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Chapter 5

Designing the
Communications Mix
for Services

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 1

Advertising Implications for


Overcoming Intangibility (Fig. 5-1)
Problem

Advertising Strategy

Generality
- objective claims
- subjective claims

Document physical system capacity


Cite past performance statistics
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 customers subjective experience

Source: Mittal and Baker

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 2

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
Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 3

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?

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 4

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
Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 5

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
Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 6

Marketing Communications Mix for Services


(Fig. 10.4)

Personal
Communications

Advertising

Sales Promotion

Publicity &
Public Relations

Instructional
Materials

Sampling

Press
releases/kits

Web sites

Coupons

Press
conferences

Manuals

Corporate
Design

Selling

Broadcast

Customer
service

Print

Training

Internet

Sign-up
rebates

Special
events

Brochures

Vehicles

Telemarketing

Outdoor

Gifts

Sponsorship

Videoaudiocassettes

Equipment

Direct mail

Prize
promotions

Trade Shows,
Exhibitions

Software
CD-ROM

Stationery

Media-initiated
coverage

Voice mail

Uniforms

Word-of-mouth
Word
mouth
(otherof
customers)

Signage
Interior decor

Key: * Denotes communications originating from outside the organization

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 7

Originating Sources of Messages Received by a


Target Audience (Fig. 5-5)
Messages originating
within the organization
Front-line staff
n
uctio
d
o
r
P
nels
n
a
h
C

M a rk
Chan eting
nels

Service outlets
Advertising
Sales promotions
Direct marketing
Personal selling
Public relations

A
U
D
I
E
N
C
E

Word of mouth

Messages originating
outside the organization
Slide 2004 by Christopher Lovelock and Jochen Wirtz

Media editorial

Services Marketing 5/E

5- 8

What is Brand Equity and Why Does It Matter?


(From Berry, Cultivating Brand Equity)
Definition: A set of assets and liabilities linked to a brands
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

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5- 9

A Service Branding Model:


How Communications + Experience Create Brand Equity

Marketer-controlled communications

Firms Presented Brand


(Sales, Advertising, PR)

Awareness of
Firms Brand

Uncontrolled brand communications

Firms
Brand Equity

What Media, Intermediaries,


Word-of-Mouth Say re: Firm

Customers Experience
with Firm

Meaning Attached
To Firms Brand
Source: Adapted from L. L. Berry ( Fig. 1)

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5 - 10

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
Measure effectiveness of specific advertising/promotional

campaigns

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5 - 11

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


Limits to effectivenessexposure (eyeballs) may not lead to
increases in awareness/preference/sales
Hence, advertising contracts may tie fees to marketing relevant
behavior (e.g., giving personal info or making purchase)
Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

5 - 12

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