Marketing Communication for Services

Customer Education & Service Promotion Ravi Shanker

Role of Marketing Communication in Services

x x x x

Inform Educate Persuade Remind and motivate action Maintain relationships

Promotion and Education

Informing/Educating, Persuading, & Reminding x Marketing communication tools media elements (print, broadcast, outdoor, retail, Internet, etc.) personal selling, customer service sales promotion, publicity/PR x Imagery and recognition corporate design and branding x Content information, advice, persuasive messages customer education/training

Services vs. Goods:

Implications for Communication Strategy
x

Intangible performances
focus on process and benefits emphasize tangible elements (e.g., servicescape, personnel) create tangible metaphors

Customer involvement in production

train customers to use self-service teach customers about new technologies

Services vs. Goods:

Implications for Communication Strategy
x

Help manage demand levels to match capacity Reduced communication role for intermediaries Importance of contact personnel requires internal communication to inform, motivate, create role models

Services vs. Goods:

Consumer Information Acquisition Process and Implications for Communication Strategy
x

Advertising Planning & Development Advertising Planning & Development

Marketing Marketing strategy strategy Specific advertising Specific advertising objectives objectives Creative Creative strategy strategy Media Media selection selection Advertising Advertising budget budget

Advertising Advertising production production Advertising execution Advertising execution and evaluation and evaluation

Marketing Communications Planning (5 Ws)

Who is our target audience? x What do we need to communicate and achieve? x How should we communicate this? x Where should we communicate this? x When do communications need to take place?
x

RESPONSE HIERARCHY
ACTION CONVICTION PREFERENCE LIKING KNOWLEDGE AWARE UNAWARE

Case: Corporate Campaign of Department of Post & Speed Post

D.O. P. PROFILE
COUNTRY SIZE : 32, 87, 263 SQ. KMS.

NETWORK:
LETTER BOXES 5,30,000 (83% RURAL, 17% URBAN) POST OFFICES 1,49,000 (89%RURAL, 11% URBAN) EACH P.O. SERVICES: 22.07 SQ. KMS and 4607 PEOPLE

WORK FORCE :
6 LACS +

HRD ACTIVITIES
POSTAL STAFF COLLEGE AND REGIONAL TRAINING CENTRE MEGHDOOT AWARDS P.S. WELFARE BOARD HOLIDAY HOMES

SERVICE ORIENTATION
15 OFFICES UNDELIVERED LETTER HANDLING 32.8M. PIECES 53% REACH DESTINATION 27% RETURNED 20% ?

RESEARCH FINDINGS PUBLIC AT LARGE:

Ordinary mail is most frequently used Nature of service & degree of involvement determines the levels of satisfaction or dissatisfaction. (eg., A lost money order keeps a customer dissatisfied for long.)

 NOT

PERCEIVED AS SPEEDY, EFFICIENT, SERVICE.

Lower income people rate Staff as discourteous but have perceptions of high reliability The Perceptions on Reliability decreases in the higher income groups.

MAJOR ASSETS: NETWORK, CUSTOMER SERVICE, SPEED POST & AGENCY FUNCTIONS; PLI, PSB
SPECIFIC EMOTIONAL CONSIDERATIONS FOR LETTERS AS AGAINST FAX. / TEL.

GROWTH AREAS: SPEED POST, ORDINARY MAIL, REGD. MAIL, PLI

NO NEED FOR ADDITIONAL SERVICES MAIL TRANSFER IS THE SIGNIFICANT ACTIVITY

PROBLEM AREAS :

Inadequate staff Loss in delivery of mail New posts not created Officers satisfied more than operational staff Staff dont take pride in working for Indian Post

Max changes taking place during the last decade but the staff is Unaware Most benefits of GOI Sr. to the staff but the Staff is unaware

FROM RESEARCH TO STRATEGY

1) desired image needs to be established in customers by imparting knowledge and appreciation of service and the problems faced by DOP in providing these services

2) MOTIVATING THE EMPLOYEES, MOREPARTICULARLY THOSE WHO DIRECT COME IN CONTACT WITH THE CUSTOMERS. 3) TO EDUCATE THE CUSTOMER TO COOPERATE, HELPING DOP TO SERVE THEM BETTER.

PROBLEM ADV. HAS TO ADDRESS

PUBLIC IS INDIFFERENT TO DOP. THEY CONSIDER ITS THEIR BIRTH RIGHT & TAKE DOP SERVICES FOR GRANTED.

ROLE OF COMMUNICATION
TO REMOVE INDIFFERENCE & MAKE PUBLIC EMPHATHISE WITH DOP - DOING GIGANTIC TASK AGAINST ALL ODDS. EVOKE FEELINGS OF REALIZATION, ACKNOWLEDGEMENT & APPRECIATION

I.

WHOM ARE WE TAKING TO?

THE TA. POTENTIAL BUYER, CURRENT USER INFLUENCER, DECIDER INDIVIDUALS, GROUPS, SPECIFIC PUBLICS OR

THEIR PERCEPTIONS ABOUT : CO, PRODUCT, BRAND PREFERENCES, MEDIA HABITS WHERE ARE WE ? WHY WE ARE THERE ?

TO WHOM WE SHOULD BE TAKING TO

PUBLIC AT LARGE : URBAN CENTRIC MALE FEMALE 15YRS+ 3000- 4500/- ABLE TO READ, WRITE

1. 2. 3. 4. 5.

BUSINESS : TRADERS, EXECUTIVES, CORPORATE HOUSES STUDENTS : INSTITUTIONS : HOUSEWIVES RETIRES

II

WHAT IS THE DESIRED RESPONSE ?

ULTIMATE (OF COURSE) PURCHASE IDENTIFY BUYER - READINESS STAGE & WHERE THE TA IS AT A PARTICULAR TIME COGNITIVE AFFECTIVE BEHAVIOURAL KNOW FEEL ACT

CURRENT IMAGE:
A MONOLITHIC, NON-SENSITIVE, SLOW., ANOTHER GOVT. ORGANIZATION

DESIRE IMAGE:
DOP - LIVING EXAMPLE OF HUMAN PERSEVERANCE

POSITIONING
DESPITE ODDS WE KEEP THE ENTIRE NATION IN TOUCH

DESIRED RESPONSE
I REALIZE THAT THE HUMANS DOING A GIGANTIC TASK

CORPORATE POSITIONING: OPTIONS

MARKET LEADER SHARE THE BIGGEST

QUALITY LEADER SERVICE LEADER

BEST, MOST RELIABLE MOST RESPONSIVE CUSTOMER PROBLEMS TO

CORPORATE POSITIONING: OPTIONS

TECHNOLOGY LEADER INNOVATION LEADER FLEXIBILITY LEADER IST TO DEVELOP NEW TECHNOLOGY MOST CREATIVE IN APPLYING NEW TECH. MOST ADAPTABLE

CORPORATE POSITIONING: OPTIONS

RELATIONSHIP LEADER PRESTIGE LEADER KNOWLEDGE LEADER MOST COMMITTED CUSTOMER'S SUCCESS MOST EXCLUSIVE BEST EXPERTISE (INDUSTRY/TECH/FUNCTIONAL TO

CORPORATE POSITIONING: OPTIONS

GLOBAL LEADER BEST FOR SERVING THE WORLD MARKET BEST PRICE PERFORMANCE THE LOWEST PRICE

VALUE LEADER BARGAIN LEADER

III

WHAT TO SAY?
..TO PRODUCE THE DESIRED RESPONSE FROM T. A. OBJECTIVES OF THE CAMPAIGN V/S MESSAGE CONTENTS

ATTRIBUTES WHICH WOULD HELP TO EVOKE DESIRED RESPONSE

LARGE NETWORK MASSIVE WORKFORCE WORKLOAD & HARDSHIPS DISTANCES & AREA COVERED INDIVIDUAL ATTENTION & CARE TO EVERY SINGLE ITEM

WHAT ASPECTS OF DOP BE HIGHLIGHTED:

TO BE POTRAYED AS ALIVE & VIBRANT EMPLOYEES DEDICATED & COMMITTED HIGHLIGHTING ELEMENTS OF ACHIEVEMENTS & HUMAN ASPECTS

IV HOW TO SAY IT LOGICALLY ?

STRUCTURING MESSAGE BY FORMATING BENEFITS, MOTIVATORS, REASONS IS IT THE

BIG IDEA

DOES IT GIVE THE RIGHT STROKES ------ THE RIGHT APPEAL

RATIONAL QUALITY ECONOMY VALUE FEATURES

EMOTIONAL

SENSORY

MORAL (SOCIAL CAUSES) CLEANENV. WOMEN EQUALITY

POSITIVE TASTE LOVE, HUMOUR TOUCH PRIDE, JOY NEGATIVE ENVY, FEAR GUILT, SHAME

HOW TO SAY SYMBOLICALLY ?

UN-NOTICED - UN-SOLD GOOD MESSAGE STRATEGY V/S POOR FORMAT (DOESNT STAND OUT OF THE CLUTTER, DOESNT ATTRACT ATTENTION_LEAST IMPACTFUL

PRINT : RADIO : TV :

HEADLINE, COPY, ILLUSTRATION, COLOUR WORDS, MUSIC, VOCAL QUALITY, VOCALIZATION ALL

VISUAL TREAMENT:
FOR EMOTIONAL TREATMENT, USE CHILDREN AS THE CONTRAL VISUAL THEME WITH MOVEMENT HAVING A TOUCH OF SIMPLICITY. EVERY LITTLE THING THEY DO IS ACCOMPLISHED THROUGH A LOT OF EFFORTS & BEHIND IT IS A SENSE OF PRICE & ACHIEVEMENTS.

T&M:
LOUD ( NOT TO BEG FOR SYMPATHY)

VI

WHAT MEDIA SHOULD BE USED ?

IDENTIFY PERSONAL MEDIA NETWORK OF TA INNOVATE ; NEWER MEDIA VEHICLES USAGE OF CONVENTIONAL MEDIA DONT FORGET : MEDIUM IS THE MESSAGE

MEDIA

TYPES

PERSONAL INFLUENCE CHANNEL WOM , P.I. CHANNEL SOCIAL CHANNEL EXPERT CHANNEL ADVOCATE CHANNEL

NON-PERSONAL INFLUENCE CHANNEL MASS MEDIA PRO-ABLE EVENTS

Educational & Promotional Objectives for Service

x

Create tangible, memorable images Build awareness, interest to stimulate trial Teach customers what to expect, how to use service Communicate brands strengths and benefits Manage demand levels

Compare to competition and counter their claims Provide reassurance (e.g., promote guarantees) Recognize, reward valued customers Reposition service relative to competition

Reduce uncertainty, risk

HOWEVER SERVICE PROMOTION IS DIFFERENT

DIFFERENCES DUE TO THE CHARACTERISTICS OF INDUSTRY: LACK OF MARKETING ORIENTATION PROFESSIONAL & ETHICAL CONSTRAINTS (Ex. HOSPITALS, HEARSE SR.) SMALLER SCALE OF OPERATIONS NATURE OF COMPETITION & MARKET CONDITIONS (WORKLOAD MORE THAN WHAT CAN BE HANDLED) LIMITED VIEW OF PROMOTIONAL METHODS AVAILABLE (ONLY ADVERTISING) THE NATURE OF SR. (AD AGENCIES)

DIFFERENCES DUE TO THE CHARACTERISTICS OF SERVICES CONSUMER ATTITUDE TYPICALLY CONSUMERS RELY ON SUBJECTIVE IMPRESSIONS TWO DIMENSIONS OF CON. ATTITUDE PERCEIVED AS BEING MORE PERSONAL CONSUMERS ARE SOEMTIMES LESS SATISFIED NEEDS AND MOTIVES FOR PURCHASE DESIRE FOR PERSONAL ATTENTION

BUYING PROCESS: MORE DIFFICULT FOR BUYERS TO EVALUATE QUALITY & VALUE IT IS LIKELY TO BE INFLUENCED BY OTHERS OR IN OTHER WORDS.. THE PERSONAL INFLUENCE NEED TO BUILD WOM

Marketing Communications Mix for Services

Personal Communications
Selling Customer service Training Word-of-mouth
(other customers)

Advertising
Broadcast

Sales Promotion
Sampling

Publicity & Public Relations

Press releases/kits Press conferences Special events Sponsorship

Instructional Materials
Web sites

Corporate Design
Signage Interior decor

Print

Coupons Discounts Sign-up rebates Gifts Prize promotions

Manuals

Internet Outdoor Retail displays Cinema theater Telemarketing

Brochures Videoaudiocassettes Software CD-ROM Voice mail

Vehicles Equipment

Stationery Uniforms

Direct mail

GUIDELINES FOR ADVG.

IT SHOULD HAVE +IVE EFFECTS ON CONTACT PERSONNEL IT SHOULD CAPITALISE ON W.O.M. IT SHOULD PROVIDE TANGIBLE CLUES TO THE CUSTOMERS IT SHOULD MAKE THE SR. OFFERING EASILY UNDERSTOOD IT SHOULD CONTRIBUTE TO THE CONTINUITY IT SHOULD PROMOSE WHAT IS POSSIBLE GEORGE & BERRY

Why Use Sales Promotions in Services?

x

Good tool for small companies (variable cost) Reduce risk, encourage trial Appeal to price conscious consumers Can target specific segments, offer de facto price cut Add excitement to mundane purchases Help to match demand and supply

x x x

x x

PROMOTIONS (CONSUMER)
SAMPLING ( ) COST OF SERVICE COUPONS () LESSER IN USE REFUNDS & FUTURE DISCOUNTS ( )
ONCE THE SR. IS CONSUMED NOT POSSIBLE / DIFFICULT

PREMIUMS (

) )

TO GIVE TANGIBLE CLUES

PRICE/ QUANIITY PROMOTION ( PRIZE PROMOTIONS ( )

TO GENERATE LONG TERM COMMITMENT

TO CREATE INVOLVEMENT / EXCITMENT

Service Firms as Educators

Training employees improves productivity and quality x Well-trained customers perform better in their role as coproducers
x

Why is the Educational Role Important in Services Marketing?

Helps customers make informed decisions x Explains customer role in production x Enables customers to develop desirable skills x Shapes tastes and preferences as relationship evolves x Explains changes in service processes x Minimizes jaycustomer behavior
x

Teaching Tools for Service Firms

x x x x x x x

Advertising, promotion Brochures, instruction manuals Websites/Intranets/groupware Phones/hotlines Software Videos/audiotapes Presentations to groups vs. one-on-one coaching issues: free vs. paid; on-site vs. remote (e.g., phone) Other customers

Implications of the Internet for Marketing Communication

x Increased

consumer usage of Internet means less time for watching TV or reading magazines and newspapers x Web offers multiple possibilities for advertising executiontext, interactive graphics, audio, video x As ad expenditures rise on Internet, other media lose out

Implications of the Internet for Marketing Communication

x Easier

to measure advertising effectiveness on Internetnot just number of exposures but also clickthroughs to purchases, etc. x Monitoring of individual customer behavior on the Web raises ethical questions relating to privacy invasion x Interactive nature of Web enables 2-way dialogue with customers, builds rapport, facilitates permission marketing

Review
x Understand the meaning of Marketing x Understand the meaning of Marketing

Communication Communication x Differentiate Persuasive Communication and x Differentiate Persuasive Communication and Promotional Inducements Promotional Inducements x Discuss Campaign Development Stages x Discuss Campaign Development Stages x Compare Advantages and Disadvantages of x Compare Advantages and Disadvantages of various Advertising Media various Advertising Media x Discuss Sales promotions for services x Discuss Sales promotions for services Understand role of Service Firm as an Educator Understand role of Service Firm as an Educator x Explore the emerging role of Internet x Explore the emerging role of Internet