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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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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 2
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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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 3
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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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 4
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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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 5
"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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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 6
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
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Word-of-mouth(other customers)
*ar+eting "ommnications *i for ervices(Fig. 13.4)
PersonalCommunications
Selling
Customerservice
Training
Advertising
Broadcast
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
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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
$ront%line sta&&
Service outlets
AdvertisingSales promotions'irect maretingPersonal sellingPublic relations
!ord o& mouth
Media editorial
A7DI0&"0
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!at is 8rand 09ity and !y Does It *atter:($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
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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 ( $ig0 1.
Mareter%controlled communications
2ncontrolled brand communications
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*ar+eting "ommnication and t!e Internet (1)
.nternational in Scopeccessible from almost anywhere in the world Simplest form of international market entry
.nternet pplications romote consumer awareness and interest rovide information and consultation Facilitate /-way communications through e-mail and chat rooms Stimulate product trial
'nable customers to place orders easure effectiveness of specific advertising$promotionalcampaigns
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*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*