1. Developing the Service Communication Strategy
Chapter 7
Developing the Service Communication Strategy

2. Chapter Objectives
Discuss the steps necessary to manage the firm’s service communication strategy effectively.
Understand the special challenges associated with developing service communications.
Describe specific guidelines for developing service communications.
Appreciate the special considerations faced by professional service providers and recommend solutions to overcome these challenges.
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3. Opening Vignette: Geico
GEICO offers a classic illustration that as environmental forces change the course of a company’s overall marketing strategy, the service firm’s communication strategy should adapt to fit changing business conditions.
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4. Communication Mix Personal Selling Sales Promotions Publicity and
Relations
Advertising
Sponsorships
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5. Figure 7.1 Managing the Service Communication Strategy
Selecting Target Markets Establishing Communication Objectives Setting the Communication Budget Formulating the Positioning Strategy Establishing Message and Media Strategies Monitoring, Evaluating and Controlling the Communication Strategy
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6. Figure 7.2 PLC Stage and Communication Objectives
Informational
Informational and persuasive
Persuasive and reminder
Communication Tactics
Introduce the service offering
Create brand awareness
Prepare the way for personal selling efforts
Encourage trial
Create a positive attitude relative to competitive offerings
Provoke an immediate buying action
Enhance the firm’s image
Encourage repeat purchases
Provide ongoing contact
Express gratitude to existing customer
base
Confirm past purchase decisions
Product Life
Cycle Stage
Introduction
Growth and maturity
Maturity and decline
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7. Figure 7.3 Budget Techniques
Budget Setting Technique
Description
Top-down budgeting
Set by upper management
Bottom-up budgeting
Set by the product level or brand manager
Bottom-up/Top-down budgeting
Set by the product level and then revised by upper management
Top-down/Bottom-up budgeting
Set by upper management and then revised by product level
Percentage-of-sales
Set based on a percentage of the previous year’s sales
Incremental
Increased by a fixed percent every year
All-you-can-afford approach
Set based on what is left over after the firm pays for operating expenses and planned profits
Competitive Parity
Set based on promotional spending behavior demonstrated by the competition
Objective-and-Task method
Set based on the amount necessary to achieve stated communication objectives
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8. Figure 7.4 Differentiation Approaches for Effective Positioning
Source: Adapted from Philip Kotler, Marketing Management, 9th ed. (Englewood Cliffs, NJ: Prentice-Hall, 1997), p. 283.
Product Differentiation
Personnel Differentiation
Image Differentiation
Service Differentiation
Features
Performance
Conformance
Durability
Reliability
Repairability
Design (integrates the above)
Symbols
Written, audio/visual media
Atmosphere
Events
Competence
Courtesy
Credibility
Responsiveness
Communication Style
Delivery (speed, accuracy)
Installation
Customer training
Consulting service
Repair
Miscellaneous service
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9. Media Strategies for Targeting Users
Type 1 Staff
Deal with customers quickly and effectively
“once only” situations
Type 2 Staff
Requires some independent decision making
More intense communication than Type 1
Type 3 Staff
Tasks are complex and often nonrepeatable
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10. Figure 7.1 Managing the Service Communication Strategy
Selecting Target Markets Establishing Communication Objectives Setting the Communication Budget Formulating the Positioning Strategy Establishing Message and Media Strategies Monitoring, Evaluating and Controlling the Communication Strategy
©2011 Cengage Learning. All rights reserved.

11. Special Challenges Associated with the Service Communication Strategy
Mistargeted Communications
Managing Expectations & Perceptions
Technical service quality
Advertising to Employees
Selling/Operations Conflicts
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12. Specific Guidelines for Developing Service Communications
Develop a word-of-mouth communications network
Promise what is possible
Tangibilize the intangible
Feature working relationships between customer and provider
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13. Figure 7.5 The Impact of Intangibility: Different Communication Strategies for Different Products
Tangible
dominant
Tangible
evidence
Perfume
Fast food
outlets
Insurance
Intangible
dominant
Intangible
image
Source: Adapted from G. Lynn Shostack, “Breaking Free from Product Marketing,” The Journal of Marketing (April 1977).
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14. Specific Guidelines for Developing Service Communications
Reduce consumer fears about variation in performance
Determine and focus on service quality dimensions
Differentiate the service product from service delivery
Make the service more easily understood
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15. Special Consideration for Professional Service Providers
Third-party accountability
Client uncertainty
Experience is essential
Limited differentiability
Maintaining quality control
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16. Special Consideration for Professional Service Providers
Turning doers into sellers
Dividing the professional’s time between marketing and operations
Tendencies to be reactive rather than proactive
The effects of advertising are unknown
Limited marketing knowledge base
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17. Communications Tips for Professional Service Providers
Turn current clients into company spokespersons
First impressions are everything
Create visual pathways that reflect quality
Establish regular communications with clients
Develop a firm brochure
An informed office staff is vital
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18. Copyright © 2011 Cengage Learning.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2011 Cengage Learning.  
©2011 Cengage Learning. All rights reserved.