Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 1 Chapter 9 Promoting the Interactive Service Experience

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 2 Objectives 1.To emphasize the need for an integrated approach to marketing communications for services 2.To examine the role of the marketing mix in communicating with customers of a service 3.To discuss the role of the promotional mix in marketing communications for services 4.To examine the growing use of the Internet in promoting services

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 3 Objectives (cont'd) 5.To examine the advertising of services 6.To explore sales promotions for services 7.To present the role of personal selling in services 8.To discuss the role of publicity for services

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 4 Outline I.Introduction II.Services and Integrated Marketing Communications III.Marketing Communications and Services IV.The Promotional Mix V.Advertising the Service VI.Sales Promotions and Services

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 5 Outline (cont'd) VII.Personal Selling and Services VIII.Publicity and Services IX.Promoting Services on the Internet X.Summary and Conclusion

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 6 Services and Integrated Marketing Communications Integrated Marketing Communications (IMC) refers to the pursuit of a single positioning concept for an organization or its products It is achieved by planning, coordinating and unifying all its communication tools (Schultz, Tannenbaum, and Lauterborn 1996), such as: –Advertising –Personal Selling –Public Relations –Online Links –Etc.

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 7 Marketing Communications and Services Marketing Communications can help Tangiblize a Service Tangibilizing the service means making the service more concrete, thus enabling customers to understand it better (Shostack 1977). Every element of the Services Marketing Mix can be used to accomplish this. –The traditional 4 P’s (Price, Product, Place and Promotion), and –The additional 3 P’s (Participants, Physical Evidence, Process of Service Assembly

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 8 The Promotional Mix Promotion is the one element of the Services Marketing Mix which is designed specifically to communicate Traditionally, a promotional effort involves a Promotional Mix of elements that incudes: –Advertising –Sales Promotions –Personal Selling –Publicity and Public Relations Each one is emphasized to varying degrees depending on resources, objectives, etc.

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 9 Advertising the Service Advertising Objectives are sometimes captured by the acronym AIDA reflecting the goals of affecting customers’: – Attention, – Interest, –Desire and –Action Good advertising campaign will: make personal selling easier, generate publicity, help manage PR, and pave the way for effective sales promotions

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 10 Advertising the Service (cont'd) Advertising can enhance the vividness of a service through a strategy that uses concrete language, tangible objects, and dramatization techniques to tangibilize the intangible. It uses: –Pictorial Representation, –Verbal Association, –and Letter Accentuation. These combine an organization's name and its service to establish a strong link between service name and performance in customer minds.

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 11 Advertising the Service (cont’d) Guidelines for Advertising a Service (George and Berry 1981) include: ■ Provide tangible cues. ■ Capitalize on word-of-mouth communication. ■ Make the service understood. ■ Establish advertising continuity. ■ Advertise to employees. ■ Promise what is possible. A good services ad will reflect several of these guidelines but necessarily all of them

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 12 Sales Promotions and Services Sale Promotions for a service can accomplish several end results; –Attract customers –Accommodate cyclical demand –Enhance customers’ perception of the service –Add tangibility Examples include coupons, special sales, free trials, contests/sweepstakes, sponsored events, etc.

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 13 Sales Promotions and Services

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 14 Source: Adapted from George, William R., J. Patrick Kelly, and Claudia E. Marshall (1983), “Personal Selling of Services,” in Emerging Perspectives on Services Marketing, L.L. Berry, G. L Shostack and G. D. Upah (eds.), Chicago: American Marketing Association, Personal Selling and Services Concerns regarding the selling of services: –Orchestrate the service purchase –Facilitate quality assessment –Tangibilize the service –Emphasize organizational image –Use references external to the organization –Recognize the importance of all public contact personnel –Recognize customer involvement during the service design process

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 15 Publicity and Services Service organizations gain tremendously from good publicity –The information shared as publicity is typically perceived to be objective and/or credible –The best publicity an organization receives comes from delighted customers Service organizations must have plans in place to overcome or control negative publicity when it occurs A rapidly expanding source of publicity is found in the various social media platforms.

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 16 Promoting Services on the Internet The Internet is one of the most influential vehicles for services promotion Service organizations can qualify and target narrow segments of customers in novel and interactive ways, e.g., Amazon.com Advertisements can attract and link customers to online sources of information regarding service organizations and, in the case of retailing, even carry them to shopping locations and build relationships with them..

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 17 Promoting Services on the Internet (cont'd) Service organizations can also combine sales messages with Internet advertising to create a powerful combination of advertising and selling

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 18 Web Sites Broadmoor Hotel p. 126 Olive Garden ( p. 127http:// Ritz-Carlton Hotels ( p. 127http:// Scandinavian Airlines (SAS) ( p. 127http:// Sin City Brewery ( p. 128http:// Burberry ( p. 128http://

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 19 Web Sites (cont'd) Big Lots ( p. 128http:// Walt Disney Company ( p. 130http:// McDonalds ( p. 131http:// Wyndham Hotel Group ( p. 133http:// Priceline ( p. 133http:// United Parcel Service (UPS) ( p. 133http://

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 20 Web Sites (cont'd) British Airways ( p. 133http:// Prudential Insurance ( p. 134http:// Travelers Insurance ( p. 134http:// Merrill Lynch ( p. 134http:// FedEx ( p. 134http:// Southwest Airlines ( p. 135http://

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 21 Web Sites (cont'd) Delta Air Lines ( p. 135, 141http:// Domino’s Pizza ( p. 137http:// Jiffy Lube ( p. 137http:// Meals-on-Wheels ( p. 137http:// Burger King ( p. 138http://

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 22 Web Sites (cont'd) Wendy’s ( p. 138http:// Chick-fil-A Restaurant ( p. 139http:// AT&T ( p. 140http:// AirTran ( p. 141http://

Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 23 Web Sites (cont'd) Pizza Hut ( p. 141http:// NCAA ( p. 141http:// American Airlines ( p. 142http:// US Airways ( p. 142http://