IMC of Services Marketing Managing the Service Promises Chapter 16

External Communications to Customers Provider Gap 4 CUSTOMER Service Delivery External Communications to Customers COMPANY The Communication Gap Part 6 Opener

Communications and the Services Marketing Triangle Figure 16.1 Company External Marketing Communication Advertising Sales promotion Public relations Direct marketing Sponsorship Marketing Database Marketing Internal Marketing Vertical communications Horizontal communications Employees Customers Interactive Marketing Personal selling Customer service center Service encounters Servicescapes Source: Kotler, Philip, Marketing Management: Analysis, Planning, Implementation, and Control, 9th Edition, © 1997.

Why are services more difficult to promote than physical products?

Key Reasons for Service Communication Challenges Inadequate management of service promises Usually and issue internally between departments or employees. Inadequate management of customer expectations Can be a result of external marketing providing unrealistic expectations. Inadequate customer education This often exists with high involvement services – i.e., certain medical services, certain financial services, etc. Inadequate internal marketing communications Both horizontal and vertical communication is important – i.e., between service employees and between management and employees

Approaches for Integrating Services Marketing Communication Figure 16.2 Manage customer expectations Manage service promises Goal: Delivery is greater than or equal to promises Improve customer education Manage internal marketing communication

Approaches for Managing Service Promises Figure 16.3 MANAGING SERVICE PROMISES Goal: Delivery is greater than or equal to promises Create effective services communications Coordinate external communication Make realistic promises Offer service guarantees

Create Effective Services Advertising Use narratives to demonstrate the service experience Present vivid information Use interactive imagery Focus on the tangible Feature service employees in communication Promise what is possible Encourage word-of-mouth communication Feature service customers Use transformational advertising

Coordinate External Communication Advertising Websites Sales promotion Public relations Personal selling

Approaches for Managing Customer Expectations Figure 16.11 Offer choices Create tiered-value offerings Communicate criteria for service effectiveness Communicate unrealistic expectations Goal: Delivery is greater than or equal to promises

Approaches for Improving Customer Education Figure 16.12 Goal: Delivery is greater than or equal to promises Prepare customers for the service process Confirm performance to standards Clarify Expectations before/ after the sale Teach customers to avoid peak demand periods and seek slow periods

Approaches for Managing Internal Marketing Communications Figure 16.13 Goal: Delivery is greater than or equal to promises Create effective vertical communications Create effective horizontal communications Align back-office personnel with external customers Create cross-functional teams

Which of these gaps are the easiest, hardest to close?

Mini Case – Vancouver Aquarium Tours – page 536

Key Factors Leading to the Customer Gap Customer Expectations Customer Perceptions Gap

Key Factors Leading to Gap 4 Lack of integrated services marketing communications Over promising Ineffective management of customer expectations Inadequate horizontal communications