COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. C hapter 8 D EVELOPING T HE S ERVICE C OMMUNICATION M IX

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 Source: Adapted from Philip Kotler, Marketing Management, 9th ed. (Englewood Cliffs, NJ: Prentice-Hall, 1997), p Product Differentiation Personnel Differentiation Image Differentiation Service Differentiation Features Performance Conformance Durability Reliability Repairability Style Design (integrates the above) Symbols Written, audio/visual media Atmosphere Events Competence Courtesy Credibility Reliability Responsiveness Communication Delivery (speed, accuracy) Installation Customer training Consulting service Repair Miscellaneous service

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 Introduction Growth and maturity Maturity and decline Communication Content Informational Informational and persuasive Persuasive and reminder Communication Objectives 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 Source: Adapted from G. Lynn Shostack, “Breaking Free from Product Marketing,” The Journal of Marketing (April 1977). Tangible dominant Tangible evidence Intangible dominant Intangible image Perfume Fast food outlets Insurance

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