Customer Education and Service Promotion

How Should We Communicate What Our Service Has to Offer? What do customers need to know about our service, its benefits, and how best to use it? (and about our company?) What communication methods will be most effective and efficient in reaching target audiences? What impressions can we convey through physical evidence? How well are our organization, its capabilities, and its brand names regarded? Do we want to change our image?

Role of Marketing Communication in Services: Inform Educate Persuade Remind and motivate action Maintain relationships

Services vs. Goods: Implications for Communication Strategy Intangible performances focus on process and benefits emphasize tangible elements e.g., servicescape, personnel create tangible metaphors Customer involvement in production train customers to use self-service teach customers about new technologies Help manage demand levels to match capacity Reduced communication role for intermediaries Importance of contact personnel requires internal communication to inform, motivate, create role models

Educational and Promotional Objectives for Service Create tangible, memorable images Build awareness, interest to stimulate trial Teach customers what to expect, how to use service Communicate brand’s strengths and benefits Manage demand levels Compare to competition and counter their claims Provide reassurance (e.g., promote guarantees) Recognize, reward valued customers Reposition service relative to competition Reduce uncertainty, risk

The (5 Ws) Checklist for Marketing Communications Planning Who is our target audience? What do we need to communicate and achieve? How should we communicate this? Where should we communicate this? When do communications need to take place?

Service Firms as Educators Training employees improves productivity and quality Well-trained customers perform better in their role as co-producers

Why is the Educational Role Important in Services Marketing? Helps customers make informed decisions Explains customer role in production Enables customers to develop desirable skills Shapes tastes and preferences as relationship evolves Explains changes in service processes Minimizes “jaycustomer” behaviour

Teaching Tools for Service Firms Advertising, promotion Brochures, instruction manuals Websites/Intranets/groupware Phones/hotlines Software Videos/audiotapes Presentations to groups vs. one-on-one coaching issues: free vs. paid; on-site vs. remote (e.g., phone) Other customers

Marketing Communications Mix Personal Publicity & Instructional Corporate Advertising Sales Promotion Communications Public Relations Materials Design Press Selling Broadcast Sampling Web sites Signage releases/kits Customer Press Interior decor Print Manuals service Coupons conferences Special Training Internet Discounts Brochures Vehicles events Word-of-mouth (other customers) Video- Outdoor Sign-up Sponsorship Equipment audiocassettes rebates Trade Shows, Exhibitions Software Telemarketing Direct mail Gifts CD-ROM Stationery Prize Voice mail Uniforms promotions

Why Use Sales Promotions in Services? Promotions are communications + incentives Good tool for small companies (variable cost) Reduce risk, encourage trial Appeal to price conscious consumers with coupons Can target specific segments, offer de facto price cut Add excitement to mundane purchases Help to match demand and supply

Uses of Sales Promotion Immediate Purchases Increase Trial Encourage repurchase Increase ad effectiveness Encourage brand switching Uses of Sales Promotion Encourage brand loyalty

Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Popular Tools for Consumer Sales Promotion

Implications of the Internet for Marketing Communication Multiple possibilities for communication—text, interactive graphics, audio, video Easier to measure advertising effectiveness on Internet—not just number of exposures but also “clickthroughs” to purchases, etc. Monitoring of individual customer behavior on the Web raises ethical questions relating to privacy invasion Interactive nature of Web builds rapport, facilitates “permission marketing” Companies collaborate through reciprocal marketing—joint listings on each other’s Web sites

Effective Types of On-Line Sales Promotion Free merchandise Effective Types of On-Line Sales Promotion Sweepstakes Free shipping Coupons