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Chapter 5

Designing the
Communications Mix
for Services

Slide ©2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 1

2 .subjective claims Document physical system capacity Cite past performance statistics 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.objective claims . Case history of what firm did for customer Narration of customer’s subjective experience Source: Mittal and Baker Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5.Advertising Implications for Overcoming Intangibility (Fig. 5-1) Problem  Advertising Strategy Generality .

professionalism  Simulate or dampen demand to match capacity  provide information about timing of peak.3 . experience.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. 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.

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? Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5.4 .

5 .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.

g.Educational and Promotional Objectives (cont.)  Encourage trial by offering promotional incentives  Reduce uncertainty/perceived risk by providing useful info and advice  Provide reassurance (e. 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 ..

10.7 .4) Personal Communications Advertising Sales Promotion Publicity & Public Relations Instructional Materials Sampling Press releases/kits Web sites Coupons Press conferences Manuals Corporate Design Selling Broadcast Customer service Print Training Internet Sign-up rebates Special events Brochures Vehicles Telemarketing Outdoor Gifts Sponsorship Videoaudiocassettes Equipment Direct mail Prize promotions Trade Shows. Exhibitions Software CD-ROM Stationery Media-initiated coverage Voice mail Uniforms Word-of-mouth Word mouth (otherof customers) * Signage Interior decor Key: * Denotes communications originating from outside the organization Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5.Marketing Communications Mix for Services (Fig.

Originating Sources of Messages Received by a Target Audience (Fig.8 . 5-5) Messages originating within the organization Front-line staff n uctio d o r P nels n a h C M a rk Chan eting nels Service outlets Advertising Sales promotions Direct marketing Personal selling Public relations A U D I E N C E Word of mouth Messages originating outside the organization Slide ©2004 by Christopher Lovelock and Jochen Wirtz Media editorial Services Marketing 5/E 5.

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 Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5.9 .

L. Word-of-Mouth Say re: Firm Customer’s Experience with Firm Meaning Attached To Firm’s Brand Source: Adapted from L.10 . Berry ( Fig. PR) Awareness of Firm’s Brand Uncontrolled brand communications Firm’s Brand Equity What Media. Intermediaries.A Service Branding Model: How Communications + Experience Create Brand Equity Marketer-controlled communications Firm’s Presented Brand (Sales. 1) Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 . Advertising.

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 .

graphics.g.. 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. up-to-date content (text.Marketing Communications and the Internet (2)  Web Site design considerations  Memorable address that is actively promoted  Relevant. giving personal info or making purchase) Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 .12 . advertising contracts may tie fees to marketing relevant behavior (e.