Presentation on theme: "CHAPTER 7 Promoting SERVICES and Educating Customers"— Presentation transcript:
1 CHAPTER 7 Promoting SERVICES and Educating Customers
2 Specific Roles of Marketing Communications Position and differentiate serviceHelp customer evaluate offerings and highlight differences that matterPromote contribution of personnel and backstage operationsFacilitate customer involvement in productionStimulate or dampen demand to match capacity
3 Overcoming Problems of Intangibility May be difficult to communicate service benefits to customers, because of their intangible natureIntangibility creates 4 problems:GeneralityItems that comprise a class of objects, persons, or eventsNon-searchabilityCannot be searched, inspected or used before purchaseAbstractnessNo one-to-one correspondence with physical objects (i.e. financial services)Mental impalpabilityCustomers find it hard to grasp benefits of complex, multidimensional or new offerings
4 Overcoming Problems of Intangibility To overcome intangibilityUse tangible cues in advertisingExample: paper floor mats in car repairsUse metaphors to communicate benefits of service offeringsExample: “Like a good neighbor, State Farm is there…”NEW SLIDE!
5 Advertising Strategies for Overcoming Intangibility
6 Checklist for Marketing Communications Planning: 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 communications need to take place?
7 Target Audience: 3 Broad Categories ProspectsEmploy traditional communication mix because prospects are not known in advanceUsersMore cost effective communication channelsEmployeesSecondary audience for communication campaigns through public mediaShape employee behaviorPart of internal marketing campaign using company-specific channels
8 Common Educational and Promotional Objectives in Service Settings Create memorable images of specific companies and their brandsBuild awareness/interest for unfamiliar service/brandBuild preference by communicating brand strengths and benefitsReposition service relative to competitionReduce uncertainty/perceived risk by providing useful information, “physical evidence” and advice
9 Common Educational and Promotional Objectives in Service Settings Provide reassurance (e.g., promote service guarantees)Encourage trial by offering promotional incentivesFamiliarize customers with service processes before useTeach customers how to use a service to best advantageStimulate demand in off-peak times, discourage peak time usageRecognize and reward valued customers and employees
11 Messages through Marketing Channels: Advertising Build awareness, inform, persuade, and remindChallenge: How stand out from the crowd?Yankelovitch study shows 65% of people feel “constantly bombarded” by ad messages; 59% feel ads have little relevanceThe problem of ClutterEffectiveness remains controversialResearch suggests that less than half of all ads generate a positive return on their investment
12 Messages through Marketing Channels: Public Relations PR/Publicity involves efforts to stimulate positive interest in an organization and its productse.g., press conferences, news releases, sponsorshipsCorporate PR specialists teach senior managers how to present themselves well at public events, especially when faced with hostile questioningUnusual activities can present an opportunity to promote company’s expertisee.g., FedEx – safely transported two giant pandas from Chengdu, China, to the National Zoo in Washington, D.C. in a FedEx aircraft renamed FedEx PandaOne.
13 Consumers Can Filter Promotions On-demand technologies empower consumers to decide how and when they prefer to be reached, and by whome.g. TIVO, spam filters, pop-up blockers, podcastingPermission Marketing (Seth Godin)customers to volunteer their attentionEnables firms to build strong relationships with customerse.g., People invited to register at a firm’s website and specify what type of information they like to receive via
14 Messages through Marketing Channels: Sales Promotion Defined as “Communication that comes with an incentive”Should be specific to a time period, price, or customer groupMotivates customers to use a specific service sooner, in greater volume with each purchase, or more frequentlyInteresting sales promotions can generate attention and put firm in favorable light (especially if interesting results are publicized)e.g. SAS International Hotels – If a hotel had vacant rooms, guests over 65 years old could get a discount equivalent to their yearsDenny’s Free Breakfast on Superbowl Sunday
15 Messages through Marketing Channels: Trade Shows Popular in b2b marketplace; some b2c showsStimulate extensive media coverageMany prospective buyers come to showsOpportunity to learn about latest offerings from wide variety of suppliersSales rep who usually reaches four to five potential customer per day may be able to get five qualified leads per hour at a showShows you’re a “player”
16 Messages through the Internet: Online Advertising Banner advertisingSearch engine advertising (a.k.a. “Paid Search)“Reverse advertising”: search engines let advertisers know exactly what consumer wants through their keyword searchCan target relevant messages directly to desired consumersSeveral advertising options:Pay for targeted placement of ads to relevant keyword searchesSponsor a short text message with a click-through linkBuy top rankings in the display of search resultsGoogle AdWords and AdSense
17 Messages through Service Delivery Channels Customer service employeesNew customers in particular need help from service personnelService outletsBanners, posters, signage, brochures, video screens, audio etc.Self-service delivery pointsATMs, vending machines, kiosks and websites are examples
18 Messages Originating from Outside the Organization Word of Mouth (WOM)Recommendations from other customers viewed as more credible than company’s recommendationsStrategies to stimulate positive WOM:Having satisfied customers who provide positive commentsCourting opinion leadersCreating exciting promotions that get people talkingDeveloping referral incentive schemes
19 Messages Originating from Outside the Organization Blogs and Social Media – A new type of online WOMBecoming increasingly popularCommunications about customer experiences influence opinions of brands and productsSome firm have started to monitor blogs as form of market research and feedbackMedia CoverageCompares, contrasts service offerings from competing organizationsAdvice on “best buys”
20 Ethical Issues in Communication Advertising, selling, and sales promotion all lend themselves easily to misuse, deception and fraudCommunication messages often include promises about benefits and quality of service delivery which are not fulfilledWhy are expectations not met?Poor internal communications between operations and marketing personnel concerning level of service performanceOver promise to get salesDeceptive promotionsUnwanted intrusion by aggressive marketers into people’s personal lives: i.e. tele-marketing, SPAM, junk-mail
21 Strategies for Corporate Design Employ a unified and distinctive visual appearance for all tangible elementse.g. Logos, uniforms, physical facilitiesProvide recognition and strengthen brand imagee.g., BP’s bright green-and yellow service stationsStand out from the crowd and be instantly recognizable in different locationsMcDonald’s “Golden Arches”