Services Marketing Session 10 Module 2: Applying the 4 Ps of Marketing to Services Chapter 7: Promoting Services and Educating Customers Instructor:

Dr Irfan Amir Date: Wednesday, March 07, 2012

KEY POINTS
1. THE ROLE OF MARKEITNG COMMUNICATIONS Communication is the most visible or audible --- some would say intrusive --- of marketing activities, but its value is limited unless it is used intelligently in conjunction with other marketing efforts. An old marketing axiom says that the fastest way to kill a poor product is to advertise it heavily. By the same token, an otherwise well-researched and planned marketing strategy is likely to fail if prospective customers do not learn of a service firms existence, what is has to offer them, the value proposition of each of its products, and how to use them to best advantage. Customers might be more easily lured away by competitors and competitive offerings, and there would be no proactive management and control of the firms identity. Marketing communications, in one form or another, are essential to a companys success. 2. CHALLENGES OF SERVICES COMMUNICATIONS Several of the differences that distinguish services from goods also have a significant effect on the ways we approach the design of service marketing communication programs. The Problem of Intangibility Because services are performances rather than objects, their benefits can be difficult to communicate to customers, especially when the service in question does not involve tangible actions to customers or their possessions. Overcoming the Problems of Intangibility Tangible Cues Examples: Business schools feature successful alumni to make the benefits of its education tangible and communicate what its education could do for prospective students in terms of career advancement and salary increases. Use of Metaphors Some companies have created metaphors (images, descriptions) that are tangible in nature to help communicate the benefits of their service offerings and to emphasize key points of difference relative to competing alternatives. Insurance companies often use this approach to

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market their highly intangible products. Thus Allstate advertises that You are in Good Hands and Prudential uses the Rock of Gibraltar as a symbol of corporate strength. Wherever possible, advertising metaphors should highlight how service benefits are actually provided. 3. MARKETING COMMUNICATIONS PLANNING A useful checklist for marketing communications planning is provided by the 5 Ws model: 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 the communications need to take place?

Objectives may include shaping and managing customer behavior in any of the three stages of the purchase and consumption process --- the prepurchase, service encounter, and postconsumption stages. Common educational and promotional objectives for service organizations include: Create memorable images of companies and their brands. Build awareness and interest in an unfamiliar service or brand. Compare a service favorably with competitors offerings. Build preference by communicating the strengths and benefits of a specific brand. (Re)position a service relative to a competitive offerings. Reduce uncertainty and perceived risk by providing useful information and advice. Provide reassurance, such as by promoting service guarantees. Encourage trial by offering promotional incentives. Familiarize customers with service processes in advance of use. Teach customers how to use a service to their best advantage. Stimulate demand in low-demand periods and shift demand during peak periods. Recognize and reward valued customers.

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4.

THE MARKETING COMMUNICATIONS MIX

After understanding our target audience and our specific communications objectives, we need to select a mix of cost-effective communications channels. Most service marketers have access to numerous forms of communication, referred to collectively as the marketing communications mix. Different communication elements have distinctive capabilities relative to the type of messages they can convey and the market segments most likely to be exposed to them. As shown in Figure 1, the mix includes personal communications, advertising, sales promotion, publicity, and public relations, instructional materials, and corporate design.

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Personal Communicatio ns Selling

Advertising

Sales Promotion

Publicity and Public Relations

Instructional Materials

Corporate Design

Broadcas t

Sampling

Press Releases/ Kits

Websites

Signage

Custome r Service

Print

Coupon

Press Conferen ces

Brochure s

Interior Decor

Training

Internet

Sign-up Rebates

Special Events

Software CD-ROM

Vehicles

Telemark eting

Outdoor

Gifts

Sponsors hip

Instructi on Manuals

Equipme nt

Word of Mouth*

Direct Mail

Price Promotio ns

Trade Shows, Exhibitio ns

Stationer y

Mediainitiated Coverage *

Uniforms

Key: * Denotes communications originating from outside the organization. Figure 1: The Marketing Communications Mix for Services

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5. ETHICAL AND CONSUMER PRIVACY ISSUES IN COMMUNICATIONS Firms also need to consider the ethical and privacy issues associated with communications, especially as few aspects of marketing lend themselves so easily to misuse (and even abuse) as advertising, selling, and sales promotion. The fact that customers often find it hard to evaluate services makes them more dependent on marketing communication for information and advice. Communication messages frequently include promises about the benefits that customers will receive and the quality of service delivery. When promises are made and then broken, customers are disappointed because their expectations have not been met. A different type of ethical issue concerns unwanted intrusion by aggressive marketers into peoples personal lives. The increase in telemarketing, direct mail, and email is frustrating for those who receive unwanted sales communications. 6. THE ROLE OF CORPORATE DESIGN Corporate design is particularly important for companies operating in competitive markets where it is necessary to stand out from the crowd and to be instantly recognizable in different locations. Have you noticed how some companies stand out in your mind because of the colors they use, the widespread application of their logos, the uniforms worn by their employees, and the design of their physical facilities? 7. INTEGRATING MARKETING COMMUNICATIONS With so many channels delivering messages to customers and prospective customers, it becomes increasingly important for firms to adopt the concept of integrated marketing communications (IMC). IMC ties together and reinforces all communications to deliver a strong brand identity. It means that a firms various media deliver the same messages and have the same look and feel, and the communications from the different media and communications approaches all become part of a single overall message about the service firm and its products.

Source:

Lovelock, C. et al. (2011) Services Marketing: People, Technology, Strategy. Delhi: Pearson.

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