Marketing Communication in services
Nov 21, 2014
Marketing Communication in services
Primary Role of the Service Communication Mix
Inform
Persuade
Remind
Provide information to prospective customers regarding
Service options availableCost of serviceService deliverySpecific featuresFunctionsService benefits
Persuade target customers - service offers best solution to meet their
needs & build relationship with them
Help maintain relationships with existing customers Requires comprehensive up-to-date customer
database e-mail, websites, text messages
For example, doctors sending annual checkup reminders to patients
Greeting customers
Communicating Services
OVERCOMING PROBLEMS OF INTANGIBILITY
Difficult to communicate service benefits to customers, especially when intangible
Intangibility creates few problems:Abstractness /Mental impalpability - hard to understand,
non-figurative –think seriously to understand
Generality Difficult to see uniqueness. Items that comprise a class of
objects, persons, or events
Nonsearchability Cannot be searched or inspected before purchase
USING METAPHORS(IMAGES) TO COMMUNICATE VALUE PROPOSITIONS
Tangible metaphors help to communicate benefits of service offerings, for example: LIC of India —“Your Life is safeguarded” Google – “Shows faster search for
results”
Metaphors communicate value propositions more dramatically and emphasize key points of difference
Highlight how service benefits are actually provided (online ticketing)
Ad shows bar traps across office floor “What Did Your Consultants Leave Behind” Draws attention to how AT Kearney differentiates its service through careful work with “entire team” at all levels in client organization, thus making recommendations easier to implement
DHL IMPORT EXPRESS - Use of an easily grasped metaphor Heavily knotted string represents how complex importing can be Straight string represents how easy it would be using DHL’s express
service
Source: Courtesy DHL Express Singapore
HELP CUSTOMERS TO EVALUATE SERVICE OFFERINGS
Customers may have difficulty distinguishing one firm from anotherProvide tangible clues related to service performance
At times, Some performance attributes shown in advertising are for more to them than othersAirlines
Tell carefully about punctuality, safety control systems, Ability of your Pilots, crew, etc., ,
Do not talk too much in advertising
PROMOTE THE CONTRIBUTIONS OF SERVICE PERSONNEL
Frontline personnel are central to service delivery in high-contact services
Make the service more tangible and personalized
Advertise employees at work
Also, Service personnel should be informed about the content of new advertising campaigns or brochures before launch
SETTING COMMUNICATION OBJECTIVES
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?
ING Vysya1 ING Vysya 2
TARGET AUDIENCE: 3 BROAD CATEGORIES
New Prospects
Employ established communication mix because prospects are not known in advance
Users(existing ones)More cost-effective channels
Only to employees - Communication to be only for Internal Marketing
Consider Employees issues…….
- Risk generating cynicism(suspicion) among employees if communication promotes levels of performance that are seen as unrealistic
MARKETING COMMUNICATIONS MIX FOR SERVICES
* Denotes communications originating from outside the organization
Word-of-mouth(other customers)
Personal Selling comm.
Selling
Customer service
Training
Advertising
Broadcast
Internet
Outdoor
Direct mail
Sales promotion
Sampling
Coupons
Sign-up rebates
Gifts
Prizepromotions
Telemarketing
Word of mouth
*
Key: * Denotes communications originating from outside the organization
Publicity &public relations
Pressreleases/kits
Websites
Manuals
Brochures
Interactive software
Voice mail
Signage
Interior decor
Vehicles
Equipment
Stationery
UniformsMedia-initiated
coverage*
Marketing Communications Mix for Services
Pressconferences
Sponsorship
Special Events
Trade Shows,exhibitions
Instructionalmanuals & Tech
Corp Brand communication
SOURCES OF MESSAGES RECEIVED BY TARGET AUDIENCE
Messages originating within organization
Messages originating outside organization
Production
channels
Marketingchannels
Front-line staff
Service outlets
AdvertisingSales promotionsDirect marketingPersonal sellingPublic relations
Word of mouth
Media editorial
AUD IENCE
Sources
……….THROUGH PRODUCTION CHANNELS
Developed within organization and transmitted through production channels that deliver the service itself
Customer service from front-line staffShape customer’s perceptionsResponsible for delivering supplementary services such as
providing information, receiving payment, resolving problems, etc.
Cross-sell additional services
Service outletsPlanned and unintended messages reach customers –
Manage it properly; reg Servicescape
……….THROUGH MARKETING CHANNELS - PERSONAL SELLING
Interpersonal encounters educate customers and promote preferences for particular brand or productCommon in b2bEx: insurance, propertyYou can build relationship & so can create trust among
users.
Face-to-face selling of new products is expensive— telemarketing is lower cost alternative
…….THROUGH MARKETING CHANNELS: TRADE SHOWS
Popular in b2b marketplace
Stimulate extensive media coverage
Opportunity to learn about latest offerings from wide array of suppliersEnvironment is very competitiveCompare and contrast Question company reps
Physical evidence displayed through exhibits, samples, demonstrations
…….THROUGH MARKETING CHANNELS: ADVERTISING
Build awareness, inform, persuade, and remind
Challenge: How does a firm stand out from the crowd?TV, radio broadcasts, newspapers, magazines, Internet,
many physical facilities, transit vehicles—all cluttered with ads
Many e-tailers now using electronic recommendation agents
Research suggests that “less than half of all ads generate a positive return on their investment”
……THROUGH DIRECT MARKETING
Mailings, recorded telephone messages, faxes, e-mail
Potential to send personalized messages to highly targeted microsegmentsNeed detailed database of information about
customers and prospects
…….THROUGH MARKETING CHANNELS: SALES PROMOTION
Defined as “communication attached to an incentive”
Peak & Off-Peak seasons – crucial role
Should be specific to a time period, price, or customer group
Motivates customers to use a specific service sooner, in greater volume with each purchase, or more frequently
MESSAGES THROUGH MARKETING CHANNELS:PUBLIC RELATIONS
PR/publicity involves efforts to stimulate positive interest in an organization
For example, press conferences, news releases, sponsorships
Unusual activities can present an opportunity to promote company’s expertise
For example, FedEx safely transported two giant pandas from Chengdu, China, to the National Zoo in Washington, D.C. in a FedEx aircraft renamed FedEx PandaOne
……ORIGINATING FROM OUTSIDE THE ORGANIZATION
Word of Mouth (WOM)Recommendations from other customers viewed as more credible
Strategies to stimulate positive WOM
Referencing other purchasers and knowledgeable individuals
Creating exciting promotions that get people talking about firm’s great service
Developing referral incentive schemes
Blogs—a new type of online WOM
MARKETING COMMUNICATIONS AND THE INTERNET
Can be accessed from almost anywhere in the world Simplest form of international market entry available
“The firm cannot avoid creating interest in its offerings outside its local or national market” - Christian Grönroos
WEBSITE DESIGN CONSIDERATIONS
Contain useful, interesting information for target customers
Facilitate self-service in information gathering
Users expectFast accessEasy navigationRelevant and up to date content
WEBSITE DESIGN CONSIDERATIONS Design should address attributes that affect website
“stickiness”Content qualityEase of useSpeed of downloadFrequency of update
Memorable web address helps attract visitors to a siteEnsure that people are aware of/can guess firm’s web
address
EASYJET PAINTS / KESINENI TRAVELS – WEBSITE ADDRESS ON PHYSICAL EVIDENCE
EFFECTIVE ADVERTISING ON INTERNET:BANNER ADVERTISING
Placing advertising banners and buttons on portals such as Yahoo!, Netscape and other firms’ websites
Draw online traffic to the advertiser’s own site
Websites often include advertisements of other related, but noncompeting services
Advertisements for financial service providers on Yahoo!’s stock quotes page
Small messages from Amazon.com on web pages devoted to a specific topic
EFFECTIVE ADVERTISING ON INTERNET:SEARCH ENGINE ADVERTISING
Blogs - www.blogger.com
Google – The New Online Marketing PowerhouseGoogle AdWords—allows businesses to connect with
potential customers at the precise moment when they are looking at related topics; advertisers can display their ads at websites that are part of the Google content network
Google AdSense—In return for displaying relevant Google ads on their websites(CONTEXTUAL), publishers receive a share of advertising revenue generated
www.sify.com