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Chapter 8 DEVELOPING THE SERVICE COMMUNICATION MIX COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. PRIMARY ROLE OF THE SERVICE COMMUNICATION MIX Inform Persuade Remind COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. COMMUNICATION MIX ELEMENTS Personal Selling Media Advertising Publicity and Public Relations Sales Promotions COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. Differentiation Approaches for Effective Positioning Product Differentiation Features Performance Conformance Durability Reliability Repairability Style Design (integrates the above) Image Differentiation Symbols Written, audio/visual media Atmosphere Events Personnel Differentiation Competence Courtesy Credibility Reliability Responsiveness Communication Service Differentiation Delivery (speed, accuracy) Installation Customer training Consulting service Repair Miscellaneous service Source: Adapted from Philip Kotler, Marketing Management, 9th ed. (Englewood Cliffs, NJ: Prentice-Hall, 1997), p. 283. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. Communication Content and Objectives Product Life Cycle Stage Communication Content Communication Objectives Introduction Informational Growth and maturity Informational and persuasive Maturity and decline Persuasive and reminder 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 COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. SERVICE PROVIDERS AND THEIR FUNCTIONS 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 COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. THE COMMUNICATIONS MIX AS IT RELATES TO THE CONSUMER DECISION PROCESS Preconsumption Considerations reducing perceived risk Consumption Considerations providing customers with a clear script Postconsumption Considerations managing customer expectations COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. SPECIAL PROBLEMS OF THE SERVICE COMMUNICATIONS MIX Mistargeted Communications Managing Expectations Technical service quality Advertising to Employees Selling/Operations Conflicts COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. GENERAL 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 Reduce consumer fears about variation in performance COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. The Impact of Intangibility: Different Communication Strategies for Different Products Tangible dominant Tangible evidence Intangible dominant Intangible image Perfume Fast food outlets Insurance Source: Adapted from G. Lynn Shostack, “Breaking Free from Product Marketing,” The Journal of Marketing (April 1977). COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. GENERAL 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 COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. SPECIAL COSIDERATIONS FOR SERVICE PROFESSIONALS Third-party accountability Client uncertainty Experience is essential Limited differentiability Maintaining quality control COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. SPECIAL CONSIDERATIONS FOR SERVICE PROFESSIONALS 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 COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED. COMMUNICATIONS TIPS FOR PROFESSIONALS 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 COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.