lovelock05 designing communication mix for services

7/24/2019 Lovelock05 Designing Communication Mix for Services

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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 1

Chapter 5

Designing theCommunications Mix

for Services


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Advertising Implications forOvercoming Intangibility (Fig. 5-1)

Problem Advertising Strategy

Generality

- objective claims Docment p!ysical system capacity

"ite past performance statistics - sbjective claims #resent actal service delivery incident

Nonsearchability #resent cstomer testimonials "ite independently adited performance

Abstractness Display typical cstomers benefiting

Impalpability Docmentary of step-by-step process$

"ase !istory of %!at firm did for cstomer

&arration of cstomer's sbjective eperienceSource: Mittal and Baer


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Ot!er "ommnications "!allengesin ervices *ar+eting

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

romote contribution of service personnel help customers understand service encounter

highlight expertise and commitment of backstage personnel


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etting "lear Objectives, "!ec+list for*ar+eting "ommnications #lanning (5 s/)

!hois our target audience!

!hatdo we need to communicate and achieve!

"o#should we communicate this!

!hereshould we communicate this!

!hendo communications need to take place!


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"ommon 0dcational and #romotionalObjectives in ervice ettings (able 5-2)

"reate memorable images of specific companies andtheir brands

#uild awareness$interest for unfamiliar service$brand

#uild preference by communicating brand strengths andbenefits

"ompare service with competitors% offerings and counter

their claims

&eposition service relative to competition

Stimulate demand in off-peak and discourage during peak


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0dcational and #romotional Objectives (cont.)

'ncourage trial by offering promotional incentives

&educe uncertainty$perceived risk by providing useful infoand advice

rovide reassurance (e)g), promote service guarantees*

Familiarize customers with service processes before use

+each customers how to use a service to best advantage

&ecognize and reward valued customers and employees


7/12Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 7

Word-of-mouth(other customers)

*ar+eting "ommnications *i for ervices(Fig. 13.4)

PersonalCommunications

Selling

Customerservice

Training

Advertising

Broadcast

Print

Internet

Outdoor

Direct mail

Sales Promotion

Sampling

Coupons

Sign-uprebates

Gifts

Priepromotions

Publicity &Public elations

Pressreleases!"its

Pressconferences

Specialevents

Sponsorship

!nstructional"aterials

Web sites

#anuals

Brochures

$ideo-audiocassettes

Soft%areCD-&O#

$oice mail

Signage

Interior decor

$ehicles

'(uipment

Stationer)

*niforms

Cor#orate$esign

Telemar"eting

Word of mouthTrade Shows,Exhibitions

Media-initiatedcoverage%

Key ! "enotes communications originating from outside the organi#ation


8/12Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 -

Originating orces of *essages eceived by aarget Adience (Fig. 5-5)

*essages originating%it!in t!e organi6ation

*essages originatingotside t!e organi6ation

#rodc

tion

"!annels

*ar+eting"!annels

$ront%line sta&&

Service outlets

AdvertisingSales promotions'irect maretingPersonal sellingPublic relations

!ord o& mouth

Media editorial

A7DI0&"0


9/12Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - '

!at is 8rand 09ity and !y Does It *atter:($rom Berry) *Cultivating Brand +,uity-.

Definition: set of assets and liabilities linked to a brand%sname and symbol that adds to (or subtracts from* theperceived value of the product

Insights

#rand equity can be positive or negative

ositive brand equity creates marketing advantage forfirmplus value for customer

erceived value generates preference and loyalty

anagement of brand equity involves investment tocreate and enhance assets, remove liabilities


10/12Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 1(

A ervice 8randing *odel,;o% "ommnications < 0perience "reate 8rand 09ity

Firm's #resented 8rand

(ales$ Advertising$ #)

!at *edia$ Intermediaries$

ord-of-*ot! ay re, Firm

"stomer's 0perience

%it! Firm

A%areness of

Firm's 8rand

*eaning Attac!ed

o Firm's 8rand

Firm's

8rand 09ity

Source: Adapted &rom /0 /0 Berry ( $ig0 1.

Mareter%controlled communications

2ncontrolled brand communications


11/12Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 11

*ar+eting "ommnication and t!e Internet (1)

.nternational in Scopeccessible from almost anywhere in the world Simplest form of international market entry

.nternet pplications romote consumer awareness and interest rovide information and consultation Facilitate /-way communications through e-mail and chat rooms Stimulate product trial

'nable customers to place orders easure effectiveness of specific advertising$promotionalcampaigns


12/12Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 12

*ar+eting "ommnications and t!e Internet (2)

0eb Site design considerations emorable address that is actively promoted

&elevant, up-to-date content (text, graphics, photos*

"ontain information that target users will perceive as

useful$interesting 'asy navigation

Fast download

.nternet advertising

#anners and buttons on portals and other websites seek to drawonline traffic to own site

1imits to effectiveness2exposure (3eyeballs4* may not lead toincreases in awareness$preference$sales

Hence, advertising contracts may tie fees to marketing relevantbehavior (e)g), giving personal info or making purchase*

lovelock05 designing communication mix for services

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