1. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Part 5 MANAGING SERVICE PROMISES

2. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved CUSTOMER COMPANY External Communications to Customers GAP 4 Provider GAP 4 Part 5 Opener Service Delivery

3. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter 15 Integrated Services Marketing Communications The Need for Coordination in Marketing Communication Key Reasons for Service Communication Problems Four Categories of Strategies to Match Service Promises with Delivery Exceeding Customer Expectations: Caveats and Strategies

4. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Objectives for Chapter 15: Integrated Services Marketing Communications Introduce the concept of integrated services marketing communication. Discuss the key reasons for service communication problems. Present four key ways to integrate marketing communication in service organizations. Present specific strategies for managing promises, managing customer expectations, educating customers, and managing internal communications. Provide perspective on the popular service objective of exceeding customer expectations.

5. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 15.2 Communications and the Services Marketing Triangle Internal Marketing Vertical Communications Horizontal Communications Interactive Marketing Personal Selling Customer Service Center Service Encounters Servicescapes External Marketing Communication Advertising Sales Promotion Public Relations Direct Marketing Company Customers Employees Source: Parts of model adapted from work by Christian Gronroos and Phillip Kotler

6. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 15.3 Approaches for Integrating Services Marketing Communication Goal: Delivery greater than or equal to promises Improve Customer Education Manage Service Promises Manage Customer Expectations Manage Internal Marketing Communication

7. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Goal: Delivery greater than or equal to promises Offer Service Guarantees Create Effective Services Communications MANAGING SERVICE PROMISES Make Realistic Promises Coordinate External Communicatio n Figure 15.4 Approaches for Managing Service Promises

8. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Table 15.1 Services Advertising Strategies Matched with Properties of Intangibility

9. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Communicate Criteria for Service Effectiveness Create Tiered-Value Offerings Negotiate Unrealistic Expectations Goal: Delivery greater than or equal to promises Offer Choices Figure 15.7 Approaches for Managing Customer Expectations

10. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Goal: Delivery greater than or equal to promises Prepare Customers for the Service Process Clarify Expectations after the Sale Teach Customers to Avoid Peak Demand Periods and Seek Slow Periods Confirm Performance to Standards Figure 15.8 Approaches for Improving Customer Education

11. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Goal: Delivery greater than or equal to promises Create Effective Vertical Communications Align Back Office Personnel w/ External Customers Create Effective Horizontal Communications Create Cross-Functional Teams Figure 15.9 Approaches for Managing Internal Marketing Communications