Designing the Communications Mix for Services

1. Chapter 5
Designing the
Communications Mix
for Services

2. 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 customer’s subjective experience
Source: Mittal and Baker

3. 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

4. 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?

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

6. 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

7. Marketing Communications Mix for
Services
(Fig. 10.4)
Personal Publicity & Instructional Corporate
Advertising Sales Promotion
Communications Public Relations Materials Design
Press
Selling Broadcast Sampling Web sites Signage
releases/kits
Customer Press Interior decor
Print Manuals
service Coupons conferences
Sign-up Special
Training Internet Brochures Vehicles
rebates events
Video-
Telemarketing Outdoor Gifts Sponsorship Equipment
audiocassettes
Word-of-mouth Prize Trade Shows, Software
Word of mouth Direct mail
(other customers) promotions Exhibitions CD-ROM Stationery
Media-initiated Voice mail Uniforms
* coverage
Key: * Denotes communications originating from outside the organization

8. Originating Sources of Messages
Received by a Target Audience (Fig. 5-5)
Messages originating
within the organization
Front-line staff
Service outlets
A
U
Advertising D
Sales promotions
I
Direct marketing
Personal selling
E
Public relations N
C
Word of mouth E
Messages originating
outside the organization Media editorial

9. 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

10. A Service Branding Model:
How Communications + Experience Create Brand Equity
Marketer-controlled communications
Firm’s Presented Brand (Sales, Awareness of
Advertising, PR) Firm’s Brand
Uncontrolled brand communications
Firm’s
What Media, Intermediaries,
Brand Equity
Word-of-Mouth Say re: Firm
Customer’s Experience Meaning Attached
with Firm To Firm’s Brand
Source: Adapted from L. L. Berry ( Fig. 1)

11. 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

12. 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