MKT%205207%20Service%20Marketing

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MKT 5207Service Marketing

• Afjal Hossain
• Assistant Professor
• Department of Marketing

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Chapter 16Integrated Services Marketing
Communications
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Provider Gap 4Not matching performance to
promises
CUSTOMER
Gap 4 The Communication Gap
External Communications to Customers
Service Delivery
COMPANY
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Key Factors Leading to Provider Gap 4
Service Delivery
External Communications to Customers
Figure 2.5
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Communications and the Services Marketing Triangle
Company
External Marketing Communication Advertising
Sales promotion
Public relations Direct marketing
Internal Marketing Vertical communications
Horizontal communications
Customers
Providers
Interactive Marketing Personal selling
Customer service center Service encounters
Servicescapes
Figure 16.1
Sources Adapted from M. J. Bitner, Building
Service Relationships Its All about Promises,
Journal of the Academy of Marketing Science 23,
no. 4 (1995) and C. Gronroos, Services
Management and Marketing (Lexington, MA
Lexington Books, 1990).
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Integrated Services Communications

• Integrated Services Communications
• a strategy that carefully integrates all external
  and internal communication channels to present a
  consistent message to customers
• This means coordination across
• sales and service people
• print
• Internet
• other forms of tangible communication including
  the servicescape
• How is this done in services?
• advertising
• sales presentations
• service encounters with employees
• servicescape and other tangibles
• Internet and web presence

• public relations
• pricing
• service guarantees
• customer education

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Five Major Approaches to Overcome Service
Communication Channels
Figure 16.2
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(1) Approaches for Addressing Service
Intangibility

• Use narrative to demonstrate the service
  experience
• Present vivid information
• Use interactive imagery
• Focus on the tangibles
• Use brand icons to make the service tangible
• Use association, physical representation,
  documentation, and visualization
• Feature service employees in communication

• Use buzz or viral marketing
• Leverage social media
• Aim messages to influencers
• Create advertising that generates talk because it
  is humorous, compelling, or unique
• Feature satisfied customers in the communication
• Generate word-of-mouth through employee
  relationships

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Services Advertising Strategies Matched with
Properties of Intangibility
Exhibit 16.2
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(2) Approaches for Managing Service Promises

• Create a strong service brand
• Coordinate external communication

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Service Branding Model
Source Leonard L. Berry, Cultivating Service
Brand Equity, Journal of the Academy of
Marketing Science 28 (Winter 2000), pp. 128137.
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(3) Approaches for Managing Customer Expectations

• Make realistic promises
• Offer service guarantees
• Offer choices
• Create tiered-value service offerings
• Communicate the criteria and levels of service
  effectiveness

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(4) Approaches for Managing Customer Education

• Prepare customers for the service process
• Confirm performance to standards and expectations
• Clarify expectations after the sale
• Teach customers to avoid peak demand periods and
  to seek slow demand periods

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(5) Approaches for Managing Internal Marketing
Communication

• Create effective vertical communications
• Sell the brand inside the company
• Create effective upward communication
• Create effective horizontal communications
• Align back-office and support personnel with
  external customers through interaction or
  measurement
• Create cross-functional teams of sales, service,
  and operations people when developing new
  services or engaging in service improvements
• Maintain a customer focus throughout all functions

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Interactive Imagery Travelers
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Service Brand Icon The GEICO Lizard
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Focusing on Tangibles Associated with the
Service The Sierra Club
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Best Practices for Closing the Communication Gap
(Gap 4)

• Employing integrated services marketing
  communication strategies around everything and
  everyone that sends a message or signal.
• Manage customer expectations effectively
  throughout the experience.
• Develop mechanisms for internal communication to
  avoid over-promising and ensure successful
  delivery.

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DHLs Integrated Marketing Campaign
Source http//www.newdhl.com/advertising.asp?cid
dhlbt1hmpg1
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DHLs Outdoor Advertising
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DHLs Print Advertising
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DHLs Print Advertising Links to Employees
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Service Brand Icons
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Relax, Its FedEx Campaign

• Campaign objective
• demonstrate that FedExs portfolio of services
  will help businesses meet their needs more
  effectively
• Aimed at all businesses
• from small businesses to corporate customers
• Integrated marketing communications campaign
  involves TV, print, and radio ads
• the message the reliability that customers have
  come to expect is now more certain than ever, so
  they can relax

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FedEx Print Advertisements
Ad copy Keeping costs down is the most
important thing.Right after the 107 other
things. Give your customers what they want, when
they want it with FedEx Ground and the vast
FedEx transportation portfolio. It's a variety
of services that is sure to meet your variety of
transportation needs. Like giving you product
visibility throughout the delivery process via
FedEx InSight so you can increase customer
expectations and customer service all while
keeping costs down. To find out everything we can
do for you call 1.800.Go.FedEx (1.800.463.3339).
distribution.fedex.com/01 Relax, it's FedEx.
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FedEx Print Advertisements
Ad copy Make your customers happy, even when
they're not. Turn dissatisfied customers into
customers who come back. FedEx Ground and the
FedEx transportation portfolio can give you a
returns process that's easy for your customers
and cost effective for you. Giving the customer
what they want, when they want is a must. No
matter how many tries it takes. To find out what
we can do for you call 1.800.Go.FedEx
(1.800.463.3339). retail.fedex.com/03 Relax,
it's FedEx.
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FedEx Website

• www.fedex.com
• easy to use
• ties in with whole value proposition of campaign
• Print ads drive customers to websites with
  information on how FedEx provides solutions for
  specific industries
• retail, wholesale, apparel

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Sports Sponsorship

• Does not tie in directly with the Relax, Its
  FedEx campaign, but increases brand awareness

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FedEx Metrics for IMC Campaign

• FedEx must be able to evaluate the effectiveness
  of integrated marketing communication campaign
• customer surveys and focus groups about brand
  awareness
• number of telephone inquiries
• number of website hits and click-throughs
• number of shipments by customer segment
• growth in sales since campaign inception

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FedEx IMC Campaign Effectiveness

• Consistency of message
• Use narratives to demonstrate service experience
• Presents vivid information
• Promises what is possible
• Encourages word-of-mouth communication
• Indirectly features service customers

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FedEx Internal Communications

• Service employees must be well versed in what ads
  are promising
• Knowledge of services offered across the
  organization
• call centers
• web design
• e-mail response mechanisms
• InSight (new service offered)
• Cross-functional communication
• operations
• public relations/marketing