Utsav Mahendra : Designing the Communications Mix for Services
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Transcript of Utsav Mahendra : Designing the Communications Mix for Services
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Chapter 5
Designing the Communications Mix
for Services
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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
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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
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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?
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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
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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
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Word-of-mouth(other customers)
Marketing Communications Mix for Services(Fig. 10.4)
Personal Communications
Selling
Customer service
Training
Advertising
Broadcast
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
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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
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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
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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
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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
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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)