Designing the Communications Mix for Services

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 1

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 customer Narration of customers subjective experience

Source: Mittal and Baker

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 2

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
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

5- 3

Setting Clear Objectives: Checklist for M 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?

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 4

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
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

5- 5

Educational and Promotional Objectives (cont.) (

Encourage trial by offering promotional incentives Reduce uncertainty/perceived risk by providing useful info
and advice P 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
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

5- 6

Marketing Communications Mix for Services

( (Fig. 10.4)

Personal Communications
Selling Customer service Training

Advertising
Broadcast

Sales Promotion
Sampling

Publicity & Public Relations

Press releases/kits Press conferences Special events Sponsorship

Instructional Materials
Web sites

Corporate Design
Signage Interior decor

Print

Coupons Sign-up rebates Gifts Prize promotions

Manuals

Internet Outdoor

Brochures Videoaudiocassettes Software CD-ROM Voice mail

Vehicles Equipment

Telemarketing Word-of-mouth Word of mouth (other customers)

Direct mail

Trade Shows, Exhibitions

Stationery Uniforms

* Media-initiated coverage

Key: * Denotes communications originating from outside the organization

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 7

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 8

What is Brand Equity and Why Does It Matter? (From Berry, Cultivating Brand Equity) Definition: A set of assets and liabilities linked to a brands 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
Services Marketing 5/E Slide 2004 by Christopher Lovelock and Jochen Wirtz

5- 9

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

Marketer-controlled communications

Firms Presented Brand ( (Sales, Advertising, PR)

Uncontrolled brand communications

Awareness of Firms Brand

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

Firms Brand Equity

Customers Experience with Firm

Meaning Attached To Firms Brand

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

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5 - 10

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

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5 - 11

M Marketing Communications and the Internet (2)

Web Site design considerations

Memorable address that is actively promoted Relevant, up-to-date content (text, graphics, photos) R 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 effectivenessexposure (eyeballs) may not lead to increases in awareness/preference/sales Hence, advertising contracts may tie fees to marketing relevant b behavior (e.g., giving personal info or making purchase)
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

5 - 12