribution of service personnel – help customers understand service encounter– highlight expertise and commitment of backstage personnel

Setting Clear Objectives: Checklist for Marketing Communications Planning (“5 Ws”)

• Who is our target audience?• What do we need to communicate and

achieve?• How should we communicate this?• Where should we communicate this?• When do communications need to take place?

Common Educational and Promotional Objectives in Service Settings (Table 5-2)

• Create memorable images of specific companies and their brands

• Build awareness/interest for unfamiliar service/brand

• Build preference by communicating brand strengths and benefits

• Compare service with competitors’ offerings and counter their claims

• Reposition service relative to competition

• Stimulate demand in off-peak and discourage during peak

Educational and Promotional Objectives (cont.)

• Encourage trial by offering promotional incentives• Reduce uncertainty/perceived risk by providing

useful info and advice• Provide reassurance (e.g., promote service

guarantees)• Familiarize customers with service processes before

use• Teach customers how to use a service to best

advantage• Recognize and reward valued customers and

employees

Word-of-mouth(other customers)

Marketing Communications Mix for Services(Fig. 10.4)

Personal Communications

Selling

Customer service

Training

Advertising

Broadcast

Print

Internet

Outdoor

Direct mail

Sales Promotion

Sampling Coupons

Sign-up rebates

Gifts

Prize promotions

Publicity &Public Relations

Press releases/kits

Press conferences

Special events

Sponsorship

Instructional Materials

Web sites

Manuals

Brochures Video- audiocassettes

Software CD-ROM Voice mail

Signage

Interior decor Vehicles Equipment

Stationery

Uniforms

Corporate Design

Telemarketing

Word of mouthTrade Shows,Exhibitions

Media-initiatedcoverage*

Key: * Denotes communications originating from outside the organization

Originating Sources of Messages Received by a Target Audience (Fig. 5-5)

Messages originating within the organization

Messages originating outside the organization

Production

Channels

MarketingChannels

Front-line staff

Service outlets

AdvertisingSales promotionsDirect marketingPersonal sellingPublic relations

Word of mouth

Media editorial

AUD IENCE

What is Brand Equity and Why Does It Matter?(From Berry, “Cultivating Brand Equity”)

Definition: A set of assets and liabilities linked to a brand’s name and symbol that adds to (or subtracts from) the perceived value of the product

Insights

• Brand equity can be positive or negative

• Positive brand equity creates marketing advantage for firm plus value for customer

• Perceived value generates preference and loyalty

• Management of brand equity involves investment to create and enhance assets, remove liabilities

A Service Branding Model: How Communications + Experience Create Brand Equity

Firm’s Presented Brand (Sales, Advertising, PR)

What Media, Intermediaries,Word-of-Mouth Say re: Firm

Customer’s Experience with Firm

Awareness of Firm’s Brand

Meaning Attached To Firm’s Brand

Firm’sBrand Equity

Source: Adapted from L. L. Berry ( Fig. 1)

Marketer-controlled communications

Uncontrolled brand communications

Marketing Communication and the Internet (1)

• International in Scope– Accessible from almost anywhere in the world– Simplest form of international market entry

• Internet Applications– Promote consumer awareness and interest– Provide information and consultation– Facilitate 2-way communications through e-mail and

chat rooms– Stimulate product trial– Enable customers to place orders– Measure effectiveness of specific

advertising/promotional campaigns

Marketing Communications and the Internet (2)

• Web Site design considerations – Memorable address that is actively promoted– Relevant, up-to-date content (text, graphics,

photos)– Contain information that target users will perceive

as useful/interesting– Easy navigation– Fast download

• Internet advertising– Banners and buttons on portals and other

websites seek to draw online traffic to own site– Limits to effectiveness—exposure (“eyeballs”) may

not lead to increases in awareness/preference/sales

– Hence, advertising contracts may tie fees to marketing relevant behavior (e.g., giving personal info or making purchase)