Role of Advertising in Service Final

8/9/2019 Role of Advertising in Service Final

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ROLE OF ADVERTISINGROLE OF ADVERTISING

IN SERVICEIN SERVICE

ByByHimanshu S MishraHimanshu S Mishra


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Advertising A ServiceAdvertising A Service

Instead Of A ProductInstead Of A Product

Advertising services is one of the most difficult type ofAdvertising services is one of the most difficult type ofadvertising.advertising.

You don't have a tangible product you can put inYou don't have a tangible product you can put insomeone's hand.someone's hand.

They can't touch it, feel it, see it or smell it.They can't touch it, feel it, see it or smell it.

It must often be explained as well as demonstrated.It must often be explained as well as demonstrated.


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Service OperationsService Operations

Characteristics of Service OperationsCharacteristics of Service Operations

TangiblesTangibles -- appearance of physical facilities, equipment,appearance of physical facilities, equipment,

personnel, and communication materialspersonnel, and communication materials ReliabilityReliability -- ability to perform the promised serviceability to perform the promised service

dependably and accuratelydependably and accurately

ResponsivenessResponsiveness -- willingness to help customers and towillingness to help customers and toprovide prompt serviceprovide prompt service

AssuranceAssurance -- knowledge and courtesy of employees andknowledge and courtesy of employees andtheir ability to convey trust and confidencetheir ability to convey trust and confidence

EmpathyEmpathy -- provision of caring, individualized attention toprovision of caring, individualized attention tocustomerscustomers


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Defining ServicesDefining ServicesGoods Services

100% 75 50 25 0 25 50 75 100%

Video Rental Stores

Appliance Stores

Florists

Fast-food Restaurants

Gourmet Restaurants

Lawn Services

Hospitals

Banks


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Types of Service OperationsTypes of Service Operations

Service

Capital Intensive Labor Intensive

Monitored by

Unskilled

Operators

Automatic Operated by

Skilled

Operators

Unskilled

Labor

Skilled

Labor

Professionals

Vending

machines,

automated

car washes

Movie

theaters,

taxis, dry

cleaners

Airlines,

medical

testing,

excavating

Lawn care,

janitorial,

guards

Appliance

repair,

banks,

catering

Doctors,

lawyers,

consultants


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Defining ServicesDefining Services -- Types of ProcessesTypes of Processes

Project

Job Shop

Flow Shop

Continuous

Process

Construction,

Shipbuilding

Sign-making

Tailoring

Automobiles

Appliance Shop

Oil Refinery

Cereal Plant

Consulting,

Software Devel.

Auto Repair

Restaurant

Fast Food Rest.

Car Wash

ATMs

Police / Fire Svc

Type Mfg. Example Service Example


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Characteristics of Service OperationsCharacteristics of Service Operations

Characteristic Manufacturing Service

Nature of Location

Number of locations few manyPlacement of locations near key resources near customer

Nature of EmployeeSkill type technical behavioral

Nature of Customer InvolvementPhysical contact little greatCustomer participation low high

Nature of DeliverablePerishable no likely

Nature of Capital StructureFixed or variable costs high fixed/low variable low fixed/high variable

Ability to measure quality moderate difficult csProductivity measurement routine difficult cs


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A GAPS MODEL OF SERVICE QUALITY

Customers

Service

Expectations

CUSTOMER SERVICE ORGANIZATION

Service

Quality

Gap

Customers

ServicePerceptions

GAP 5

Organizations

Understanding of

Expectations

Organizations

Service Standards

Organizations

Service

Performance

Organizations

Communications to

Customers

Market

Information

Gap

Service

Performance

Gap

Internal

Communication

Gap

Service

Standards

Gap

GAP 1

GAP 2

GAP 3

GAP 4


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Definition of AdvertisingDefinition of Advertising

Advertising is bringing a product (orAdvertising is bringing a product (or service)service) to theto theattention of potential and current customers.attention of potential and current customers.

Advertising is typically done with signs, brochures,Advertising is typically done with signs, brochures,commercials, direct mailings or ecommercials, direct mailings or e--mail messages,mail messages,

personal contact, etc.personal contact, etc.


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Definition of PromotionDefinition of Promotion

Promotion keeps the product in the minds of thePromotion keeps the product in the minds of thecustomer and helps stimulate demand for the product.customer and helps stimulate demand for the product.

Promotion involvesongoing advertising andpublicityPromotion involvesongoing advertising andpublicity(mention in the press).(mention in the press).

The ongoing activitiesof advertising, salesandpublicThe ongoing activitiesof advertising, salesandpublicrelationsare often consideredaspectsof promotions.relationsare often consideredaspectsof promotions.


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FAQ regarding advertisingFAQ regarding advertisingin servicein service

Does advertising have a role toDoes advertising have a role toplay?play?

'Why should I advertise?'Why should I advertise?

'How will advertising improve my'How will advertising improve myservice ?'service ?'

Why should I advertise?Why should I advertise?

How will advertising improve myHow will advertising improve my

service ?service ?


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NeedNeed

DriversDrivers

Lifestyle Predictability

Fairness


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NeedNeed

DriversDrivers


Fairness

Do they care formy interests and

the things Ibelieve in equality, flexibility, intent,

individualization, ethics


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NeedNeed

DriversDrivers


Fairness

what I really wantis more from my

life

More money, more

time, less stress,more enjoyment


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NeedNeed

DriversDrivers


Fairness

can I be sureabout the

future

Consistency & SecurityOf Costs & Benefits


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Advertising is paid forAdvertising is paid for......

SourceCoded

Message

Medium of

Transmission

Decoded

Message

Receiver or

Audience

Feedback

(((Noise))) (((Noise)))


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Model for developing anModel for developing an

Advertising CampaignAdvertising Campaign

Evaluate

Advertising

Effectiveness

Execute

Campaign

Create the

Advertising

Messages

Develop

the Media

Plan

Identify &

Analyze

TargetAudience

Define the

Advertising

Objectives

Create the

Advertising

Platform

Determine

the

AdvertisingAppropriation


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MAJORMETHODS OFMAJORMETHODS OFADVERTISING AND PROMOTIONSADVERTISING AND PROMOTIONS

Using Direct MailUsing Direct Mail

Mailing ListsMailing Lists

Using Signs and DisplaysUsing Signs and Displays

Using Classified Ads inN

ewspapers andM

agazinesUsing Classified Ads inN

ewspapers andM

agazines

Advertising on Radio and T.VAdvertising on Radio and T.V

OnOn--Line Advertising and PromotionLine Advertising and Promotion

YeYellow Pagesllow Pages

TelemarketingTelemarketing

Trade show participationTrade show participation

NEWS /Press releasesNEWS /Press releases


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IntegratedIntegrated CommunicationsCommunications

Personal Selling

Trade Shows

AdvertisingDirect

Marketing

Sales

Promotion Publicity

C

Product

Price Distribution

Promotion


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Developing the Media Plan

Media Exposure: GRP = Reach xMedia Exposure: GRP = Reach xFrequencyFrequency

Media Selection, Costs & SchedulesMedia Selection, Costs & Schedules

-- Radio/TV/Internet/Newspaper/etc.Radio/TV/Internet/Newspaper/etc.

InIn--storestore

mediamedia

Other:Other: TransitTransit


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The K.I.S.S. PrincipleThe K.I.S.S. Principle

-- KEEP IT SHORT ANDKEEP IT SHORT ANDSIMPLESIMPLE


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Advertisements painted on the side of buildings were commonin the early-20th century U.S. This instance, now faded fromlack of upkeep, is an example of a ghost ad.

Apromotional agency advertises its services

One crude but effectiveadvertising method is topay someone to stand

on a corner andw

ave asign all day

Trade ShowAttracts


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TYPES OFMEDIA STYPES OFMEDIA S

ADVANTAGES ANDADVANTAGES AND

DISADVANTAGESDISADVANTAGES


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YELLOW PAGESAdvantagesAdvantages

One ad works all year long. Gives your prospect a method of easilylocating and

contacting your business,even if they didn't initially knowyour name.

Can helpyou describe the differences between you and

your competition. You pay by the month instead of one large payment.

DisadvantagesDisadvantages

You must commit to an entire year of advertising.

You are immediatelyplaced with a group of your

competitors, making it easy forthe prospect to comparisonshop.

Some classifications are so cluttered with advertising, yourad is buried and ineffective.

It is only effective when a prospect looks you up in the

correct classification.


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NewspaperNewspaper

Advantages

From the advertiser's point-of-view,newspaper advertising canbe convenient because production changes can be made quickly,

Even thoughyou may not have a lot of moneyin your budget,you can stillplace a series of small ads, without

making a sacrifice.

Disadvantages

Newspapers usually are read once and stay in the house for just aday.

The print quality of newspapers isn't always the best, especiallyfor photographs. So use simple artwork and line drawings forbest results.

The page size of a newspaper is fairlylarge and small ads canlookminuscule.

You're not assured that everyperson who gets the newspaper

will read your ad.


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Radio AdvertisingAdvantages

The ability to easily change and update scripts areparamount to radio broadcasting,since news stories can andoften do happen live.

If a radio personality announces your commercial, it's almostan implied endorsement.

Radio is also a way to support your printed advertising. Youcan say in your commercial, "See our ad in the SundayTimes,"

Disadvantages

You can't review a radio commercial. Once it plays, it's gone. Since there are a lot of radio stations, the totallistening

audience for any one station is just one piece of a muchlarger whole. People don't listen to the radio all the time ... only during

certain times of day.


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Television Advertising

Advantages

Television reaches verylarge audiences TV offers the greatest possibility for creative advertising. With a camera,you cantake your audience anywhere and

show them almost anything.

TV audience is divided into muchlarger segments,whichenables you to reach a larger,yet,more diverse audience.

Disadvantages the stations can charge more for commercials

Producing a commercial is also an important variable toconsider.

Creativity: A VitalElement you shouldn't attempt it unless you have enoughmoney in

your budget to do it


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OUTDOOR ADVERTISINGAdvantagesAdvantages

People can't "switch it off" or "throw it out." people who drive by or walk past see the same message a

number of times.

Abillboard located a block in front of your business candirect people to your showroom

Disadvantages

Outdoor advertising is a glance medium. At best, it onlydraws 2-3 seconds of a reader's time.

Messages must be brief to fit in that2-3 second time frame.

Ninety-five percent of the time, either the message or theaudience is in motion.

The nature of the way you buy outdoor advertising (usuallya three-month


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The reasons that advertisingThe reasons that advertisingfails are many:fails are many:

11 ..Inadequate briefs from advertisers to their agency.Inadequate briefs from advertisers to their agency.

2. Agencies seldom quantify their own objectives2. Agencies seldom quantify their own objectives -- the perceptionsthe perceptionsthey wish to create.they wish to create.

3. Sending the wrong message that does not address the perceived3. Sending the wrong message that does not address the perceiveddeficiencies.deficiencies.

4. The poor selection of media (budget limitations are generally4. The poor selection of media (budget limitations are generally

used as the 'excuse' for poor performanceused as the 'excuse' for poor performance -- so, advertise less to theso, advertise less to thecorrect audiences).correct audiences).

5. Not allowing the campaign to run long enough to achieve the5. Not allowing the campaign to run long enough to achieve theobjectives.objectives.

6. Too much spent on production.6. Too much spent on production.

7. Pre and post7. Pre and post--testing.testing.

8. Research.8. Research.

9. Unqualified personnel:,/I> it is critical to have both parties9. Unqualified personnel:,/I> it is critical to have both parties'qualified' in advertising and marketing and, leave this job to the'qualified' in advertising and marketing and, leave this job to theappointed personnel.appointed personnel.

10. Advertising must move away from a 'spend' to an 'INVESTMENT10. Advertising must move away from a 'spend' to an 'INVESTMENT'.'.


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Ifyoudonttake care ofyourIfyoudonttake care ofyour

customers, someone else will.customers, someone else will.


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THANK YOUTHANK YOU

Documents

Role of Advertising in Service Final