Educating customers and promoting the value proposition Promotion and education marketing communication communication must be viewed more broadly >r>^«o«_Ä than as just the use of paid media advertising, public relations, and professional salespeople marketing communication communication must be viewed more broadly than as just the use of paid media advertising, public relations, and professional salespeople effective communication is here to help to learn of a service firm's existence annual checkup reminders birthday and anniversary cards birthday and anniversary cards communicating services problem of intangibility - services are performances rather than objects therefore benefits can be difficult to communicate to customers --0------7 services are performances rather than objects therefore benefits can be difficult to communicate to customers to promote attributes/benefits of service, we can face abstractness it abstract concepts do not have one-to-one correspondence with physical objects -> it is challenging to connect services with those concepts generality airline seats rcFFcrs to items that comprise a class of objects, persons, or event* -> try to create a distinctive value proposition, make a specific offering meaningfully different from competing offerings nonsearchability intangibles cannot be searched or inspected before they are purchased -> make visible the tangible clues (credence attributes) (!■ tin tv. typo of equipment, mi be mental impalpability make customers understand what the experience of using them will be like and what benefits will result abstractness financial security abstract concepts do not have one-to-one correspondence with physical objects -> it is challenging to connect services with those concepts financial security safe transportation Going My Way is the smart choice in student transportation needs. airline seats cabin service reffers to items that comprise a class of objects, persons, or events -> try to create a distinctive value proposition, make a specific offering meaningfully different from competing offerings airline seats cabin service nonsearchability inta: insp -> rr. (cre< intangibles cannot be searched or inspected before they are purchased -> make visible the tangible clues (credence attributes) appearance of a health clube, typo of equipment, can be checked in advance mental impalpability mak the* like make customers understand what the experience of using them will be like and what benefits will result strategies in advertising include tangible clues fj You Tube vivid information catches the audience's attention, make impression on senses,... documentation examples of service provission usage of methaphors methaphors are intan^ it helps to ephasize key p highlight HOW service be thaphors methaphors are intangible in nature it helps to ephasize key points of difference highlight HOW service benefits are actually provided http://www.iOTcliches.com/tQp-ten-cliches http://www.ioicliches.com/top-ten-cliches o"-----------r----- 1 -| # -1 1 • http://w\w.ioicliches.com/iop-ien-clicl methaphors are intangible in nature it helps to ephasize key points of difference highlight HOW service benefits are actually provided acilitation of customer involvement customers need to be trained (as employee promotions to motivate desired behavior one-to-one tutoring to adapt to new procedure affect demand to match capacity e.g., offer extra value (room + breakfas promote contribution of service presonnel implies a promise of the personalized attention, Ler involvement customers need to be trained (as employees do) promotions to motivate desired behavior one-to-one tutoring to adapt to new procedure affect demand to match capacity e.g., offer extra value (room + breakfast) promote contribution of service presonnel implies a promise of the personalized attention, make it reasonable realistic (because it changes customers' expectation) setting communication objectives WHO is target audi WHAT do we need t HOW should we c i objectives WHO is target audience? affect demand to match capacity ■ ■..■II: I tl........; ... I II promote contribution of service presonnel prOSpeCtS (potential CUStOmes)--they are usually not known in advance, so ^ media ad ™ ■--.--traditional ways of promotion are used *c-^ ^u !c re LlSerS---_— \ purchase customer contact personnel \ employees urge ted infoi illation (direct mail, email, telephone) secondary judltnce • campaign can affect employee* by what i* promised to customers se It WHAT do we need to communicate and achieve? HOW should we communicate this? WHERE should we communicate this? WHEN do the communications need to take place? ience? • prospects (potential customes) • users-— • employees secondary audience - campaign can affect employees by what is promised to customers they are usually not known in advance, traditional ways of promotion are used one) media advertising public relations purchased lists (mail, telemarketing) customer contact personnel point-of-sale promotions targeted information (direct mail, email, teleph secondary audience - campaign can affect employees by what is promised to customers setting clear goals - otherwise it WHAT HOW \\J1 TT?r> the marketing communications mix numerous forms of communication see mind map "Sdi-KnwdilixivpU" Mm (iiauaidiii '. nr.- -■ ini.irh |h-Kl^j- .ltd nnhnr 11 *** MrUji uliiuiiil _ SOURCES Front-line employees & call center staff -— Service outlets Self-service delivery points Advertising - Public relations -Online marketing Web site- Direct marketing Sales promotions Personal selling - Word of mouth - Blogs and online ratings Media editorial - VT Source: Ada ...IJ.ILUg diagram by Adrian Palmer, Principles of Services Marketing, 4th ed. London: McGraw-Hill, 2005:397 corporate design desired brand image cognizable theme linking lance through use of :e corporate - to introduce a desired brand image - to provide a recognizable theme linking all service experiance through use of physical evidence FedEXr \ nchev.ro.iet ircijgg,,! HQ using ,_w _ u MIlC F xBllY''------Blue Ribbon I ^ ma visa using McDnld's FedEXr "chev.ro.let ...g^5".. at&t NIKE Blue Rrbbon em visa 3m© lECHMOtOGY SOÍLÍIKWS the united siale? öl anw/ifa ewr k HIP ''JOHN DEERE waUmart ac uc f««^:*. always Ft^ * ..^.^^B DISC#VR PBS •llllll Cisco Systems beta all serv physic name as a central element trademarked symbol using J animal motifs *" ING Red Bull name as a central element I'm lovin' it trademarked symbol UNITED 5TÜTC5 POSTAL SERVICE. animal motifs ING Red Bull internet Ies of usage yay communications internet many posibilities of usage it allows two-way communications reasonable cost helps to establish individual relationship internet advertising should be integral part of communications strategy communications strategy web site design considerations web site should contain information that customers will find useful and interesting users expcect speedy access, easy navigation and relevant up to date content users expcect speedy access, easy navigation and relevant up to date content set communication goals for the site - make a 'sticky' site! • promotional channel • self-service • news room that disseminates information • archive of press releases • all of these? • educational vs promotional content? make a 'sticky' site! easy to use quick to download ^ updated frequently effective advertising (webvertising) banner advertising to related ing services online traffic *'s own site banner advertisin placing banners to related but noncompeting services goals is to draw online traffic to the advertiser's own site doesn't necessarily increases in awareness, preference or sales failing in favour preferable tie fees to marketing-relevant behavior itir fees to levant behavior search engine advertising rse broadcast network -irs broadcasting their Ties, serach engines let sactly what consumers search can be seen as reverse broadcast network -instead of advertisers broadcasting their messages to consumes, serach engines let advertisers know exactly what consumers want targeted placement of ads to keyword serches short text message with click-through link pay-for-placement (buy top ranking positions) pop-ups launch automatically - usualy annoying and intrusive • social networks • podcasting • blogs reinforces all communications to deliver a strong brand identity lot of companies has disintegrated responsibilities for marketing (different departments are complementing with no coordination) IMC - integrated marketing communications - ties together and reinforces all communications to deliver a strong brand identity lot of companies has disintegrated responsibilities for marketing (different departments are comnlementinp with no coordination) THIS SP«* KUH «ík