1. Designing the Communications Mix for Services
Chapter 5
Designing the Communications Mix for Services

2. Advertising Implications for Overcoming Intangibility (Fig. 5-1)
Problem Advertising Strategy
Generality
- objective claims Document physical system capacity Cite past performance statistics
- subjective claims 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 customer’s subjective experience
Source: Mittal and Baker

3. 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

4. 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?

5. 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

6. 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

7. Marketing Communications Mix for Services (Fig. 10.4)
Personal
Publicity &
Instructional
Corporate
Advertising
Sales Promotion
Communications
Public Relations
Materials
Design
Press
Selling
Broadcast
Sampling
Web sites
Signage
releases/kits
Customer
Press
Interior decor
Print
Manuals
service
Coupons
conferences
Sign-up
Special
Training
Internet
Brochures
Vehicles
rebates
events
Video-
Telemarketing
Outdoor
Gifts
Sponsorship
Equipment
audiocassettes
Word-of-mouth
(other customers)
Prize
Trade Shows,
Exhibitions
Software
Word of mouth
Direct mail
promotions
CD-ROM
Stationery *
Media-initiated
coverage
Voice mail
Uniforms
Key: * Denotes communications originating from outside the organization

8. Originating Sources of Messages Received by a Target Audience (Fig
Messages originating
within the organization
outside the organization
Production
Channels
Marketing
Front-line staff
Service outlets
Advertising
Sales promotions
Direct marketing
Personal selling
Public relations
Word of mouth
Media editorial A U D I E N C

9. What is Brand Equity and Why Does It Matter
What is Brand Equity and Why Does It Matter? (From Berry, “Cultivating Brand Equity”)
Definition: A set of assets and liabilities linked to a brand’s 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

10. A Service Branding Model: How Communications + Experience Create Brand Equity
Marketer-controlled communications
Firm’s Presented Brand (Sales, Advertising, PR)
Awareness of
Firm’s Brand
Uncontrolled brand communications
Firm’s
Brand Equity
What Media, Intermediaries,
Word-of-Mouth Say re: Firm
Customer’s Experience
with Firm
Meaning Attached
To Firm’s Brand
Source: Adapted from L. L. Berry ( Fig. 1)

11. 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 and chat rooms
Stimulate product trial
Enable customers to place orders
Measure effectiveness of specific advertising/promotional campaigns

12. 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 effectiveness—exposure (“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)